Debate House Prices


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Will there really be a crash?

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  • ukcarper
    ukcarper Posts: 17,337 Forumite
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    edited 1 October 2018 at 9:20AM
    lisyloo wrote: »
    I don’t think people should be moaning if they can’t afford to live in Kensington and Chelsea or exclusive parts of Surrey for their first gaff.
    Many of us really struggled hard to mouth, for example lived with parents, didn’t have carpets initially certainly no mobile phones or internet. I appreciate standards are different now and I wouldn’t expect then to go without a mobile phone (mines £7.5 per month and many people who claim to be struggling are paying £50-£60 per month). First step is to get them to do an SOA then it all comes out.

    So yes I do think people starting out should expect to have to make compromises on their lifestyle, their commute etc.
    Millions of people in London do this every day and travel in appalling conditions that would not be permitted for animals.

    Do you think everyone should be able to buy a 4-bed in leafy parts of Hampshire/Surrey as their first gaff? I don’t think that’s do-able.

    If there really is a problem, why did people vote the Tories in again? Why isn’t there massive unrest in the streets? I pass parliament square every day and nothing out of the ordinary is going on. The only time it was exceptional was when trump visited so he seems to be a greater concern for most people.

    I also think they should get off the internet, stop moaning and use the time for either getting a second job or if better spend getting qualifications that will boost their career to a higher payscale. In many cases the 2nd job would be a better bet.

    I know a lot of parents as I’m now in my fifties and it’s not the ma8n topic of converasartion at dinner. In my area they are still able to afford quite expensive hen parties, weddings and homes. In fac the amount spent on travel/hen parties/weddings is staggering. I don’t think people are sav8ng like they used to. That is their choice but back in the 80s we had None of that. No foreign holidays, no takeaways, no nights out etc. I’m not saying they are wrong, some of my colleagues died in their 40s and 50s so life is about balance, but if you spend 4-figures on a spa hen party then clearly it can’t go on a deposit, so it’s definitely different behaviour that has consequences.

    I'd agree with most of that but I don't think it's good that many people on good earnings can't afford to buy a very modest property within an 1 hour of were they work. If every body has to do that it will put a big strain on transport networks and increase prices in area they move to and I would rather live in a society where you didn't need to be it the top 30% of earners to buy a modest property without having to move 50 miles to do it.

    I'l go back to my personal experience I lived and worked in a very expensive part of Surrey and to buy a house I moved further out and had a 45 minute commute I think that is reasonable, but if I was in same position now I would not be able to afford property where I now live. That was a time in the 70s when prices were booming. As I said the property I gave as an example was the cheapest 1 bed flat in what is the cheapest part of Surrey.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
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    edited 1 October 2018 at 9:17AM
    triathlon wrote: »
    I am just trying to find out so I put forward some suggestions and I am 99% certain he is being unrealistic. Peterborough, only a short commute from London, look there just for starters, plenty at less than £190,000, and nice properties, too many to list

    He might well be and his example is a new build that will be overpriced, but your solution is also unrealistic a season ticket from Peterborough to London is £6500 a year so you need to earn £8000 and he might not work in Central London.
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 810 Forumite
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    edited 1 October 2018 at 11:37AM
    Just make sure you buy the right house.
    IMHO The wrong "houses" would be;
    b)over priced new builds via help to buy schemes

    I have a new build coming up to the end of its interest free equity period. I was talked into buying by my wife and daughters against my instincts and judgement. I thought it was very overpriced and a risky investment, and preferred older houses. I couldn't even negotiate the price down, the developer had several buyers interested.

    Its now increased in value significantly and is in very high demand, we regularly get messages via the development Facebook group and cards pushed through from neighbours with family and friends wanting to buy. These houses sell in a matter of days on right move, around 5-10% above the asking price without any estate agent fees, Its just costs around £500 to list with photos.

