London Has Peaked

MFW_ASAP

wotsthat wrote: »

If you can easily rent, haven't seen a rent increase ever and think house prices have peaked*/ will crash*/ will fall* then what bizarre personal circumstances would make you buy an asset certain to fall in value compared to the certainty of holding cash as 'we move into a deflationary era'.

Have BOMAD offered you a deposit but only if you vacate their back bedroom asap?

* to prevent accusations of lying please insert whatever you think has peaked and when.

I notice that B&S hasn't responded to this, so I'm bumping it. I was wondering the same thing as everything B&S believes points towards holding off a house purchase in the short/medium term, then buying a house at a much reduced price. It seems folly for him to buy at what he considers to be at the top of the market.

It's so nonsensical that I can only conclude that that he's a wind-up merchant.

Or possibly, this is another Graham_Devon sockpuppet time waste vehicle.

lisyloo

It's so nonsensical that I can only conclude that he's a wind-up merchant

Never attribute to malice that which can be adequately explained by incompetance.

danothy

lisyloo wrote: »

Never attribute to malice that which can be adequately explained by incompetance.

Ignorance is worse than malice.

MFW_ASAP

MARTYM8` wrote: »

All fine and noble - but why has it come to pass that parents need to be funding the house purchases of their grown up kids? Shouldn't an average salary be enough to buy an average home - not a mansion just a bog standard house - rather than ten times average salaries being needed.

Having family help each other out is hardly a new concept, though it has been eroded hugely due to the welfare state (people used to take care of their parents when they were elderly, now it's widely expected that the state do this).

I was loaned the deposit on my first house (bought in 1995) by my parents and they were loaned the deposit on their first home by theirs. When we bought our second home, we noticed that there was a charge on the current owners mortgage put their by their parents, so clearly they were loaned an amount of money to by that house.

As far as the 'Average Home' with 'Average Salary' argument, that's been discredited many times on here. Back in 1995 when I was a first time buyer, I didn't earn the average UK salary and I wasn't buying the average UK home. I had a graduate's salary and I bought a two bed starter home (and rented the spare room to a mate).

I certainly wouldn't help my kids buy an 'average' home (three bed semi?) as their starter home either, it's a 1 or 2 bed terrace/apartment starter home for them too.

Only the HPC crowd seem to expect to buy a 3 bed semi or 4 bed detached home as a first time buyer.

lisyloo

Having family help each other out is hardly a new concept

Well I'd say it's a fairly recent phenomenon that parents (en masse) have had the disposable income to help the next generation.

people used to take care of their parents when they were elderly

Social norms have changed as well as longevity.
These days most women work and many of them care for grand children as well so their daughters can work.

Back in 1995

you were priviledged to be a graduate (about 20%?).
Now it's 50% so more average to be a graduate.
A graduates salary and job prospects are not the same either.

Only the HPC crowd seem to expect to buy a 3 bed semi or 4 bed detached home as a first time buyer.

Agree there's a general problem with expectations and a sense of entitlement.
Owning has never been easy and and it's always been hard work.
The difference is that many years ago a work ethic was normal/average.
Now people expect a uni education and gap year, then a nice house.
People have always had to WORK and WAIT for it, but now everyone wants it NOW.

tkane

Bubble_and_Squeak wrote: »

its ok, bulls
LR out tomorrow will be positive
that will give you something to cling on to
looks as if cash buyers are like wile e coyote, running off the edge of the cliff then looking down to find theres nothing holding them up

'Something to cling on to'

That's right, completely discount the Land Registry figures because they don't support your assertions - except the LR report trumps any report pumped out by lenders/surveyors/rightmove etc. as these are actual sales.

And if the market peaked in May, as most on HPC.co.uk believe, we would have known about it by now.

Will you admit that you (HPC lot) were wrong?

tkane

London up 1.8% in latest Land Registry report published this morning.

Yup, it's peaked.

Libber

And house prices up 0.3% this month according to Nationwide. Plus signs = crashing, right?

wotsthat

Libber wrote: »

And house prices up 0.3% this month according to Nationwide. Plus signs = crashing, right?

For the HPC crew a positive number is just a negative number waiting to happen.

They've been posting daily evidence of price reductions for more than a year now whilst almost all indices have been showing positive HPI. Eventually they'll twig I suppose.

Meanwhile Bubble and Squeak nudges closer to facing reality...

http://www.rightmove.co.uk/property-for-sale/property-48137752.html

i viewed this one about a year ago when it was up for £295,000
it didn't sell while the market was going up so i don't understand why think it will sell for £145k more now that the market is cooling

padington

tkane wrote: »

London up 1.8% in latest Land Registry report published this morning.

Yup, it's peaked.

The full stats are here ...

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/398604/December_HPI-2014.pdf