£100K homes return to London

SGE1

neverdespairgirl wrote: »

As far as places for sale are concerned, prices seemed to rise fast in 2005 and 2006, and rise quite a bit in 2007.

They are now falling pretty fast.

A studio flat in a block full of them is one indication - have a look at this thread, here:

http://forums.moneysavingexpert.com/showthread.html?t=1281849&highlight=studio

By comparison, a run-down 5 storey Georgian house in Great James Street (a useful road, because the houses are all about the same size) sold for £1 million in 2001, a similar one sold for £1.5 million in August 2004, and another for £2.5 million in 2007. My best guess is that a similarly run-down place in that road would now go for about £1.75 million.

Rents - not gone up nearly as fast. When I was at uni, 1996 to 2001, people were paying about £100 a week for a room in a shared house / flat in WC1. It's not much more now - £175 a week, perhaps.

Rents for whole places have been static or falling slightly since 2007.

Renting is cheaper than owning, even with recent falls. You could rent a studio flat for £200 a week, incl. hot water and heating, now, so £10,400 a year. You would pay mortgage interest on the cheapest such flat for sale (getting a discount on the asking price) of about £10,000 a year, plus £2,000 a year in service charges.

Are you actually visiting properties?

WC1, very nice area though. I work there, so I get all the beautiful period properties shoved in my face on a daily basis.

neverdespairgirl

No, we aren't. Apart from the ones we live and work in, or our mates live and work in (-:

Both OH and I are in Chambers in Holborn, a nice handy stroll from our flat.

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carolt

:spam::spam::spam::spam:

carolt

Astonished no-one else seems to have posted this!

Anyone else wonder if possibly some journalists read this forum?

http://www.guardian.co.uk/money/2008/dec/11/house-prices-property

Ten of the best ... homes for £100,000

One benefit of the economic crisis is falling house prices, and there are affordable homes to be had all across the country, says Jill Papworth

hethmar

The cornish barn is lovely isnt it. But would cost so much to renovate.

If you see a decent cottage in sussex in your travels carol detached (very!) and near dog walking country but easy reach of sandy beaches, let me know

dopester

SGE1 wrote: »

Yes I do. The problem is, as I'm not really viewing any properties (I'm still building my deposit up), it's hard to tell whether the initial price was reasonable or completely ridiculous. Part of me sees a flat at 250k, reduced to 230k, but instead of thinking, 'yippee, 20k savings', I automatically think 'hmm, clearly the £250k valuation was pure wishful thinking, and even the new figure is unreasonable'.

The world is changing. The UK had much by way of reliance in the financial sector, which has crashed off the rails at 200mph. An incredible decades long credit peak has been reached.






Not that I'm saying we need another major destructive world war, but it did set the scene for 40-60 years of growth, mixed with cold-war inflation as well (communism increasing the tolerance of US inflation), mixed with high-levels of military spending

The remarkable feature of the postwar world has been the magnitude and persistence of inflation. All previous inflation in American history were wiped away with amazing regularity in deflations.

Here are the facts. The trend in inflation has been up since the bottom of the last depression, a long time by the scale of a human life. Taken an even longer view, prices have been rising for five hundred years, over the whole period of Western predominance in the world, but they have never risen quite the way they have in the last sixty years.

Deflations usually are periods when countries are at peace, but the last 60 years, for the US especially, military spending has been at a rate like it was still at war (which it has been of course for the past 8 years). Rising debt levels, even with complicated financial wizardry, can only go so high, before they create feedback which a forces deflationary reaction. Debt cannot indefinitely compound faster than income.

Then you have a load of other factors involved. The credit peak, which should have been reached years ago but was allowed to continue to insane levels via toxic instruments (and credit/debt is a main driver of growth), world-wide manufacturing surplus supply, decentralising technologies.

I know !!!!!! thinks it will be solved by ever more inflation, but I don't see it myself. The world system is being hit from all sides by the heavy forces of deflation.

novazombie

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space_rider

hethmar wrote: »

Isnt Nottingham the murder capital now?

As people have said, in even the most expensive areas there will be doss holes round the corner.

No it isn`t and any area can have murders. Look at the man who killed his wife and daughter by killing them and then setting fire to the place. Would you have thought it could happen there?

WTF?_2

dopester wrote: »

I know !!!!!! thinks it will be solved by ever more inflation, but I don't see it myself. The world system is being hit from all sides by the heavy forces of deflation.

I certainly don't think anything will be 'solved' by inflationary policies - I think high inflation is what we'll end up getting as a result of policies being implemented now.

Inflation will just redistribute wealth from savers and earners to debtors. It'll also benefit those with lots of assets but little actual hard cash savings. It won't solve anything and will make more problems.