What Quarter of a Million gets you in London

wotsthat

setmefree2 wrote: »

You're right - this might be better value?

http://www.rightmove.co.uk/property-for-sale/property-29577351.html

More central location?


Sounds lovely. Is it near the beach?

There's not enough space for a bed. The mirror on the wall is doing it's best but it's tiny. Prison cells are bigger.

Last weekend we did have a wander down to the beach with a couple of bottles of wine. Was a little disappointing - we haven't seen any dolphins for a few weeks now.

I'm trying to buy down there - I really hope you London chaps keep convincing yourselves that it's great value. I could do without competing with London money.

lostinrates

setmefree2 wrote: »

You're right - this might be better value?

http://www.rightmove.co.uk/property-for-sale/property-29577351.html

More central location?
?

Its super, I'd jump at it for a week time place for us were we able. but.....its not mortagable, so limits who can jump at it severely!

mayonnaise

Graham_Devon wrote: »

Maybe.

The only thing we do know is that as soon as HTB was announced, house prices took off.

For the 127th time...house prices took off the least in areas where HTB is most prevalent.

England bumped out of the world cup and soon after the Nationwide reported 11.8% YoY. I see a link.

wotsthat

Graham_Devon wrote: »

The only thing we do know is that as soon as HTB was announced, house prices took off.

So why did prices disproportionately increase in areas with the lowest take up of the scheme?

Cranbrook in Devon is, apparently, the HTB hot spot. Have they had 25% HPI?

Seems much more likely that London is being affected by a collision of a pre-existing shortage of housing and a strong economic recovery. It's cool too.

setmefree2

Generali wrote: »

4 flats! The housing crisis is over.:D

Yes but seriously. Complaining that you can't afford a property in Sheen is like complaining that you can't afford a property in Kensington or Chelsea. Most people in London don't live in Sheen, Kensington, Chelsea, Richmond, etc etc.... they live in regular places.

setmefree2

wotsthat wrote: »

There's not enough space for a bed. The mirror on the wall is doing it's best but it's tiny. Prison cells are bigger.

Last weekend we did have a wander down to the beach with a couple of bottles of wine. Was a little disappointing - we haven't seen any dolphins for a few weeks now.

I'm trying to buy down there - I really hope you London chaps keep convincing yourselves that it's great value. I could do without competing with London money.

We were thinking about Cornwall for a second home

I love London. I couldn't live anywhere else. My Grandad was born in Elfort Road, Highbury, my Great Grandad in Balham New Road, Balham, my great Great grandmother in Clapham (Bromel's Road & Clapham Park Road). I can trace some branches of my tree to Lambeth in the 1700s. They were baptised in St Mary's Lambeth (next to Lambeth Palace) which over looks the Houses of Parliament. Back then you got across the river on a boat, 'cos there was no bridge Oh, and everyone rented.:D

FWIW, I love London like it's a person!:D

Graham_Devon

wotsthat wrote: »

So why did prices disproportionately increase in areas with the lowest take up of the scheme?

Cranbrook in Devon is, apparently, the HTB hot spot. Have they had 25% HPI?

Seems much more likely that London is being affected by a collision of a pre-existing shortage of housing and a strong economic recovery. It's cool too.

It's NOT about transactions.

It's about sentiment.

I don't know how to make this any clearer, but you do this continually on many threads and I keep saying the same thing.

Sentiment for investors who see the government is willing to put a "floor" under prices. Sentiment for investors who see the government is willing to guarantor mortgages, meaning they will likely throw everything at the market to stop price falls. Sentiment from house buyers who thought "oh, better get in quick, house prices will rise" regardless of whether they used HTB or not.

There were many many articles around the time that HTB was announced warning of all this. Landlords on a landlord forum were reportedly buying in quick before Jan 2104 when HTB2 came along so they could make the most of the capital gain.

You keep talking about HTB transactions, but that's just a miniscule part of it. The sentiment is huge.

I'll ignore anything from hereon in with your going back to transactions.... as to be completely frank, I'm totally bored of you doing the same thing in response an ignoring everything I, or anyone else writes or says.

If you don't believe government guarantee's on mortgages brings any sentiment to the UK housing market, then just say so....but you won't. You just keep arguing from a position which suggests it doesn't, but aren't brave enough to actually stick your mast in the ground and suggest HTB does nothing for sentiment.

HTB is even in the promotional literature of some of the companies who sell UK homes abroad as a reasoning for UK property being a sound investment.

BillJones

wotsthat wrote: »

I'm trying to buy down there - I really hope you London chaps keep convincing yourselves that it's great value. I could do without competing with London money.

"Convincing" myself?

I can buy a 2,000 square foot flat on the water here in central London for only two years' salary. Is that not good value?

Edited to add, but "of course" buyers like me don't count. After all there are only a few hundred thousand of us competing for these properties...

mayonnaise

Scrap HTB tomorrow and it won't have the slightest effect on HPI.

What it will do is push out of the market all those who can easily afford a mortgage, but struggle to get a deposit together. Their place will happily be taken by cash buyers and BTL.

wotsthat

Graham_Devon wrote: »

If you don't believe government guarantee's on mortgages brings any sentiment to the UK housing market, then just say so....but you won't. You just keep arguing from a position which suggests it doesn't, but aren't brave enough to actually stick your mast in the ground and suggest HTB does nothing for sentiment.

HTB brings forward demand so there's going to be an effect on sentiment/ price pressure. I don't think this is being disputed.

London has the lowest take up of the scheme and the highest HPI. Cranbrook in Devon is the HTB hot spot and HPI will be about 5%? Why is there such a regional variation in sentiment and why is there an inverse relationship between this sentiment and scheme take up?

I'm afraid the answer is simple. There isn't a vast regional variation in sentiment due to HTB - you've grossly over-estimated the effect of HTB. You've also taken the coincidence of HTB being announced around the same time as HPI increases as evidence.

If HTB was abandoned then there would be an effect - I think you'd be very disappointed with how small that effect was and would just move onto the next 'big thing'.