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How is anyone supposed to buy a house in London? Watch

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    http://www.rightmove.co.uk/property-...-69008384.html

    a 2 bedroom house in Croydon, a far-flung suburb with one of the worst reputations out of all the London neighbourhoods, is £400000

    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?
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    you gotta be pretty well off to live in london.
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    (Original post by entertainmyfaith)
    you gotta be pretty well off to live in london.
    27% of Londoners live in poverty, higher than the UK average, so clearly most people living in London aren't so well off. Most Londoners are average earners.
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    With lots of money.
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    1. A lot of people commute
    2. A lot of people rent
    3. Some people buy from help to buy schemes

    -Most big houses are bought from people abroad just to own the property as an investment. That's why Corbyn wanted to confiscate housing like this for victims of Grenfell (nice idea in theory, a bit silly in practice). A lot of the rest of the housing is social housing.

    So really, yes, to have a half decent house in London in an alright area you'd need to be earning £200K minimum a year.
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    (Original post by Ladbants)
    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?
    This is not quite true. All that has happened in the property market in the last few years is that home affordability has increased from what one person can afford to what a couple can afford. So your flat in Croyden can easily be afforded by a couple earning £45k each, which for London is pretty middle-of-the-road for the average professional doing a skilled job.

    What I don't understand is why that couple chooses to live in a shoe box in Croyden with the joyful commute into London when they could live in a large 5+ bed detached castle for the same money elsewhere.
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    (Original post by ByEeek)
    This is not quite true. All that has happened in the property market in the last few years is that home affordability has increased from what one person can afford to what a couple can afford. So your flat in Croyden can easily be afforded by a couple earning £45k each, which for London is pretty middle-of-the-road for the average professional doing a skilled job.

    What I don't understand is why that couple chooses to live in a shoe box in Croyden with the joyful commute into London when they could live in a large 5+ bed detached castle for the same money elsewhere.
    Even in most of the London commuter belt parts of Surrey and the Home Counties, you can't get 5+ bed detached houses for £400k
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    Why would you assume it would be anything other than expensive to buy property in such a major city?
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    Couples and older people that have saved more than £40k to put down. E.g. imagine you save £5k a year on average, for 20 years. That is £100k. If you start work at 21, you will be 41 when you have that. Now imagine you have a partner, you could do it in 10 years. If you can't save £5k but just £2.5k then together you could still afford to have a £100k downpayment by the end of your 30s. And then you would only need less than £40k each per year, which in London should be somewhat easily doable for professionals that have worked for 20 years.
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    (Original post by Ladbants)
    http://www.rightmove.co.uk/property-...-69008384.html

    a 2 bedroom house in Croydon, a far-flung suburb with one of the worst reputations out of all the London neighbourhoods, is £400000

    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?


    obviously some people can afford it or else they wouldn't be able to sell it for those prices.

    the current housing market situation is basically just supply and demand.

    demand is high, supply is low ......., thus the prices just increases and increases and increases.

    only way to tackle this is to build enough new houses, to cope with the constant flow of immigrants coming over .....and the government is failing this massively.

    so if demand for housing continues to increase year on year, and the supply cannot keep up with the demand, you are not going to get house prices falling in price by very much, and tbh they are likely to just keep increasing and increasing until supply and demand level out........

    you will most likely have to buy a house away from croydon.
    In 20 years from now, if the UK does not do something to address this supply and demand level, even the houses in the area's which are affordable will now be largly unaffordable ...as if people can't get a house in London they'll start buying up other areas and those prices will increase [it's happening somewhat already tbh], and as we are getting a huge amount more people entering the UK each year than leaving then over the years the supply in those affordable area's will start to not be able to keep with the demand and it will get unaffordable like London..........
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    You're not.
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    Used to live in London but got the hell out.

    There are a few nice bits (VERY expensive to buy in) but most of the place is a complete sh it hole.

    Very overrated.

