London Has Peaked

Bubble_and_Squeak

The_White_Horse wrote: »

i haven't bothered reading any of the thread, but what i don't understand is this. If you rent for 25 years and pay an average of £2500 a month during that period (obviously rent in 20 yrs time will be more than it is now) - you will have paid approx £750,000 and have nothing at the end of it.

Meanwhile, if you buy a house now, for £350,000 - at the end of 25 years, you will own the house and even if prices stay the same, you will have paid approx £520,000. BUT, you now have a house to live in rent free forever.

I can't see how renting can be better over the long term - even if prices utterly collapse.

at no point have i said that renting is better than buying.
i was looking to buy until april but decided to hold off as the market in london was overheated.
the bulls on this site are saying that not buying in april was a mistake. my argument is that by not buying in april and continuing to rent i can get better value.
since april asking prices are down, percentage of asking price achieved is down, demand is down and supply is up (by quite a lot). given these facts i believe that not buying in april was the right decision. of course, if i don't buy now and prices go up i would lose out.

kwmlondon

The_White_Horse wrote: »

i haven't bothered reading any of the thread, but what i don't understand is this. If you rent for 25 years and pay an average of £2500 a month during that period (obviously rent in 20 yrs time will be more than it is now) - you will have paid approx £750,000 and have nothing at the end of it.

Meanwhile, if you buy a house now, for £350,000 - at the end of 25 years, you will own the house and even if prices stay the same, you will have paid approx £520,000. BUT, you now have a house to live in rent free forever.

I can't see how renting can be better over the long term - even if prices utterly collapse.

I guess because relatively few people at the age of 30 or whatever just go and buy the house they will live in for the next 25 years. Most of us don't know where we'll be working in two years, let alone 25.

It's a lot easier to move in with someone renting than buying a house together, less of a commitment, and if you think you'll be moving buying and selling a house costs tens of thousands and introduces massive insecurity into the process.

Just saying that renting is a good option for some people, depends on your personal and work circumstances.

The_White_Horse

i think you have to look at these things from a higher level. In 1978 my father bought his house for £13k. The neighbour paid £13.5k. A big difference in those days. They sold them years back - say 10 yrs ago for well over £400k - so the £500 difference became an insignificance.

That is how I look at things. £10k here, £10k there. At the end of the day, it won't mean that much.

Bubble_and_Squeak

The_White_Horse wrote: »

i think you have to look at these things from a higher level. In 1978 my father bought his house for £13k. The neighbour paid £13.5k. A big difference in those days. They sold them years back - say 10 yrs ago for well over £400k - so the £500 difference became an insignificance.

That is how I look at things. £10k here, £10k there. At the end of the day, it won't mean that much.

i'm looking at it in terms of the size of the house i can get.
i was looking in forest gate just before april. i can now get an extra bedroom with my budget.

Bubble_and_Squeak

didn't someone here predict that prices in wood green would keep going up and up and up?

http://www.rightmove.co.uk/property-for-sale/property-32529018.html;jsessionid=43D93C588AF7C2654EE9A01ABEE34B09

System

Bubble_and_Squeak wrote: »

didn't someone here predict that prices in wood green would keep going up and up and up?

http://www.rightmove.co.uk/property-for-sale/property-32529018.html;jsessionid=43D93C588AF7C2654EE9A01ABEE34B09

http://www.zoopla.co.uk/property-history/58-moselle-avenue/london/n22-6et/32292982

wotsthat

Bubble_and_Squeak wrote: »

i'm looking at it in terms of the size of the house i can get.
i was looking in forest gate just before april. i can now get an extra bedroom with my budget.

Really? Great news for you if true.

What was the premium in April for that extra bedroom?

caronoel

wotsthat wrote: »

Really? Great news for you if true.

What was the premium in April for that extra bedroom?

Ian.............

James_B.

Bubble_and_Squeak wrote: »

this thread is about a london peak, not renting.
the overwhelming evidence is that london has peaked.

Which index are you basing that on?

Crashy_Time

James_B. wrote: »

Which index are you basing that on?

I think it was the PAPSUP index.