London home 'needs £93,000 wage'

carolt

ninky wrote: »

yeah i'm thinking maybe polygamy is the way to go - forget DINKY (double income no kids), we need to be going at least OINKY (octuple income no kids).

Maybe the solution is to get one's children to work down the mines/up the chimneys again, so as to pay the mortgages of our landlords?

Why not go the whole hog, really, and bring back slavery?


Pah.

Really2

inspector_monkfish wrote: »

in a nutshell, my point (i think) is, there are so many different permutations that could be involved, its far too difficult for anyone to work out what the 'average' is

Cool. have a nice week end.

baby_boomer

London population is set to rise over the next two decades.

And there's no reason that 50% of them shouldn't rent rather than buy.

But there are many two income professional couples on £100K who can buy.

And there are plenty of investors seeking to find a retirement income which rises with wages/inflation which buy-to-let could yet satisfy.

Melsee_2

Property in London is seen as a safe investment in a prestigous capital city in a politically stable country. May be overseas buyers are buying - if the pound is weak so may be property is relatively cheap for foreign cash buyers now?

the_ash_and_the_oak

Melsee wrote: »

Property in London is seen as a safe investment in a prestigous capital city in a politically stable country. May be overseas buyers are buying - if the pound is weak so may be property is relatively cheap for foreign cash buyers now?

Certainly possible for sections of the market but there's an awful lot of £250k 1 bed apartments in places like Camberwell or Shepherds Bush. Do we think that overseas buyers exist in enough number to have a noticeable effect on these?

IveSeenTheLight

the_ash_and_the_oak wrote: »

Certainly possible for sections of the market but there's an awful lot of £250k 1 bed apartments in places like Camberwell or Shepherds Bush. Do we think that overseas buyers exist in enough number to have a noticeable effect on these?

£250k - 10% deposit = £225k

£225k / 3.5 times multiple = £65k

Therefore you would need a joint income application of £65k to be able to afford these £250k properties in the current climate.

Do you believe that £65k joint income in London is infeasible?

the_ash_and_the_oak

IveSeenTheLight wrote: »

£250k - 10% deposit = £225k

£225k / 3.5 times multiple = £65k

Therefore you would need a joint income application of £65k to be able to afford these £250k properties in the current climate.

Do you believe that £65k joint income in London is infeasible?

Not at all!

But are we saying here that couples with 65k joint salaries are the target market for those 1bed flats in Kensal Green?

IveSeenTheLight

the_ash_and_the_oak wrote: »

Not at all!

But are we saying here that couples with 65k joint salaries are the target market for those 1bed flats in Kensal Green?

I don't know the area, but if that is what a couple can afford

What you need is for more supply to be there than demand, then prices would reduce and couples might be looking at the "next rung"

Until there is more supply though, you might find as a single income, you are competing with joint incomes

Out,_Vile_Jelly

IveSeenTheLight wrote: »

I don't know the area, but if that is what a couple can afford

What you need is for more supply to be there than demand, then prices would reduce and couples might be looking at the "next rung"

Until there is more supply though, you might find as a single income, you are competing with joint incomes

None of my couple friends have bought 1 bed flats in London, preferring to get 2 bed terraces further out. I personally prefer to live more centrally, but I think once you're at the point of making the massive commitment of a mortgage then a small new build 1 bed with no garden, no parking and no room for possible kids becomes very unappealing. There seems to be a real glut of these type of properties all across London and it will be interesting to see what becomes of them, as they are unaffordable for most single FTBs and as I said, undesirable for many couples.

There is pretty much no bottom rung for a single FTB in London.

IveSeenTheLight

Out,_Vile_Jelly wrote: »

There seems to be a real glut of these type of properties all across London and it will be interesting to see what becomes of them, as they are unaffordable for most single FTBs and as I said, undesirable for many couples.

There is pretty much no bottom rung for a single FTB in London.

If there are a glut of these properties at the moment, what is happening to them now?

Are they bought by owner occupiers?

Are they rented accomodation?