Do these numbers make sense?

Prudent

I am so glad I don't live in London. I don't know how people in ordinary jobs can afford the rents/ mortgages. I am a teacher, so very average wage, and simply couldn't afford that.

meanmachine_2

London could potentially become like Los Angeles.

Populated by the very rich who use the services of the very poor.

There is no "inbetween".

Islington is like that now. Only city types, hoorays and, on the other side, council estates. Not a nice place to live and, as you'd expect, very crimey.

natwill_3

Seems that way...it was the same 7 years ago when I first came to London as a youngster..35k then got me not alot especially in west london

If I didn't work in the city I don't think it would be worth living here....even now friends of mine outside London seem to have much better quality of life, my age with houses and gardens and conservatories

sophistica

Is that a busy road? Something you need to check. Cheap for a London flat.

Doozergirl

Aren't they all busy roads in London?

F_T_Buyer

natwill wrote:

A 2 double bed flat in zone 2 london, v popular with young prof renters

Price paid 225k

annual service charge (includes hot water, caretaker, ins, communal gardens etc) 1500-2000 pa

HPI in this area 13%

Weekly rental £250+

Not me but someone else and I am curious, I calculate gross yield as nearly 6% but net yield far lower?

Simple answer. No.

A yield of 4.89% (after service charge) is pathetic. After voids + maintenance you will be making a loss (if you have a large mortgage) or you could make better returns in a bank account.

The only benefits is HPI (as you mentioned) but who is going to buy it? BTL investors? Well we've just debunked that. FTBs? You would need to earn around £50k to afford it - not many of them about. Add on rising interest rates, rising inflation etc etc ...

~~~

And with figures like this, people argue house prices are not in a bubble. :rotfl:

natwill_3

thanks for all your views