It shouted at me of the youth who professes to hate the private club, on whose waiting list his application for membership, still forlornly sits years later.
Property can certainly dive. Consider Detroit as a tragic example. Or Manchester, or Liverpool.
I think the ‘bank of m+d’ is an interesting concept. When I was younger it was a very rare thing, families just didn’t have that kind of disposable cash. Now for the fortunate they do. I don’t particularly favour that equity-rich parents can advantage their children thus, whereas the less well off cannot, there is a self-perpetuation to it. But if I can lend my children 100k today, rather than leaving then (100k-40% tax) in my will, then, why not? My father loaned me £10k for 6 months, with interest lol, 17 years ago. Acorns and oak trees. It completely changed the path of my entire life.
‘Knightsbridge, Sloane Square, Notting Hill, Chelsea, Primrose Hill, Hampstead, St John's Wood’. Good grief, those are some of the most expensive postcodes in the world! What next, Little Jonny from Idaho demands a right to buy an ‘8-room’ on Madison?
You’re right, late 90s, I was paying 9% [8.99%], and it had been worse. That really gave the market a bit of a shake out. But the costs get passed on, so rent was relatively high too.
Prices fall, only in areas where people have to sell (often due to the economy/employment etc). ‘The market price’ is determined by a surprisingly small proportion of the potential market, maybe just 5%. For areas you mention, what happens to property
prices is largely irrelevant.
Best tip I was ever given: ‘Never sell property, you don’t ever need to’. [The logic being that in doing so realise your purchase costs, and that with remortgaging, you can get much of your equity out].