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The crazy East London property market

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Own a property in East London?

Renting in Dalston / Shoreditch / Bow / Haggerston / Stoke Newington

Looking to buy?

it can certainly be a headache trying to work out what is the best option – on one hand property in London is going up a rate some say of 30% per annum – so you could buy a place now for 270 grand and sell in 1 year for 350!

Right now with rates so low you are likely to be able to get a floating rate of maybe 1.99% plus base rate (currently 0.5%, unlikely to increase during 2014 but will almost certainly increase in increments of 0.5% quite quickly after that – a decision is made whether to increase by Bank of England every 3 months)

If you go fixed rate it will be more in the region of between 2-5% depending on size of your deposit (http://mortgages.telegraph.co.uk/thirdpartysites/home/?icid=telegraph)

more deposit, less you have to pay each month – normally you can go with 15, 20 or 25% deposit – so in theory you could end up paying of mortgage of, say, £800 on a flat would cost £1500 per month to rent – good deal huh? Well factor in agency fees, maintenance charge, no occupancy etc etc and you are realistically looking at making maybe £400 per month – but hey, someone else is paying your mortgage off for you.

On the other hand you might find a live / work space in a warehouse with 16 other people, have the time of your life and pay only £600 per month – like these places:

http://www.gumtree.com/flats-houses/london/live+work  

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who knows!

anyway, just for fun look at the frankly ridiculous and seemingly arbitrary differences in asking price for these places:

http://www.rightmove.co.uk/new-homes-for-sale/property-28162038.html

450 grand – bedroom is in the living room(!)- not enough room to swing a cat – everyone can hear (see!) you doing your business – nice location…but

or you could have 2.5 of these for same price!!

http://www.rightmove.co.uk/property-for-sale/property-27842016.html

it’s bigger!!! and about 200 metres down the road

100sq ft for 375 per week

http://www.londonlofts.net/property/loft-with-terrace/

or 740sq ft for 515 per week

http://www.londonlofts.net/property/gated-mews-house/

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Haggerston Times says:

there are bargains to be had – you just have to look hard for them – don’t give up and don’t buy the first place you find

and if you have a spare 5 mill – don’t buy this!

http://www.rightmove.co.uk/property-for-sale/property-44462135.html

unless you really like statues

buy this for half the price !

http://www.rightmove.co.uk/property-for-sale/property-43777388.html

seriously the views expressed here are entirely subjective and we make no claims whatsoever to be experts in the property market – we feel we have pointed out out, in a layman way only, what look like bizarre inconsistencies

thanks for listening ; )

 

 

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