Experts say wait 5 years to buy back into property

Dan:_4

Yoshua wrote: »

Oh so you think your not in denial, oh so you must not be then.

OK house prices have bottomed out they wont go down anymore, horay!


In the real world however you are wrong.

Yeah, right, okay.........I wish you all the best for the future. :rolleyes:

whathavewedone

Look London has always been expensive.

After the last recession when prices had bottomed my ex bought a one bed flat in Clapham/Brixton (Brixton postcode Clapham North station slightly closer than Brixton) for 98k. He had a 10k deposit. He was a newly qualified solicitor on around 30k.

I bought a one bed flat in Brixton in early 2002 for £155k. I was earning around 35k at the time and the boom had barely got going, nevertheless I wouldn't have been able to afford a 2 or 3 bedroom house. I was a FTB at the age of 31.

Most first time buyers are looking at flats not houses. You just can't expect houses in London to get so cheap that you will be able to afford one in a fashionable area (because lets face it Brixton is fashionable)

However, you can get a 3 bedroom house in Plaistow for under 250k. I should know, we sold ours for £249,950 in summer 2006. It sold again in summer 2007 for £275,000 and the last time I checked the current value is estimated to be £218k (a couple of months ago).

Nice Victorian 3 bed terrace with decent garden, didn't need anything doing when we left it. Not bad road, Zone 3.

As we had started a family we left London. I didn't want to have to carry on working while they were small and we were realistic enough to realise that we would not be able to afford a 4 bedroom house in a nice area of London on oh's 70k a year salary not to mention private school fees for 2 children on top because, lets face it, most state schools in London are pretty lousy.

You can't have everything. If someone couldn't afford to buy more than a 1 bed flat in Brixton in 1996 on a 30k salary with a 10k deposit and no debts then I'm sorry but I don't see it happening at the end of this recession either.

I think you should either accept that you can only afford a flat in London, get a better paid job, find a partner to pay half the mortgage, move somewhere commutable outside of London or get a house somewhere like Plaistow or Woolwich which you might be able to afford. Alternatively resign yourself to renting. If you're waiting for 3 bedroom houses in popular parts of London to come down to your level you will be waiting forever.

Conrad

I was out for a beer with 6 neighbours Friday and not one of them has been affected by recession (excluding myself) other than had thier mortgage payments slashed. One is planning to move up a wrung as he says it's now relatively cheaper to upgrade, plus he wants to obtain a 10 year fixed rate now whilst rates are low.

One was looking to get a B2L now.

In the South East prices are approaching the bottom, with maybe another 5% off at best.

crazygaijin

whathavewedone wrote: »

Look London has always been expensive.

After the last recession when prices had bottomed my ex bought a one bed flat in Clapham/Brixton (Brixton postcode Clapham North station slightly closer than Brixton) for 98k. He had a 10k deposit. He was a newly qualified solicitor on around 30k.

I bought a one bed flat in Brixton in early 2002 for £155k. I was earning around 35k at the time and the boom had barely got going, nevertheless I wouldn't have been able to afford a 2 or 3 bedroom house. I was a FTB at the age of 31.

Most first time buyers are looking at flats not houses. You just can't expect houses in London to get so cheap that you will be able to afford one in a fashionable area (because lets face it Brixton is fashionable)

However, you can get a 3 bedroom house in Plaistow for under 250k. I should know, we sold ours for £249,950 in summer 2006. It sold again in summer 2007 for £275,000 and the last time I checked the current value is estimated to be £218k (a couple of months ago).

Nice Victorian 3 bed terrace with decent garden, didn't need anything doing when we left it. Not bad road, Zone 3.

As we had started a family we left London. I didn't want to have to carry on working while they were small and we were realistic enough to realise that we would not be able to afford a 4 bedroom house in a nice area of London on oh's 70k a year salary not to mention private school fees for 2 children on top because, lets face it, most state schools in London are pretty lousy.

