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Posts posted by Foundthelight

  1. http://www.independent.co.uk/news/business...le-1788556.html

    So we are paying millions out to people who know even less than the people they are advising. Excellent.

    Now if we where paying a crack management team who had managed hospitals before and improved services / productivity etc... then that's good investment, paying out millions for people to talk sh1t to you seems stupid.

    My other half is a management consultant contracted to a government dept.... She’s on a £100k + a year but being charged out at probably 3x this amount. She says that half her colleagues are moonlighting on the side doing “other work†and shall we say not exactly working late hours.

    There appears to be little to no come back on either side and effectively some have gone “native†within the dept. There are 40 of them how many is this multiplied across the whole government? And we’re paying for this? WASTAGE. Of course I can’t complain!

  2. Indeed.

    Must be one mutha of a flat for that rent. Does it come with its own staff? And roof top pool? And daily freshly cut flowers for the missus?

    Unfortunately that’s what you pay in London. It’s not that nice and there’s an insane Scotts man living in the flat below, that if you merely cough he starts shouting and swearing... And when I say Clapham South... Poynders road if any of you know it... not that nice...

  3. London is different from "a small village in Kent", it's a lot more expensive.

    Outer London is cheaper, but once you're on the tube network rents basically double.

    I know – I was highlighting that why would you lumber yourself paying £1800+ on a mortgage when it’s much cheaper just to rent it.

  4. That is an almost unbelieveably high rent. :blink:

    I pay ~900 for a taty, but lovely 4 bed house in the best part of town that would sell for 300 in a flash and would prob get a valuation of more like 350 ( and that is not some fanciful value, I'm a bear and I rent it .) and the owner probably thinks it's worth close to 400.

    If your yield is actually that good then hell hang on to it but surely at some point the tennant is going to wonder why they are living in a 200k flat for the sort of rent that gets them a 500-600k house.

    Funny you should say that.... I noticed the other day similar flats in the block going for £1100. It’s quite ridiculous parents property in small village in Kent valued £425k yet you can rent it for £1250 pcm...?

    Although I would say you'd look at paying more like £1700 rent for a £450k property in London..

  5. if your valuation is accurate then your yield is extremely good. you would remain cash flow positive even following a pretty monumental hike in interest rates. is your mortgage repayment or IO? sounds like you should hang on to it anyway.

    IO - Also should we look at going repayment or using the surplus to pay down more quickly the family home mortgage? The later sounds most prudent?

  6. Advice needed please....

    A bit of background first should help with your pearls of wisdom.... The misses and I are getting married in December and are looking to start a family (god willing) early next year. We are looking to buy June/ July 2010 with a single 3x mortgage.

    Now.... the misses has a flat that we are currently renting out, details: £180k mortgage (“worth†235k) current rental income £1350 pcm. Although they’ve now gone onto periodic so are expecting them to move out soon. Mortgage Halifax SVR 3.5% paying circa £550 pm.

    Do we sell? Extra 40k odd to reduce the new mortgage or wait to see what happens with IR’s as we’re getting a good yield at the moment? I know we may miss the opportunity to sell and hit the next dip. We probably won’t get a good mortgage rate if we have to fix.. Ok maybe I’ve just answered my own question? Or is the risk worth it long term?

    Even with an Interest only 7%+ we would cover the mortgage (interest part) we plan to have a buffer of around £30k but with the misses wanting to no doubt feather the nest and the cost of rug rats... The flat is 10 mins walk to Clapham South tube (London) new build. In 10/20 years will I regret selling it when no doubt history will have repeated itself? Do I need to work out the saving on my new mortgage (the £40k) v long term average HPI – expenses? Arrrhhhhhhh!!!!!


  7. woof. I make that borrowing about 210K, for a purchase around 250K. I think that's bold borrowing, but if the job sustains it that it's his call. What would worry me is that at the end of the 3 year fix it it looks in this economic climate like average prices could be 15/20% down. A lot of folks on here now vouch for that level of further drops, but over the longer period like this. And no V shaped recovery on the horizon. That drop would pretty much wipe out the 40K equity just at the wrong time.

    If that were me then I'd need to pay down a serious wedge in the first 3 years - and that's a lifestyle choice in a lot of cases. It's easy to say you are going to stick an extra 15K a year into your mortgage, but in practice after saving a big deposit and furnishing a ftb gaff with all mod cons that notion might be more aspirational than practical.

    Good luck to your mate, but thats just too much debt for me. Can't help but think 200K borrowing for first time buyers is the kind of thing that got us here in the first place.

