House prices rose 7.3% this year, average now almost £250k
- Thread starter HACO
- Start date
- Status
I totally misunderstood that property, I thought the total price is £70k and shared ownership £35k. £140k for that property is just LOOOLOOOOLLz
Wouldn't want to be too boring now would we
Anyone recommending a shared ownership property is recommending somebody put their foot into a bear trap, wilfully.I totally misunderstood that property, I thought the total price is £70k and shared ownership £35k. £140k for that property is just LOOOLOOOOLLz
Wouldn't want to be too boring now would we
Agree completely that London has a great transport network. Unfortunately all that does is mean prices inflate all over, because the city is accessible from so far, rather than cause a competitive effect.
As for shared ownership, you at least acknowledge it being 'an evil' - the point we're making is how broken the market has become that engaging with such 'evils' is the only way lots of people can even consider finding a route to ownership.
One person thinks they have to spend £500k on a first property. Another thought you can bag a flat in West Ham for £70k.
I see both sides of the argument. Affordability ratios are the worst they've been since WW2. People are saving one of the lowest proportions of their incomes on record, particularly younger people.
While ever we have ultra low interest rates, I suspect the problem will largely remain. Impending double dip recession and unemployment rising might swings things back the other way, but that assumes that the people starting out retain their jobs and earnings- many will not.
I see both sides of the argument. Affordability ratios are the worst they've been since WW2. People are saving one of the lowest proportions of their incomes on record, particularly younger people.
While ever we have ultra low interest rates, I suspect the problem will largely remain. Impending double dip recession and unemployment rising might swings things back the other way, but that assumes that the people starting out retain their jobs and earnings- many will not.
Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,367
Can you link to a property that sold for 350k in 2015 then sold for 600k in 2020?
Totally broken, I think that was one of my opening comments.
But to dismiss these viable options and just moan that houses are too expensive is surely hypocritical. Unless spending the rest of their lives renting and moaning is preferable?
Yes OK west ham used to be a dive when I was a lad, overlook that error I already apologised for
Replace WH with whatever is currently a nearby hellhole to see the point I was trying to make.Yes OK west ham used to be a dive when I was a lad, overlook that error I already apologised for
I actually think it's a shame that this isn't the case anymore- that even the worse areas are still expensive. It would be great if people did have the option of living in a scummy area of a large city for a reasonable sum. Nowadays the equivalent is probably somewhere like Luton (I know. Bear with me). It's only 30 mins from Zone 1, and non-shared ownership flats do start from £80k.
So I've sort of shown your original point still has validity.
With shared ownership, you're still a renter.
It's all of the disadvantages of rental, with none of the advantages of ownership
It's literally shooting yourself in the foot. You can't even sell up without permission, lol.With shared ownership, you're still a renter.
It's all of the disadvantages of rental, with none of the advantages of ownership
You're also responsible for 100% of the maintenance costs, even if you own 25% of it. They're also just simply overpriced by at least 10% compared to similar properties.
I'm not sure I'm seeing the hypocrisy in pointing out that shared ownership isn't necessarily a great idea or magic way to jump on the ladder, when it's being thrown into discussion alongside houseboats, caravans and a sprinkling of £100k cash only studio flats as an example that you can have your cake and eat it in London because of the tube.
I'm sure plenty of people out there would probably go as far as arguing it's just another route to exploit those at the bottom of the property food chain to ensure values can keep inflating and keep the equity growth bubble inflating.
It's genius really - what do you do when you've inflated housing so much you've realised people actually can't afford to buy it? Sell them half a house and rent them the other half! Some will even think they're being done a favour!
This country is generally very innovative when it comes to exploiting people at the bottom of the property ladder (and those at the middle parts of it as well, to a lesser degree).
You build an apartment building for, let's say, £150k per unit. You want to sell it for £250k per unit but can't as the market price is jus about £200k, that's too much of a margin. So you sell them 25% of them at £62.5k per unit, and charge rent on the rest. You make whole on 40% of your capital, and you borrow the rest at 1% interest-only, the rent payments (roughly equal to a 25-year repayment mortgage at 3%) give you a 5% return on that portion. You get a 4% guaranteed return, with collateral. That's without taking into account price appreciation of the assets over the long term.
I've changed my demands, do keep up. I now require two completely free beachfront properties, one of which must have an undersea lair with submarine. At least one helicopter, helipad on both roofs, and a garage big enough to fit the two free Ferraris I feel entitled to.
Also, this is what everybody who complains about the housing market believes. We are all communists.
Viva la revolution!
I think even this is pushing it but how far are you looking around Luton?
The devil is in the detail with a lot of these, as rightmove allows a lot to be 'hidden'.
I've searched Luton, £70-90k, non shared ownership, non retirement and there are 20 results. Most are studio (unlike the original 2 bed starting point), some are student blocks and a good few are cash only, auction starting prices or close to expiry leaseholds.
Permabanned
- Joined
- 23 Apr 2014
- Posts
- 23,552
- Location
- Hertfordshire
Given covid, a massive recession, increasing unemployment figures, the Brexit car crash, you would think house prices are due a correction?
They're increasing at the fastest rate in the last decade. So no. In a sane world the prices would have crashed long ago, but the government will make sure that a correction never happens.
No. If Brexit and COVID did nothing then I can't see anything affecting them.
If anything COVID has made the housing market and rental market more competitive. People have saved a lot of money over the lockdown(s) and with regards to rental people have realised they hate the people they rent with and were keen to move out. A friend had this situation living with a load of friends and started looking for other rooms in Clapham. Rooms were going the same day they were put up (and still are).
Yeah, just the town itself. Yes, they're not 2-bed flats, just very basic studios or 1-bed for that money. Was just saying that £80k is the start point and not £250/300k or whatever.
Don't make excuses for the property being a studio flat, that's half the point, you aren't getting a detached town house with a helipad, you are getting on at the bottom of the ladder.
Exactly.
Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,367
Glad you are being honest now at least. Only took 100 posts.
Why stop there though? Why not demand some free SSD since you don't like the fact they have increased in price.
GPU is another one your entitled to at least 5 free GPUs with the number of times you have complained about scalpers.
What is next on the list of moaning about prices?
Oh yeah a DAC/amp forgot about that one. Take one of each too for free.
Is there anything you actually deem that's worth buying apart from products of slave labour where people have died making it?
- Status