oh dear: House prices continue long slide, says website

[wendigo100]

"Excess supply continues to plague the market,"

Wrigglesworth. I remember that name.

A few months ago he was pulled up on this board for spouting b0ll0cks.

[Rebecca Loos]

AtW - your rent seems cheap compared to the value of the house. It is not impossible I guess, but it would mean that you live in a dodgy area. Even here in drug-ridden gangland east London, I pay £1,100 a month rent for a £220,000 flat (value as at last year). Yes Birmingham would be cheaper probably, but in theory that should go for the rents as well as the property prices. There seems to be a big discrepancy between a £630 rent for a £250,000 property.

The Rebecca Empire has now got 3 houses, all of which yield rents that are above the mortgage paid monthly for them - in fact the UK house is the best earner, as the rent provides a tidy profit every month even after managing agents fees, repairs, insurance and mortgage (interest and capital) repayments deducted.

The key is to buy in areas that have got a good history of non-student renters keen to move in that area.

[Lucifer Box]

I'm afraid it is the London premium, Becs, and AtW is right. Harborne is a nice area (like everywhere it has its bad bits but it is mainly large Victorian houses and rather green). £1000 a month in a nice area of B17 will get you a 5 bedroom detached. In SW19 where I live, that would get you a flat above a kebab shop and not much else.

As a comparision, I rent out a small wooden garage in Putney for £150/month, and that's below the going rate.

[DimPrawn]

Do you live in a garage then LB?

[Lucifer Box]

Do you live in a garage then LB?

No, in a shoebox in Franco's closet. The garage is too cold in winter.

[matey]

Chaps let me direct you all to this guide

When rent is not dead money

then for a laugh watch this movie about Kirstie Allsop of Location, loc, loc

House price crash flash movie

and finally for you bears head of to

www.housepricecrash.co.uk

You know it makes sense.

[Rebecca Loos]

LB, that is quite interesting - because it would mean, then, that the ratio rent/price is much more advantageous for landlords in London than in places such as Birmingham. That's not something I was aware of.

Quite interesting because for owner/occupiers, the reverse is true, isn't it - much more expensive to buy in London than elsewhere.

[Lucifer Box]

Very true, Becs. Property prices are higher in London because of increased demand, and this is one of the reasons why that extra demand is there. But as with all demand driven bubbles, the market will correct itself in the end - I'm sure now that the fast train line to Birmingham is open, there are some people thinking "I can get twice as much for half the price" by moving out.

[Francko]

1)

3) Big rents in London? Then fking move out and choose some other place to live in - a LOT of much better places for living are outside of London.

Much better places.... Biiim'ham... LOL... is it another city of culture like Liverpool?

No, thanks I can only move from Rome to conquer other great city.

Enjoy your squallid malls.

[AtW]

Harborne is a nice area (like everywhere it has its bad bits but it is mainly large Victorian houses and rather green). £1000 a month in a nice area of B17 will get you a 5 bedroom detached.

The rents I checked show that for £1000-1200 you get huge detached house in Bournewill -- this is where Cadbury is and the houses there are PROPER big and with huge gardens, the only drawback there are no local pubs (you have to go few miles to Harbourne).

If people in London choose to pay double to live in a crappy conditions then its their own problem -- I choose to live in a nice place and I won't be buying house unless its as good as the one I rent.