First time buyer: one bedroom in London

Crashy_Time

steve866 said:

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

A good test of how much you own is to stop paying the mortgage for a while (I know I know the debt is secured on the house, you own the house etc., maybe I should have said -  Most people buying in London now will be waiting a long time to clear the debt on their property? Surely you don`t disagree with that statement?)

Is there something different about London mortgages that I've missed?  Surely a 25 year (or 30 or whatever) mortgage is the same in London as anywhere else in the country.  Yes, the mortgage amount may be different but surely the term is about the same?

The debt is more, much more, and much of it is essentially a leveraged bet on HPI continuing in the same vein as recent years, which I don`t think is going to happen

If house prices, rents and interest rates all remained static buyers would be better off?

What`s your take?

Crashy_Time

redefinr said:

Crashy_Time said:

https://www.rightmove.co.uk/properties/84199528#/
Is it value with nearly 500 quid knocked off the initial price?

Mate, that's £800PCM for a single room in a flat share - what makes you think I would be willing to pay such a price for flat-sharing? I think you just browsing properties without really seeing details, locations etc.
I genuinely don't mind different vision, yeah I could have been off still renting...and renting...and renting. Then you retire, and what? You still renting? My plan is to pay off my mortgage before retirement and actually own a property, instead of giving my money to landlords for the rest of my life. You know what relief is not to worry anymore about renting going up? Or landlord repossessing the property I rent? Or even just the freedom to pain the flat whatever I want...
Bottom line is if you rent you never going to own a property. It's cool when you 20's but I'm not.

It was originally on at 1200+, sentiment has shifted, what do you do when mortgage rates move up?

bouicca21

house house prices go up, house prices flatten, house prices go down.  It’s a cycle and always has been.  It’s a bad investment for anyone looking for short to medium term gains alone.  It’s a good investment for someone who wants a long term home and to avoid being at the mercy of an unpredictable landlord.

hazyjo

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

A good test of how much you own is to stop paying the mortgage for a while (I know I know the debt is secured on the house, you own the house etc., maybe I should have said -  Most people buying in London now will be waiting a long time to clear the debt on their property? Surely you don`t disagree with that statement?)

Is there something different about London mortgages that I've missed?  Surely a 25 year (or 30 or whatever) mortgage is the same in London as anywhere else in the country.  Yes, the mortgage amount may be different but surely the term is about the same?

The debt is more, much more, and much of it is essentially a leveraged bet on HPI continuing in the same vein as recent years, which I don`t think is going to happen

People in London can't get x10 their salary or anything. You seem to forget everyone has the same risk, even if you find the figures high!

jimbog

redefinr said:

Crashy_Time said:

https://www.rightmove.co.uk/properties/84199528#/
Is it value with nearly 500 quid knocked off the initial price?

Mate, that's £800PCM for a single room in a flat share - what makes you think I would be willing to pay such a price for flat-sharing? I think you just browsing properties without really seeing details, locations etc.
I genuinely don't mind different vision, yeah I could have been off still renting...and renting...and renting. Then you retire, and what? You still renting? My plan is to pay off my mortgage before retirement and actually own a property, instead of giving my money to landlords for the rest of my life. You know what relief is not to worry anymore about renting going up? Or landlord repossessing the property I rent? Or even just the freedom to pain the flat whatever I want...
Bottom line is if you rent you never going to own a property. It's cool when you 20's but I'm not.

#awkward. I never spotted that 
What you are experiencing now is the freedom of knowing you are not beholden to the whim of a landlord. Knowing that you won't be paying rent into retirement is very much a relief

Crashy_Time

bouicca21 said:

house house prices go up, house prices flatten, house prices go down.  It’s a cycle and always has been.  It’s a bad investment for anyone looking for short to medium term gains alone.  It’s a good investment for someone who wants a long term home and to avoid being at the mercy of an unpredictable landlord.

It hasn`t been a "cycle" for a long time, far too much intervention (low rates etc.) going on. You don`t need to be "at the mercy" of any landlord, because there are plenty of landlords (due to the banks pushing BTL for years) and especially now plenty of competitively priced rentals.

