Member Since: 29 Sep 2006
Location: MIDLANDS
Posts: 8144
house/rent prices
Just through the recent experience of our combined kids (SWMBO and I have two each from first marriages) all growing up and doing their own things and some other family members moving houses I am now seeing the huge housing prices disparity first hand and it's just nuts;
Step-daughter rents a 10'x8' room in London in a shared flat and it costs her £678/month plus some other costs and bills on top. This 'flat' is itself one floor that is part of a 4 storey Victorian house where each level is worth anywhere between £800k to £1.4m. She can never envisage buying a property, even hooking up with her boyfriend, in London and they both have decently paid jobs, but not earning discernibly more than in the Midlands. I really do not understand how lower wage earners ever buy in London?
Step-son rented a 14'x14' room in a flat above a shop in Bristol for £750/month - usual student sh*t hole flat. Would be about £400, tops, on a private residential rent.
My son has a 1939 'traditional' semi in Leamington Spa that costs just under £900/month for his mortgage and he rents a room out to a mate for £400/month, bills included. He obviously has bills to pay on top but the value of the property has gone up around £40k in two years and he's spent around £25k 'doing it up'. Value growth will probably slow down now as it's approaching the (current) top-end for that type/area
My daughter has a rented 2 bedroom maisonette (upper floor) in Walsall for £400/month plus her bills. She has a 10'x5' 'walk-in' airing cupboard that would probably qualify as a single-bed flat in London!!!
My nephew has just bought a large'ish 1970's modern semi in a decent estate area of Shrewsbury for £185k needing 'a bit of updating'. My sister has a similar buy-to-let property in Telford that is worth about £115k
My niece has a nice, fairly small '1+study' flat somewhere in Leeds and that was about £120k
Another nephew has bought a 'swanky pad' penthouse flat in a converted office building in Shrewsbury for £250k but also owns a decent sized 3 bed-townhouse/semi just 'round the corner' valued around £200k.
And my brother is just moving into a lovely, large, modern four bed detached house on Wales north coast and it's £185k, he has a really good quality of life in a low paid job, but minimal mortgage. A similar house where I live (Stratford-upon-Avon) on the latest new-build, estate with no frontage garden, tiny rear gardens, one car drive and no actual 'road' out front (they are all on 'shared drives') are over £400k.
My mate has a massive Georgian built 4 storey house in a lovely place outside of Glasgow and he backs onto wonderous countryside and heads off up into mountains fell walking when it suits him and he paid a 'ridiculously expensive' £300k or something and it's boom-time up there with prices now apparently and his earning power is the same as when he was in the Midlands.
The housing market is just nuts...........
23rd Aug 2018 7:11 am
Pelyma
Member Since: 06 Jan 2005
Location: Patching, Sussex
Posts: 15496
Supply and demand pure and simple. You have the demand the price goes up. There is a lot of talk that rents are going to rapidly rise as the changes to BTL taxation bite and people move out of the market. My son is looking to buy at the moment and every week he gets emails of properties reduced in price. I don’t know if it is just his area or country wide, it could be the BTL property being sold off I suppose.DS3 TDV6 HSE - Silver with Alpaca (old one) Gone
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23rd Aug 2018 7:29 am
professorpool
Member Since: 19 Mar 2012
Location: Woking
Posts: 3213
Just going through the process of buying a house. First time for me since 2007... Oh the red tape these days and the costs!
My eldest bought a three bed semi in Mansfield five years ago for £97.5k. He was 21 at the time. The others I have advised to save, which they are, then contemplate buying out of the area when the time comes.D3 07 SE - still going strong
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23rd Aug 2018 7:36 am
Browny90
Member Since: 19 Jul 2016
Location: Ashbourne
Posts: 698
We own a house in Northants, but we rent in Derbyshire while I'm working at Rolls-Royce.
To compare to London Is crazy.. We have a big 3 bed detached house with a .25 Garden, double garage/ workshop & Acre and 1.3 Acre field for the horses and pay £900pcm, I can never believe that for the same money you can get a s**ty room/ very small flat in London, I know the pay is marginally higher in London, but I don't thing it compares and obviously isn't relevant for students..
It must feel like a massive drain on cash when living there.Disco4 MY16 SDV6 Landmark Black
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Last edited by Browny90 on 23rd Aug 2018 7:40 am. Edited 1 time in total
23rd Aug 2018 7:36 am
professorpool
Member Since: 19 Mar 2012
Location: Woking
Posts: 3213
Pelyma wrote:
Supply and demand pure and simple. You have the demand the price goes up. There is a lot of talk that rents are going to rapidly rise as the changes to BTL taxation bite and people move out of the market. My son is looking to buy at the moment and every week he gets emails of properties reduced in price. I don’t know if it is just his area or country wide, it could be the BTL property being sold off I suppose.
Think there is market equalisation going on as I have been getting the same since the end of last year.D3 07 SE - still going strong
D3 07 HSE - gone to car heaven
FL1 - gone to Romania
D3 05 HSE - gone to a divorce diet
D1 V8 manual - gone but not forgotten
RR Classic - gone to car heaven
Jeeps, Lexus, X-trails... Too many to name..
23rd Aug 2018 7:37 am
Disco_Mikey
Member Since: 29 May 2007
Location: Dundee, Scotland
Posts: 20844
Living north of the border has its benefits. 3 bed semi, front and rear gardens, 2 car driveway. We paid 73k...
