London Has Peaked

padington

Short term letting in London will be legally game-on by spring 2015. Those little green houses will be turning red.

Price and options of staying in London will become lots kinder, tourists will flock. Then autumn 2015 the 24 hour tube kicks in.

Bring it on.

Bubble_and_Squeak

padington wrote: »

Short term letting in London will be legally game-on by spring 2015. Those little green houses will turning red. Bring it on.

i think those price cuts in N22 are making you see red

buglawton

Bubble_and_Squeak wrote: »

YAY!
RODNEY PLACE IS BACK!

http://www.rightmove.co.uk/property-for-sale/property-45643756.html

Ideal first time buy.
LOL

Bubble_and_Squeak

buglawton wrote: »

Ideal first time buy.
LOL

quick, get your dream home in rodney place before prices go up!

wotsthat

Bubble_and_Squeak wrote: »

quick, get your dream home in rodney place before prices go up!

The STC buyer had a lucky escape there. The vendor must be a bit special - they still can't be bothered to get decent photos albeit it's difficult to put a shine on a turd.

It's 8 months since your peak and you're still posting these random hovels. Surely you can find some real data by now?

Bubble_and_Squeak

wotsthat wrote: »

The STC buyer had a lucky escape there. The vendor must be a bit special - they still can't be bothered to get decent photos albeit it's difficult to put a shine on a turd.

It's 8 months since your peak and you're still posting these random hovels. Surely you can find some real data by now?

walthamstow victoria road innit

MercilessKiller

I would use caution when saying things like "Down is the new up". I imagine for some people it can even cause anxiety (especially when having just bought a property or deciding whether to buy)

Why do I think it's silly? Because people are guessing. Estimating whether a market is crashing before a crash is a mugs game and simply based on opinion...

The BBC report is one stat from one bank - That may be a "signal" of many things. Tighter rules on lending, wider problems in the economy, who knows. Equally, Zoopla has reported their biggest ever increase in traffic and property searches. More people than ever are using Zoopla to find properties to buy.

I'm not saying this type of thing isn't good for a debate But when I see comments such as:
"Down is the new up" with nothing further, it's not really a debate!

The poster that linked the CML article showing mortgages are up (7 days ago) is a good example of how there is a lot to show the opposite!

padington

So it looks like consensus is average London will see a 4% rise in the next year.

http://uk.reuters.com/article/2014/11/25/uk-property-poll-britain-idUKKCN0J91MJ20141125

If this comes in a year when the pound increases in strength somewhat as predicted. It could be another good year for property owners relatively.

Especially those that bought in above average strategically fortunate locations and when you consider all that rent saved.

lisyloo

and when you consider all that rent saved

For long term ownership I agree - I don't think there is any argument there.

I been considering the buying/renting dilemma for a little while, so I decided to quantify it as best I could (with some assumptions of course).
I compared buying with renting and putting the remaining money into a pension instead (which is about a 40% uplift straightaway).
I compared the transactional costs of buying/selling, the annual service charges, maintenance, insurance, CGT etc and I found that for a period of less than 9.5 years I'm better off renting.
I was a little suprised it was so long, but I think comparing it with the lost opportunity cost of the pension makes a difference.
I did put 3% in for house price increases so it's nice to hear my assumption is not too far off the consensus (agree that if you buy a dump that becomes trendy in London you can do exceptionally well, but you have to get lucky there).

Having carried out that exercise in detail - when I hear phrases like "dead money" and "all that rent saved" then all I think is - consider the stamp duty, legal fees, mortgage fees, CGT, estate agents fees, removal fees, insurance, service charges, maintenance, loss of income tax relief, loss of employer NI savings, loss of employee NI savings etc.

I'd be delighted if anyone can point out any ommissions.

Apart from the quantifiable factors, the diversity, flexibility and liquidity of a pension with access to the whole of market is massively superior to a single individual property.
I kind of like the idea that I can just pack up my suitcase and leave.
I realise the landlord can do the same (unlikely they'd want to) but again, I just have to pack a suitcase (oh and find somewhere else of course). Yes there are risks.

Carl31

lisyloo wrote: »

For long term ownership I agree - I don't think there is any argument there.

I been considering the buying/renting dilemma for a little while, so I decided to quantify it as best I could (with some assumptions of course).
I compared buying with renting and putting the remaining money into a pension instead (which is about a 40% uplift straightaway).
I compared the transactional costs of buying/selling, the annual service charges, maintenance, insurance, CGT etc and I found that for a period of less than 9.5 years I'm better off renting.
I was a little suprised it was so long, but I think comparing it with the lost opportunity cost of the pension makes a difference.
I did put 3% in for house price increases so it's nice to hear my assumption is not too far off the consensus (agree that if you buy a dump that becomes trendy in London you can do exceptionally well, but you have to get lucky there).

Having carried out that exercise in detail - when I hear phrases like "dead money" and "all that rent saved" then all I think is - consider the stamp duty, legal fees, mortgage fees, CGT, estate agents fees, removal fees, insurance, service charges, maintenance, loss of income tax relief, loss of employer NI savings, loss of employee NI savings etc.

I'd be delighted if anyone can point out any ommissions.

Apart from the quantifiable factors, the diversity, flexibility and liquidity of a pension with access to the whole of market is massively superior to a single individual property.
I kind of like the idea that I can just pack up my suitcase and leave.
I realise the landlord can do the same (unlikely they'd want to) but again, I just have to pack a suitcase (oh and find somewhere else of course). Yes there are risks.

You are right, but most people just see the fact that each month they pay some capital + some interest, where as rent doesn't 'buy' you anything. Its a very limited view shared by the UK population

The whole situation isn't as black and white as that, as you point out, the fact is most people who buy a house effectively pay double the original price settled on over the time of a mortgage, then add all the other costs

If you pay cash of course, its a different story

The usual arguement is 'but when you retire, you will have no housing costs if you buy', which is fast becoming a thing of the past with prices where they are. Being a renter at retirement age will be far easier than having to still pay a mortgage