London Has Peaked

Windofchange

In the game of think of a number and double it going on in my street, Foxtons are the first to lose their nerve...

http://www.rightmove.co.uk/property-for-sale/property-50044430.html

Both Savills and them thought 495k, now Foxtons think £449,950. Will Savills follow suit with a near 10% reduction in price, or will they hold their poker face? 45k reduction in 4 weeks, but of course there is no popping of the bubble going on.

The other two houses just a bit further up that were initially on for £3.25 million in June 14, then reduced to £2.95 million in November 14, have now just been taken off the market completely for the past three weeks. I think a dose of reality is setting in there too. I'm going for a please buy these off me quickly as my bank is about to repossess them offers above £2.5 million to start beginning of Feb.

Carry on.

Jack_Johnson_the_acorn

Windofchange wrote: »

In the game of think of a number and double it going on in my street, Foxtons are the first to lose their nerve...

http://www.rightmove.co.uk/property-for-sale/property-50044430.html

Both Savills and them thought 495k, now Foxtons think £449,950. Will Savills follow suit with a near 10% reduction in price, or will they hold their poker face? 45k reduction in 4 weeks, but of course there is no popping of the bubble going on.

The other two houses just a bit further up that were initially on for £3.25 million in June 14, then reduced to £2.95 million in November 14, have now just been taken off the market completely for the past three weeks. I think a dose of reality is setting in there too. I'm going for a please buy these off me quickly as my bank is about to repossess them offers above £2.5 million to start beginning of Feb.

Carry on.

Yeah, 1 house on a street is definitely indicative of the housing market for the whole of London, out of interest. What was the last sold price of a house on that street?

Windofchange

Jack_Johnson_the_acorn wrote: »

Yeah, 1 house on a street is definitely indicative of the housing market for the whole of London, out of interest. What was the last sold price of a house on that street?

Well, three houses on a street actually, as posted. 300 grand off each of the other two and still no sale. I think the point is a valid one. Just reporting what is happening in my small sample area, where I've not seen any of the reported clamour of 20 people queueing to pay 10% extra for a shoe box.

Last sold house was 25/09/14 £1.63 million and some change.

padington

Windofchange wrote: »

Well, three houses on a street actually, as posted. 300 grand off each of the other two and still no sale. I think the point is a valid one. Just reporting what is happening in my small sample area, where I've not seen any of the reported clamour of 20 people queueing to pay 10% extra for a shoe box.

Last sold house was 25/09/14 £1.63 million and some change.

My friend just sold a house in North London, he sold it for 98% of asking price in cash really quickly. The House he bought he couldn't get a penny off the full price and they demanded cash only. *

The under a million house market in North London takes no prisoners from what I've seen at the moment.

I think what we are seeing is an early sign of how the prospect of a mansion tax might effect the market. Some things up, some things down.

* Its important to note those non mortgage transactions won't be included by nationwide or Halifax indexes because they only include trades that involve a mortgage.

Jack_Johnson_the_acorn

Windofchange wrote: »

Well, three houses on a street actually, as posted. 300 grand off each of the other two and still no sale. I think the point is a valid one. Just reporting what is happening in my small sample area, where I've not seen any of the reported clamour of 20 people queueing to pay 10% extra for a shoe box.

Last sold house was 25/09/14 £1.63 million and some change.

Well the link you provided shows £450k asking price, the last sold was £400k so does that mean the housing market is booming by your reckoning????

Crashy_Time

sdrio wrote: »

Let's hope your rent doesn't increase.

It hasn`t in over 15 years, so I am not expecting any serious hikes now that we are in a deflation scenario.

Crashy_Time

danothy wrote: »

Okay Crashy, give me some life advice. I am currently renting a flat. I have no consumer debt to speak of, just a student loan that is serviced via PAYE. I have some savings which I am adding to each month. The flat below the one I currently live in is identical to mine, for sale, and priced quite optimistically. I have the following options open to me:

Option 1:
Keep paying monthly rent, where I am now or in another property, forever, hoping that in retirement my savings cover my rent and living expenses.

Option 2:
Buy the flat below me with a 25 year capital repayment mortgage using my savings as a deposit. With a 3.5% interest rate the mortgage repayment on the flat below the one I currently live in would be the same as my rent now (assuming I paid full asking price).

Option 3:
Buy some other property (e.g. a freehold 2 bed end terrace in my area) that is priced about the same as the flat below me. Again, uses savings as deposit for a 25 year capital repayment mortgage. With a 3.5% interest rate the mortgage repayment on such a property would, again, be the same as my rent now.

Which option should I take, Crashy, and why should I take it? Bear in mind though before you answer that this is a real life situation and decision. There is nothing hypothetical about it. If you're negligent in your assessment your advice will cause harm.

My advice would be to get out of the mortgage business.

padington

Crashy_Time wrote: »

It hasn`t in over 15 years, so I am not expecting any serious hikes now that we are in a deflation scenario.

There are mainly two types of people, those that buy houses for themselves :T and those that buy houses for their landlord :eek:

MFW_ASAP

Crashy_Time wrote: »

It hasn`t in over 15 years, so I am not expecting any serious hikes now that we are in a deflation scenario.

Rents never increase for the HPC mob, it makes you wonder why they are so obsessed with owning a house when they are getting such a free ride renting?

danothy

Crashy_Time wrote: »

My advice would be to get out of the mortgage business.

This is not one of the options, nor could it be an option as I am not in "the mortgage business". That's quite apart from the absence of reasoning from your answer.

How do you have such confidence in yourself when you can't even answer a simple question on a forum correctly?