Im calling it.....

Soundood said:
its the only city in the UK, were you can make £400,000 on one property in 9 years, maybe more

I speak only for myself. :cool:
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Tell me about you plan to realise those mad gains - go homeless? :p

I think the actual realisable gain you have made is the difference between the deposit you put on then and the deposit you'd have to put down now, plus however much extra a month the mortgage would be over a period of years (however long you will stay there - perhaps 5-10 years but totally down to you). Sure there is more interest to pay on a bigger mortgage, but I think liquidity the in the medium term is the true value - unless you are planning to stay there forever / pay off that mortgage at rates that are sensible upon re-mortgaging. If you're not paying off all the extra interest on this hypothetical mortgage until the loan is actually paid off then eh.. I don't really think that counts as a true 'saving'.
 
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Mynight said:
The majority of new developments in London seem geared towards the highest earners as such prices won't be coming down.
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Well, apart from the fact that investors are walking away from those ridiculous developments because they don't feel they can make money on them anymore. I used to live next door to the Royal Wharf development in Docklands (3,500 new builds) and rumour has it they are struggling to sell. And indeed, those that snapped them up early with a view to sell them on before they are even finished, are struggling to sell them on. Presumably because everyone else is looking at a tiny box flat in the "bottom" end of London and thinking £550k is really rather ridiculous.

http://www.independent.co.uk/news/b...-luxury-property-in-the-capital-a6908711.html

He adds that he has heard of a number of buyers from Malaysia, Singapore, Hong Kong and China “walking away” even if they have exchanged contracts and paid a deposit. “They would rather lose 10 per cent than complete the purchase and lose a lot more, even before the developments are complete. The changes to buy-to-let tax is the straw that broke the camel’s back and some developers are nursing a massive over-supply of these properties.”

In recent years luxury developments would often be showcased in Singapore, China and Malaysia. But this is now grinding to a halt, says Mr Abrahmsohn. “The capital is no longer perceived as a safe haven for property investments and we have lost this inflow of foreign capital.”
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It's important because everyone knows it's these investors that are propping up the market in London. It's not like your average income earner in London is splashing £500k on a two bed flat, is it? So once the investors leave the prices will come down to a "normal" level (for London).
 
Rroff said:
I hope you are right - I'm holding off making any moves hoping at some point there will be a reset and I can use my money to good effect biding my time.
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I think if it comes to the point there's a "reset" you'll be buying that house with clean water, food, and out of date medicines ;)
 
We are approaching the end of the current business cycle, a recession is likely within the next year or so and there are plenty of catalysts which could speed up the process of bursting not just the property bubbles across cities like London, Vancouver, Shanghai, San Francisco (...) but also the vast and incredibly worrying sub-prime auto loan bubble built up across much of the developed and developing world. And that's not to mention the problems in European banks which could flare up at any point soon.
 
I reckon it'll slow, but with Crossrail coming in it should likely hold on a while yet. A crash fuelled by real estate assets, a global financial crisis and national recessions haven't caused a permanent correcting of property prices at a lower level, therefore something pretty ****ing massive is likely required to cause a significant and lengthy drop in values.
 
I too think the prices will drop. I was going to drop 10m on a nice apartment but I'll put my money where my mouth is and not buy it.
 
Dr House said:
I believe London and UK property prices has hit its peak. Im putting my money where my mouth is and pulling out of buying and will not be buying until I feel there is more stability in the market.

Lets see if I'm right. If I'm wrong and the prices keep going up I'm a little shafted.
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Never going to happen ever, to much foreign investment and immigration especially in the London area.
Other parts of the UK it might fluctuate by 10-20% but no more housing bubbles bursting am afraid.
 
itchy said:
Never going to happen ever, to much foreign investment and immigration especially in the London area.
Other parts of the UK it might fluctuate by 10-20% but no more housing bubbles bursting am afraid.
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That's what people said about the real estate bubble of the early 2000s too, just because prices are continuing to rise astronomically doesn't mean it can continue forever.
 
Mynight said:
Better be a damn nice apartment for that money.
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Ever seen what goes for "apartment" at the luxury end of the market in any one of several capital cities, including London and New York?

Firstly, they can be twice or three times the floor area of typical 4/5 bed suburban detached house, or more, and secondly,10m puts you way short of the top end.
 
PhysicsMan94 said:
That's what people said about the real estate bubble of the early 2000s too, just because prices are continuing to rise astronomically doesn't mean it can continue forever.
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But in the early 2000s the was not as much immigration and foreign investment.

Investors are buying up property in London off plan and not even living in them, then shifting them on when the price goes up.

London's property market is absolutely crazy.
 
I have an insight into this I cannot disclose specifically but I agree. I have seen property prices drop, lenders down valuing new build property prices, developers being unable to sell. A particularly large developer in London currently has a large stock of 1-2 bed flats in what really are undesirable areas, that they can't shift, including foreign buyers walking away after exchange of contracts.
 
I can see a period of stagnation but simple supply and demand means prices will stay silly IMO. Maybe a more severe correction in the Central London market.

Even if we Brexit, we're not having a sudden drop of population so it doesn't make sense. Only a rise in interest rates hitting affordability could trigger a massive correction, surely?

If prices crash, I'm seizing the opportunity to move.
 
peterwalkley said:
sooner or later that has to come back into balance.
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Why does it..the more wealthier of folks will continue to buy and sell?,..nothing will change for the average joe,Housing will continue to be expensive while our wages will stay the same crap so many of us young folk will never be able to afford one. :mad:

Generation rent. :mad:
 
Shoza said:
I have an insight into this I cannot disclose specifically but I agree. I have seen property prices drop, lenders down valuing new build property prices, developers being unable to sell. A particularly large developer in London currently has a large stock of 1-2 bed flats in what really are undesirable areas, that they can't shift, including foreign buyers walking away after exchange of contracts.
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Sounds like Royal Wharf :) Then again, there's hundreds of developments in crappy areas of London , selling overpriced flats..
 
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