Is it a Good time to buy a Property?
- Thread starter Vita
- Start date
Live somewhere cheaper.
You haven't got a "right" to be able to afford to own a home in central London.
Deleted member 651465
Deleted member 651465
Don't forget there are increased regulations when you start renting out property. I.e. Fire extinguishers, self closing doors etc.
It might be OK on the face of things, but don't assume you can let someone walk in and stay without making some form of alterations to comply with the regs.
It might be OK on the face of things, but don't assume you can let someone walk in and stay without making some form of alterations to comply with the regs.
Yeah I know about these. It is quite difficult to maintain a rented property, there is always one fault or another, and tenants can be a right pain in the backside. As an investment it sounds good, as a 3bed semi just up the road is going for £185k. May put a offer in looking at alternatives as you guys suggested. Thanks for all the input.
I don't actually live in CG, I live in Ealing. I wouldn't class that as 'central' London, nor would I class it as a particularly affluent area (although it is nicer than say, neighbouring Acton). It's in Ealing that you can hardly get a 1 bed flat for less than £180k. A 2 bed went on my girlfriends road for £300k. Like I say, do the math. Is it really reasonable to expect somebody to save for ~10 years to buy a 1 bedroom flat? That's supposed to be the first 'step' on the 'ladder' -- that step shouldn't be taken when you're 40! Don't forget in London you'd be paying ridiculous rent too (£1000+ pcm for a 1 bed flat); to save £500 per month you'd need to be earning over £35k. Who earns that at 25? The whole situation is ridiculous.
London is obviously the extreme example, I admit that. But it's all over the south. Go back to my hometown Newbury (a good hour out away from London) and you're still looking at £150k for a 1-2 bed flat. It's just not reasonable. Go to Brighton and it's even more. It's not a London problem and people need to stop dismissing it as one.
/rant
The market dictates the price, so obviously there are plenty of people that can and do afford to get on the ladder at those rates.
I would say no. According to Gerald Celente (a future trends analyst) we are not out of the recession. He says the money all the governments lent the banks in 2008 was just a stop gap and not a solution. He is predicting massive economic problems in the next 2 years. I have seen other people say the dollar will loose 30 - 50% of its value this year and the dollar will totally collapse in 2 years. I know we live in the UK and not America but the collapse of the dollar will greatly affect the rest of the world. I would say the housing market is heading for a massive crash.
The price of houses and flats are way overvalued at the moment. It is all over the UK not just in London. For the housing market and mortgage market to survive it constantly needs new buyers. With buying property getting harder and harder due to A) needing a massive deposit and B) property prices being way overvalued. The only inevitable is a market collapse. Don't think it can happen? Around 1991 (I think it was 91 may have been 89, 90, 91 or 92) my brother lived in Edgeware Middlesex (last stop on the northern line). His one bedroomed flat was valued at £63,000. He was going to sell it and move back to Liverpool. He then changed his mind and stayed in London. A collapse came and within one month his flat was valued at £35,000. Luckily for my brother he bought the flat for £30,000 so he was not left in negative equaty.
I genuinly feel sorry for people buying property at overvalued prices as they are going to have massive negative equaty.
I don't feel sorry for all the I am alright jacks. The ones who have bought overvalued property and are happy property prices just keep on rising and rising. They don't care one bit the young people of the UK have no chance of buying somewhere to live. Lets see how smug they are when the house or flat they bought at over inflated prices are suddenly worth a lot less than they paid for it. Sudenly they will care about the housing market prices.
The price of houses and flats are way overvalued at the moment. It is all over the UK not just in London. For the housing market and mortgage market to survive it constantly needs new buyers. With buying property getting harder and harder due to A) needing a massive deposit and B) property prices being way overvalued. The only inevitable is a market collapse. Don't think it can happen? Around 1991 (I think it was 91 may have been 89, 90, 91 or 92) my brother lived in Edgeware Middlesex (last stop on the northern line). His one bedroomed flat was valued at £63,000. He was going to sell it and move back to Liverpool. He then changed his mind and stayed in London. A collapse came and within one month his flat was valued at £35,000. Luckily for my brother he bought the flat for £30,000 so he was not left in negative equaty.
