Comments on: Tiny London Apartment for $334,000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/ personal finance that makes cents Sun, 20 Jul 2008 23:00:54 +0000 http://wordpress.org/?v=2.5.1 By: londonriches.co.uk » Blog Archive http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92913 londonriches.co.uk » Blog Archive Tue, 17 Jul 2007 12:40:15 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92913 [...] Tiny London Apartment for $334,000 Get Rich Slowly Lifestyles of the rich and stupid. Cheap alternatives to cable television … Get Rich Slowly Advertising Policy - 23 Votes … [...] [...] Tiny London Apartment for $334,000 Get Rich Slowly Lifestyles of the rich and stupid. Cheap alternatives to cable television … Get Rich Slowly Advertising Policy - 23 Votes … [...]

]]> By: londonriches.co.uk » Blog Archive http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92784 londonriches.co.uk » Blog Archive Mon, 16 Jul 2007 17:47:38 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92784 [...] Tiny London Apartment for $334000 ∞ Get Rich Slowly*sigh* One day? maybe I?ll be rich? slowly, of course. Fazal Majid Says: January 24th, 2007 at 8:36 pm. Another interesting thing about London is that most … [...] [...] Tiny London Apartment for $334000 ∞ Get Rich Slowly*sigh* One day? maybe I?ll be rich? slowly, of course. Fazal Majid Says: January 24th, 2007 at 8:36 pm. Another interesting thing about London is that most … [...]

]]> By: Search Engine Chelsea http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92696 Search Engine Chelsea Mon, 16 Jul 2007 09:36:54 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-92696 Chelsea is one of the most expensive and most popular part of London, also Knigtsbridge. In Chelsea, some properties are worth £9Million, but this property has 3 beds and 3 baths! However, Chelsea does not show the typical property prices in London. The average house price in the UK is about £200,000, which is under $400,00. Chelsea is one of the most expensive and most popular part of London, also Knigtsbridge. In Chelsea, some properties are worth £9Million, but this property has 3 beds and 3 baths!

However, Chelsea does not show the typical property prices in London. The average house price in the UK is about £200,000, which is under $400,00.

]]> By: icup http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-52144 icup Thu, 25 Jan 2007 19:06:20 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-52144 Angie, thanks for the reply. That makes alot more sense than what I thought it was. And its alot easier to look up that statistic than trying to constantly gauge the actual value of my home. Angie, thanks for the reply. That makes alot more sense than what I thought it was. And its alot easier to look up that statistic than trying to constantly gauge the actual value of my home.

]]> By: jay s http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-52017 jay s Thu, 25 Jan 2007 16:29:11 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-52017 I imagine portland will be seeing a drop in prices, if the market corrections in other areas hold true. It won't drop past what it was 2 years ago, but go back 6 mos - 1 year before the peak - and that is what true pricing will be at. I imagine portland will be seeing a drop in prices, if the market corrections in other areas hold true. It won’t drop past what it was 2 years ago, but go back 6 mos - 1 year before the peak - and that is what true pricing will be at.

]]> By: Angie http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51987 Angie Thu, 25 Jan 2007 15:46:00 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51987 icup, from what I can tell, the change in value of a particular real estate market is determined by looking at statistics of what places sold from year to year. The survey of prices might encompass a county, a city, or a neighborhood. Oftentimes price gains are reported as changes in the "median single family home price". If all the sales of a particular time period are ranked from largest sale price to lowest sale price, the median price is the one right in the middle of the list. When reported for a large area (city, county), that list of all home sales reflects tiny, decrepit houses in bad neighborhoods as well as huge gorgeous houses in good neighborhoods, of course. Generally the median-priced homes are OK house of moderate size (maybe 3 BR) in OK neighborhoods. There may be neighborhoods within that area that are hotter (see more appreciation) or less hot (see less). So, no, it's not that every person's house is appraised every year. Those appreciation values reflect the general "temperature" of the real estate in a given area. How any particular individual property will fare also depends on specific location and trends in that specific area, as well as the condition and specifics of that particular property. icup, from what I can tell, the change in value of a particular real estate market is determined by looking at statistics of what places sold from year to year. The survey of prices might encompass a county, a city, or a neighborhood.

