There was this HSBC ad that sum it up. The amount you pay for a beachfront bungalow in Phuket will get you a garage in London.
Not for long. Soon you will be able to add the ground floor lounge and if the meltdown continues you will get a decent cottage in a nice cobbled street cul de sac. Yes I hope. The price of houses have gone down by a good 25% and it is sliding down further.
The mortgage rate has doubled. Imagine paying 1000 quid last month and now it is 2000. That is a pain. There have been a few who have to sell the properties and rent it back from those sleek city institutions. But now they are also gone.
I thought I notice the unusual frequency of For Sale signs, along the Sandbanks, reputed to be the 4th expensive realestates in the World. A good 15% are for sale.
A friend bought a property in North London for the kids. 300K.That was before the recession. I am contented to have a piece of Porchester Place on short term lease. I will go for a sound investment but not to be bogged down to a city, no matter how much I like the city.
Watch out for a good bargain, and pay cash. We are not from the City you see.