London Has Peaked

wotsthat

Bubble_and_Squeak wrote: »

making things up AGAIN!

When was the high water mark for London prices in 2014 then?

You think no-one will notice you've gone from an April peak (wrong), May peak (wrong), summer peak (wrong) and rather than be wrong again (for now at least) you've gone for a generic 2014 as the peak of London prices.

Transparent as glass.

Conrad

I've been after another flat in cheaper parts of outer N London in the last fortnight and I can say with certainty the prices are rising very fast and trying to even get a viewing is difficult.
As an example studios in a block I keep an eye on were £115k April last year, now changing hands at £135k.


Or 1 bed concrete ex council were £120k 1 year ago and today £155k and rising fast. They will be £175k by year end.


I buy for rent yield and re-invest the monthly proceeds but none the less it's a nice feeling growing your capital whilst you sleep.

Crashy_Time

Jack_Johnson_the_acorn wrote: »

I've only ever read hpc when someone highlighted your posts and profile on hpc, that's when I realized how desperate your situation is.

Just to make a quick point, you have made hundreds of posts more than me, yet I've been here around 4 years, you've been posting for 6 months....... But you don't care about house prices

You only read HPC to stalk me?........:rotfl: Pull the other one, it`s got an under employed mortgage broker on it :T How many posts have you made with your other little on-line "identities" ...?

Crashy_Time

lisyloo wrote: »

If he's nearly 50, he could be debt free and have a house as well by now.
I'm sure it'll fall on deaf ears but the advantage is the next 45 years rent free (and a lump sum too if you downsize).

Doesn`t work that way in a bubble though, especially if you went I.O only to scrape on to the "ladder"....and a world tipping into deflation doesn`t help either.....

Conrad

Most 60 something's I know have done very well from property, will often downsize to realise significant tax free cash.

I cant think of a single renter with this sort of bedrock of security.

People take a 40 year view and disregard monthly noise. In my area detached homes were £2-£5k in 1970, and now at least £600k. It doesn't matter we had OPEC crisis, wars, 3 day weeks, strikes, riots, IRA, AIDS, Y2K, bird flu etc, the trend was price inflation.

Just as nuclear Armageddon and the much prophesised population famine bomb did not get us, nor would a spell of deflation.


Look back at novels written 500 years ago and we find those with wealth were those that owned property and rented to others, be it a farm or a small cottage, a fishing lake or a water wheel as these things provide utility and thus income.
.
It's a basic Darwinian imperative for organisms to want to secure territory. Territory provides resource.

Crashy_Time

Conrad wrote: »

Most 60 something's I know have done very well from property, will often downsize to realise significant tax free cash.

I cant think of a single renter with this sort of bedrock of security.

People take a 40 year view and disregard monthly noise. In my area detached homes were £2-£5k in 1970, and now at least £600k. It doesn't matter we had OPEC crisis, wars, 3 day weeks, strikes, riots, IRA, AIDS, Y2K, bird flu etc, the trend was price inflation.

Just as nuclear Armageddon and the much prophesised population famine bomb did not get us, nor would a spell of deflation.


Look back at novels written 500 years ago and we find those with wealth were those that owned property and rented to others, be it a farm or a small cottage, a fishing lake or a water wheel as these things provide utility and thus income.
.
It's a basic Darwinian imperative for organisms to want to secure territory. Territory provides resource.

What novels are you reading that were written 500 years ago?

lisyloo

Doesn`t work that way in a bubble though

If you want to make short term profits then no.
If you are buying a home over 25 years, then even if you bought at a peak then you will still do well over long term.

especially if you went I.O only to scrape on to the "ladder"

Yes, I agree, if you took a liar loan or really pushed your affordability then you're taking a risk. That has all been stopped now - in fact some would argue it's gone too far the other way.
Similarly getting divorced, getting made redundant or relocated are all risks.

On the whole though, mathematically - long term works out well for the vast majority.
There will always be exceptions through unlucky circumstances and it will be made worse if it's compounded by poor financial planning.

Long term though the vast majority have done well from owning and still will because of the implied rent savings i.e. they need somewhere to live that they would otherwise have to pay for.
This generally outstrips everything else over the long term.

Picking out the odd extreme exception doesn't change that.

mayonnaise

Conrad wrote: »

Most 60 something's I know have done very well from property, will often downsize to realise significant tax free cash.

I cant think of a single renter with this sort of bedrock of security.

I know this bloke nearing his 50's and renting a room in an Edinburgh suburb. He is so bed-rocked in security he doesn't feel the need to embark on a semi-automatic posting spree on an internet forum. No, not at all. And he really doesn't care about house prices at all. Just because he's so bed-rocked in security.

Crashy_Time

lisyloo wrote: »

If you want to make short term profits then no.
If you are buying a home over 25 years, then even if you bought at a peak then you will still do well over long term.



Yes, I agree, if you took a liar loan or really pushed your affordability then you're taking a risk. That has all been stopped now - in fact some would argue it's gone too far the other way.
Similarly getting divorced, getting made redundant or relocated are all risks.

On the whole though, mathematically - long term works out well for the vast majority.
There will always be exceptions through unlucky circumstances and it will be made worse if it's compounded by poor financial planning.

Long term though the vast majority have done well from owning and still will because of the implied rent savings i.e. they need somewhere to live that they would otherwise have to pay for.
This generally outstrips everything else over the long term.

Picking out the odd extreme exception doesn't change that.

The biggest credit/housing bubble in history is not the "odd extreme exception". The route you mention worked for people who bought well over ten years ago, and didn`t MEW. It won`t work again until the property bubble is fully popped.

Crashy_Time

mayonnaise wrote: »

I know this bloke nearing his 50's and renting a room in an Edinburgh suburb. He is so bed-rocked in security he doesn't feel the need to embark on a semi-automatic posting spree on an internet forum. No, not at all. And he really doesn't care about house prices at all. Just because he's so bed-rocked in security.

You don`t like discussion about the property bubble that has started to burst do you Mayon..NAISE! :rotfl: