Yanks Ask Has London Gone Mad ?

Generali

AndyGuil wrote: »

It probably would! Going back to Kings Cross/Euston you would be overlooking Regents Park (unless you were on the other side of the building). It really depends where you look as there are extremes at either end that can be compared anywhere, even just within the UK.

As a comparison, you could buy this place in a lovely spot an hour or 2 south of Sydney and stick $900k in your back pocket!

http://www.realestate.com.au/property-house-nsw-fairy+meadow-117295771

Who wouldn't want to live somewhere called Fairy Meadow?

setmefree2

Generali wrote: »

The fact remains that if the NYT thinks this is absolute fricking lunacy and you can live in a beautiful 2 bed apartment overlooking Central Park for less:

http://www.realtor.com/realestateandhomes-detail/415-Central-Park-W-Apt-16C_New-York-City_NY_10025_M32407-47347?row=31#modal_PhotoGallery

then there's a reasonable chance that this is absolute fricking lunacy rather than par for the course.

It's the speed that they've gone up that is breathtaking

Generali

setmefree2 wrote: »

It's the speed that they've gone up that is breathtaking

I agree. There was a period in about 2003/4/5(?) when prices were rising at about 30% pa. Obviously you can't have prices rising that much beyond incomes for long, rises moderated pretty quickly the last time and ultimately prices fell back a bit.

It'll be interesting to see whether this round of price rises will see a new plateau or whether prices will fall once the heat goes out of the market. The heat will go out of the market unless anyone really thinks that this house will sell for £10,000,000 in a decade, £95,000,000 a decade onwards and a billion quid 11 years after that (compounding 25% pa rises).

setmefree2

Generali wrote: »

As a comparison, you could buy this place in a lovely spot an hour or 2 south of Sydney and stick $900k in your back pocket!

http://www.realestate.com.au/property-house-nsw-fairy+meadow-117295771

Who wouldn't want to live somewhere called Fairy Meadow?

Really? - a £100,000 for a caravan?

AndyGuil

I expect settling to single digit increases is a likely scenario. If we go by the previous cycle then this is a very pessimistic prediction.

setmefree2

Generali wrote: »

I agree. There was a period in about 2003/4/5(?) when prices were rising at about 30% pa. Obviously you can't have prices rising that much beyond incomes for long, rises moderated pretty quickly the last time and ultimately prices fell back a bit.

It'll be interesting to see whether this round of price rises will see a new plateau or whether prices will fall once the heat goes out of the market. The heat will go out of the market unless anyone really thinks that this house will sell for £10,000,000 in a decade, £95,000,000 a decade onwards and a billion quid 11 years after that (compounding 25% pa rises).

I guess people just get into mad bidding wars and start pushing the prices up? The Estate Agents can't have suddenly decided to raise prices by 25%???

wotsthat

£650k - seems a bit steep.

I had a drive past this place at the weekend and had a nosey over the wall.

I'd buy this and stay at Travelodge's in the week.

http://www.rightmove.co.uk/property-for-sale/property-30616419.html

Generali

setmefree2 wrote: »

Really - a £100,000 for a caravan?

You're paying for the land rather than the property on it. Property is disposable in Aus. Built to last for 40 years generally.

Houses more than 30 years old typically have nil value. The first house I lived in over here after moving out of the in-Laws' place was a shack: it had holes in the walls that you could fit your fist in. The owners had bought it for over a million bucks because it sat on a big half acre and knew that, due to the relatively sensible PP laws over here, would be able to turn that space into a profitable business (childcare centre). I would guess that house had a negative value. It was an absolute dump with a wonderful garden.

setmefree2

Generali wrote: »

You're paying for the land rather than the property on it. Property is disposable in Aus. Built to last for 40 years generally.

Houses more than 30 years old typically have nil value. The first house I lived in over here after moving out of the in-Laws' place was a shack: it had holes in the walls that you could fit your fist in. The owners had bought it for over a million bucks because it sat on a big half acre and knew that, due to the relatively sensible PP laws over here, would be able to turn that space into a profitable business (childcare centre). I would guess that house had a negative value. It was an absolute dump with a wonderful garden.

Bit like where my sister lives in Florida. The houses look swish but are actually made of ticky tack. The value, as you say, is in the land they sit on.

setmefree2

Anyways, it'll be great to see the property in the OP all tarted up and looking lovely. I hate a scorched earth approach to property development.