    What makes it so desirable? Affluent town, excellent ofstead ratings, lots of parking, two decent sized bathrooms , very low energy, zero DIY bills :-) The last two alone offset the increased mortgage. They are also good investments for families with adult children who may not leave home as quick as we did

    People are more and more looking to buy these types of properties, even at a premium price, I cant see it changing. If there is a correction sit it out or use the 20% buffer to soften it
    The greatest prediction of your future is your daily actions.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Herzlos wrote: »
    I think a lot of the youth have a more nihilistic approach to money and housing - if you'll never be able to afford a nice house because the deposit requirements are growing faster than you can save, then you may as well spend the money on enjoying yourself instead of living like a pauper and still getting nowhere.


    It's likely to be a real time-bomb later as no-one has any money, savings or investment.

    Although I think house prices are to high I don't buy can't save deposit argument if you earn enough to get a big enough mortgage you should be able to save deposit.
  • https://www.dailymail.co.uk/money/mortgageshome/article-6226731/Mortgage-bonanza-lenders-slash-rates-fees-homeowners-time-buyers-landlords.html

    Good news all round.... Deal expires in 6 months. Think I'll book a nice 5 year fix at a lowest ever rate. I imagine many other people will be considering the same thing to ride over any Brexit worries.
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    ukcarper wrote: »
    I'd agree with most of that but I don't think it's good that many people on good earnings can't afford to buy a very modest property within an 1 hour of were they work.

    By "many people" we mean exclusively Londoners.

    The country has spent billions upon billions over the last century and a half to give London a sophisticated transport network which means you can live anywhere you want in a 500 square mile area and easily commute to anywhere else in that area. You can also commute in from two whole counties away in an hour, and double your earnings for the price of a train ticket.

    And someone else will do all the driving, which means you have lost virtually no time on commuting as you can use your laptop, phone or book to do things that you would do at work or at home anyway.

    Why in hell's name would we spend all this money on London's transport network and then not use it?
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Malthusian wrote: »
    By "many people" we mean exclusively Londoners.

    The country has spent billions upon billions over the last century and a half to give London a sophisticated transport network which means you can live anywhere you want in a 500 square mile area and easily commute to anywhere else in that area. You can also commute in from two whole counties away in an hour, and double your earnings for the price of a train ticket.

    And someone else will do all the driving, which means you have lost virtually no time on commuting as you can use your laptop, phone or book to do things that you would do at work or at home anyway.

    Why in hell's name would we spend all this money on London's transport network and then not use it?
    I do think the problem with house prices is confined to London, ,South East and few other places. If you think you can live anywhere in a 500 square mileradius and get to anywhere in London easily you obviously haven't tried it on a regular basis.
  • triathlon
    triathlon Posts: 969 Forumite
    500 Posts Second Anniversary
    ukcarper wrote: »
    He might well be and his example is a new build that will be overpriced, but your solution is also unrealistic a season ticket from Peterborough to London is £6500 a year so you need to earn £8000 and he might not work in Central London.


    There are 100's of towns and cities outside of London that are massively affordable., just go for it. But if you want to rent, go for that as well, just personally and after seeing so many tenants in my life go through my properties I would advise against this, I never want to end up like that in my life, that's just me personally.
  • Linton
    Linton Posts: 18,208 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    I hate to bring maths into the discussion but 500 square miles is about 12.6 miles radius!



    Just checked Rightmove for my nearest large town, 1 hour or so main line train journey to London:
    Houses for sale in price range £100K-£200K

    15 2-bed houses
    10 3-bed houses

    1 4-bed house requiring cosmetic improvements
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    triathlon wrote: »
    There are 100's of towns and cities outside of London that are massively affordable., just go for it. But if you want to rent, go for that as well, just personally and after seeing so many tenants in my life go through my properties I would advise against this, I never want to end up like that in my life, that's just me personally.
    I don't need to go for anything I'm doing OK thank you. But unlike you I have some empathy for the young and don't despise everybody who can't afford to buy.
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