House prices bubble swells in London House prices bubble swells in London
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  1. #1

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    Default House prices bubble swells in London

    It beggars belief that with unemployment at 2.7 million and nearly a quarter of 16- to 24-year-olds on the dole, economic growth close to zero and real incomes falling, and after the banks suffered a near-death experience, that any part of the country could be experiencing a property boom. Alas, it is happening.

    See a property you like on Rightmove? Chances are it has already sold. Thinking of putting in an offer about 5%-10% below asking price? Forget it – offer the asking price or even more. Can't view the property this Saturday? Then don't bother rearranging – it will be sold by Monday.

    No, this madness isn't happening in most of the UK. In the real world of job losses, spending cuts and austerity it can take months to sell a property, and if you bought much after 2004 you are probably unlikely to recoup the purchase price. But London has detached itself from the real world, and in some parts of the capital a new property bubble has erupted.

    The first alarm bell rang in December, when a neighbour put his property on at the fanciest price the road has ever seen. It sold in three days. But, hey, that could have been a one-off. It wasn't. At a two-bed flat in East Dulwich which I visited – a snip at close to half a million pounds – there were queues of buyers on the "open day". The agent, comically clad in Sir Les Patterson drag (shiny suit and breakfast-splattered tie), told me he was only accepting offers at the asking price and from "clean" buyers (mostly with lots of cash from their parents).

    In Walthamstow, I saw a lovely three-bedder the first day it went on the market. By lunchtime it had received two offers close to the asking price. "We're getting lots of families priced out of Stokie and Hackney," said the agent. He took us to another house nearby, advertised on Rightmove at £420,000, but said he was only really taking offers at £440,000. I checked on nethouseprices.com. Neither of the roads in question had "achieved" (sorry to use estate-agentese) that level of prices before.

    In Chiswick, a two-bedder (no garden) also on for nearly half a million caught my eye. "Sorry, that's sold. Would you like to register with us for when similar properties become available?" the agent asked. It remains advertised on Rightmove, weeks later, without any note to say it is sold or under offer. In a fast-moving market, are agents using Rightmove as their shop window, advertising products that aren't really for sale to get you in the door? Or was it ever thus?

    In Herne Hill, the "pristine pad in a perfect locale" was a tenanted flat in ropey condition, with damp on the walls and a broken pipe spewing grey washing machine water over the garden. The agents were marketing it as perfect for an investor to let out straightaway. Sometimes buy-to-let really makes you want to vomit.

    Although my property search has taken in Battersea, Bow, Clapham, Chiswick, East Dulwich, Herne Hill, Highbury, Mortlake, Putney and Walthamstow – virtually all of zone 2 London – I accept my search results are anecdotal. Maybe I've just alighted on a few sought-after properties in a few hot spots.

    More about misfortune of sasguru from Wandsworth here: House prices bubble swells in London | Money | The Guardian

  2. #2

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    Nothing to do with the fact that money is pouring into London out of pensioners, renters and saver's pockets and the printing presses I suppose?

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    No, no, QE is good for everyone, hence why we'll see trillions ££££ more of it over then next few years.

    Still, I wouldn't buy in London if they were 50p each.
    I was miserable and depressed, but CUK turned it all around. Now I'm depressed and miserable.

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    Quote Originally Posted by DimPrawn View Post
    No, no, QE is good for everyone, hence why we'll see trillions ££££ more of it over then next few years.

    Still, I wouldn't buy in London if they were 50p each.
    Can you not even raise 50p? Times are bad.
    What happens in General, stays in General.
    You know what they say about assumptions!

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    London reminds me of castles of medieval times. The rich and nobility build a protective shield around themselves for when times get tough. Fortress London, the battle will be fought outside while the rich dine on peasants.

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    Quote Originally Posted by AtW View Post
    More about misfortune of sasguru from Wandsworth here: House prices bubble swells in London | Money | The Guardian
    What misfortune? You do realise i've cashed in on this bubble. Again.
    Hard Brexit now!
    #prayfornodeal

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    Quote Originally Posted by DimPrawn View Post
    Still, I wouldn't buy in London if they were 50p each.
    That's why you'll always be poor and stupid.
    Hard Brexit now!
    #prayfornodeal

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    Quote Originally Posted by AtW View Post
    But London has detached itself from the real world...
    Of course it has. London is the home of "Rewards for failure"... you know, that thing where bankers who's bank has made huge losses still receive millions of pounds in bonuses because they are so "tallented". Masters of the universe. Masters of taking millions off innocent people in order to line their own pockets as reward for ruining their companies. Masters of holding the country to ransom: "If you tax us more or block our bonuses we will go to another country and take our tallent there...". Feck off, I say. Good riddance!
    Low interest rates damage the economy in the long run.

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    Quote Originally Posted by Jeff Maginty View Post
    Of course it has. London is the home of "Rewards for failure"... you know, that thing where bankers who's bank has made huge losses still receive millions of pounds in bonuses because they are so "tallented". Masters of the universe. Masters of taking millions off innocent people in order to line their own pockets as reward for ruining their companies. Masters of holding the country to ransom: "If you tax us more or block our bonuses we will go to another country and take our tallent there...". Feck off, I say. Good riddance!
    It would help your ranting if you demonstrated that you had half a brain.
    Sadly that is not the case, you cliche-spouting moron.
    Hard Brexit now!
    #prayfornodeal

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    Quote Originally Posted by sasguru View Post
    What misfortune? You do realise i've cashed in on this bubble. Again.
    So you've sold your home and now going to rent a bed sit?

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