Property Price Drop

davilown

lostinrates wrote: »

I have to say, I find it scary that in this world where nothing financial or institional seems so very impervious to this climate, the fact that the Olympics is unsettles me a bit. (Its great for you though!)

Agree with you there - I can see big cutbacks in the next few months especially on the transport side. There just isn't enough capital around and the government won't be able to support it with too much extra cash either.

pandamonia

kier333 wrote: »

£900 pcm mortgage
£100 council tax
£35pcm maintenance charge/ground rent
£200 for utilitys
= £1235 pcm give or take a few pound

so wheres the 1600 come from?

monthly food will be £200 easily at london costs

davilown

kier333 wrote: »

I'm confused with the term of the fix, everthing says go for the 5, but then i doubt in 2 yrs if SVR will be higher that 6.79% so make me think go with the 2 (if like you i could Fix for 5 yrs at 4.69 then i would in act i'd fix the full term at that rate and just over pay 20% and have the mortgage paid by the time i'm 45) BUT I doubt it and will have to stay on the banks SVR as i guess i'll be in negative equity 2011 even though over paying 20%. In 2 yrs i will have appox 130k outstanding but recon a 1 bed with low service charge in zone 2 in a small block, well maintained with over a 100 year lease will be worth a little more. Plus subject to planning and the Freeholders permision i will do a loft conversion. However we shall see.

That may be a little optimistic but this is only my opinion. I can't see a one bed flat, where ever it may be going back up in value by that much until well past 2020

kier333

pandamonia wrote: »

I just said i live near a Major UK city which is hardly lifeless, i will live outside in a smaller city which is much nicer and cleaner, i can drive around in my car without hassle. My salary goes further which means i can go on holiday more often and less stress on my finances.

you think very short term, a 1 bed box is hardly any good if you suddenly get a family going, also storage space is handy and spare bedrooms are good for my home office. living space is luxury this is why the value is higher the more you have of it.

also london is more in debted than any other city in the UK.

Dont plan to have a family
space is good i agree but i only need 1 bedroom plus subject to plaanning could extend into the loft,
I dont need to drive around i can take the tube
And would London be more debted as its bigger and more people?
I have around 3 holidays a year which is more than enough
Dont need office space my office looks over the docklands
I take your point about being cleaner however i dont sleep on the street so not really an issue plus near heath and 10minutes from hyde park on the tube so plenty of open space if ever i'm tired of my small garden

davilown

Cat695 wrote: »

but what happens if we end up like Japan who has a bigger econemy than us where prices haven't risen for over 5 years?? and interests rates haven't risen from 0% in 5 years

renting = roof over your head

Mortgage = roof over your head

and many people will argue that renting is still your home....though I have never rented so can't say

Lucky you never inhabiting married quarters!

kier333

pandamonia wrote: »

monthly food will be £200 easily at london costs

yes so around 1400

bear in mind my GF will split half the mortgage/bills

SamIAm_3-2

pandamonia wrote: »

monthly food will be £200 easily at london costs

Errr.....where did you get this figure from? What do you think people in London buy for food?

SamIAm_3-2

SamIAm wrote: »

Errr.....where did you get this figure from? What do you think people in London buy for food?

Sorry, my mistake. I thought you said £200 a week!

kier333

davilown wrote: »

That may be a little optimistic but this is only my opinion. I can't see a one bed flat, where ever it may be going back up in value by that much until well past 2020

Well i think you have no idea of the London property market then. May not increase alot but will certainly never go much beneath that.

davilown

kier333 wrote: »

I'll live with the NE sure in 5yrs i'll be in profit!

Fair dues but would love to see the price on the market in five years. A pint says it will be less than you've paid for it (plus all the interest you've paid as well).