Reply to: London property panic station...

[AtW]

(b) even if it is 38%, that's back to, what, 2014 prices? They can ride that out in another couple of years.

Yeah I am sure they keep cutting the price because they are planning to ride it out

[thunderlizard]

"A four bedroom townhouse on the site was listed in July last year for £6m, but was reduced to £4m in January – a decline of 38 per cent"

(a) I'd call that 33%. I don't know why they think it's 38% but I'm sure that is why they are property millionaires and I'm not
(b) even if it is 38%, that's back to, what, 2014 prices? They can ride that out in another couple of years.

[DimPrawn]

4-6m is the new 1m. Aren't something like 10% of households asset millionaires now (inc. property, pensions etc.)?

I thought is was 90%. There's just AtW and a few million other immigrants who haven't made it to the big time.

[diseasex]

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

I don't own a property in London and just waiting for prices to drop . So yeah I'll benefit from bubble crash

[BrilloPad]

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

Young people can live somewhere.

What is not to like?

[AtW]

4-6m is the new 1m. Aren't something like 10% of households asset millionaires now (inc. property, pensions etc.)?

Indeed

[jamesbrown]

If you've got 4-6 mln you don't need to commute anywhere...

4-6m is the new 1m. Aren't something like 10% of households asset millionaires now (inc. property, pensions etc.)?

[AtW]

If you've got 4-6m, you've also got a helicopter ferrying you into London. For the average punter with a young family, avoiding a 1-2h commute is worth a lot, hence the demand in London vs., say, scumsville (B'ham).

If you've got 4-6 mln you don't need to commute anywhere...

[jamesbrown]

If you've got 4-6 mln GBP to spend on housing then there are plenty of much nicer places in UK for a "young family" to be for same money or like a LOT less.

If you've got 4-6m, you've also got a helicopter ferrying you into London. For the average punter with a young family, avoiding a 1-2h commute is worth a lot, hence the demand in London vs., say, scumsville (B'ham).

[AtW]

Young families simply don't want to live in these apartments (obviously, it reaches a point where it does make sense, financially, but that's a long way off).

If you've got 4-6 mln GBP to spend on housing then there are plenty of much nicer places in UK for a "young family" to be for same money or like a LOT less.

[jamesbrown]

Meh. This was always going to happen. When you massively increase supply to a relatively narrow (overseas-focused) market and prices are already in bubble territory, only one thing can happen, and it is happening. That being said, as much as I'd like it to spillover into the wider market, I don't see this happening, not even the wider market local to these developments. Luxury apartments are something of a niche market. There may be some spillover to 3-bed terraces in the vicinity, but not a lot, I predict (and not until it becomes carnage). Young families simply don't want to live in these apartments (obviously, it reaches a point where it does make sense, financially, but that's a long way off). Let's not be under any illusions though, London is going to crash hard at some point because the fundamentals (earnings multiples, rental yields etc.) are subject to mean reversion. However, it has already been going on for a long time, and it could take much longer still because the current environment is stacked against this (immigration, ZIRP/NIRP, reach for yield etc.).

[WTFH]

£4mill to live in part of a PF album cover?

I'd not pay more than £3.99
...and pigs might fly.

[AtW]

well Malaysians bought them for £400m and now can't sell, so who cares?
=)

You.

Malaysians might have been mugs to buy into this on top of the market, but their experience will deter a lot of others and will inevitably drag a lot of prices down, not just at "top end" of the market.

Gidiots extra taxes plus 3% stamp duty plus removal of BTL reliefs should be enough to crash the market nicely.

[AtW]

I'd buy it for £300,000...

£300k for a tiny 1 bedroom London flat next to high profile terrorist target seems very much overpriced.

£6 fricking millions for 4 bedroom flat in former power station that still looks like power station LOL

Stamp duty on it would have been £633750 + 3%: £180k - pretty close to £1 mil in taxes.

[diseasex]

"A four bedroom townhouse on the site was listed in July last year for £6m, but was reduced to £4m in January – a decline of 38 per cent. Another one bedroom flat in the Fladgate building has had its price cut four times since it listed in April last year for £850,000, and is now on the market for £600,000."

Lovely innit...

I'd buy it for £300,000...