Oftentimes price gains are reported as changes in the “median single family home price”. If all the sales of a particular time period are ranked from largest sale price to lowest sale price, the median price is the one right in the middle of the list.

When reported for a large area (city, county), that list of all home sales reflects tiny, decrepit houses in bad neighborhoods as well as huge gorgeous houses in good neighborhoods, of course. Generally the median-priced homes are OK house of moderate size (maybe 3 BR) in OK neighborhoods. There may be neighborhoods within that area that are hotter (see more appreciation) or less hot (see less).

So, no, it’s not that every person’s house is appraised every year. Those appreciation values reflect the general “temperature” of the real estate in a given area. How any particular individual property will fare also depends on specific location and trends in that specific area, as well as the condition and specifics of that particular property.

]]> By: 60 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51967 60 Thu, 25 Jan 2007 15:04:12 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51967 Fazal - Baltimore and parts of Maryland are still under the ground rent system from the colonies. Just read on www.Baltimoresun.com about how people are losing their houses for failing to pay $33 yearly rents. <i>(edit by J.D.: <a href="http://www.baltimoresun.com/news/local/bal-te.bz.groundrent10dec10,0,3587480.story?coll=bal-home-utility">Here's the story in question.</a>)</i> Fazal - Baltimore and parts of Maryland are still under the ground rent system from the colonies. Just read on http://www.Baltimoresun.com about how people are losing their houses for failing to pay $33 yearly rents. (edit by J.D.: Here’s the story in question.)

]]> By: Scott Cowan http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51890 Scott Cowan Thu, 25 Jan 2007 12:24:51 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51890 I live 5 minutes from there and my rent is £300 pm so even though its an expensive place to live you can always find a deal. I live 5 minutes from there and my rent is £300 pm so even though its an expensive place to live you can always find a deal.

]]> By: david http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51730 david Thu, 25 Jan 2007 08:52:37 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51730 I don't know why that price tag is so extreme to you? All you have to do is multiply the number of square feet with the price of one foot. Thats just the price apartments have in that part of London. I don't think New York or Tokyo is any different. It just happens to be a really small space and that is why the price is frowned upon. I don’t know why that price tag is so extreme to you? All you have to do is multiply the number of square feet with the price of one foot. Thats just the price apartments have in that part of London. I don’t think New York or Tokyo is any different. It just happens to be a really small space and that is why the price is frowned upon.

]]> By: Fazal Majid http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51565 Fazal Majid Thu, 25 Jan 2007 04:36:55 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51565 Another interesting thing about London is that most of the land is still owned by feudal landlords like the Duke of Westminster. They do not sell the land under your apartment, just rent it for 99 years. Since there has not been any revolution there in 500 years, the aristocracy is well entrenched. Another interesting thing about London is that most of the land is still owned by feudal landlords like the Duke of Westminster. They do not sell the land under your apartment, just rent it for 99 years. Since there has not been any revolution there in 500 years, the aristocracy is well entrenched.

]]> By: Aaron http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51533 Aaron Thu, 25 Jan 2007 03:48:42 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51533 The location is unbelievable. You are within 3000 feet of Buckingham Palace! Though, what would be more exciting to me is how close it is to Hyde Park. Oh how I would love to go to Speaker's Corner every weekend. *sigh* One day... maybe I'll be rich... slowly, of course. The location is unbelievable. You are within 3000 feet of Buckingham Palace! Though, what would be more exciting to me is how close it is to Hyde Park. Oh how I would love to go to Speaker’s Corner every weekend.

*sigh* One day… maybe I’ll be rich… slowly, of course.

