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[TW]Fox;11248681 said:
Of course he does, silly me
Fair to work out property yield based on multiple sources?
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Of course he does, silly me
[TW]Fox;11248681 said:
dont you start. i am putting accross my view. and like i have said depend on the area, dpends on the market. i am saying clearly that the market in this area is not showing any signs of crashing at all!!! thats all. my view
i do not expect to be insulted as a result
I'm surprised you're saying that whilst being based in London... I could understand if you were based in any other city in the UK where they have an over-abundance of new build flats and buy-to-let properties on the rental market, but in London demand is still very high, especially at the end of the market which this gentleman is going into.
He's not looking for a quick buck as he mentioned in his post - he's looking to make a long term profit on the properties based on their location within the East London area and the overall regeneration projects that are currently underway as part of the Olympic development.
I know its London you're all referring to, but don't believe that houses only go up in value. I'm sure the people that payed $150,000 or so for these houses all thought it was a one way bet.
http://www.realtor.com/search/searchresults.aspx?pg=2&cmid=1099893%2c1090151%2c1090152%2c1099894%2c1090153%2c1090154%2c1090155%2c1090156%2c1090157%2c1090158%2c1090159%2c1090160%2c1099895%2c1090161%2c1090162%2c1090163%2c1090164%2c1090165%2c1099896%2c1090166%2c1090167%2c1092243%2c1092244%2c1090168%2c1090169%2c1090170%2c1090171%2c1090172%2c1090173%2c1090174%2c1090176%2c1090177%2c1090178%2c1090179%2c1078986&typ=7&sid=fa9b40116b4346c39401291ed957aa5c
If want an idea as to how bad things can get, you only have to look across the pond.
http://www.realtor.com/search/searchresults.aspx?pg=2&cmid=1099893%2c1090151%2c1090152%2c1099894%2c1090153%2c1090154%2c1090155%2c1090156%2c1090157%2c1090158%2c1090159%2c1090160%2c1099895%2c1090161%2c1090162%2c1090163%2c1090164%2c1090165%2c1099896%2c1090166%2c1090167%2c1092243%2c1092244%2c1090168%2c1090169%2c1090170%2c1090171%2c1090172%2c1090173%2c1090174%2c1090176%2c1090177%2c1090178%2c1090179%2c1078986&typ=7&sid=fa9b40116b4346c39401291ed957aa5c
If want an idea as to how bad things can get, you only have to look across the pond.
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This is what you ALL need to understand. It makes no difference what the demand is in London or anywhere else. The level of demand is completely irrelevant because the credit markets have dried up.
It's almost impossible to get a 100% mortgage now, most lenders demand at least 5% and some require 25% for the very best deals. I am sure a lot of people want to buy, that's not the issue, the issue is that they need to raise the deposit and money to cover stamp duty, legal fees etc. and that amount is just too much.
I'll put it another way, I WANT to own a Bentley, but I CAN'T afford one.
The days of cheap credit, 'Liar Loans' (I love you Eric!) and other unstable credit forms are gone - they will not be coming back anytime soon.
We need the market to correct to 3.5x income for a home, and I believe that shall be the case over the next few years.
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Yes, let's.
London is expected to lose over 100,000 finance related jobs in the next 12 months.
The industry may be different, but the end result is the same.
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You really are a genius aren't you?
So you want this guy to buy a property now, put his 5% or 10% deposit down and rent it out?
24 months down the line his property is worth 50% of what he paid for it, if he's lucky. He needs to remortgage but his LTV is now completely shot and he has to find £100,000 just to be able to remortgage.
As I said, genius...
difficulty in getting a 100% mortgage hasnt only come in, its been difficult for the past few years. prices might not still be climbing as much, but there is still a slow increase, although currently its stabilised.
as interest rates drop (and i am expecting another drop) the market pics up, i have noticed just with the amount of people that have started looking to buy since the last drop of 0.25%
im only trying to put accross what i have noticed within the market, these are my observations
You really are a genius aren't you?
So you want this guy to buy a property now, put his 5% or 10% deposit down and rent it out?
24 months down the line his property is worth 50% of what he paid for it, if he's lucky. He needs to remortgage but his LTV is now completely shot and he has to find £100,000 just to be able to remortgage.
As I said, genius...
there is only a tiny chance of this happening in that area. as he has said its only 300m from the olympic ground. there will / should be a premium in rental within the next years
and like i have said i am putting accross my observations!! i have not said i know everything about it, but just dont belive everything you here. it wouldnt make good news if they said theres been no change would it?
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No it hasn't, so you're wrong again.
Up to 125% LTV was freely available until September last year.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
You do realise the Olympics are only on for about a month right?
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And what happens after the Olympics assuming by some market defying chance that property in that area manages to avoid the crash?
There is nothing there that supports the prices. It was full of poor people, that's why they chose that site, because they could just bulldoze them out of the way and the land was (relatively) cheap.
[TW]Fox;11248955 said:
yes i relise that, but with the amount of things going on in the area, new jobs etc there should be an increase.
and with clients i have worked with i have not seen 1 person get a 'freely' available 100% mortgage in the last 18months
you really are expecting a massive crash soon arent you.
Pure speculation.
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Do you understand the meaning of the word 'recession'?
The US is in one and it's widely accepted that the UK is entering one. Where are these jobs going to materialise from exactly?
come on, admit it. You haven't looked at the real numbers at all within the last 5 months have you, that's how long there have been consecutive month-on-month drops.
By april the numbers will have worked through to make it year-on-year drops.
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No, it's an informed prediction, hardly the same thing.