Under 600k London Properties could boom with 'help to buy'

Turnbull2000

YoungBusinessman wrote: »

Did you sell it for £45k more? Not bad if you can get it.

He doesn't have to sell it. The equity he's gained will allow him to re-mortgages at an ultra cheap rate thanks to Funding for Lending, or release the equity and snap up a second property elsewhere.

padington

ballisticbrian wrote: »

There's no point talking up a market that hasn't even been allowed to finish dropping. The market forces will win come what may.

Its not going to drop, it's going to be strong gains for a good while yet.

Speak to you in 12 months.

padington

Graham_Devon wrote: »

The 600k thing is for new builds only...

Dunno how many newbuilds are going on in london, but the only effect it would have on your place would eb to reduce demand.

My bad, the government hasn't set the upper limit yet on the mortgage guarantee scheme - you're right.

However they will have to right?

The new build thing wont effect London property much apart from when the house builders start to make major mullah and then they'll start to build even more grandiose London sky scrappers for the rich.

Graham_Devon

padington wrote: »

My bad, the government hasn't set the upper limit yet on the mortgage guarantee scheme - you're right.

However they will have to right?

The new build thing wont effect London property much apart from when the house builders start to make major mullah and then they'll start to build even more grandiose London sky scrappers for the rich.

Excellent.

So, it's gone from "it will have a profound effect on the London property market" when thinking it might benefit your property...

...to "won't effect London property much" when I tell you it will actually remove demand from your property.

That's some turnaround.

padington

Graham_Devon wrote: »

Excellent.

So, it's gone from "it will have a profound effect on the London property market" when thinking it might benefit your property...

...to "won't effect London property much" when I tell you it will actually remove demand from your property.

That's some turnaround.

There are two initiatives at play, not one.

Lets talk in 12 months.

Talk is cheap, London property won't be.

padington

YoungBusinessman wrote: »

Did you sell it for £45k more? Not bad if you can get it.

Nope, don't think I'll ever sell it. Would love to help my niece buy another one though.

It's a cute 2 bed railway cottage with a roof terrace and garden only two mins from the tube that backs onto a conservation area full of wildlife and in walking distance of ally pally. The attic is also begging to be converted into a third bedroom.

Much more fun than gold, much safer than stocks and shares.

Regarding the bigger picture : The mortgage guarantee scheme is going to be a total game changer if the banks do play ball. If it works, by january next year every quick member of the family thats over 18 to 55 that can borrow or save a 5% deposit and has a regular income and ok credit record, will be able to buy their own place. It's a game changer believe me. London prices will shoot up with the new competition and so will cheap property near cities.

shortchanged_2

The killer blow for these £600K houses is that the mortgage taken out has to be on a repayment basis.

That's a £450K repayment mortgage. Pretty hefty.

padington

shortchanged wrote: »

The killer blow for these £600K houses is that the mortgage taken out has to be on a repayment basis.

That's a £450K repayment mortgage. Pretty hefty.

Yeah it will be the lower end of the market that does really well. Suddenly the cheaper the place - the more likely the price to rise.