London Has Peaked

Bubble_and_Squeak

this notion of 16 buyers per property is complete and utter nonsense

In_For_A_Penny_2

Bubble_and_Squeak wrote: »

looking at the way supply is building up it doesn't look like anyone is buying in london

Assuming supply is increasing (and I'm not convinced you have demonstrated that). . . Why do you think supply is building up?

Clearly its not from more building. If it is ordinary home owners then they would be looking to live elsewhere and so no change in the supply there. BTL investors selling up?

Granted some BTL property owners may feel now is a good time to "cash in" but unless they have multiple properties, I still reckon most BTL investors will hold onto them as the yield is still likely to be better than that achieved elsewhere (or else they wouldn't be doing it).

So a proportion more properties on the market might mean, briefly, that there is a shift in the supply/demand but I still think this will quickly settle and prices will pick up again.

MMR may have introduced a delay in the system that is now filtering through but I don't believe that means properties are not selling because people feel a "crash" is imminent. Nothing has fundamentally changed in the economy.

I'm interested to hear your views.

Bubble_and_Squeak

In_For_A_Penny wrote: »

Assuming supply is increasing (and I'm not convinced you have demonstrated that). . . Why do you think supply is building up?

Clearly its not from more building. If it is ordinary home owners then they would be looking to live elsewhere and so no change in the supply there. BTL investors selling up?

Granted some BTL property owners may feel now is a good time to "cash in" but unless they have multiple properties, I still reckon most BTL investors will hold onto them as the yield is still likely to be better than that achieved elsewhere (or else they wouldn't be doing it).

So a proportion more properties on the market might mean, briefly, that there is a shift in the supply/demand but I still think this will quickly settle and prices will pick up again.

MMR may have introduced a delay in the system that is now filtering through but I don't believe that means properties are not selling because people feel a "crash" is imminent. Nothing has fundamentally changed in the economy.

I'm interested to hear your views.

good point about home owners will need somewhere else to live.
i find that people have a tendency to move further out of london when they sell their property in the capital. this may explain supply increasing and asking prices falling in london but rising just outside.
also, landlords may want to cash in to move abroad rather than to chase a higher yield elsewhere. i think the majority of landlords in london and not native born (my last 3 have been greek cypriot)

i think mmr is having an impact. before it came in i had an agreement in principle with nationwide was shocked by how much they were willing to lend me (£188k with a £95k deposit). according to their online calculator i can now borrow just under £150k with a £120k deposit and my income is now slightly higher.
i haven't looked at other lenders but i expect its a similar story

Bubble_and_Squeak

forgot to say
london is full of horrible new builds
they are EVERYWHERE
adding to the increasing stock

Crashy_Time

wotsthat wrote: »

I live 150 miles from Bubble's area and 300 miles from Crashy's but know more about their local areas than they do.

Don't they get Google in Walthamstow?

The thing is though, you don`t , that is part of your problem. The other is that you have totally overestimated the Ponzi`s ability to become a "New Paradigm"

Bubble_and_Squeak

Crashy_Time wrote: »

The thing is though, you don`t , that is part of your problem. The other is that you have totally overestimated the Ponzi`s ability to become a "New Paradigm"

YEY!
Crashys back!

In_For_A_Penny_2

Bubble_and_Squeak wrote: »

YEY!
Crashys back!

And so ends any rational discussion :sad:

Crashy_Time

In_For_A_Penny wrote: »

And so ends any rational discussion :sad:

Why?:money:

Crashy_Time

Bubble_and_Squeak wrote: »

YEY!
Crashys back!

:beer::money::j

Bubble_and_Squeak

Crashy_Time wrote: »

:beer::money::j

all we need now is hamish