]]> By: icup http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51529 icup Thu, 25 Jan 2007 03:43:11 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51529 Question for you real estate types out there: What exactly does "We’re not seeing double-digit increases anymore" mean? What I think it means is "double digit percentage gains on the value of your property", right? ie you buy in for $200K and 1 year later its worth $220K. So the question that that naturally leads to is: Are you guys getting your house appraised every year? How else would you know it went up in value 10-12%? I am a first time homeowner, and trying to figure all this stuff out, so sorry if this sounds like a completely stupid question, but I've seen language like this bandied about on other sites too. Question for you real estate types out there: What exactly does “We’re not seeing double-digit increases anymore” mean? What I think it means is “double digit percentage gains on the value of your property”, right? ie you buy in for $200K and 1 year later its worth $220K.

So the question that that naturally leads to is: Are you guys getting your house appraised every year? How else would you know it went up in value 10-12%? I am a first time homeowner, and trying to figure all this stuff out, so sorry if this sounds like a completely stupid question, but I’ve seen language like this bandied about on other sites too.

]]> By: rich http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51522 rich Thu, 25 Jan 2007 03:30:11 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51522 I think the reporters on this one are having their leg pulled. (One leg, shared by many reporters. It's fun to watch them try to walk.) First, the flat hasn't *sold* for $334k, just listed at it. And that listing was enough to get it free advertising on the BBC, if you know what I mean. Second, according to the Seattle Times article, there are offers on it, but it might still go to auction, which means (1) the offers are not for anything near $334k and (2) the owners don't expect to get anything near $334k. So what's it worth? Less than the asking price, probably significantly less, but more than it should be! (Also: $60k to make an 11x7 room habitable? That seems... high, even if you take out everything that isn't structural and put new in.) I think the reporters on this one are having their leg pulled. (One leg, shared by many reporters. It’s fun to watch them try to walk.)

First, the flat hasn’t *sold* for $334k, just listed at it. And that listing was enough to get it free advertising on the BBC, if you know what I mean.

Second, according to the Seattle Times article, there are offers on it, but it might still go to auction, which means (1) the offers are not for anything near $334k and (2) the owners don’t expect to get anything near $334k.

So what’s it worth? Less than the asking price, probably significantly less, but more than it should be!

(Also: $60k to make an 11×7 room habitable? That seems… high, even if you take out everything that isn’t structural and put new in.)

]]> By: James Kew http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51466 James Kew Thu, 25 Jan 2007 01:44:12 +0000 http://www.getrichslowly.org/blog/2007/01/24/tiny-london-apartment-for-334000/#comment-51466 More of an unreality bubble -- this is off Sloane Street and a stone's throw from Harrods. More than just a rich area: it's a super-rich area. (This Seattle Times <a href="http://seattletimes.nwsource.com/html/nationworld/2003536872_flat23.html" rel="nofollow">article </a>, linked from MetaFilter yesterday, puts it at <a href="http://maps.google.com/maps?f=q&hl=en&q=18+Cadogan+Place,+london,+uk&sll=37.0625,-95.677068&sspn=86.658027,107.402344&ie=UTF8&z=16&ll=51.499099,-0.158744&spn=0.008749,0.020149&om=1&iwloc=addr" rel="nofollow">18 Cadogan Place</a>.) Londoners will know that there's a rich tradition of silly prices for tiny properties: the first being the sale of a Knightsbridge broom-cupboard back at the peak of the greed-is-good 80s boom. Here's a <a href="http://www.thisislondon.co.uk/home/article-909195-details/Cupboard%3A+a+steal+at+%C2%A350%2C000/article.do" rel="nofollow">similar story</a> from 2002 that collects some of them together. More of an unreality bubble — this is off Sloane Street and a stone’s throw from Harrods. More than just a rich area: it’s a super-rich area.

(This Seattle Times article , linked from MetaFilter yesterday, puts it at 18 Cadogan Place.)

Londoners will know that there’s a rich tradition of silly prices for tiny properties: the first being the sale of a Knightsbridge broom-cupboard back at the peak of the greed-is-good 80s boom. Here’s a similar story from 2002 that collects some of them together.

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