Look At This Muppet On Mse

[Spoony]

http://forums.moneysavingexpert.com/showthread.php?p=32071141#post32071141

"Renting my house and using equity to buy

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Had 2 EAs around so far and not liking the valuations. Need advice on releasing equity on mine, using the rent to buy another house. How does this work. My house is worth £180,000 and have a mortgage of £5,000 (could pay it off if needed to). Want to buy a house for around £170,000 so how would I do this"

[Si1]

just one more muppet who will be excluded from the game over the coming decades...

[AvidFan]

http://forums.moneysavingexpert.com/showthread.php?p=32071141#post32071141

"Renting my house and using equity to buy

--------------------------------------------------------------------------------

Had 2 EAs around so far and not liking the valuations. Need advice on releasing equity on mine, using the rent to buy another house. How does this work. My house is worth £180,000 and have a mortgage of £5,000 (could pay it off if needed to). Want to buy a house for around £170,000 so how would I do this"

175K of equity on a 180K house and he wants to MEW to take on a free hundred K's more debt.

It's called snatching bankruptcy from the jaws of solvency.

The force is strong with this one.

Edited April 25, 2010 by AvidFan

[Guest absolutezero]

http://forums.moneysavingexpert.com/showthread.php?p=32071141#post32071141

"Renting my house and using equity to buy

--------------------------------------------------------------------------------

Had 2 EAs around so far and not liking the valuations. Need advice on releasing equity on mine, using the rent to buy another house. How does this work. My house is worth £180,000 and have a mortgage of £5,000 (could pay it off if needed to). Want to buy a house for around £170,000 so how would I do this"

I like his later quote.

Don't know about landlords and yields!

Reason behind move is transfer of work and nearer to son. Hope house prices will rise in the next few years and as long as not out of pocket can keep the 2 houses on! Would be a nice nest egg as well.

[Hip to be bear]

175K of equity on a 180K house and he wants to MEW to take on a free hundred K's more debt.

It's called snatching bankruptcy from the jaws of solvency.

The force is strong with this one.

Keep reading...at 57 she wants to pay off her mortgage in 7 years, when she stops working.

[Guest absolutezero]

Keep reading...at 57 she wants to pay off her mortgage in 7 years, when she stops working.

You mean this person is not in their mid to late 20s?

[yellerkat]

You mean this person is not in their mid to late 20s?

IQ, yes.

[AvidFan]

Keep reading...at 57 she wants to pay off her mortgage in 7 years, when she stops working.

I was just going to ask how it ends but I see HPC got to her first:

I wouldn't do it. I could buy a house in cash but I won't do it because they are simply overvalued by 30-40% and will correct. Housing is currently a poor risky investment.

Own up. Who spoiled our fun?

Edited April 25, 2010 by AvidFan

[AvidFan]

IQ, yes.

If she's not a "young professional", she shouldn't even be thinking about it.

[MrFlibble]

175K of equity on a 180K house and he wants to MEW to take on a free hundred K's more debt.

It's called snatching bankruptcy from the jaws of solvency.

The force is strong with this one.

Sadly it is this sort of behaviour that has been handsomely rewarded so far. Houses only ever go up* Guv.

*Measured in Knockout, aka Sterling.

Edited April 25, 2010 by MrFlibble

[lulu]

Sadly it is this sort of behaviour that has been handsomely rewarded so far. Houses only ever go up* Guv.

*Measured in Knockout, aka Sterling.

Just shows how deep set the 'property only goes up' mentality has run.

If I were 57 earning £17,000 and only owed £5000 on a house that is 'worth' £180,000 I would more than likely be happy with my lot and pay off the mortgage and live mortage free within a couple of years.

But when the media constantly tell you that prices can only ever goes up it is very easy to see how people get lured into potential ways to somehow 'make' money out of nothing.

[Laura]

Don't know about landlords and yields!

Reason behind move is transfer of work and nearer to son. Hope house prices will rise in the next few years and as long as not out of pocket can keep the 2 houses on! Would be a nice nest egg as well.

That's where I decided it was an HPC member on a fun day outing.

Please tell me it is?!!

[Pent Up]

I say let them destroy their retirement. If they can't be bothered to do the research when making a £200k leveraged investment they deserve to be financially ruined.

