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House Price Crash Forum


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Everything posted by championmongo1

  1. Don't apologise - I couldn't care less now - I'm very happy with my new location / wife / recession proof job / etc. and an investment (forced BTL landlord) that is paying me a very decent return (tracker mortgage (currently 1.9% on £75k) & fixed long term tenant (at least 24 months @ £425 pcm)). Worst comes to the worst the bank can have their 'asset' back! How's life with your STR fund? I was dabbling on oil but got out just in time (with a healthy profit) and now I'm just holding Euro's purchased in 2007 and gold purchased in early 2008! The rest has been well spent on holidays, the wedding & a nice new (but uneconomical) toy (with the snow here in the Peak District, I couldn't give a toss about global warming btw! lol!) and the insurance that goes with it! Any funny EA stories your side? Our letting agent says we should buy the house we are currently renting now before it jumps in value! I laughed as the owner had already told us that despite it still being classed as a new build it had been empty for nearly two years with not so much as one viewer to rent or buy before us! I said we would buy at the right price in a few years time! I'm not paying his full rental asking price either before you ask! You have taught me well BB!
  2. Hey all, long time just reading rather than arguing with Belfast Boy since my move! Also there's not much point arguing with him at present because he has been right (well most of the time) all along! Damn hindsight! Anyway I don't know what shocks me most, the fact that the developer is being a greedy [email protected] or that people are still interested in buying houses! For the mortgage company to be offering to lend you somewhere in the region on £135k you must be in a pretty well paid & secure job so do yourself a favour and enjoy spending some of that cash on holidays and toys rather in a depreciating asset that you may well be able to buy for a song at auction when the developer goes bankrupt! Although I shouldn't be laugh too much as I still own my first home there, bought in May 2006! Oh well, at least it's on a lifetime tracker mortgage and sure when the BOE starts to print more money out of nothing in the third quarter of 2009 that mortgage amount may only be enough for a decent holiday in a few years! People all over the world will be using sterling notes to wipe their bums on as it will be cheaper than loo roll!
  3. Sogy & Malthus-no the house was bought for 80k, at peak was valued at 165k (which feels like ever such a long time ago now) and is currently valued at 100k (by new mortgage valuation anyway) with an outstanding balance of 74,950 (note LTV lower than 75%) and is on a lifetime I/O BOE tracker with no floor. Belfast Boy-I see what you are saying about the value houses are losing every month but I bought the house in 06 and have no realistic chance of selling it and clearing the mortgage in the current climate so keeping it was the only option without having to hand the bank a large cheque for nothing. It has turned from my home into a forced long term investment but based purely on the income and expenditure on my property and seeing what similar properties are selling for it has made me think that when the banks reduce the excessive rates they charge things may stabilize slowly. Now I’m suggesting any price rises-I think with the scale of this recession it could take until 2028 before houses in N.I. reach peak 2007 prices but purely on an income basis verses savings rates there are worse investments out there. Now following the BOE rate drop: Rent rec’d-425 Mortgage-188 Rates-35 Landlord Ins-20 TOTAL-243 So now making a gross profit of 182 per month which is a 43% yield I believe? What's the weather like over there by the way?
  4. Back to the original question, surely prices will stop falling fairly soon? As an enforced landlord (not greed just personal circumstances but you may boo hiss anyway ) with a lifetime tracker motgage the yield is much greater on my property, purchased in '06 than I could achive in any other investment at a similar risk level, i.e. RENT Rec'd £425 Mortgage £254 Rates £35 Landlord Ins. £20 TOTAL £309 Therefore a monthly profit of £116 or 27% gross and thats before interest rates are reduced later today, altough you do have the effort of having to fill in a separate tax return and set aside some capital for any voids or repairs you might face. At present values property is beginning to look quite reasonable again although it's not quite there yet as mortgage companies lending rates for new puchases are highly prohibitive despite the falling BOE rates however if the government do address this as promised then property prices may begin to slowly stabilize. I also feel rent in N.I. is likely to increase for decent properties over the next 12 months but this could be affected by a deeper recession than is currently anticipated. Thoughts? Scowls?
  5. Hi Belfast Boy This is my first time on in a while as I have since moved and it has taken months to get a landline in. The investor who sale agreed on my house didn't the cash for the deposit and I couldn't wait any longer due to my marriage and other personal circumstances so the house was rented out instead. The market appears to have got considerably worse since then so it wouldn't be worth selling now, although the recent interest rate cuts have meant that the rent covers the mortgage and applicable costs including insurances/rates/etc. pretty much! And if the worse comes to the worst the bank can always have thir 'asset' back! lol!
  6. And the house prices will sky rocket once more...
  7. London Stock Exchange Group Price: 1099.00 at open Current price 1166 at 11:22am, 16/05/08 when I purchased a few! I think the markets will have a good few weeks and this group will benefit in the short term but it's going to be a hard cold winter! edit: text add on
  8. Yeah that's happening already where my missus is England (East Midlands). Rental mrket flooded and the result is the rent being asked for has dropped by 20% already! Tough times for BTL in some places!
