London Has Peaked

Bubble_and_Squeak

chucknorris wrote: »

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.

parking is only an issue if you have a car
personally, i gave up driving in london about 8 years ago
might as well utilise the multibillion poundsworth of infrastructure
anyway, chucks
as we can see demand is drying up and vendors are willing to reduce asking prices
you said £335k would shiver your timbers on this one
http://www.rightmove.co.uk/property-for-sale/property-48537845.html

ukcarper

Bubble_and_Squeak wrote: »

parking is only an issue if you have a car
personally, i gave up driving in london about 8 years ago
might as well utilise the multibillion poundsworth of infrastructure
anyway, chucks
as we can see demand is drying up and vendors are willing to reduce asking prices
you said £335k would shiver your timbers on this one
http://www.rightmove.co.uk/property-for-sale/property-48537845.html

There are always houses that are overpriced some people just testing the water some trying a high initial price who are prepared to drop. It obviously wasn't worth £335k and without actually looking at it I would say it's probably not worth £300k. For the life of me I can't see why you would use that house as evidence of price falls.


this is the house I mean http://www.rightmove.co.uk/property-for-sale/property-48596174.html

Bubble_and_Squeak

ukcarper wrote: »

There are always houses that are overpriced some people just testing the water some trying a high initial price who are prepared to drop. It obviously wasn't worth £335k and without actually looking at it I would say it's probably not worth £300k. For the life of me I can't see why you would use that house as evidence of price falls.

its evidence that blows away the myth of 8 buyers per london property.

ukcarper

Bubble_and_Squeak wrote: »

its evidence that blows away the myth of 8 buyers per london property.

Why. .?

James_B.

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 know a good few people here is on six or seven figures, and they have been for a while, so a mortgage for £1m is not so much in comparison.

On the other hand, the nicer properties are out of the range of even most bankers and lawyers. I looked at Bankside developments this week, as I fancied a bit more space, and see that the flats that I like there are £6-8m, which is far too much, even for someone doing pretty well.

Anyway, whatever the musings on how we feel it ought to be, the stats do tell us that cash buyers are rare here. That makes sense to me, really, as many people retire out of London, or downsize, and so free up enough cash to buy outright outside the M25. There will be far more of these than there are Russian oligarchs.

chucknorris

Bubble_and_Squeak wrote: »

parking is only an issue if you have a car
personally, i gave up driving in london about 8 years ago
might as well utilise the multibillion poundsworth of infrastructure
anyway, chucks
as we can see demand is drying up and vendors are willing to reduce asking prices
you said £335k would shiver your timbers on this one
http://www.rightmove.co.uk/property-for-sale/property-48537845.html

I'm sure that I've spotted the odd car in London before, so I suspect that parking will be an advantage to some (certainly it would to me).


No I did not, I said £325k and that house is in a better are (at least in my opinion anyway).

princeofpounds

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.

Actually the purchase values are not that hard to explain.

There are a lot of people on £100k+ salaries + bonuses in London.

The London population also has a massively disproportionate population distribution to people of working age, dual incomes.

So having household income of 150, 180, 200k+ is not so rare.

I can tell you from experience there are plenty of mortgage lenders who are happy to consider bonuses in lending multiples, although not all at full weight.

Add to that the fact that the crazy rise in house prices (~150% since 2000) means that a lot of paper equity has been created, amplified by the leverage people take.

If you bought just a 150k average house in London in 2000, with just 20k equity, would would now have a £360k house and £130k equity even if you have never paid a single penny off the principal. So there is your minimum deposit for the £1.3m house right there - obviously plenty of people are in even better situations, as this is just an average house. Even better if you bought in the mid 90s.

Then throw in the mix incredibly suppressed interest rates, which make it all seem far more affordable. And continual capital gains, which compel people to buy as soon as the are able and also make any debt seem cheap to bear in capital terms.

For me by far the most mysterious thing has always been the rental rates. Some of these are insane, even relative to high incomes. I am always surprised that there seem to be thousands of people who seem quite happy to pay rental rates I can only imagine as 50% of very high incomes for years on end, to live in nice zone 2 4 and 5 beds.

Maybe no-one cares about saving. Maybe everyone is on the take except for me.

The_White_Horse

a house near me - which is almost derelict has been on the market at 750k. houses in decent condition on the same road are going for approx 650k (although a few really nice ones have gone for £800k plus). So, no biters and the price reduced to £725k and then £685k. Not a bad market, just an idiotically overpriced house. Good houses are £650k - this one should be below that.

Bubble_and_Squeak

chucknorris wrote: »

I'm sure that I've spotted the odd car in London before, so I suspect that parking will be an advantage to some (certainly it would to me).


No I did not, I said £325k and that house is in a better are (at least in my opinion anyway).

ah, i thought you said £335k
£35k under the asking price might be a cut too far (for now)
lets see if it sells over the weekend

Crashy_Time

Bubble_and_Squeak wrote: »

ah, i thought you said £335k
£35k under the asking price might be a cut too far (for now)
lets see if it sells over the weekend

:j