Bit shocked

Pobby

http://www.bbc.co.uk/programmes/b066w659

Just had a listen. To an old bloke like me without any debts, which is a true blessing, this program made me think.

In truth, maybe not much in it that has not been disussed here however it is not very bullish and i think rather gets to some truth.

A few points that it explains how things go wrong with high interest short term loans. How if interest rat. Not talking about historical norms, far from itbut just by a small shift.It was about 3 years at the most when we invested a share in my sis in laws house. Not that for me I care less but same house has gone up by almost £100,000. To me it is madness, That is getting on for nearly 30%?1?. Thats west of London.

At the same time our house in Plymouth has done nothing. Yes of course it is far from London but at the same time MANY jobs pay about the same. not only that travel into London. Throw in over 5 thousand pounds to commute into London and it shaves a good bit from your income.

Asfar as my place would cost in Plymouth, I would look at almost double here. That would come with a lot of parking problems and a not great area. It all seems mad.

Generali

As Keynes said, the market can stay irrational longer than you can stay solvent.

House prices in London (and Sydney for that matter) are nuts but what can you do? The price is the price.

It'll be interesting to see what the impact of the changes in BTL rules will be.

cells

Generali wrote: »

It'll be interesting to see what the impact of the changes in BTL rules will be.

marginal downward pressure, and smart to phase it in over a number of years. somewhat !!!! in that it punishes individuals but not companies

current entrants should be fine if they dont keep gearing up with MEW. HPI should allow them to remortgage onto lower LTV bands to help offset some of the higher taxes plus 4 years of likely rent price increases to match or exceed inflation.

But we are at an inflection point in London imo. It could go either way. Total nuts over the next 5 years....with prices maybe up as much as 50-100% or we could see prices not move much at all over the next 5 years. Prices have got to the point where 'investors' if they truly account for all their costs and time are probably at best break even and more likely are runnin at a loss (withou HPI). but this is the 'beauty/irrational' behaviors or small time BTL punters/investors

cells

In every single town there are good bits and bad bits. The good bits attract a premium...often as much as 50%.

That will even be true in Plymouth. The good bis are where the rich live and they are also were the rich will opt to buy in the future a type of social segregation, a premium to live where there are little to no poor people

All of inner London is now becoming the 'good bit' of the town. Both nationally and internationally. Reasonable 100sqm terrace homes in inner London almost anywhere in inner London are now £1m plus

The solution, which is not going to happen, is to reallocate people and housing so that the maybe 2 million people living in inner London who have no need to live there are moved to outer London or further. That means selling social housing into private ownership in inner London and perhaps using the proceeds to expand the tube by twice what it is. But I suspect the do nothing method will win out and price will ration places

padington

Greater London is changing fast too. In Wood Green, Turkish and polish speakers outnumber the sounds of black London. New benefits claiments are often restricted by caps to living in Enflield and Walthamstow now if they want to remain in North London. Walthamstow is being penetrated by hipsters just as fast. South Tottenham called 'Soto' now and the middle classes buying in to that area in droves.

The demographic sands are shifting fast.

Moby

Never been a more interesting time to live in London.

chewmylegoff

padington wrote: »

Greater London is changing fast too. In Wood Green, Turkish and polish speakers outnumber the sounds of black London. New benefits claiments are often restricted by caps to living in Enflield and Walthamstow now if they want to remain in North London. Walthamstow is being penetrated by hipsters just as fast. South Tottenham called 'Soto' now and the middle classes buying in to that area in droves.

The demographic sands are shifting fast.

And it is still all a massive sh1thole, just with more rubbish beards.

dealer_wins

Every part of London is a crep hole, and where I have the misfortune to live its at the top end of crep!!

Pobby

So taking on board that every part of London is pretty shabby why te great clamber to buy. Is it in hope of more rises to cash in on the equitie?

I cannot believe it is because there are just migrant communities. In Reading right now and there are folk from all over and lately a massive Eastern European community. Again a quarter of a million will get you a small terrace in a crowded area.

Down to Plymouth now. Again of late , a cosmopolitan community, albeit, not as noticeable as Reading but still very much there. True, Plymouths reputation as a place of employment was not so good but with a large teaching hospital, lots of places for further education, light industry and tourism the opportunities are more plentiful.

Given that many graduates are loath to leave the coast and nearby countryside, it has a pool of well educated people.

For a bit of fun.

http://www.rightmove.co.uk/property-for-sale/property-49691449.html

Now that is in a very nice area. A walk to the town is not a problem. Parking maybe but there is a space for one car.

Now in contrast only one bed at that price unless you are over say 55. I found this

http://www.rightmove.co.uk/property-for-sale/property-50144602.html

Don`t need to say much.

missyrichards

Some parts of London are nice! I know South London the most and I used to socialise in Blackheath and Greenwich. Crystal Palace and Dulwich are both good places.

I would be more than happy to live somewhere like Richmond, Chiswick, Primrose Hill or Hampstead. It's very unlikely I ever will without a lottery win.:D

Generali

I think London is one of the great cities of the world and many, many people agree with me because they choose to visit, live or work there.