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Is it worth investing in a property in London?
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Anna Danishek
Posted: 06 May 2016 14:38:22(UTC)
#25

Joined: 26/04/2016(UTC)
Posts: 11
I don't think it is a good time to buy any kind of a property in London. In the UK home prices have gone through the roof, exceeding pre-crisis levels already long ago. A study by the OECD shows this location is overvalued and economists in Sweden have been raising the alarm since last year over the extreme risk of an imminent collapse. So you'd better to wait for several years till prices will go down
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srg751
Posted: 06 May 2016 18:06:09(UTC)
#26

Joined: 10/08/2013(UTC)
Posts: 1,295


Anna, are you on Cueballs tipple ??.... If not............wow.
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Rosemary Pettit
Posted: 06 May 2016 21:59:20(UTC)
#27

Joined: 18/12/2012(UTC)
Posts: 14

There is always demand for property in London and the prices are highly unlikely to go down. Why would you think otherwise? If you can buy, do it while interest rates on a mortgage are so low. Buy with a friend, get a discount sale in a new development, buy a rundown property and do it up, buy in a currently unfashionable area that has potential - but buy!
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applemint
Posted: 07 May 2016 03:50:49(UTC)
#28

Joined: 24/06/2014(UTC)
Posts: 14

Thanks: 35 times
Was thanked: 25 time(s) in 11 post(s)
House prices in London were 2.7 times higher than average earnings 20 years ago. They are now 10.1 times higher...

Towards the end of 2007/early 2008 they reached a pre financial crisis peak of around 7 times earnings and were at 6.5 times earnings in Q2 2010. Since then they have risen steadily to the current level of 10.1 times earnings (see chart below).

https://pbs.twimg.com/me...IBBlVWMAA7_HD.jpg:large

So I think it may be over optimistic to say "prices are highly unlikely to go down" or at the very least it's hard to see how they could go much higher.
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1 user thanked applemint for this post.
srg751 on 07/05/2016(UTC)
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