Owning your own home

Next door to Brun?

Can see where they're coming from given the price of an equivalent finished one but it does need a hell of a lot of work.

Not seriously at all. At the peak we were ‘up’ 50% on what we paid, more like 40-45% now. I’ve no intention of selling soon so all I care about is LTV and house prices have to fall by much more than 15-20% for me to worry about that.

Yes thought about having a look but don’t have the headspace at the moment.

If you have no intention of selling soon then you’re not really relevant to the question though, as long as you can make your payment.

Precisely, but this is the owning your own home thread not the speculating on the property market thread. Anyone who is thinking of selling their own home would probably also be buying a replacement at the newly deflated prices. So again not really that relevant.

Depends on timing, and the availability of a mortgage in a falling market.

Also, level of discount that could be requested given the above.

What a lot of people don't seem to get is we are at the end of a major financial cycle and over the next 5/10 years we will be entering a reflation cycle. Yes there will be some major printing but we will also see a period of high interest rates that will financially kill a lot of recent london property buyers. Value will be wiped out across many of the current bubbles and if we are lucky london property will see 40% + knocked off.
A few months back friends laughed at me when I suggested London property doesn't always go up. Now they are all onboard. I also have direct friends who have been made redundant, I haven't seen this since 2007.

I genergally echo your sentiments, but Dammit is sort of right here. Plus as well as buying/selling, there may be an impact on remortgaging.

By way of eg just before the last crash a mate's bros and partner sold their flat and moved into their folks as a stopgap to save some extra money and have the advantage of being cash buyers. You'd have thought this would have been an all-round win. But they were there for over a year as no one would lend to them, and ended up building a house instead.

It's not so much that London property doesn't go down, it's more that there has never been a major correction if you look at a scale that shows the last fifty years.

if we are lucky london property will see 40% + knocked off.

?!

You think we're going to be lucky if the financial situation is such that the capital sees a 40% decrease in property values? Pretty sure that will coincide with a huge number of us being unemployed with no short term prospect of employment. Not sure I see the silver lining (unless of course you're a foreign investor looking for a long term illiquid asset).

Or did you mean it could be >40%?

The problem is the uncertainty - if we were in the crash, fine. If the crash were averted, fine.

But buying in a market that is falling, but the rate of descent is not predictable - that's a problem.

Lets say my flat is worth £450,000 - I accept an offer of £400,000 to move it as prices are coming down, then Johnson revokes A50, and Unicorns stand on every street corner hosing banknotes from their magnificent members. I'd feel silly.

Unicorns stand on every street corner hosing banknotes from their magnificent members

Very confused boner.

Ok sure bro.

Boris will fix it.

So much of society is now built on debt we need this collapse. Sure people are going to suffer but I don't want my children instantly born into a world of debt. 40% only takes us back to the last crash prices which was supposed to be a bubble.

I know. I thought unicorns were androgynous.

So much of society is now built on debt we need this collapse. Sure people are going to suffer but I don't want my children instantly born into a world of debt. 40% only takes us back to the last crash prices which was supposed to be a bubble.

Your children will be born into a flooded world where wars are fought over access to clean water, I think mortgage interest rates will not feature in their top ten concerns - how to survive rabies might well do.

Trying to survive while stuck in a 50hr per week job to service their £1m One bed ex local authority house debt is a considerable disadvantage in a mad max style environment.

God this is miserable

Not as miserable as working 50hrs a week on a zero hours contract with no sick or holiday pay.

I'm a bit worried about it as someone two years into property ownership. Have just sorted a 3 year fixed, so hoping that things will be more predictable along the line. I envisage (hope that careers and lives may have progressed enough to enable) moving within that final year.

Edit having read all the way down: I also live in a flood risk area sporting more St George's flags than is tasteful, and which is already pretty Mad Max.

lol are we next door neighbours

If we are, sorry about the Mad Max business on my side of the fence

genergally

This should definitely be a word, we just have to invent a meaning for it.

if you're near the lea bridge road we could actually be, it's been getting pretty post apocalptic round here recently

this is the owning your own home thread not the speculating on the property market thread.

Wrong! This is the humblebrag thread