house price madness

The_White_Horse

i was looking on rightmove at properties within a 3 mile radius of my house (Herts) and there is NOTHING within the £400k-£600k range.

INSANITY!!!!!!!!! You need £650k odd for a bog standard horrible 3 bed semi.

Madness. Yet still people are snapping them up. How???

theEnd

Cheap debt plus QE.

The_White_Horse

but i can't work out who is buying them!!

if you sell a house for say, £400k (which most don't) and you have a mortgage of £200k you will have £200k equity.

So, the house worth £650k stamp duty is what? £26k? plus other costs of selling and buying, say £6k - so £32k in all down.

You have £168k to put down.

You need a mortgage of £482k

So, even a person on £100k could not afford this 3 bed semi.

And the people buying are young families, in their mid 30's - a couple of kids. One working parent - one part time perhaps.

pawlala

The_White_Horse wrote: »

but i can't work out who is buying them!! .

The_White_Horse wrote: »

And the people buying are young families, in their mid 30's - a couple of kids. One working parent - one part time perhaps.

It seems you can!

grizzly1911

The_White_Horse wrote: »

but i can't work out who is buying them!!

Investment bankers?

New Years Day Today programme - which will be guest-edited by Barclays boss Antony Jenkins

Like his predecessor, Mr Jenkins is expected to use his appearance on the flagship BBC radio current affairs programme to defend banking industry pay.
“Basically, if you want to be in certain types of business you have to accept the pay structures in those industries. I am in investment banking, I have to be prepared to accept the compensation that goes along with investment banking and that is in the interests of our shareholders,” Mr Jenkins will say in a question and answer session recorded for the programme with students at an East London sixth form college.




Bless him.

ERICS_MUM

It's the same round here - mid Essex, prime London commuter land.

Developers are buying up and demolishing older houses on large plots and building 2 or 3 houses at £650,000 a go, which sell at near asking price within weeks.

Thrugelmir

The_White_Horse wrote: »

but i can't work out who is buying them!!

People do though. As long as they can afford to, they will. That's an open market.

the_flying_pig

The_White_Horse wrote: »

i was looking on rightmove at properties within a 3 mile radius of my house (Herts) and there is NOTHING within the £400k-£600k range.

INSANITY!!!!!!!!! You need £650k odd for a bog standard horrible 3 bed semi.

Madness. Yet still people are snapping them up. How???

nothing for half a mill within 3 miles of your house? maybe you live in the sticks where there aren't many houses of any kind, cheap or expensive, within 3 miles?

st albans for me pretty much sums up prime hertfordshire. it's 'leafy', safe, the state schools are good, etc, & a fast train is 20 minutes into london kings x, less than half an hour into the heart of the square mile [e.g. see train timetable]

according to rightmove average sold prices for 2012 were:

flat - £226k;
terraced - £363k;
semi - £452k; and
detached -£649k.

these prices sound about right to me.

"£650k odd for a bog standard horrible 3 bed semi" sounds more like london zone 2/3 or possibly a very very exclusive 'commuter belt' type area - in either case the answer to your question would be that only people with City money would be buying at all. but such places are very rare. even a very upmarket place with a very short commute like st albans is much cheaper.

moneyinmypocket

The guy with the biggest turkey, how bigs ya turkey

Frugalsod

It could be people who have moved out of London and sold their place there for a huge sum.

Near me even two bed flats are being built and sold for £400k and three bed flats £600k. All the new builds around me are from £500k to £1.2m

Linda_D_2

The_White_Horse wrote: »

i was looking on rightmove at properties within a 3 mile radius of my house (Herts) and there is NOTHING within the £400k-£600k range.

INSANITY!!!!!!!!! You need £650k odd for a bog standard horrible 3 bed semi.

Madness. Yet still people are snapping them up. How???

If you had worked hard instead of being a benefit scrounger then maybe you would have been able to afford one.