The Property Market

[Geko]

What short memories we all seem to have. I was looking into local property on RightMove the other day and noticed that prices seem to have risen about 30% since I last looked, a year ago. Even more surprising is the fact they seem to be moving at those prices.

Now... I live in a borough of West London which was somewhat isolated from the crisis. Property didn't fall in price. It just slowed and seemed to be rising more quickly than inflation, but not as quick as pre-2008. Now though, people seem to think that the economic problems are thing of the past. That all the problems are resolved. I just don't understand it.

I can't comment on the rest of the country. But London, and it's surrounding areas, seem to be ridiculously priced.!

Thankfully, I bought a property that was well within my financial reach, and if we have a situation where mortgage rates go to 12%, I can just about sustain paying for it.

I noticed this morning that the economist is also seeing this trend - http://www.economist.com/news/britai...ervene-cool-it

Some of the comments, sum it up better than the article.

[GTI]

What is driving the housing market in London is fear and paranoia, not helped by foreign investors who are buying up rows of houses or blocks of flats as investment vehicles (even in unfashionable areas). It fucking stinks that houses are being traded like commodities for people to turn profits, rather than their primary purpose as dwellings. I do have plans to purchase a small pied-à-terre somewhere in NW London for when we come over to visit the family, and also for the kids when they grow up and decide to spend longer in their home country. However I am prepared to wait for the inevitable crash, because as night follows day, it will happen.

[Geko]

What is driving the housing market in London is fear and paranoia, not helped by foreign investors who are buying up rows of houses or blocks of flats as investment vehicles (even in unfashionable areas). It fucking stinks that houses are being traded like commodities for people to turn profits, rather than their primary purpose as dwellings. I do have plans to purchase a small pied-à-terre somewhere in NW London for when we come over to visit the family, and also for the kids when they grow up and decide to spend longer in their home country. However I am prepared to wait for the inevitable crash, because as night follows day, it will happen.

They don't let the crash happen though. It hasn't happened since 87. It should have happened in 2008.

We bought our home in 2007 at the peak. We split in 2009 at the alleged bottom of the current slump. It was valued at 10% more. If there is a crash. It would suit me. I would be able to move back up the ladder.

I agree about the greed of others, and not just foreign money. Smaller properties are not just targeted by first time buyers, but by those hoping to make their fortunes.