London property bubble 'about to burst'

ILW

rizla01 wrote: »

There is no point in using extreme priced property to back up this argument.

MILLIONS for a VERY BASIC property - I don't think so!

£500,00 for a small bedsit? One or two perhaps.

Are you a Sun reader perchance?

Most properties in London are pretty fairly priced and will sell at those prices.

Dont be so sure, if anyone had said twenty years ago that a small one bed in Peckham would now cost quarter of a million, they would have been laughed at.

FTBFun

ILW wrote: »

Dont be so sure, if anyone had said twenty years ago that a small one bed in Peckham would now cost quarter of a million, they would have been laughed at.

Well it could cost that, but you'd be a bit of a mug to pay it! Mine was nowhere near that much (and isn't small ).

London property is expensive, and always has been, but that doesn't necessarily mean its overpriced.

Flight2quality

FTBFun wrote: »

Well it could cost that, but you'd be a bit of a mug to pay it! Mine was nowhere near that much (and isn't small ).

London property is expensive, and always has been, but that doesn't necessarily mean its overpriced.

So no matter what prices are in London they will never be overvalued? How stupid is that.

There are easy ways to measure over or undervalued, just compare with average wages for one. Wages in London are going down house prices are still way about their long term ratio to wages.

FTBFun

Flight2quality wrote: »

So no matter what prices are in London they will never be overvalued? How stupid is that.

There are easy ways to measure over or undervalued, just compare with average wages for one. Wages in London are going down house prices are still way about their long term ratio to wages.

People on average wages don't buy property in London, they rent if they live there or are in council/HA accomodation. That's fairly obvious I would think.

chewmylegoff

FTBFun wrote: »

Woah woah woah.....millions leaving one of the most densely populated cities in the world?

Madness, utter madness.

or less than 20,000 lower paid households moving from inner london to outer london, if we want to base this on facts rather than hyperbole of course.

rizla01

TheMystery wrote: »

Yes and look what happens when speculators pull out on mass..........

And what makes you think that they are going to?

I have read nothing that supports this current (or future) occurance.

What, precisely, do you base that supposition on?

Is your question based on any real FACT- or just EA's deplorable scare tactics, knee-jerk reaction to slight falls in certain regions or just wishful thinking on your behalf?

FTBFun

chewmylegoff wrote: »

or less than 20,000 lower paid households moving from inner london to outer london, if we want to base this on facts rather than hyperbole of course.

How dare you intercede with these so called "facts!" This is the internet don't you know.

Flight2quality

With share prices plunging and fears over Europe rising, homeowners might take comfort from the idea that at least interest rates won't rise. But they shouldn't be so sure. All David Stevenson is saying is why now could be the time to fix your mortgage rate.

We are in a deflationary environment. Stock markets are going down all over the world. Real estate is going down all over the world, even commodities are going down all over the world. Some are predicting oil will go down to $10 for example to show how much deflation we have.

http://www.youtube.com/watch?v=tj2s6vzErqY

The house price bulls love to shout about how in big inflation their debt is being inflated away. But they do not want to think about big deflation and their debts are surging against everything else.

rizla01

Flight2quality wrote: »

With share prices plunging and fears over Europe rising, homeowners might take comfort from the idea that at least interest rates won't rise. But they shouldn't be so sure. All David Stevenson is saying is why now could be the time to fix your mortgage rate.

We are in a deflationary environment. Stock markets are going down all over the world. Real estate is going down all over the world, even commodities are going down all over the world. Some are predicting oil will go down to $10 for example to show how much deflation we have.

http://www.youtube.com/watch?v=tj2s6vzErqY

The house price bulls love to shout about how in big inflation their debt is being inflated away. But they do not want to think about big deflation and their debts are surging against everything else.

Simple answer!

GULLIBLE!

Sorry if that sounds harsh but I suggest that you look to BOTH sides of the coin before coming to any conclusions and if you MUST quote American Scaremongerers (With a vested interest in preaching such drivel) then at least research the preacher.

greenmoneysaver_2

While school fees stay at about £180k per child for secondary school years only then a 3 bed next to a good school in London is damn good value at £650k. . . with 3 kids it would pay for itself. . .