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House Price Crash Forum

Flybait

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About Flybait

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    HPC Poster
  1. Yeah, but they'll be out to lynch you for it! I was the same, wanted a particular place but renting would’ve been more than buying. Knowing that if it was decorated the way I like it would add a lot of enjoyment made it a no-brainer. Previous place: Repayment mortgage £1300/mth. Currently rented out for £2275/mth.
  2. Did they purchase in the last 5 years? New builds? Properties they previously lived in? Not doubting that is the case, common with many interest only BTL’s but curious nonetheless.
  3. I stand corrected . I have selective reading! My apologies. This part was correct: I don't claim to be the best investor around, in fact I'm actually quite lazy. This part should read: Savvy investors can make money in almost any market at any time, but I'm NOT one of them. Better?
  4. See above, is this selective reading day? I’m sure with a bit of Google effort you can dig up lists of multi-millionaires and billionaires that have increased their fortune in this economy. These are the savvy investors I’m referring to if people actually bother to read the post properly. There are some very smart cookies out there and much as we love to hate them, the brains behind the credit “fraud” in recent years almost top the list. Credit where it’s due.
  5. "Savvy investors can make money in almost any market at any time, but I’m one of them." Oh gee, got me there...damn.
  6. The returns from managed funds can be decent but the real (short term) wins and losses are in speculating. Danger is you can loose months or even a year of profit in a matter of days if you’re not careful. Sure, funds are dead easy and tax efficient but it’s a slow growth most of the time and sometimes even they go backwards. Not to say they’re bad, I have two for my pension as part of my diversification but that’s a long term investment. My father’s on the right track I think. Used to have several properties but sold them all over time and now plays the stock market every day since retirement and makes far more money.
  7. It’s easier to be smug when you’re sitting on the sidelines. I don’t claim to be the best investor around, in fact I’m actually quite lazy. Is investing in property the best thing to do? Not really. Savvy investors can make money in almost any market at any time, but I’m one of them. So would you sell a BTL property that was positively geared? If so, what would you do with the money instead?
  8. No one ever wants their investments to drop in value but obviously it happens. Aside from opportunity cost you only really loose when you sell any type of asset that’s gone down in value. I already own the properties I have so there’s not a lot I can do about it if they do drop, as long as it still makes more sense to keep them than not. Diversification. I don’t think anyone would argue it’s wiser to diversify interests/investments. Since I don’t have a crystal ball I can’t tell with absolute certainty what will happen with the stock or property market so I prefer to have investments in both, as well as a liquid cash pot for emergencies. It’s never good to be forced to sell any type of asset if you suddenly find yourself low on (short term) cash flow. The best returns are often from the highest risk with the bulk of my returns in the stock market from speculative investments. It wouldn’t be prudent to put too much in there in case the gambles don’t pay off. I try to keep an open mind about any investment (even dabbled with wine at a stage). If they start going south and I believe it won’t correct in the long term then it’s time to get out.
  9. Pointless dancing around as we’ve clearly on different wavelengths there. Back on topic… I would say the best time to buy property or trade on the stock market for that matter, is during periods when there’s a lack of confidence as risk adverse people (majority of market) will pull out. Although I doubt many here would see it as bad, it’s the perfect time to prey on the fears of those with fewer options (ie. Desperate sellers), especially if you’re coming on board as a cash/non-chain buyer (for properties). I don’t think the property market in all areas will crash as much as many on here hope. However, it’s good if enough people in the market believe it will as it will put downward pressure on prices. As a landlord I want prices to drop as it means I can buy more stock in the future. My stock investments give much better returns but there’s a lot more work involved. The other thing to consider is quality of stock. If there are fewer prime properties on the market then the prices for those will be disproportionate to the rest of the market (seeing evidence of this already), ie. Higher. If prices drop too low then I’d be concerned the quality of stock would also decrease. Why move from a place that’s nice but not ideal when you’re in negative equity?
  10. From dictionary.com: your –pronoun 1. (a form of the possessive case of you used as an attributive adjective): Your jacket is in that closet. I like your idea. Compare yours. 2. one's (used to indicate that one belonging to oneself or to any person): The consulate is your best source of information. As you go down the hill, the library is on your left. 3. (used informally to indicate all members of a group, occupation, etc., or things of a particular type): Take your factory worker, for instance. Your power brakes don't need that much servicing. So how was I meant to interpret it? My mind reading powers fail me most days.
  11. Informed decision making, whether it turns out to be right or wrong in hindsight should consider all possibilities shouldn’t it? Not the wisest move to only participate in forums that blow smoke about price rises and vice versa. Or isn’t there any interest in an actual discussion here?
  12. A personal attack without any rebuttal. Super
  13. Not really, there are still many locations in London where mortgages are still cheaper than rent. The rent on our current terrace house would be over £1000/wk which is a lot more than the mortgage. Cheaper houses (about £675-750k) rent for £900/wk+ a few streets across and they’re all let agreed, often within weeks of listing. The rent we collect on our rental is almost double the repayments (not just interest but capital repayments too) thanks to the low base rate at the moment. Now outside of London based of what I’ve read it’s often true, rent can be much lower than mortgages, especially for those that overpaid in the peak. Let’s not generalise too much though?
  14. I was appalled when my sister (Pharmacy Manager) told me about how some people get most of their weekly grocery shopping on “prescription” paid for by the NHS. There are times her pharmacy looks like the self checkout lane at Tesco. If your child is under 16 and has an allergy the NHS will pay for special food (gluten free is the most common). Ridiculous really. My son has a wheat allergy that’s off the scale so we could abuse the system and get prescription food for him for free. However I have too much pride and self value to even think about asking our local GP for such nonsense. Yes it costs a little more but if you can’t pay for it yourself then don’t have children!
  15. No, “some” parts of London are different and I’m not just referring to postcodes but areas within specific postcodes. There are enough people who have been unaffected by the recent global downturn to keep keys areas up. Of course the general trend is downwards across the UK and most parts of London as well, however there will always be areas that hold value due to the nature of being prime property. Although they might drop in price I doubt you will ever see 30-40% drops as some have predicted/wished for. The best area in my postcode is filled with Grade II listed, Norman Shaw designed houses in a conservation area. Most properties inside this area cost millions. They are rarely for sale and when they do list, are often snatched up quickly even in the current climate. Why? People with millions at their disposal are rarely affected by credit issues. Niche market? Yes, but there many pockets like this all over London. Do I believe that most of London will see price drops? Absolutely, but traditionally less desirable areas will always drop first and by more.
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