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House Price Crash Forum


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About cybernoid

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  1. Assuming 500k purchase price, lower than actual since it was 'over', Lets say for the buyers sake they get 1500, rule of thumb taking into account voids, agency cut and fees etc = 15k a year income A cash buyer gets a maximum 3% yield. Ive done all the other sums elsewhere, but that isn't enough when you take everything else into account. Therefore it is overpriced. Personally I wouldn't do buy to let for less than 2-3 times that yield, I put that at a reasonable value of 170k-250k, lets say 210k. When you consider the 130k paid for it 13 odd years ago that sounds reasonable to me. Could be owner occupier, but the same rules apply. Much of the market is buy to let, which ties capital values to rent and therefore earned income. When the choice is rent or buy you cannot get away from earned income anchoring prices for owner occupiers either. Chances are they spent some money from another property sale at an inflated price, who knows. In that case they didn't have to earn it, easy come easy go. It is twice fair price by any reasonable measure, people who pay such prices simply aren't thinking.
  2. What would it rent for? What makes you think people are thinking?
  3. 1, Very likely if they bought outside london within the last ten years 2, Quite possible if they bought outside london within the last ten years The over-riding factor in this is if they are IO highly leveraged BTLers who bought within the last 10 years, outside of london, they couldnt have done their sums. Or they believe in irrational forever rising prices. In either case, they are not rational, or are stupid. Therefore they behave irrationally/stupidly. Hence an unwinnable case is bought, petty ineffectual revenge is sought by cutting of their nose to spite their face in at least 1 case we know of, and their latest wheeze, an unwinnable appeal is being lodged. Dumb people do dumb things.
  4. As if an operation the size of west brom is going to notice. Some bored drone is going to have an extra row to go through in their database one day. Revenge!! The only impact it will have is another property on the market. A few more thousand of those and we're getting somewhere. Then that girl he evicted could afford her own home instead of relying on the likes of the people in that thread. Wheres the tragedy? And somehow they get to thinking they are the righteous ones.
  5. Was in 30k negative equity too. I wonder whose fault that was? Not theirs, presumably. I can believe they lost that property with neg equity out of bloody mindedness. This is the situation you get when you have to be stupid to get into buy to let. The renting housing stock is in the hands of imbeciles. Agree it will be carnage. But this is how the correction can be so fast. There are many on the precipice. With so much housing stock in the hands of people like this, the rush for the exit is going to be unprecedented.
  6. Just skimming the comments again, some buy to letter stopped paying their mortgage in view of this disagreement and as a result west brom took it over and promptly evicted the tenant. Absolutely staggeringly, this landlord and other commentators hold the view that this tenant is a victim of west brom as well, and not of this irresponsible landlord who stopped paying their mortgage but continued to pocket the rent. Unbelievable.
  7. Oh look, no explanation again. By troll list you mean list of people who call you on your bullcrap. Is anyone not on it? Why don't you just email yourself your opinions instead? Waste of bandwidth.
  8. Uncertainty is intelligence. Knowing you know only what you know, and from that information, you make your best guess. And you know its a guess, and you back it up with reasonable rationale. And you make allowance for the accepted possibility you may well be wrong. No ego. No arrogance. Intelligence. Something sorely lacking in the more arrogant and egotistic posters who won't even back up their utterances with simple rationale. Those same posters, RK, who I just have to ignore as rambling mad men. They cannot backup their assertions with simple reasoning. Not intelligent. Aggressive. Argumentative. Patronising. With ego enough to quote themselves in their own sig! That kills me ! Its not sane to pay much attention to such people, youve had so many chances to explain yourself RK. Bzzz. in the troll bin.
  9. Well people can afford the repayments today obviously, or they wouldn't be 'selling'. But, as is constantly pointed out on here, this is due to these low borrowing costs… which you cannot assume will be here forever. West Brom judgement? The leverage is extreme, a tiny rise in borrowing costs will bring this all to a very swift conclusion, particularly when you consider how much of the market is now in buy to letters hands. And again, you look at 'cycles' as if they are some law of nature. Wages aren't going anywhere, glad you noticed at last, but you take that as evidence that they're just about to rocket up? If they were already rising you'd take that as evidence that your predictions were coming to fruition as well presumably. And if they were falling, well thats just the downswing in the cycle right, they're be flying up again in no time! This sounds very much to me like confirmation bias. And again I make the point, what about the mechanisms? How do these things happen? Oh cycles. That explains nothing, and predicts nothing. Ive very clearly described, with rationale, how this to me looks like a house of cards with such a high proportion of buy to letters on interest only when borrowing costs cannot get any lower, and now we are a deflationary environment largely due to the oil price fall, something your 'cycles' and you didnt see coming, what pressure is there on wages? These are mechanisms. How does your scenario come about? I really think you ought to explain yourself. Whats the point of even being on here if all you're going to do is pop up and type a couple of sentences with no rationale? Are you looking for approval from strangers on the internet? is there some deep psychological need you have? You're welcome to continue, i'll just be shaking my head at you, and so what. How about an explanation of your position?
  10. Nowhere near. Id expect to pay 750 for a property that would sell today for 230k+ I wouldn't pay more than 400 pcm for a place like that.
  11. Having thought for a moment, she continued further. "But daddy, like you, no-one else here makes much money either. Not enough to spend a million on a house! So how is it worth a million if no-one can pay a million for it?" "Why are you crying daddy?"
  12. Well, whatever. No amount of ranting will stop intelligent people in positions of authority making rational and proper judgements in an open and shut case like this. If you're smart you get it, if you're dumb you don't. She's just embarrassing herself. Anyone that understands this and reads that will simply roll their eyes and turn the page.
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