It's a real shit state of affairs. I really do feel for folk like your son.
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House prices to rise 50% in next 10 years, London to double...
- Thread starter nicko31
- Start date
It's a real shit state of affairs. I really do feel for folk like your son.
Billy the Fish
Technocrat
If you've got it agreed then buy something now before it gets more expensive. Getting a mortgage 4 years ago is one of the best decisions I've made, and I consider myself very lucky to have had the means at the right time.
Go where you'll be comfortable. Brighton will always appreciate faster, I bought in mid sussex at the same time as a mate did in Brighton for the same price. His is flat is now valued way higher than my house
KingstonSeagull
New member
Completely agree, I have a Masters in Econometrics and the only way rates are going is up and logic would state that centuris paribus as a result demand for purchasing housing would decline, however then you would probably see a steep incline in rental yields causing abnormal profits in the rental market causing investors to find the London property market extremely attractive thus increasing property prices once again. I think that they will steadily rise but I highly doubt at the rate in which they are saying in this article.
I think a lot of this sort of analysis is to look at trends oh in the past 5 years it has gone up by x therefore in 10 years it will have to be y!
happypig
Staring at the rude boys
Can you decorate and do DIY ? If not, are you willing to learn ?
I would buy a flat that needs updating in a desirable area and do it up yourself; you can do this over a period of time and then you're not just relying on property price rises, you're adding value (people are willing to pay a premium for a nicely decorated/equipped place).
For example, a few years back I bought a studio flat in a nice block in Eastbourne that had been rented out for several years and was very "tired". I paid £70k. I spent a few months doing it up (rewired, new basin, retiled kitchen/bathroom, redecorated & recarpeted). cost me about £3k including mortgage payments. Sold it for £81k five months later. Was looking for next project when the property crash happened.
StonehamPark
#Brighton-Nil
Yeah it's a nightmare to be honest.
The Help to Buy schemes are even worse as the property prices seem ok but add on a 'monthly rent' to the cost. So you end up with 35%-50% the value of the property but paying around 100% the full property mortgage price.
Doesn't seem to be any real help for young/first timers.
Yeah I'm kind of in a panic at the moment trying to find something, only 1 place that fits the bill, so fingers crossed.
surrey jim
Not in Surrey
Have you considered subletting part of the property? When my Mrs and I first purchased our house we did so letting out two [of the three] bedrooms to students. This gave us a cash in hand amount per month which we used to bring down the mortgage payment. Whilst not ideal we would not be able to live in a place like we do now without.
I would also recommend speaking to @Uncle Spielberg, he he did a fantastic deal on remortgage
Uncle Spielberg
Well-known member
Do you need a second opinion re mortgage ?
StonehamPark
#Brighton-Nil
Great idea, however my bank will only offer me £130k so I couldn't even find more than a 1 bed property even if I wanted!
You were a great help a few months or so back, unfortunately due to circumstances I had to cancel my plans earlier in the year.
But yes, if you wouldn't mind, I could use all the help I can get.
darkwolf666
Well-known member
I've got a good idea. Why don't councils have houses built and then they could rent them out to people who can't afford to get onto the property ladder. They could charge those in their houses a reasonable rent, but not one so unaffordable as the private rental system - oh damn! it's been done and some idiot sold them all!!!
Exactly. We saw the same phenomenon on the Heathrow thread the other day, when people were saying that because there'd been a steep increase in air travel in the past 20 years there will be a continuing steep increase. Past performance is no indicator of future performance - anything could change. Suppose a Corbyn government came in and proposed a million new council houses a year or made capital gains tax applicable to your main residence or tripled council tax on second homes - all of these would have an effect on house prices
as someone who will never own a home (unless I win the lottery) it's interesting hearing from all parties. Letting agents talk up the market, whilst others chip in predicting a crash. I always hear about the bubble bursting as well.
Then there are the proposed changes for buy-to-lets and overseas owners. Wonder what effect they will have?
Then there are the proposed changes for buy-to-lets and overseas owners. Wonder what effect they will have?
GingerBeerMan
3-0
- Dec 29, 2011
- 8,204
Or make it so houses weren't a main source of income for some super wealthy people. How many times have we heard, 'he owns property and rents it out'. It's beyond a joke now. Maximum two house limit, anything after that can only be rented at a nominal level given to people who need it. Logistically would be hard, but could be done with a bit of effort.
That makes it sound like the current housing market came about by accident. The reason that we have house prices out of reach of average buyers is because people vote for it. And people vote for it because 70 percent of the electorate are home owners (and when it comes to people who actually vote, it's probably closer to 90 percent). They're perfectly happy with the status quo and house prices can triple for all they care. That's fair enough, that's democracy for you, but don't make out house prices are this way because some bad fairy waved a magic wand
jakarta
Well-known member
Wouldn't it just mean that the landlords are overseas, where they don't bother paying tax on their rental income?
RexCathedra
Aurea Mediocritas
Hard sell, social housing, in a country where one major political party, and roughly half the political nation, doesn't believe that the noun 'society' or the adjective 'social' refer to any actually-existing thing...
Suppose the Earth was hit by an Asteroid? Much the same probability...
Think you're a bit out on that one. Current odds on Corbyn being next PM 8-1. Chances of asteroid 2012 TC04 hitting the earth in 2017 about 450,000 -1. Corbyn was also 200-1 to win the labour leadership
What like the changes to stamp duty and BTL interest relief starting in 2017?
http://www.theweek.co.uk/66688/buy-to-let-after-the-autumn-statement-what-the-changes-mean-for-you
I'm not convinced that will have any effect. If houses are more expensive to buy, landlords will put up rent to cover the cost. If landlords lose more money through taxation, then they'll put rent to cover the cost
As someone lucky enough to be on the housing ladder I find myself in an odd position. My politics and the fact I have two young kids who will need a house themselves in the future would mean that in theory I would be in favour of a price crash. However, the reality is, if it did. I'd financially ruin myself and risk the roof that's over their heads now.
Don't hang out for Corbyn to fix this mess. Anyone with a mortgage who votes for him will be guilty of a mixture of unbelievable altruism and gross idiocy.
Don't hang out for Corbyn to fix this mess. Anyone with a mortgage who votes for him will be guilty of a mixture of unbelievable altruism and gross idiocy.