Crashy_Time

hazyjo said:

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

A good test of how much you own is to stop paying the mortgage for a while (I know I know the debt is secured on the house, you own the house etc., maybe I should have said -  Most people buying in London now will be waiting a long time to clear the debt on their property? Surely you don`t disagree with that statement?)

Is there something different about London mortgages that I've missed?  Surely a 25 year (or 30 or whatever) mortgage is the same in London as anywhere else in the country.  Yes, the mortgage amount may be different but surely the term is about the same?

The debt is more, much more, and much of it is essentially a leveraged bet on HPI continuing in the same vein as recent years, which I don`t think is going to happen

People in London can't get x10 their salary or anything. You seem to forget everyone has the same risk, even if you find the figures high!

They can still massively overpay if a couple pool equity from previous sales and take loans from family etc., which is what a lot of people have been doing, the risk regarding being over-leveraged in London is higher than many other areas IMO.

bouicca21

Crashy_Time said:

bouicca21 said:

house house prices go up, house prices flatten, house prices go down.  It’s a cycle and always has been.  It’s a bad investment for anyone looking for short to medium term gains alone.  It’s a good investment for someone who wants a long term home and to avoid being at the mercy of an unpredictable landlord.

It hasn`t been a "cycle" for a long time, far too much intervention (low rates etc.) going on. You don`t need to be "at the mercy" of any landlord, because there are plenty of landlords (due to the banks pushing BTL for years) and especially now plenty of competitively priced rentals.

Funny, I must be imagining the various bubbles that have happened in my lifetime.  As for dodgy landlords, so pleased to hear they no longer exist. Seven years ago when my marriage imploded I moved into rented (which incidentally cost more than a mortgage on a far bigger property). The first LL had a repossession order hanging over the property for non payment of (residential) mortgage and didn’t do repairs or deposit schemes; the second suddenly decided to sell up.  So nice to hear those things don’t happen any more. Look forward to Shelter winding itself up as there is no longer any need for its services.

Crashy_Time

bouicca21 said:

Crashy_Time said:

bouicca21 said:

house house prices go up, house prices flatten, house prices go down.  It’s a cycle and always has been.  It’s a bad investment for anyone looking for short to medium term gains alone.  It’s a good investment for someone who wants a long term home and to avoid being at the mercy of an unpredictable landlord.

It hasn`t been a "cycle" for a long time, far too much intervention (low rates etc.) going on. You don`t need to be "at the mercy" of any landlord, because there are plenty of landlords (due to the banks pushing BTL for years) and especially now plenty of competitively priced rentals.

Funny, I must be imagining the various bubbles that have happened in my lifetime.  As for dodgy landlords, so pleased to hear they no longer exist. Seven years ago when my marriage imploded I moved into rented (which incidentally cost more than a mortgage on a far bigger property). The first LL had a repossession order hanging over the property for non payment of (residential) mortgage and didn’t do repairs or deposit schemes; the second suddenly decided to sell up.  So nice to hear those things don’t happen any more. Look forward to Shelter winding itself up as there is no longer any need for its services.

What bubbles do you mean? It certainly won`t be a property bubble bigger than this one.

redefinr

Funny, I must be imagining the various bubbles that have happened in my lifetime.  As for dodgy landlords, so pleased to hear they no longer exist. Seven years ago when my marriage imploded I moved into rented (which incidentally cost more than a mortgage on a far bigger property). The first LL had a repossession order hanging over the property for non payment of (residential) mortgage and didn’t do repairs or deposit schemes; the second suddenly decided to sell up.  So nice to hear those things don’t happen any more. Look forward to Shelter winding itself up as there is no longer any need for its services.

There is still plenty of dodgy landlords in London, this is just few months ago:
https://www.islingtongazette.co.uk/news/andrew-panayi-denies-he-is-a-notorious-rogue-landlord-6555290
On another note:
https://www.theguardian.com/money/2021/jan/20/average-london-house-price-exceeds-500000-for-first-time-covid
Crashy sales are up and up and up in London, this is straight reality not personal opinion.