London Has Peaked

Bubble_and_Squeak

wotsthat wrote: »

Plenty of talk about bubbles - don't they burst?

Or has it been postponed by the net positive effect of EU QE vs reduced petrodollars, boomers pension changes and cheaper houses in Cyprus.

Or do you just not have a clue and, as I knew from your first post, are just a house hunter who created a narrative around wishing prices were lower.

Great thread though.

and you're just a bored EA with nothing better to do than troll message boards all day making up lies about people you don't know by taking quotes out of context.

Bubble_and_Squeak

padington wrote: »

Why are you prioritising buying over renting if you think prices are going to fall because London as you say 'has peaked' ?

Actions really do speak louder than words.

am i?
i prefer to buy now due to personal circumstances (which i wont go into on this board) but i can easily continues to rent. indeed, as we move into a deflationary era holding cash would be beneficial over an immovable asset.

Bubble_and_Squeak

danothy wrote: »

no, 'cause a "sharp correction" (a reverse movement, usually negative, of at least 10%) isn't a synonym for "crash" (a sudden and significant decline in the value of a market). Stop telling lies, you liar! I bet you have a liar loan, too.



Where do you get off besmirching the oracle?

yay!
Dannys back!

Bubble_and_Squeak

MARTYM8` wrote: »

You do wonder – while they are counting their paper house price gains – if they have kids, grandkids, nephews or nieces.

All house price inflation is resulting in is the older/middle aged effectively robbing their own kids and grandkids who cannot afford to buy – or alternatively require them to gift their savings/earnings for some ridiculous deposit so they can.

Yes – they may inherit one day but presumably they might like their own home before they hit their late 60s?

I know the point of this site is to obsess about money – but when that money making basically involves leeching off the next generation its not exactly adding value.

i know several people waiting for their parents to die to they can inherit their houses. they get really angry at the notion of elderly people having to cash in their assets to pay for their care home costs. they want the rest of the country to foot the bill so they can get their parents money.

Bubble_and_Squeak

padington wrote: »

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

you do realise that if the cost of borrowing rises even slightly a large chunk of those have a go BTL landlords will be wiped off the face of the planet?

Bubble_and_Squeak

padington wrote: »

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.

that may be why the LR is the only index still rising

lisyloo

i know several people waiting for their parents to die to they can inherit their houses.

That's awful on several levels.
When I apply this to my own situation, there's a good chance I'm going to be in my 50's and thinking about retirement before getting an inheritance.
There's a warning in there.

they get really angry at the notion of elderly people having to cash in their assets to pay for their care home costs

So should people who die early have to pay tax for those who have a longer life. I'm not sure that's fair.

I'd advise the people you know to stand on their own two feet and get on with their lives.

lisyloo

you do realise that if the cost of borrowing rises even slightly a large chunk of those have a go BTL landlords will be wiped off the face of the planet?

That really doesn't look likely. If anything the recent deflationary outlook means we'll have low rates for a long time.

Also due to the fact that raising rates would bankrupt businesses, homeowners and BTL landlords is EXACTLY why the BOE won't do it.
I'd also like to point out that monetary policy does not revolve around housing.

They won't be "wiped off the planet" though. Worst case they'll go bankrupt and can start again. My person reflection is that fortune favours the brave i.e. the BTL landlords are doing better than those waiting for their parents to die (how terribly sad).

lisyloo

that may be why the LR is the only index still rising

which indexes are you looking at.
I googled for halifax and it's positive for Dec 2014

http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2014/housepriceindexdecember2014.pdf

danothy

Bubble_and_Squeak wrote: »

you do realise that if the cost of borrowing rises even slightly a large chunk of those have a go BTL landlords will be wiped off the face of the planet?

Is that a fact? Have you checked? You're known for stating your imagination as fact, you see.

I haven't checked either, but I would be utterly surprised if after the years of low rates we have experienced that these so called "have a go BTL landlords" haven't just naturally moved away from the edge somewhat, and hence wouldn't be "wiped off the face of the planet" by a "slight rise" in the cost of borrowing.