    Of course if you can stick the crap environment. and do buy a flat, anywhere, really, you will have an amazing financial investment over the long term.
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    (Original post by Ladbants)
    Even in most of the London commuter belt parts of Surrey and the Home Counties, you can't get 5+ bed detached houses for £400k
    I wasn't talking about the Home Counties. I was thinking more north where there are still lots of jobs but a much better quality of life.
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    (Original post by TimmonaPortella)
    Why would you assume it would be anything other than expensive to buy property in such a major city?
    It didn’t used to be
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    you can buy a whole street in Rochdale for what a house costs in London Town.

    :mad:

    only rich ****ers like Mr Corbyn can afford to live in the capital
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    (Original post by Ladbants)
    http://www.rightmove.co.uk/property-...-69008384.html

    a 2 bedroom house in Croydon, a far-flung suburb with one of the worst reputations out of all the London neighbourhoods, is £400000

    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?
    So, you would usually be a couple and both earning a good wage.
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    Inheritance or bank of mum and dad.
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    (Original post by Ladbants)
    http://www.rightmove.co.uk/property-...-69008384.html

    a 2 bedroom house in Croydon, a far-flung suburb with one of the worst reputations out of all the London neighbourhoods, is £400000

    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?
    In the US, all over the country, the average house cost about 3 to 3.5 times the average salary in that area. This was true from 1946 (or so) until 1975 -1980. After that, the currency devaluation led to house prices rising to 8 or 9 times the average salary in that area. I know little about the Uk market, but it seems to have paralleled what has happened here in the states.

    Now, you have people who are 'grandfathered in' (like myself - who has owned the same home since 1971), and 15 or 20 latinos living in a 3 bedroom house. I have about the only Yank speaking house on my street. I got my start by going overseas shortly after i graduated, and working at a location that was described in the US State dept description, as an "Isolated, extreme hardship post". After nearly 3 years there, i came back and bought a house with most of the proceeds. As i 'took over' an exiting loan, i got in at a 6.5 % interest rate, when the average rate for new loans was about 17.5%, since, at the time, we had a Democratic administration. To do this, i had to come up with about £15,000, to 'buy out' the previous owner's equity. Your question was "How is anyone to do it today"? I think my approach [and i may be influenced in my judgement by my previous experience] would be to find somewhere i could work outside the Uk. Preferably, this would be a "meals and quarters furnished" posting, like the one i found, when i was looking to go overseas. By doing this, your costs would be minimized. Our housing was about like a 'Motel 6', not at all fancy - bare concrete floors & a common shower/bathroom down the hall - but it was adequate. The nearest 'english speaking' anything was about 400 miles away, but the sheep were cute! It was ok for 3 yrs. There are interesting places to go out there. Diego Garcia is one of them. The Aleutians are another. Gibraltar might be a possibility for you lot, if your degrees are in electronics or something useful in that business. I would be inclined to a civilian occupation, but i think that some of your electronics companies probably have support contracts on Gib, as well as elsewhere. With the expansion of the ISIS conflict, support positions might be available in more lively areas (with corresponding increases in hazard pay). As they say, if you hear 'blam, blam...', you're probably ok. It's when you hear 'blam..zing..plink' that you're being shot at. Best of luck!!
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    (Original post by Ladbants)
    http://www.rightmove.co.uk/property-...-69008384.html

    a 2 bedroom house in Croydon, a far-flung suburb with one of the worst reputations out of all the London neighbourhoods, is £400000

    And to be eligible for a mortgage of £360000 you typically need to have an income of 1/4 of that, i.e. £90000 a year. At least that's what I've read. That means no one but the top 2% can afford even a tiny suburban terraced house, surely that can't be right?
    You're not 'supposed' to buy, although I do sympathise. I started my career in Paris, where I wouldn't have wanted to buy anywhere that I could afford.

    The market is driven by supply and demand. Prices are high because people can and do pay them. It is tough buying your first home, but people are managing it, some by moving to cheaper areas.

    Whilst some properties move to the rental market, people are also paying enough rent for the landlord to make a decent return on their capital. Paying high rents makes prices high. If you don't like it, vote with your feet.
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      (Original post by barnetlad)
      Inheritance or bank of mum and dad.
      The Tories were right, in a sense; these days most grandparents should leave their assets to their grandchildren to give them a lift up the housing ladder.
     
     
     
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