[Dorkins]

This person is in their late 50s, earning £17k and looking to take on £180k in fresh mortgage debt secured against £170k in equity across two properties (however they end up splitting it). I don't know what the legal implications would be, but if the bank could get them to agree to split the equity 50/50 between the two properties, and then house prices fell 40-50% and both properties were repo'd, then the bank would own two £90k houses for an outlay of £180k - a nice bit of insurance in an uncertain world. Meanwhile this idiot has lost a fully paid-off house because they didn't understand how leverage works. If I was the bank, I'd be chomping at the bit.

[ZeroSumGame]

This person is in their late 50s, earning £17k and looking to take on £180k in fresh mortgage debt secured against £170k in equity across two properties (however they end up splitting it). I don't know what the legal implications would be, but if the bank could get them to agree to split the equity 50/50 between the two properties, and then house prices fell 40-50% and both properties were repo'd, then the bank would own two £90k houses for an outlay of £180k - a nice bit of insurance in an uncertain world. Meanwhile this idiot has lost a fully paid-off house because they didn't understand how leverage works. If I was the bank, I'd be chomping at the bit.

Earns 17K and needs mortgage of 180K. I.e. > 10x salary.

Assume the mortgage could be nominally attached to one property ; would even Northern Rock or the former HBOS be that stupid as to lend on those criteria?

[Bloo Loo]

Earns 17K and needs mortgage of 180K. I.e. > 10x salary.

Assume the mortgage could be nominally attached to one property ; would even Northern Rock or the former HBOS be that stupid as to lend on those criteria?

sure they would. the rent will be added to the income..so even in a void, the borrower could pay up. they would need some more skin in the game though in cash...maybe a loan from a third party, otherwise its a roughly 50% loan, with both properties tied up, the bank being the second charge on the first house.

I wouldnt do it, but I dont want debt into my 70's

[Sammy85]

Classic MSE....this on Sammy85's signature.

~~~~ Getting Married!! 18th June 2011 ~~~~

Point?

Edited April 25, 2010 by Sammy85

[Guest absolutezero]

Point?

Own up. Who set this one up?

[libspero]

Point?

Nothing personal Sammy.. MSE has a reputation here for being a little "touchy feely".

I suspect your sig just epitomised this in the posters mind

Edit to add: Congratulations by the way... "Big Hugs"

Edited April 25, 2010 by libspero

[Spoony]

I don't get it. Anyway this mse forum just illustrates how the general public have STILL after everything that has happened, not got it through their thick heads about housing. Its still a one way bet for them and an 'investment'. What will it take to change their minds back to how it was in 1994-1995. 'House? Not with a barge pole!' I don't expect that, because that was extreme, however people view high house prices as good. They are so selfish.

I see that Hamish bloke is on there spouting his stuff he used to troll on here.

[Kazuya]

Edit to add: Congratulations by the way... "Big Hugs"

[dances with sheeple]

Point?

You will be bankrupt before then?

[dances with sheeple]

I don't get it. Anyway this mse forum just illustrates how the general public have STILL after everything that has happened, not got it through their thick heads about housing. Its still a one way bet for them and an 'investment'. What will it take to change their minds back to how it was in 1994-1995. 'House? Not with a barge pole!' I don't expect that, because that was extreme, however people view high house prices as good. They are so selfish.

I see that Hamish bloke is on there spouting his stuff he used to troll on here.

Hamish must be wetting himself with fear by now.

[libspero]

I see that Hamish bloke is on there spouting his stuff he used to troll on here.

Whilst I have no doubt prices will rise over the next decade, and indeed the mainstream projection is for 40% in real terms

That may work out OK when we are in the latter half of a house price cycle where prices tend to explode, but not so well in the first half of a new price cycle, when capital gains tend to be more subdued. Which is where we are now.

We can expect subdued capital gains of only 40%.

Good old Hamish

[Brave New World]

This is all earily like my mum - in fact if it hadn't already happened i would say it was her!

165k house with 30k outstanding.

Rents it out and rents another with her boyfriend (a walter mitty). Renting dead money crops up again and again.

Before i know it my mum has sold her house back to her blokes company (i say compeny, he is a home report muppet), of which she is a director (she's an illustrator FFS).

The house is sold back as a btl with a 125k mortgage.

They buy another house for 215k with a 50k deposit.

My mum is 57, both properties are 25 year deals. How is that allowed??!!!

My mum's fella - puts money up for doing up the new house - carpets and kitchen. F'ing spiv.