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London house prices start to fall
Comments
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Way out in St Albans the market has definitely stalled since the spring when properties were selling within days - now they are hanging around for months - I guess price reductions may follow in the autumn.
Howevr I thought about STR middle of last year as I would save about 500 a month and live somewhere bigger but my house has added 20% plus in that time dwarfing the 6k saving that renting could have brought.
Its no good talking about the 20% profit you have supposedly made, because you need to sell to realise it. With all the latest news around, if you do choose to try and sell make sure you price it right instead of trying to chase the market down.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
Running_Horse wrote: »Many people hate the Barbican, I like it in a brutalist kind of way, but it is hardly typical of the London market.
I don't live in the Barbican, but I love it - it has the same architects as my post-grad college, and I LOVE IT! I live a 5 min walk away and I find the old place really calms me down if stressed, and affords me space and time to think. LOVE IT!!!!
It might not be typical of the "London Market", but it is typical of he City of London Market. And then some....April Grocery Challenge £81/£1200 -
]Melissa177 wrote: »But I'm quoting info from UpMyStreet, which is, erm, also taken from the Land Registry.
No one is seriously telling me that City of London prices have dropped 5% in the past year, are they?
Hell no! up at least 15-20% on the year before!April Grocery Challenge £81/£1200 -
Melissa177 wrote: »I very much agree that the Barbican is not typical - I was using the graph to show why I thought the Fool figures were wrong, given that they said City of London prices are dropping, and the Barbican is the main residential area of the City.
It was 10 years ago, it's not the main residential area anymore... Well ,I guess it is in terms of 'establishedness', but there have been so many new developments, especially around West Smithfield and St Barthlomoews Close that the City of London have set up a new residents association style areas (usually the 'gobal' Guildhall Meetings are rail roaded by the Barbican Mafia [alwatys griping about pointless cycling issues] and the Goldern Lane Estatee's... It's good that we are getting an independent 'mass' voice, our own 'regional' meeting for local residents and actually getting to show our teeth!!!April Grocery Challenge £81/£1200 -
The huge worldwide currency market volatility being seen at the moment could well affect the city boys' bonuses that have been pushing up London prices so much. It can't help anyway.
The Torygraph is reporting exactly this, this morning.
"The age of big City bonuses is coming to an end. London's housing market boom is now effectively over."
Prof Spencer added that the housing market nationally was already grinding to a halt, but that the financial crisis would accentuate this.
"Prices will flatline," he said. "We are not talking about a crash, but we are expecting house price inflation to come back to practically zero for the next two years."
A quick google of this professor tends to indicate that he may know what he is talking about.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Melissa177 wrote: »My boyfriend thinks that I should do an STR - I worry that he's usually right on these things!
I agree with your boyfriend.
The corrections, crashes, - whatever you want to call them are self fulfilling and self perpetuating.
If you genuinely have made anywhere near £65,000 in a year, just sit back and think about that, tell me where you can make that kind of money elsewhere, tax free.
So what you need to consider is, your flat is either a home or an investment, if it's the former, you don't give two hoots about it's value, of it's the latter why isn't it on the market already?0 -
I think you are right about house prices being inflated in the first place. Also, as someone already said, it takes a while for interest rates to filter through the system. I think the time to see the effect is in 6 months time. Prices will have dropped when the mortgage rate rise hits and fixed rates come to an end and people have to renegotiate-we'll see more properties on the market as owners will have difficulty paying a higher rate and have to sell. A friend of mine has come to the end of her fixed rate and even with a new deal her new payments have gone up £1000 a month! Even with bigger salaries that's got to hurt!0
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The Torygraph is reporting exactly this, this morning.
"The age of big City bonuses is coming to an end. London's housing market boom is now effectively over."
Prof Spencer added that the housing market nationally was already grinding to a halt, but that the financial crisis would accentuate this.
"Prices will flatline," he said. "We are not talking about a crash, but we are expecting house price inflation to come back to practically zero for the next two years."
A quick google of this professor tends to indicate that he may know what he is talking about.
He's an arbitrage free asset pricing modelling expert - but he's a professor at the Uni of York.
Yeah, sounds like he knows all the about the culture of the City and the competition for the best people is like... :rolleyes:Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0
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