London Has Peaked

Bubble_and_Squeak

padington wrote: »

Friend near me in wooders says he's got three offers for his house now, two both for the asking price. It's practically a bunfight.

wooders is doing an ian!

lisyloo

the availability of cheap credit is the main reason i decided to buy late last year even though houses were overvalued

What's your definition of overvalued?
If you mean in terms of fundamental value as a place to live in then I'd agree.
However that doesn't necessarily mean that will reach fair or below fair in the forseeable future (and don't forget a big item on most women's minds is the fertility window so 17 years is pretty much a lifetime).

I think it's not contradictory to think that prices are high/overvalued but still see it's a good thing to buy.
This is where Crashy and the HPI crowd have gone wrong.

Bubble_and_Squeak

lisyloo wrote: »

What's your definition of overvalued?
If you mean in terms of fundamental value as a place to live in then I'd agree.
However that doesn't necessarily mean that will reach fair or below fair in the forseeable future (and don't forget a big item on most women's minds is the fertility window so 17 years is pretty much a lifetime).

I think it's not contradictory to think that prices are high/overvalued but still see it's a good thing to buy.
This is where Crashy and the HPI crowd have gone wrong.

hard question to answer
i suppose it comes down to what you physically get for your money
outside london you get so much more for what you pay but i'm willing to pay the higher levy for the shorter commute
also, as a member of an ethnic minority i would want to end up living next door to a bunch of ukip supporters

padington

How much value can you place on being able to live within a cycling distance of the centre of the best city in the world ? A city rich with constant free cultural activities. A place primed with some of the best jobs and people in the world ? A place where good ideas can be brought to fruition in days.

Next year every Londoner every weekend will be able to get everywhere citywide whenever they want by tube. A true 24 hour city. Home to the richest history that planet earth has to offer.

It's almost priceless.

Bubble_and_Squeak

padington wrote: »

How much value can you place on being able to live within a cycling distance of the centre of the best city in the world ? A city rich with constant free cultural activities. A place primed with some of the best jobs and people in the world ? A place where good ideas can be brought to fruition in days.

Next year every Londoner every weekend will be able to get everywhere citywide whenever they want by tube. A true 24 hour city. Home to the richest history that planet earth has to offer.

It's almost priceless.

only at the weekend!

Crashy_Time

lisyloo wrote: »

I agree with you that's there's something badly up.
I don't imagine anyone could say our personal or national debt levels are in any way healthy.
However in 2008 I took a mortgage rate of 0.99% and saved about £8K per year (for many years) on my mortgage and now own a home.
I don't know how many years I can expect to live in it rent free because none of us know how long we've got, but possibly up to another 45 years.
The value in owning a home doesn't come purely from hpi but comes from the savings on rent over a long period especially once you own it and that helps especially in retirement.

So whilst I don't dis your views about the economy like a few others do, it really doesn't look like you've made the best of the situation.

Having a house to live in for the rest of your life rent free cannot be dismissed as nonsense. It's a massive financial boost especially in retirement.

If you've done something better with your money than a geared, tax free investment plus hpi then I'm sure we're all ears, but for most unsophisticated investors that's really not very likely at all.

NEWSFLASH - There isn`t going to be any HPI from a 2008 purchase, there will be negative equity for some, and selling at less than they borrowed for others. Personally I don`t want to live in the same house for 45 years, but good luck with your choices.

Crashy_Time

padington wrote: »

How much value can you place on being able to live within a cycling distance of the centre of the best city in the world ? A city rich with constant free cultural activities. A place primed with some of the best jobs and people in the world ? A place where good ideas can be brought to fruition in days.

Next year every Londoner every weekend will be able to get everywhere citywide whenever they want by tube. A true 24 hour city. Home to the richest history that planet earth has to offer.

It's almost priceless.

If that is the case why can`t the City be left to market forces instead of being propped up by the taxpayer, why is the "best" idea many Londoners have had recently been signing up for an I.O mortgage? If London is such a hub of innovation and ideas why is it such an overinflated Ponzi just dying to burst!

chucknorris

Crashy_Time wrote: »

NEWSFLASH - There isn`t going to be any HPI from a 2008 purchase, there will be negative equity for some, and selling at less than they borrowed for others. Personally I don`t want to live in the same house for 45 years, but good luck with your choices.

If you don't believe me about this you ask your mate bubble (he was/is paying attention to this area). I am sure he will confirm the capital values are in the ball park. We bought a 3 bed Victorian house in Tottenham Hale for £243k in 2008, spent about £10k on it and it is currently worth over £380k. But that doesn't mean a lot to me right now, as we don't plan to sell for another 10-20 years. That isn't the end though, we let it out for £1,200/month, but the mortgage is only £141/month and has been for almost 6 years.

lisyloo

There isn`t going to be any HPI from a 2008 purchase

It's still very likely to work out cheaper than renting over the longer term.
I agree there are better times to buy than others, but waiting 17 years is a no-no for most women.

Personally I don`t want to live in the same house for 45 years, but good luck with your choices.

I guess I should consider myself lucky then having found a fabulous home, but most people do move and take their equity with them. The transactional costs aren't a major issue unless you are highly mobile (in which case buying may not work for you). Thanks for your good wishes. The risks are pretty small now we've effectively paid for it and have no mortgage to pay.

Crashy_Time

chucknorris wrote: »

If you don't believe me about this you ask your mate bubble (he was/is paying attention to this area). I am sure he will confirm the capital values are in the ball park. We bought a 3 bed Victorian house in Tottenham Hale for £243k in 2008, spent about £10k on it and it is currently worth over £380k. But that doesn't mean a lot to me right now, as we don't plan to sell for another 10-20 years. That isn't the end though, we let it out for £1,200/month, but the mortgage is only £141/month and has been for almost 6 years.

How long will it be worth 380k though?