Member Since: 08 Nov 2005
Location: Oldbury, WM
Posts: 10355
altough if you can afford it, buying a property anywhere close to london (i.e on a tube line) still appears to be a money generator. My eldest bought his place in Hainault (2 bed house with small garden, garage and off road parking) for 250k 4 years ago. His neighbour has just sold for 410k and his place doesnt have garage or off road parking. Ben plans to sell and move out of london back up to the midlands before their daughter has to start school. Should be able to get a decent place with a small mortgage at this rate.
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23rd Aug 2018 7:52 am
professorpool
Member Since: 19 Mar 2012
Location: Woking
Posts: 3213
I concur.
Just bought a decent sized 4 bed in Woking. Intend to stay here for ten more years and see the kids all grown up and independent then will move out of the area and down into a smaller place. Even if house values froze, we would be mortgage free with plenty to spare.D3 07 SE - still going strong
D3 07 HSE - gone to car heaven
FL1 - gone to Romania
D3 05 HSE - gone to a divorce diet
D1 V8 manual - gone but not forgotten
RR Classic - gone to car heaven
Jeeps, Lexus, X-trails... Too many to name..
23rd Aug 2018 8:15 am
robpenrose
Member Since: 12 Jan 2016
Location: Surrey / SW London
Posts: 2138
Yep, anywhere near London is expensive. Buts its a world city, and when you're under 30 mins on the train or tube or whatever to somewhere central , you can see why. I think property close by will always be a safe bet.
My advice would be to anyone is to start saving early. Me and my partner purchased our first house about 3 years ago. We couldn't have done it without a large cash deposit. The only way I did that was by starting to save as soon as I left Uni and to make some sacrifices and it still took me over six years I think.
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23rd Aug 2018 9:06 am
DG Site Moderator
Member Since: 12 Dec 2005
Location: The Gaff
Posts: 50978
Prices in London and Surrey are dropping fairly rapidly at the mo ....some areas by 10% +
23rd Aug 2018 9:18 am
astonbuilder
Member Since: 29 Sep 2006
Location: MIDLANDS
Posts: 8144
still won't make a £1.4m (compromised) flat in a house conversion affordable for many though for a while....
Softening of prices had to happen at some point IMO as the disparity from the 'hot-spots' to anywhere else is so wide yet like-for-like industry salaries do not reflect a similar ratio?
23rd Aug 2018 9:41 am
DG Site Moderator
Member Since: 12 Dec 2005
Location: The Gaff
Posts: 50978
Yep it's all relative.... by contrast, the old Gwent area for example has seen significant rises due to interest from Bristol simply due to the forthcoming abolition of bridge tolls.
23rd Aug 2018 9:52 am
professorpool
Member Since: 19 Mar 2012
Location: Woking
Posts: 3213
robpenrose wrote:
Yep, anywhere near London is expensive. Buts its a world city, and when you're under 30 mins on the train or tube or whatever to somewhere central , you can see why. I think property close by will always be a safe bet.
My advice would be to anyone is to start saving early. Me and my partner purchased our first house about 3 years ago. We couldn't have done it without a large cash deposit. The only way I did that was by starting to save as soon as I left Uni and to make some sacrifices and it still took me over six years I think.
Sometimes you have to think out of the box and also make sacrifice.
My first flat, over 20 years ago... I could not afford to buy in and around Woking (as you say... 24mins from Waterloo and I can be at my desk in the city within an hour. Door to door) so I bought a flat in Frimley. Just 6/7 miles down the road but no direct route to London by train so at the time about 15% cheaper. I put up with it for a couple of years until the equity had built up.
In a similar way, my son and his (now) wife set their hearts on buying a house so lived like hermits. They shunned phone upgrades and got frozen pizzas and own brand beers rather than take aways and trips to the pub. Camping rather than holidays abroad. They saved £1,000 a month. Laudible at 20..
It does make me wonder those people bemoaning how hard it is to get on the ladder whilst booking their third holiday of the year on an iphone xD3 07 SE - still going strong
D3 07 HSE - gone to car heaven
FL1 - gone to Romania
D3 05 HSE - gone to a divorce diet
D1 V8 manual - gone but not forgotten
RR Classic - gone to car heaven
Jeeps, Lexus, X-trails... Too many to name..
23rd Aug 2018 10:14 am
Pelyma
Member Since: 06 Jan 2005
Location: Patching, Sussex
Posts: 15496
Property has always been good to me, but it is about the length of time you are in the market. I have always stretched to get the biggest mortgage I could as I get the growth on the whole of the property value not just the bit I own. I had a vision of where I wanted to live, took a few gambles but I've got to where I want to be. Whatever your goals are in life you have to make sacrifices, mine is the mother of all mortgages, it could have been money ploughed into a nicer car, holidays or hobbies all of which would have left me with nothing but my home is worth considerably more than when I bought it, cheers Barclays Bank DS3 TDV6 HSE - Silver with Alpaca (old one) Gone
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23rd Aug 2018 11:34 am
DISCO3HSE2018
Member Since: 28 Feb 2018
Location: Hampton
Posts: 585
We are buying our first home in SW London in Hampton and it's taken us over 10 years of saving for the deposit. We have had 3 kids along the way but by funneling money away for them at every opportunity like birthdays and Xmas etc we have put them all in a position thst when they hit 18 they will have a deposit for a property.
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