House prices Vs. Boat prices.

[rustybarge]

Not really; I just don't like posting in the weirdo lounge.

Contrary to common opinion the house prices in London did fall in 2008-9.

......But took off like a rocket after the crash and kept on going up.

If you had a London house would you sell now knowing that prices would not stay level, and would definitely fall if there was another property crash?

Is there an unsustainable housing bubble ?

 

[AdeOlly]

Assuming it was an investment property then yes I'd flog it unless it were near a Cross rail station or other some other exceptional factor to prop the price. There are far better places to invest in property without the 'bubble' risk factor, IMO. When interest starts to rise I think the London market will suffer, maybe not the top end stuff, but otherwise...?

 

[rustybarge]

Assuming it was an investment property then yes I'd flog it unless it were near a Cross rail station or other some other exceptional factor to prop the price. There are far better places to invest in property without the 'bubble' risk factor, IMO. When interest starts to rise I think the London market will suffer, maybe not the top end stuff, but otherwise...?

My son has a house in Wansworth that he in bought in 2011, so has seen a massive gain over the last couple of years; not the west end but solid 'middle class' just wrong side of the river area.he gets 2500/month in rent, a fantastic return off his investment.

a program on the telly last night advocated that a large percentage of the London market was dirty money from aboard invested in London with offshore companies; maybe this is supporting the high prices in London.

BUT: there is a huge housing shortage in the south east.

all conflicting information.

 

[oldgit]

The price of property and or land,despite minor corrections every 10 years or so,will continue to rise until the second coming.Actually on second thoughts if you invented a method of creating another earth you might slow things down a bit.
Problem is the Deity who created Earth OS 1, obviously took one look at how we treated his/her first efforts and probably thought,sod you lot no second chances

 

[AdeOlly]

Yes, lots of conflicting info.

2011 up to today a great investment in London. I agree there is a huge housing shortfall in south east, and the south generally, but much of London is now just sooo expensive. We are hearing of peeps buying off plan and flipping prior to completion. That makes it a bubble market in my book, but then London doesn't seem to obey the normal rules.

For those buying and borrowing, it's going to get painful when interest rates rise, as they will do, eventually.

What I am certain about is that there are far better investment opportunities (greater upside and less risk) elsewhere, and I'm not thinking just UK here..

 

[rustybarge]

The price of property and or land,despite minor corrections every 10 years or so,will continue to rise until the second coming.Actually on second thoughts if you invented a method of creating another earth you might slow things down a bit.
Problem is the Deity who created Earth OS 1, obviously took one look at how we treated his/her first efforts and probably thought,sod you lot no second chances

Sounds a bit like the dot com bubble in 2000; that did not end well.

 

[rustybarge]

Yes, lots of conflicting info.

2011 up to today a great investment in London. I agree there is a huge housing shortfall in south east, and the south generally, but much of London is now just sooo expensive. We are hearing of peeps buying off plan and flipping prior to completion. That makes it a bubble market in my book, but then London doesn't seem to obey the normal rules.

For those buying and borrowing, it's going to get painful when interest rates rise, as they will do, eventually.

What I am certain about is that there are far better investment opportunities (greater upside and less risk) elsewhere, and I'm not thinking just UK here..

Yes I agree, mortgage interest rates are the trigger that might send property over a Cliff.
the BOE had stated that they think interest rates will stay low until the end of the decade; but they also predicted inflation at 2% or more! not 1% as it is now!

but....
75% of property bought in Central London is bought with cash.

 

[ari]

The price of property and or land,despite minor corrections every 10 years or so,will continue to rise until the second coming.Actually on second thoughts if you invented a method of creating another earth you might slow things down a bit.
Problem is the Deity who created Earth OS 1, obviously took one look at how we treated his/her first efforts and probably thought,sod you lot no second chances

It didn't feel a very 'minor correction' in the early nineties!

Yet weirdly, despite the bubble inflating far bigger this time, and banks collapsing, the government managed to stave off a meaningful collapse and indeed get the bubble growing even larger still!

It can only end well...