Harringay, Haringey - So Good they Spelt it Twice!
House prices
Speak to the estate agents, something unprecedented it's happening with the cost of home ownership, especially between wood green tube and ally pally.
It's possible this government may become known as seeing through the largest distribution of wealth from the poor to the rich ever ....
Replies to This Discussion
-
Permalink Reply by John McMullan on
-
It will be another three and a half years before interest rates rise significantly. Alistair Darling and Gordon Brown said so in 2008.
-
-
Permalink Reply by LSquared on
-
Replying to Billy..
Well cash buyer usually means without a mortgage. But even if we are talking about high deposits plus mortgage, it sill means that more properties are going to people who already have capital, removing the opportunity for first time buyers to start accumulating capital.
My point was really that a crisis is not synonymous with a crash. If the situation continues as is this is going to have significant repercussions on the future wealth of the priced out generations, and therefore on their ability to fund their own future. If lifetime private renting ( as opposed to lifetime social renting) really is the new model for anyone on (let's say) 1.5* average income or less* we need to look at pension planning which includes ongoing private renting...and people aren't saving enough as it is.
* average median London income from a full time worker in 2013 was about £35K, so I'm assuming you need to be on about £50K to consider buying a London property even at the bottom end (studio flats and/or a dodgy area in outer London)
-
-
-
replying to TBD
I think you are reading something I'm not saying. I'm not talking about winners vs losers and I'm certainly not talking about retirement planning being selling your home to fund 2 cheap cruises a year (eh?).
All I mean is that you need a home when you are retired, so if you don't own one by that point you need to make sure your retirement income is enough to cover your rent for the duration of your retirement. Whereas if you do own one, your housing needs are covered either by living in the house you own or buy selling/renting it and using that money to cover accommodation elsewhere.
(To be absolutely crystal clear, you would only sell your house to fund a cruise if you had already covered your housing needs in another way.)
Certainly relying on your house to fund your whole retirement is crazy. However including buying a house as part of your long term planning is not, if you can afford to do so.
My point is that those who cannot afford to do so AND can no longer rely on subsidised social housing will be facing a big gap when they retire, so the true impact of the rising housing costs we currently "enjoy" may not be felt for quite some time.
-
-
-
Totally insane. There is a two bedroom flat on Seymour Road going for £460K. It's a lovely flat, but £460K!!!!
http://www.rightmove.co.uk/property-for-sale/property-44179975.html
-
-
That's my point, they weren't saving enough before and now they need to find even more money from that not-big-enough pot.
Seriously, this is not "move along, normal market, nothing to see here" territory. This is the assumptions people have made (often implicitly) when planning their futures being dismantled. It can't NOT have an affect.
What proportion of today's market is made up of first time buyers vs a long term - let's say thirty year - average?
-
Permalink Reply by Michael Anderson on
-
I think the problem with saving for a deposit in London is that while you do, you have to pay a whacking amount of your salary as rent so you have less to squirrel away. I think that is probably more of a likely reason for the increased age of first time buyers than lack of confidence in the market. Of course the alternative is to stay on with the folks resulting in happiness all round.
-
-
-
Hi TBD
Absolutely, we will move out of London when or before we retire. I don't think it's a good place to grow old in unless you are very rich - the pace of life in the streets is such that the elderly and infirm are literally jostled aside. So part of our retirement planning is to sell the London house and buy a home back North where I'm from. Probably up a hill to avoid rising sea levels :(
-
-
Buy a yacht ;)
-
-
Ah, a yacht. Also known as a hole in the water into which money is poured ;)
I don't think my little 2 bed terrace in SoTo is quite up to trading in for a yacht. Maybe a couple of inflatable tubes and a paddle...
-
-
Leaving aside that about 1 in 8 people in the UK live in London, this is a local forum for a place and community within London. So what exactly is your problem with discussing a London issue?
But housing affordability is a national issue. Even areas which are still underwater are very expensive for local buyers. Regional prices are lower but so are wages.
-
Permalink Reply by Justin Guest on
-
That's an interesting thought. I was in Germany when I was 16, mid 80s, and was amazed by how many folks lived in rented accommodation, and often stayed in the same apartments for generational lengths of time.
Perhaps we are moving back towards this model, after all I seem to think it was only really the Thacherite dream that was sold to us about being a home owning population, no?
-
-
The difference is that German tenants have very strong rights and German pensions (were) very good.
I've got nothing against a long term renting model if society is structured to support it. We used to have that, with long term council tenancies which carried security of tenure.
My concern is that we don't have that any more, we have short term tenancies, little council housing and pensions which will not provide for long term private renting. Basically the German model is end to end whereas we seem to be ending up with a cut and shunt job where the two halves don't match up.
© 2024 Created by Hugh.
Powered by
