London Has Peaked

Crashy_Time

hpifever wrote: »

http://www.dailymail.co.uk/tvshowbiz/article-1169915/Location-Location-Location-star-Phil-Spencers-property-firm-went-bust-owing-500-000.html

The "property expert"

Yes a right pair of plonkers :rotfl: People were lapping their nonsense up though, the bankers must have been wetting themselves at how easy it all was.

Bubble_and_Squeak

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.

not if you try to sell it through Haart!

Bubble_and_Squeak

lisyloo wrote: »

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.



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.

this is where the scheme starts to look like a ponzi.
the equity can only exist if someone is willing and able to pony up.
a few people i know have recently based their move what their house is "worth" but have been unable to find someone willing and able to pay that price.

ukcarper

Bubble_and_Squeak wrote: »

this is where the scheme starts to look like a ponzi.
the equity can only exist if someone is willing and able to pony up.
a few people i know have recently based their move what their house is "worth" but have been unable to find someone willing and able to pay that price.

I don't know why you keep referring to Ponzi scheme it's not. Prices don't have to increase to increase equity.

Crashy_Time

ukcarper wrote: »

I don't know why you keep referring to Ponzi scheme it's not. Prices don't have to increase to increase equity.

No, but someone else has to pony up for the equity to exist.

Bubble_and_Squeak

chucknorris wrote: »

I only care what it will be worth when I sell it, and it will be worth much more than £380k then (in 10 to 20 years from now). But in real terms I would take £380k plus inflation.


But you seem to be missing the point, I was replying to your post, where you were saying that there wouldn't be any HPI from 2008.

seriously, chucks
look at japan and then look where we're heading
if deflation sets in (which is looking very likely given the the price of oil) and ukip had their wicked way and take us out of europe (which is perhaps less likely) you wont live long enough to see the the likes of a bubble like this again

Bubble_and_Squeak

ukcarper wrote: »

I don't know why you keep referring to Ponzi scheme it's not. Prices don't have to increase to increase equity.

i'm saying its like a ponzi, its not an actual ponzi
currently we're in a situation where people think their property is worth a bubble amount. the reality is the money just isn't there to pay that price. people can't borrow the amounts required to keep it going at this level and hot money is no longer pouring in from abroad. somethings got to give. as we won't have many distressed sellers i would expect this is be slow correction (until the government intervenes)

Crashy_Time

Bubble_and_Squeak wrote: »

seriously, chucks
look at japan and then look where we're heading
if deflation sets in (which is looking very likely given the the price of oil) and ukip had their wicked way and take us out of europe (which is perhaps less likely) you wont live long enough to see the the likes of a bubble like this again

I have already told him that, but like many on here he doesn`t want to hear. The credit event that caused this bubble won`t be repeated in our lifetimes. My view on Europe is that it is breaking up anyway, UKIP and the UK are a sideshow, we would be better to leave while it is a negotiation instead of a disorganised breakup though, IMO.

Crashy_Time

Bubble_and_Squeak wrote: »

i'm saying its like a ponzi, its not an actual ponzi
currently we're in a situation where people think their property is worth a bubble amount. the reality is the money just isn't there to pay that price. people can't borrow the amounts required to keep it going at this level and hot money is no longer pouring in from abroad. somethings got to give. as we won't have many distressed sellers i would expect this is be slow correction (until the government intervenes)

To make it faster you mean? :T

ukcarper

Crashy_Time wrote: »

No, but someone else has to pony up for the equity to exist.

But that happens all the time.