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cybernoid

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Everything posted by cybernoid

  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. Coul
  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 ca
  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. Aggressiv
  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 ju
  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.
  13. Thats true. And perhaps it will be improved a lot, when you look at the proportion of non-owners coming through the system, its the norm for the under 40s, you might reasonably expect better provision to be made. Personally I expect a similar market to that on the continent in the future, where the rights and security of tenure are that much better, and where most rent, and live perfectly happy and content lives. With so many renting it will be an issue to concentrate on by any future government wanting to be elected. But bear in mind also that you can do both. You can rent for a signific
  14. Ive spoken to enough buy to letters, and done the sums myself enough times when I've had the real world actual data, to know that you only make on the capital appreciation with buy to let, and that gain needs to be considerable to outweigh costs of buying and selling. Some were lucky. And I say lucky because they didn't know prices were about to triple in 10 years, and they didn't do their sums beforehand, or they wouldn't have done it. And good for them. Chances are they'll blow it on some other investment since it took actively ignoring the sums to make it.. but there you are. I make
  15. Its a choice between investing in housing and investing elsewhere. If you have a repayment mortgage you pay the interest component, equivalent to the rent - certainly true everywhere I've ever rented - and the remainder of that repayment is paying off the house. Whereas if you rent, again like interest on a mortgage that is lost money and is simply a part of the cost of living - you can choose what to do with the excess, and are not forced into putting it into your house. Of course if we're talking about what makes you better off financially overall, then the flexibility of renting ought to
  16. You seem to have missed my edit. 1% would be better. In most of the country house prices haven't moved since 10 years ago, so it ought not to surprise anyone if house prices are the same as they are now or lower in 10 years. You argued that owning is cheaper than renting, its not. I think its all a bit complicated for you, I have nothing to gain from educating you further.
  17. Teaser rate on that mortgage. Over the lifetime of the mortgage, assuming borrowing costs don't increase, average mortgage cost is 920/month Assuming achieves asking rent, income from rent - 875 - 15% agency fee = 744 Assume a month void per year, assume 1 tenancy agreement per year, assume maintenance of 500 a year income in a year = (744 x 11) - 300 - 500 = 7384 which is 615 a month. Cashflow negative to the tune of 920-615 = 305 per month. Mortgage arrangement fee - 1.5k, stamp duty 1.5k Assume landlord can afford to subsidise that loss and sells ten years later, putting them 39.6k
  18. Yep. This is an attitude that ought to resonate with people interested in this site, you would imagine. Im always confused by the self made rich bashing that goes on here on occasion, as though having money in itself is a crime. Most here haven't bought into the massive mortgage on a tedious semi dream that so many have, so why do they think salaried wage slave PAYE work is somehow righteous? Its all part of the same thing, handing yourself over to be farmed. And then having a dig at those that don't !? Theres a bizarre self righteous socialist worker type cohort on this site, I've no id
  19. If by 'servicing a mortgage' you mean paying the interest on an interest only mortgage, then renting and 'buying' are equivalent except renting is cheaper due to no maintenance costs. Also you have the flexibility of moving for work, or due to bad neighbours, or because you fancy a change etc without all the costs of selling and buying a house. Further, you are not exposed to the risks of the housing market where a small percentage fall puts you into thousands of pounds of debt. If you mean a repayment mortgage versus rent, then you should take a look out there at prices versus rents. The
  20. It would be a 100 quid one. You'd be expected to buy a house immediately afterwards. After all, youve got the fridge now. You can use the saving from that for a deposit, yes?
  21. No mention of agent fees either, when 'managing' a property throughout the term its typically 15% of the rent. Plus the contract etc costs. Nor mention of voids, or maintenance costs. Ive known of quality flats at that level having a monthly maintenance fee of around £100, thats without any maintenance being carried out on the flat itself. Its utter bull. But, nevertheless, interesting to observe. I believe that a lot of these buy to let sorts actually lie to themselves, and ignore these kinds of costs. Partly its sheer incompetence of course, but part of it is wishful thinking, and wan
  22. These changes will come, but not for a few years in my view. Pro tenant will be anti landlord, and the boomers are the only group courted by the main parties, and they are the landlords. Combined with the corruption of course, if an MP doesn't have property they let themselves, they will have someone in their ear with some ready cash who does. It will come. I believe the future is bright for tenants, with companies eventually formed to serve this sector who provide quality housing on flexible terms by way of competitive advantage. Imagine the virgin brand applied to let properties, hotel
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