Reply to: London house prices rocket 10% in just one month

[aussielong]

Probably at a similar point to the one that forced you to be a middle-aged low-level developer

You're a jealous little runt aren't you?

[lilelvis2000]

House prices in London have jumped by 10 per cent in the last month alone, according to data from Rightmove.

The data shows prices in the capital have risen by £50,484, on average, to £544,232 since mid-September.

The competition for London property right now is unbelievable and I hope unsubstainable. Yesterday my client was gazumped within 45 minutes of having her offer accepted.



London house prices rocket 10% in just one month | News | Mortgage Strategy

Lucky then that I live where I do. Prices are so stagnant and commercial properties going cheaper than houses. Bit of a commute if I worked in London - but isn't that what HS2 is about...increasing house prices!

[sirja]

The market can be irrational and unpredictable. Who would have thought in 2005 that most of the largest banks in the world would have been bankrupted or nationalised a few years later. You are the typical naive investor who is the last to buy at the high.

Why do you call me a 'naive investor'? You have no idea if I own property and if I do when/where I purchased it so that's quite an uninformed statement to make. Indeed nobody can predict the future and of course markets for all asset classes go up and down, but I would hope you are aware that all asset classes are supported by FUNDAMENTALS. It is fundamentals that support the long term trend and the current FUNDAMENTALS for London property point to increasing prices for the next few years at least. I would say you are the type of investor who fights fundamentals rather than going with the trend and making a bomb. Make the trend your friend and enjoy good profits, when the trend(Fundamentals) change, you adjust accordingly. Simples

[russell]

Sorry chaps but your more likely to see the Loch Ness monster dancing to Elvis tunes, than to experience a mega house price crash. it's just not going to happen. The building industry, banks and govt are all in on the game. The govt supplies funds via all the new schemes like Help to Buy, they also make sure the market remains as deregulated as it can be(No rent controls, no tax on second homes and def no large scale home building) The banks get to lend with less risk and the govt can underwrite a part of the loans. The building industry gets to see over inflated new build box rooms, and the govt rakes in a fortune in stamp duty.

Trust me when rates go up, there'll be a short term dip in the market, but then you'll just see the banks rush out more interest only loans and longer term repayment loans. There is simply too much at stake for there to be another major property crash. A small dip of maybe 5% yes, a major 15-25% crash, sorry not going to happen. Best get on with it and try and get on while you can. This train is only going one way and that's up

The market can be irrational and unpredictable. Who would have thought in 2005 that most of the largest banks in the world would have been bankrupted or nationalised a few years later. You are the typical naive investor who is the last to buy at the high.

[sasguru]

You were in the property market 30 years ago, and you're still working today? Where did it go wrong?

Probably at a similar point to the one that forced you to be a middle-aged low-level developer

[sasguru]

As the way things stand, that's my current capability. What's yours? ]

My reality is about double your imaginary figure at the moment. HTH
If I count future inheritance you're just a wannabe pleb.

In any case you're impression of prices is skewed (amongst your other talents)

Could almost buy this with cash now if I wanted to:

3 bedroom flat for sale in Stoneleigh Street, Notting Hill W11, W11

In case it escaped your attention that's a non-garden flat

[aussielong]

I remember viewing a mezzanine conversion, basically a rabbit hutch made out of part of a deep landing, back in the early 80s and deciding it was way too small for me, although they had somehow incorporated part of a moderately wide staircase and former storage room which made it almost practical.

But the difference was that was £15,000 rather than £150,000

You're point is that a dump is worth buying if it's cheap?

You were in the property market 30 years ago, and you're still working today? Where did it go wrong?

[OwlHoot]

Double Crikey!!!

Property for sale in Store Room between First and Second Floors of, 27 Kensington High Street, W8

I remember viewing a mezzanine conversion, basically a rabbit hutch made out of part of a deep landing, back in the early 80s and deciding it was way too small for me, although they had somehow incorporated part of a moderately wide staircase and former storage room which made it almost practical.

But the difference was that was £15,000 rather than £150,000

[d000hg]

s**t, shower, shave and sleep. Not much room for the other essential "S" though unless you're both midgets

Sorry, I meant single male IT worker.

[Sysman]

Let's say a key driver is foreign money (Arab, Russian, HK, Chines, Singaporean, Greek, Italian etc. etc.) money seeking a tax haven investment in London property. What might happen when the conditions that drive the flight to a safe haven change?

FTFY.

Let's face it, London is a tax haven that competes with the other tax havens..

As long as you are a foreigner.

[redgiant]

I rather like that one.

Pretty clear that they expect it to be lived in by a single man, when they advertise a
Get everything done at once, very efficient.

s**t, shower, shave and sleep. Not much room for the other essential "S" though unless you're both midgets

[AtW]

[d000hg]

Crikey -

Is this the smallest flat in London? Home measuring 10ft by 8ft goes on sale for £90,000 | Mail Online

I rather like that one.

Pretty clear that they expect it to be lived in by a single man, when they advertise a

shower-cum-toilet

Get everything done at once, very efficient.

[jamesbrown]

Well he's def saying something different from the Governor who says the BOE will be keen to avoid a housing bubble. At the very least it indicates some difference of opinions re House Prices in the MPC, which could have a significant impact on rates one way or other.

This is an area for the FPC rather than the MPC, but Carney chairs both. The difficulty here is the geography; as Carney has said, it's the BoE not the Bank of London and the boom is squarely focused on London, with declines still ongoing in some areas. Help to Buy should largely boost house prices outside of London, if anything (part II seems a bit of a damp squib), and the real source of the boom inside London is foreign money - cash buyers - as others have noted.

[eek]

Let's say a key driver is foreigners (Arab, Russian, HK, Chines, Singaporean, Greek, Italian etc. etc.) seeking a safe haven in London .

From the ones I know the money and any loses is irrelevant. They just want a bolt hole if things change....