Sunday, Aug 17, 2008

Another nail in the Buy to Plummet market ?

Times online: Rent out your home and move abroad

With the UK economy heading for the duldrums or worse and the property market in freefall with the buy-to-let market feeling the influence of huge amounts of people trying to let and sell their property simulatneously what the market really needs now are a chunk of middle England trying to let their homes on the open market because the want to escape the gloomy weather and doom laden economic climate !
"Fed up with the inclement weather and the gloomy economic climate, they are heading abroad not merely for the summer, but for a year or two. Call it a grown-up gap year, if you will."

Posted by nooneo @ 03:41 PM (1265 views) Add Comment

16 Comments

1. paul said...

Yes, great idea. Who cares about the kids, their school, and rent out!

"How are they funding it? By letting out their UK home to take advantage of rising rents."

But rents aren't rising. They are falling because of stupid ideas like these increasing the exploding stock of rental properties.

Sunday, August 17, 2008 04:05PM Report Comment
 

2. nooneo said...

It's like magic really, you'll like this, not a lot !

Yes, somehow we appear to have a never ending hordes of people who currently are neither renting nor homeowners, coming into the letting market, sopping up the hundreds of thousands of properties on the market !

Sunday, August 17, 2008 04:15PM Report Comment
 

3. Will said...

Sounds easy doesn't it ?

Estate agents trying to prop up their dying businesses by becoming letting agents.

When that fails, I wonder where they will turn.

Sunday, August 17, 2008 04:15PM Report Comment
 

4. scandinavian pessimist said...

"The couple’s home was valued at £1.15m last August, but failed to attract offers above £700,000"

And when they get from their "grow-up gap year" it's worth no more than £500,000...

Sunday, August 17, 2008 04:36PM Report Comment
 

5. nooneo said...

scandinavian pessimist @ 3 said...

"And when they get from their "grow-up gap year" it's worth no more than £500,000..." - and been trashed by those renting for £3000 a month no doubt....

Friends of mine let a house in a nice part of London. They have a range of trainee doctors, solicitors and other professionals. Almost all of their tenants have absolutely trashed the place. It is furnished and they absolutley destroy almost all the contents every year or two. Beds, soft furnishings, blinds, white goods, they treat the place like a squat. Between lets they always have to redecorate every room and they are resigned to spending a large chunk of their rental income on repairs and the like. I think the tenants feel that, because they are spending so much (in a nice part of central London) they are entitled to treat the place like a hotel (except hotels can charge you for your indiscretions!). They occaisonally have been re-embursed for their troubles, but mostly it comes out of their (largish) income from the property.

Another load of middle incomers putting there properties on the market should help the fall in rents nicely though.

Sunday, August 17, 2008 04:58PM Report Comment
 

6. brian t said...

Kids? Kids are so 19th Century. This is the ideal DINK scheme: double income, no kids... no family ties to keep you in cold Blighty.

Sunday, August 17, 2008 06:31PM Report Comment
 

7. malct said...

nooneo - if pushed - I know you can do better than this

Sunday, August 17, 2008 06:34PM Report Comment
 

8. malct said...

no nooneo, I'll rephrase that

I know that if you are pushed you can do better than this

if you put the conditioned cartoon mindset to one side

you've done it before

Sunday, August 17, 2008 06:37PM Report Comment
 

9. nooneo said...

malct @ said...

"no nooneo, I'll rephrase that - I know that if you are pushed you can do better than this - if you put the conditioned cartoon mindset to one side you've done it before "

Nooneo said....

Condescending patronising tw@t - Where do you get off mate. I suggect Putney Bridge

Sunday, August 17, 2008 08:19PM Report Comment
 

10. nooneo said...

Oh dear malct...

I see your irrelevant paranoid posted article about putin has been removed !

Maclt ol' boy - I know that if you are pushed you can do better than this - if you put the conditioned cartoon mindset to one side you've done it before

Sunday, August 17, 2008 08:56PM Report Comment
 

11. it_is_going_with_a_bang said...

"according to Paragon Mortgages – so a £500,000 property could bring in more than £2,600 a month gross rental income"

Lol. Thats the funniest thing I've read in quite a while. The £250k property I am in rents at £875 a month. So I'm not quite sure where their figures are coming from.

Sunday, August 17, 2008 09:56PM Report Comment
 

12. it_is_going_with_a_bang said...

and.... just to add to the amusement ... approx 10% agents fees to be deducted .... tax liability which lets face it may well be the 40% bracket ... aswell as risking a large tax bill when you do come to sell a little later ... of course the property will more than likely be worth a few hundred thousand less when you get back form the ' holiday'. What a great idea Jeeves.

Sunday, August 17, 2008 10:03PM Report Comment
 

13. Gardeniadotnet said...

nooneo said...
>paranoid posted article about putin

Excellent alliteration! 1 house point.
Content: nul point.

Monday, August 18, 2008 12:03AM Report Comment
 

14. mytimeisnigh said...

@ 13, re 1 house point. Seeing as we're on the theme of school, maybe some people need to go back to the playground.

Monday, August 18, 2008 08:47AM Report Comment
 

15. malct said...

nooneo what's paranoid about being concerned that we have allowed a situation to develop whereby the UK economy and hence UK house prices along with much of western europe is dependent on secure and reasonably priced supplies of Russian oil and gas?

The degree to which we consider issues to be relevant to the HPC process is clearly related to how aware we are of the interaction of seemingly separate issues and how they are manipulated by VIs.

Monday, August 18, 2008 09:02AM Report Comment
 

16. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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