    Fortunately he’s not too stupid. He’s looking at a purchase price of around 190k. He’s a chartered accountant so as safe as anyone…? Not sure. His companies commercial contracts have certainly taken a hit and he’s just had to take a 5% pay cut. There have been redundancies, mostly unskilled - secretaries etc.

  8. Beautiful. Is he paying the mortgage all by himself? If so, assuming his average tax rate is around 33% & he spends around 10% of his gross pay on general 'subsistence' items like food & so on, mortgage payments will account for a little over 85% of his pay after tax & subsistence costs. A two percentage point increase to the interest rate he pays would push that figure past the 100% mark.

    Yep, and he's just started dating so he's going to have even less. She is fit though...

    Most of the detail you provided there was irrelevant to a degree, you'd have done just as well to have said simply "Another mate said won’t sell his flat."

    True – I guess it’s all the same but actually spelling it out makes it look even more fookin stoopid.V

    True – I guess it’s all the same but actually spelling it out makes it look even more fookin stoopid.

  9. more info please - what does the guy earn, what age is he, is he a ftb...

    5.5 x salary = 85% of property price, 15% is one hefty deposit if the person earns well.

    rough ftb calcs

    house price = 100K, salary aprox 15K, must be a kid, bank of maun and dad for the 15K deposit

    house price = 150K, salary aprox 23K, maybe a graduate, early 20's, bigger deposit 23K (pretty hefty really for a ftb)

    house price = 200K, salary aprox 30K, young professional, maybe trade, recently qualified, 30K deposit (ouch)

    Opening it up, what are repayments on these scenarios these days?

    He’s a 27 yr old professional on 39k. FTB.

  10. Ultra-low interest rates? Your friend was offered 6.19% which is a whopping 5.69% over the base rate. I wouldn't call that an ultra-low interest rate: that's a mug's rate, which the bank is profiteering from. Anyone buying at that rate needs their head looked at. In the boom the rates weren't that high, except around 2007 when rates were rising and even then everyone was complaining about "high" rates at the time. If anything, your friend's example proves only that rates haven't come down at all for most buyers, except those on tracker deals from a couple of years ago.

    Sorry I meant current BOE rates

  11. I lived there for a couple of years approx 10 years ago. It's a very middle class area with good facilities. Victoria Station and London Bridge is approx 25mins away on the Train.

    I was interested in the following property until the estate agent told me that it's for cash buyers only.


    I would recommend Beckenham to anyone, especially if they have/are thinking of starting a family.

    Nice house. Thanks for your comments, going to have a look around tomorrow. How do Clockhouse, Elmers End and Eden Park compare?

  12. Basically --- just another form of a


    It's a LIE that this is "affordable"...

    Looks like nothing much has changed. The Moneylenders HAVE TO lend like this [i.e. fraudulently] because THIS IS THE ONLY WAY PEOPLE CAN "AFFORD" property today....

    Staggering. Shocking. Depressing.

    So begs the questions… If high multiples and low ish deposits are holding (sort of) up the lower end and higher up low IR’s stopping forced sales and a ‘If I don’t need to sell I won’t sell’ mentality when’s it going to change? The only thing surely is a massive hike in Interest rates? What would the REALISTIC combination need to be? High unemployment (3m? ) alone probably won’t do it. It can’t be before the election now?

  13. At least requiring a fifteen percent deposit rules out half the numpties.

    5.5 x salary ? :o:huh::o Are they mad?

    So is that fixed for a certain time period?

    To do this I suppose he and the banks both must think that in the next ten to twenty years the base rate will never go above 5 or so percent again?

    I don’t know I think 15% is fairly low coupled with 5.5x earnings, not worried about further falls? I guess the IR isn’t keen but still.

  14. A perfect example of why we are a nation of financial spaffers. When the advisors are the thickest of the lot, what hope do we have?

    You have no idea. He has a whole world of “Brentinisms†for starters….

    “How much did your mate pay for his new build in Wandsworth?â€

    “I don’t know but it’s pretty irrelevant with these type of properties†WTF?!

  15. Mate’s just been offered a Halifax 5.5x salary with a 15% deposit at 6.19%. So much for limiting the income multiples and high deposits. Okay seriously, if this is still happening coupled with ultra low interest rates and greedy f*ck bag sellers… Realized big drops no time soon.

    Another mate said he won’t sell his flat for less than £300k (Streatham) Peak price £270k. He will want to upgrade to a house In the next few years. Why would he want his flat to be worth 100k more if the house he'll want to buy will be 200k more? He’s an IFA by the way…

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