i am not a house price crash person and in fact

The_White_Horse

i think they will stay the same, or maybe rise a little over the next few years.

BUT

they are massively overpriced. family homes (ie a 3 or 4 bedroom semi detached) well outside London - but in the commuter belt - 700k ish?

who can actually afford these houses? sooner or later the people who can afford them and want them - ie young families with children who need to grow up in a decent sized house but who also have massive equity from buying themselves in the late 1990's / very early 2000's will dry up.

anyone who bought a house from mid 2000's onwards will have a much smaller amount of equity.

Lets say they bought a small terraced house around london for 250k in 2005 - that may now be worth 310k ish. Lets say they put down a 25k deposit and have paid of another 25k since 2005. Therefore they will have 60k plus 50k - so equity of 110k for a new home.

If the new family home they require is 700k - they require a mortgage of 590k!! that ain't happening. Lets say they only want a 600k house (which is not much in and around London) they still need a 490k mortgage and if they go for a 499k house, they still need 389k mortgage.

That sort of debt - which will be on interest rates of 6%+ over the 25 yrs is crippling.


So who is (and someone is) buying 700k semi detached houses?????

My salary is well above average, but I couldn't dream of it. And these houses are not mansions. They are bog standard semi detached houses that we grew up in with parents on one salary that were far smaller (inflation adjusted) that what we earn.

Something has to give. In more anecdotal evidence, I went to the cinema the other night. For two people - £30!!!! insane. Ok it was 3D and i took the "premium seat" buit that is only £2 more. that is insanity for a cinema. A family of 4 would pay 60 quid for a night at the cinema?????? Prices for everything are getting too high. We are headed for a fall.

ukcarper

Nothing like a bit of exaggeration not so far outside London nice area
http://www.rightmove.co.uk/property-for-sale/property-32981537.html

Quite a way out but still commuter territory.

http://www.rightmove.co.uk/property-for-sale/property-33144278.html

chucky

The_White_Horse wrote: »

I went to the cinema the other night. For two people - £30!!!! insane. Ok it was 3D and i took the "premium seat" buit that is only £2 more. that is insanity for a cinema.

what did you watch - did Mrs Horse enjoy it?

i went to watch the Hangover 2, funniest scene is the car chase that involved the monkey and the pig. quality entertainment.

FATBALLZ

ukcarper wrote: »

Nothing like a bit of exaggeration not so far outside London nice area
http://www.rightmove.co.uk/property-for-sale/property-32981537.html

A mere £430k with a free bedroom thrown in. What's the fuss?

ukcarper

FATBALLZ wrote: »

A mere £430k with a free bedroom thrown in. What's the fuss?

Didn't say they were cheap but a lot less than £700k. Plenty of people commute from where I live and you could get a 4 bed detached for less that £300k here and a 3 bed semi for less than £250k

ruggedtoast

White Horse, why on earth did you pay to see the Hangover 2 in 3D? Its common knowledge that 3d is only worth it for action films and animations.

Also, everytime the cinema give out a pair of 3d glasses the UKBA have to let in another family of benefit scrounging foreign immigrant foreigners.

Fact.

The_White_Horse

http://www.rightmove.co.uk/property-for-sale/property-28497235.html

http://www.rightmove.co.uk/property-for-sale/property-30333326.html

http://www.rightmove.co.uk/property-for-sale/property-30100780.html

no exageration there.

it wasn't Hangover 2 - i didn't even know that was in 3D. It was Pirates of the Caribbean 4.

ukcarper

I suggest you look south of London and spent a little more


http://www.rightmove.co.uk/property-for-sale/property-33396662.html

http://www.rightmove.co.uk/property-for-sale/property-18928335.html

FTBFun

I'm surprised you haven't been looking at Tunbridge Wells OP....

The_White_Horse

not bad, but i ain't going south of london!!

Loopgames

Come to East London - there are some lovey areas...see Woodford Green::


5 bedrooms for £440k
http://www.rightmove.co.uk/property-for-sale/property-18330087.html

Or cross a few streets to the Clayhall/barkingside area for even lower prices.

Both areas are in a london borough. And speaking as a person who has lived in south east london, north west london and east london I have to say these areas are the nicest that i would consider buying into again as a growing family.

BTW I will avoid crossing the thames to the south unless I'm going on the london eye!