  9. It's hard to prove much using the inflation figures as how they calculated is so fundamentally flawed that they aren't even close to what is actually happening on the ground! For me NMW is a side issue, pays should encourage people to want to work! However I'm not really keen on ANY benefits for the lazy (those who could work but choose not to only) and believe that their fate should be up to their family and friends and failing that natural selection! Thus a low NMW would suffice. Harsh maybe but it really p1sses me off working hard for everything I have for some lazy ba5tard to get everything handed to him for doing nothing! That's not right, not fair and not on! And it's about time the government took a harsher stance!
  10. Sure you know we are doing well when an Indian company outsources call centre jobs to Stroke City!!! As for well educated labour-the best tend to leave so what we really have is the best of the rest! Not the most promising of thoughts for potential investors!
  11. They want you to pay money to live in the Ardoyne??? Good luck to them! Not even for 9k!
  12. It's a bit better than the typical slave box though-it would be bright and airy!
  13. Some industries run on tight margins and the NMW just increases the employers cost base but is of no real benefit to the employee as increasing the NMW simply increases infation and thus the employee has no more buyin power than before. However the employers margins have been squeezed and he may begin to wonder if it's worth continuing to trade and if not then our economy will be hit through job losses and then no-one will be any better off! And IMHO certain jobs don't require much skill and therefore the employees in these positions shouldn't require much pay! Controversial I know but I'm on a roll today!
  14. but chips are rising in price due to inflation...is this what you think rents might do?
  15. Lucky man, although if you owned a house you could have MEW'd and went to Austrailia! MEW'ing it's just free cash isn't it? Oh SH?T this recession might hurt!
  16. I second this, one of my brothers (NOT the BTL 'investor') has a few shops and when the minimum wage was introduced he reduced the number of staff he employs and every time it has risen he continues to reduce either the number of employees or their hours. So the ones that are left are getting paid more but they are working a lot harder for it! If the minimum continues to rise there will come a point where it is not worth havening the shops anymore as the return will be so low!
  17. Well they'd be the only ones with equity in their homes so maybe they are all MEW'ing!!
  18. I don't think raising the minimum wage is the way to do it as that would increase companys costs possibly forcing them to relocate/invest elsewhere! A free labour market will find it's level and wages would rise as more companys would set up here so they'd all be competing over the same people! Reducing benefits so that claimants would be substantially better off even on the minimum wage is the way to go! If you have to work to feed yourself properly then you will. Although I agree with Sogy's earlier post where claimants could do useful jobs in the neighbourhood and this could boost their benefit payments?? As for MD referring the the UN human rights bill, point taken, but if more hard working citizens have these very hard views then reality may happen somewhere in the middle. However for this to happen our MP's would have to listen to us and they never do that-look at the price of petrol! Why don't the government either reduce the duty or the VAT on fuel. This would help to lower true inflation that concerns us all-higher transport costs not only affect the average person commuting to work but also affects the cost of food manufacture, haulage, etc. etc. Also they could figure out a way to raise the value of sterling also helping to force down wholesale energy costs! Maybe increasing interest rates sufficiently so investors stock pile in sterling?? Maybe MD would be better dealing with the curency value issues though?
  19. Aiming high as usual-2000! I will be right one week! Recession coming or possibly pretty much here??
  20. They wouldn't which can only be a good thing IMHO!
  21. That's the fear-it's easier to say these things than it may be to actually do them! I think the world is on the cusp of a nasty recession and these companies will look after what they have rather than expand into new markets!!
  22. So then you shouldn't be allowed to vote without playing an active part in our economy/society! Problem solved! Also Sogy I sent you a PM and would be gratefull for your advice.
  23. I have a funny feeling the hangover is going to be far worse than anyone suspected for our whole economy but who knows what effect the European & American investment due to hit these shores may do...if it ever arrives. We may be better placed in that respect than mainland UK but by better I mean we feel the effects of the recession slightly less. In respect to house prices, the only house that are selling are ones were the achievable rent is 1.25X an IO mortgage which effectively means that for a house to sell the vendor must be willing to accept ~40% less than the April 07 price. This is what is happening on the ground now and with inflation ever rising surely it is only a matter of time before Mervan King will have to raise interest rates and this may further force prices down as mortgage cost rise?
  24. Yeah the banter is good-I'm glad I logged on tonight! However MD the latest figures are way off-things are much worse on the ground but this will take six months or so to fully apparent in these reports. As an OO trying to sell (and realisticly, i.e. not at that June 07 price) I'd say vendors would have to be willing take ~40% less than their properties peak price now to achieve a sale and I mean completed sale not just sale agreed! This would be more applicable to the bottem end of the market for the time being but will feed up the ladder for anyone genuinely wanting to sell! Although granted those at the top may not be as desperate to get off the ladder. Well that is my experience of the current market and is also the same I'm hearing from friends in different parts on Northern Ireland and on different runs of the ladder! There's lies, damn lies and then there's statistics!
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