London home 'needs £93,000 wage'

Out,_Vile_Jelly

IveSeenTheLight wrote: »

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?

A lot of them are filling up the property pages of the free commuter rags, with pictures of couples drinking wine from their balconies, admiring the view of "Croydon's regeneration" with increasingly desperate shared ownership offers. Many of them in the nicer areas, eg SW London which has a large community of transient Antipodeans and S Africans, will be bought as BTLs I imagine, hopefully keeping rents low due to the surplus. The ones in the grottier areas don't look destined for much. It will be extrememly interesting to see how population dynamics and job markets affect things. In the meantime I will continue to rent my nice 1 bed Victorian conversion with garden and quietly save.

the_ash_and_the_oak

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

Well I don't personally need anything tbf

Take camberwell for example

1bed flats around 250k
http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=OUTCODE%5E2332&radius=0.0&displayPropertyType=&minBedrooms=1&maxBedrooms=1&minPrice=&maxPrice=&retirement=&partBuyPartRent=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&newHome=&auction=false&x=60&y=10

lets say a couple has 10% deposit, maybe a bit more, 30k. so they'll be borrowing 220 at...6%? 1100 a month in interest

or rent for 900 a month (and keep their 30k for some other time)
http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=OUTCODE%5E2332&minBedrooms=1&maxBedrooms=1&index=10

if they felt outlandish they could rent a 3bed terraced house for 1400!

http://www.rightmove.co.uk/property-to-rent/property-27384200.html?locationIdentifier=OUTCODE%5E2332&minBedrooms=3&maxBedrooms=3&pageNumber=2&fromSummary=true&backToListURL=%2Fproperty-to-rent%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E2332%26minBedrooms%3D3%26maxBedrooms%3D3%26index%3D10

chucky

the_ash_and_the_oak wrote: »

lets say a couple has 10% deposit, maybe a bit more, 30k. so they'll be borrowing 220 at...6%? 1100 a month in interest

or rent for 900 a month (and keep their 30k for some other time)
http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=OUTCODE%5E2332&minBedrooms=1&maxBedrooms=1&index=10

the question here is and it's down to people's personal choice and also timing if they don't mind spending that extra £200 (that they can reduce by over payments anyway) and avoid the potential insecurity and potential minefield of renting.

the_ash_and_the_oak

chucky wrote: »

the question here is and it's down to people's personal choice and also timing if they don't mind spending that extra £200 (that they can reduce by over payments anyway) and avoid the potential insecurity and potential minefield of renting.

I don't disagree - there are many non-financial reasons why it is better to buy (or rent tbf I guess)

They can overpay but being fair on this you prob have to say the renters could put that 200 to savings/deposit/stockmarket etc imo

chucky

the_ash_and_the_oak wrote: »

I don't disagree - there are many non-financial reasons why it is better to buy (or rent tbf I guess)

They can overpay but being fair on this you prob have to say the renters could put that 200 to savings/deposit/stockmarket etc imo

either are good choices - neither are bad. it all depends on personal circumstances.

the reason i said about overpayments is because of the capitilisation of future interest. pay capital back and get it out of the way - buying property at the buying price is hedged against inflation (in theory and more often than not).

with rent you can save, but cash in the bank isn't the best hedge against inflation.

Really2

the_ash_and_the_oak wrote: »

Well I don't personally need anything tbf

Take camberwell for example

Looking at your link they start at £109K
http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE^2332&sortByPriceDescending=false

IveSeenTheLight

the_ash_and_the_oak wrote: »

Well I don't personally need anything tbf

Take camberwell for example

1bed flats around 250k
http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=OUTCODE%5E2332&radius=0.0&displayPropertyType=&minBedrooms=1&maxBedrooms=1&minPrice=&maxPrice=&retirement=&partBuyPartRent=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&newHome=&auction=false&x=60&y=10

lets say a couple has 10% deposit, maybe a bit more, 30k. so they'll be borrowing 220 at...6%? 1100 a month in interest

or rent for 900 a month (and keep their 30k for some other time)
http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=OUTCODE%5E2332&minBedrooms=1&maxBedrooms=1&index=10

if they felt outlandish they could rent a 3bed terraced house for 1400!

http://www.rightmove.co.uk/property-to-rent/property-27384200.html?locationIdentifier=OUTCODE%5E2332&minBedrooms=3&maxBedrooms=3&pageNumber=2&fromSummary=true&backToListURL=%2Fproperty-to-rent%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E2332%26minBedrooms%3D3%26maxBedrooms%3D3%26index%3D10

Fair enough, you are showing that month on month it appears cheaper to rent and buy for these properties.
They may have been bought at a time when the current rents are paying the interest and the mortgage.

I guess it depends on where you think property prices will be in the future and how far into the future you are looking against.

Certainly a quick look highlights you may be looking at the top end of the 1 bed market as this link suggests that 1 bed flats are on average £175k, down 8% from last year.
http://www.home.co.uk/guides/asking_prices_report.htm?location=camberwell&lastyear=1

Might also be worthwhile understanding what the sentiment is for house prices in London

the_ash_and_the_oak

Really2 wrote: »

Looking at your link they start at £109K
http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE^2332&sortByPriceDescending=false

they do!

which makes me wonder even more about those 250k ones!

IveSeenTheLight

Really2 wrote: »

Looking at your link they start at £109K
http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE^2332&sortByPriceDescending=false

Certainly a vast difference between £250k and £109k

the_ash_and_the_oak

IveSeenTheLight wrote: »

Fair enough, you are showing that month on month it appears cheaper to rent and buy for these properties.
They may have been bought at a time when the current rents are paying the interest and the mortgage.

I guess it depends on where you think property prices will be in the future and how far into the future you are looking against.

Certainly a quick look highlights you may be looking at the top end of the 1 bed market as this link suggests that 1 bed flats are on average £175k, down 8% from last year.
http://www.home.co.uk/guides/asking_prices_report.htm?location=camberwell&lastyear=1

Might also be worthwhile understanding what the sentiment is for house prices in London

for 1bed flats I'd probably be thinking a 5-7 year time frame on average. for a 4bed detached house in the country...somewhat longer

the camberwell flats were the first pages for both sale and rent. pretty sure both go down quite a bit cheaper. think i compared like w like pretty much tho tbf. And while of course there are cheaper ones than 250 (simply go to page 8 of the link instead of page 1), this doesn't explain to me the market for 250k flats in this location (to be fair in many of these places they go into the high 300s - but i left those out as not so many of them)

sentiment in London is very high - and has hardly been hit at any point since 2007 imo