I genuinly feel sorry for people buying property at overvalued prices as they are going to have massive negative equaty.
I don't feel sorry for all the I am alright jacks. The ones who have bought overvalued property and are happy property prices just keep on rising and rising. They don't care one bit the young people of the UK have no chance of buying somewhere to live. Lets see how smug they are when the house or flat they bought at over inflated prices are suddenly worth a lot less than they paid for it. Sudenly they will care about the housing market prices.
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Soldato
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I agree with you Scam. Unfortunately after being in your position for a number of years I finally managed to buy my own place at 29 (about a year ago). Now I just don't care, and it's in my interest to keep prices high and lucky for me price rises in Cambridge are back to double figures.
Therein lays the problem. My advice to you is take out an irresponsibly large mortgage you just can't afford in order to get on the housing ladder.
Oh wait....
Therein lays the problem. My advice to you is take out an irresponsibly large mortgage you just can't afford in order to get on the housing ladder.
Oh wait....
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No the dollar will collapse and be no more. There will be the North American union created (like our European union). The North American union will be USA, Canada and Mexico. The currency will be the Amero. Within 2 - 3 years max there will be no such things as the US dollar. A lot of countries have started ditching the dollar as their reserve currency and switching to other currencies as there reserve currency.
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This is the key point. At 5.5% I'd say forget it. You've already said you'd have to spend £5-6k doing it up, that means first year return is actually only 1.6% (though you may be able to recover most/all of that £5-6k if/when you sell). Other costs include insurance, solicitor fees etc... not to mention all the hours of time and hassle involved buying and renting a place out.
With that yield it doesn't make sense unless you are counting on capital appreciation - given the state of the economy now and over the course of this parliament you'd be a brave man to count on house prices going up. If they did, and you managed to sell at a decent profit, there's a good chance capital gains tax could take a lot of profit away again.
What's this based on?
China holds a ridiculous amount of US dollars, so do other countries. It's in their interest to keep the dollar stable.
A nice three bed in our area would be about 260k. It's rather disheartening to a chap.
im currently in the process of buying a 3 bed semi detached. and its costing me £345,000. which was cheap for over here. needs new carpets, and wall's need doing too. bit of a project really. just sold my last house for £329,000, which i had previously bought for £215,000.
needs new carpets, and wall's need doing too. bit of a project really. just sold my last house for £329,000, which i had previously bought for £215,000.What's this based on?
China holds a ridiculous amount of US dollars, so do other countries. It's in their interest to keep the dollar stable.
A lot of the countries holding Dollars are ditching them for other currencies. They are doing this because they know the dollar will collapse.
I base this on a lot of websites I read. The best one is http://www.trendsresearch.com/index.htm by Gerald Celente. Gerald Celente does not claim to be a prophet or a psychic. He bases his predictions on what the Governments are telling us, what is actually happening in the real world, what is happening in the stock markets etc. He has amazing accuracy in predicting future trends.
Search Google for US Dollar collapse and also search you tube for US Dollar collapse. Also search you tube for Gerald Celente. Also search you tube for the Amero.
A lot of financial experts besides Gerald Celente are predicting the collapse and demise of the Dollar.
Here are my predictions based on what I have read
1) This year the Dollar will loose 30 – 50% of its value.
2) This year we will see the recession has not ended and there is no recovery. Towards to the end of the year we will see the money all the governments gave the banks in 2008 was just a stop gap and was never going to stop the inevitable only delay it a couple of years.
3) Within 2 years (maybe 3 years) the American Dollar will collapse and the USA will have massive hyper inflation. There will be no shortage of food but it will be so expensive most americans will be unable to buy it. Pretty much soon after the dollar collapse or possibly at the same time America, Canada and Mexico will merge to create the North American union. The Dollar will be replaced with the North American union currency called the Amero.
4) Sometime within the next 2 years we will see a massive housing market collapse. Prices of flats and houses will come down to what they are actually worth. Where I live in Liverpool the price of a 3 bedroomed house has gone from £45,000 to £140,000. This has happened in just 4 years. It is a joke.
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Nor should anyone for the foreseeable future. Housing is still massively overvalued. Instead of the crash that should have happened, we've instead experienced stagnation, so the problem hasn't been dealt with yet.