You can't have everything. If someone couldn't afford to buy more than a 1 bed flat in Brixton in 1996 on a 30k salary with a 10k deposit and no debts then I'm sorry but I don't see it happening at the end of this recession either.

I think you should either accept that you can only afford a flat in London, get a better paid job, find a partner to pay half the mortgage, move somewhere commutable outside of London or get a house somewhere like Plaistow or Woolwich which you might be able to afford. Alternatively resign yourself to renting. If you're waiting for 3 bedroom houses in popular parts of London to come down to your level you will be waiting forever.

I do want to buy a 2 or 3 bed house in a nice part of N,London near to the bottom of the falls.

I have about 100K spread around investments I know in the future (maybe up to 5 yrs) this will be enough to buy 2 or 3 bed semidetached somewhere like Mill Hill for instance. http://www.rightmove.co.uk/property-for-sale/property-20003125.html?locationIdentifier=POSTCODE%5E622652&sortByPriceDescending=false&displayPropertyType=houses&radius=1.0&oldDisplayPropertyType=houses&pageNumber=2&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DPOSTCODE%255E622652%26sortByPriceDescending%3Dfalse%26displayPropertyType%3Dhouses%26radius%3D1.0%26oldDisplayPropertyType%3Dhouses%26index%3D10
But I would consider getting a mortgage using my cash as a 50% deposit so paying around 200K for bigger place with a bit of land. Something like this I am keeping my eye on. Asuming prices fall a further 50%.

http://www.rightmove.co.uk/property-for-sale/property-20851877.html?locationIdentifier=POSTCODE%5E622652&sortByPriceDescending=false&displayPropertyType=houses&radius=1.0&oldDisplayPropertyType=houses&pageNumber=11&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DPOSTCODE%255E622652%26sortByPriceDescending%3Dfalse%26displayPropertyType%3Dhouses%26radius%3D1.0%26oldDisplayPropertyType%3Dhouses%26index%3D100

kennyboy66_2

Dan: wrote: »

Yeah, right, okay.........I wish you all the best for the future. :rolleyes:

Dan,

Yoshua, Novazombie, Crazygaijin - all the same person, sometimes posing as a man, sometimes as a woman, sometimes claining to have 2 x BTL's, sometimes to be on Housing Benefit, sometimes claiming to buy lots of Silver (at the cheapeast price of course). One post even talked about his/her fraudulent benefit claims - sadly that has been deleted.

Odd, very odd.

the_ash_and_the_oak

in 1996 houses in zone 2 north london were between 1/4 and 1/3 of prices today.

I'm not totally sure but i kinda think salaries were not between 1/4 and 1/3 of salaries today

Kenny4315

novazombie wrote: »

Why is this crash taking so much longer than any others in history?

Interest rates .... at historical low levels, that's been delaying the process.

Harry_Powell

Conrad wrote: »

I was out for a beer with 6 neighbours Friday and not one of them has been affected by recession (excluding myself) other than had thier mortgage payments slashed. One is planning to move up a wrung as he says it's now relatively cheaper to upgrade, plus he wants to obtain a 10 year fixed rate now whilst rates are low.

One was looking to get a B2L now.

In the South East prices are approaching the bottom, with maybe another 5% off at best.

The company I work for has cut back on project work and got rid of all of the external contractors, but other than that it's business as usual. Its the same with many of my friends and family. It's a bit like being in the eye of a hurricane, you can see the destruction in the distance, but its strangely calm where you are.

Unfortunately, hurricanes move and it's coming our way! :eek:

whathavewedone

1996 was the absolute bottom of the market so not a really good benchmark for reasonable house prices.

In the late 90s a newly qualified solicitor around Chancery Lane (so not the magic circle city firms) could expect to get 27-30k. In 2007 when prices were at their peak a NQ salary was more like 40-45k.

Dan:_4

And the bottom of the market will very from region to region. During the 90s and in the South East the bottom was 1994.