London Has Peaked

chucknorris

cells wrote: »

A question for the London crew. So many homes in London are now £1m plus how does one get a mortgage for such a large sum. Surely not many pepple are earning 200k income to get 4-5x income mortgages?

So must a disproportionate amount of the expensive buys be cash/savings purchases.

Although you are correct in that £1m homes in London are far from being anything 'special', but they still are far away from being first time buyer homes. So I would expect someone trading up to a £1m home would have significant equity in the property that they were selling.

Bubble_and_Squeak

padington wrote: »

We have a shed load of financial, corporate and digital geeks earning very very big incomes in London plus bonuses.

that much is true but surely there aren't enough to justify the recent prices we've been seeing?

padington

Bubble_and_Squeak wrote: »

that much is true but surely there aren't enough to justify the recent prices we've been seeing?

Prices don't need justifying, they are fact. Sometimes you can get rigged markets when they are very small with only a small ammount of active players, sell something with a whopping price tag, buy it off yourself, wait for the next mug to come along to pay the same price as 'before'. Damien hirst knows this all too well.

However I don't think that's the case with the London property market.

MobileSaver

cells wrote: »

A question for the London crew. So many homes in London are now £1m plus how does one get a mortgage for such a large sum. Surely not many pepple are earning 200k income to get 4-5x income mortgages?

So must a disproportionate amount of the expensive buys be cash/savings purchases.

I suspect there's a lot more people in London earning six-figure sums than you think however as pointed out by chucknorris most people will be trading up from a previous home with equity and so their mortgage will be nothing like £1m.

Regards cash/savings purchases, London actually has the lowest percentage of cash buyers compared to the rest of the UK - no doubt due to the high prices.

MobileSaver

padington wrote: »

Prices don't need justifying, they are fact.

:T

This is one of those fundamental points that Bubbles, Crashy and the HPC crowd simply don't get and no amount of their talking down the market will change that.

Bubble_and_Squeak

MobileSaver wrote: »

:T

This is one of those fundamental points that Bubbles, Crashy and the HPC crowd simply don't get and no amount of their talking down the market will change that.

they've only been stupidly high for about a year. whats changed between now and last october?
has there been a fundamental shift in the british economy that is going to sustain them at these levels?

Bubble_and_Squeak

http://www.rightmove.co.uk/property-for-sale/property-48596174.html

THREE price cuts in less than three weeks
will someone please show those 8 buyers per london property the way to clifton road

ukcarper

Bubble_and_Squeak wrote: »

http://www.rightmove.co.uk/property-for-sale/property-48596174.html

THREE price cuts in less than three weeks
will someone please show those 8 buyers per london property the way to clifton road

I don't know why you keep posting these links that house looks awful and at £300k is £25k more than the highest price in that road.

danothy

ukcarper wrote: »

I don't know why you keep posting these links that house looks awful and at £300k is £25k more than the highest price in that road.

Three price cuts though! That they cut the price is evidence! Never mind the context! How is it relevant that a drop to sea level isn't the same thing as sinking into the ocean anyway?!

chucknorris

ukcarper wrote: »

I don't know why you keep posting these links that house looks awful and at £300k is £25k more than the highest price in that road.

Parking looks to be a real issue too, as it appears as if someone has a garage door with access right in front of the house (you can see it better on the street view), so you couldn't park outside your own house. It also only has a downstairs shower room.