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House Price Crash Forum


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  1. Monthly change has been negative each month since Feb. Looking at the price data the annual change will go negative by October at the latest unless there's a pick up in prices.
  2. And the BBC's headline on the matter is "House prices rise fastest in East Midlands"... http://www.bbc.co.uk/news/business-42322596 With no mention whatsoever of the month on month falls in several regions
  3. Doctors earn good wages and often have surplus income People with surplus income look for something to do with it that allows it to grow The property market, rightly or wrongly, is viewed as a way of getting a good return. It's also fashionable. It's as simple as that really.
  4. Misleading chart with a false zero. The stock of properties as per that chart is currently a little over 40, versus an average of around 65, yet the chart makes it look like it has fallen close to nothing.
  5. You can get a 10 year fix at 2.49% with no fees from First Direct if you have a good LTV. Early redemption penalties over the first 3 years.
  6. Good post Bland Unsight, don't disagree with any of that. You're absolutely right that their yield requirements effectively reduce the LTV available, which removes some participants from the market, and I guess those participants are the ones with less money for a deposit so perhaps are the ones who aren't higher rate tax payers. So higher rate tax payers are discouraged from the market by changes to higher rate tax relief. And basic rate tax payers are discouraged from the market by lower LTVs being available in practice. Sounds like a win-win to me.
  7. For a house costing £150k. Maximum loan is 75% of £150k, so the max loan is £112,500. Rental income must cover 125% of the mortgage interest at 5.74%. Notional rental interest is £112,500 x 5.74% = £6457. So rental income must be 125% of that so must be £8071. So rental income needs to be £675pm or more, rounded figures, on a house costing £150k. That's not unachievable. Income yield is unknown, because that depends on the actual cost of the mortgage loan. The actual cost is likely to be a lot less than 5.74% though. And to a borrower with income of say £30k, or dual borrowers with income of £20k each, there is no issue regarding the removal of higher rate tax relief on BTL costs. I think BTL is a stupid idea, wouldn't touch it with a bargepole, but that's because of capital loss, maintenance costs, bad tenants and voids. In my view these numbers aren't really the horror story that they might first appear to be.
  8. Bear in mind that even if you decide you want to transfer the money to a SIPP you'll have to take regulated financial advice to do so. The existing scheme provider simply will not transfer the money, nor another provider accept it, until you can prove you have received advice from a suitably qualified and authorised adviser. It's the rules.
  9. Exactly. But then the answer to the question of "who is our monetary system supposed to benefit" is 'bankers and the wealthy'. And as politicians and media moguls tend to be wealthy...
  10. I think it sounds like it could work for you and your circumstances. I too suspect that the BOE will continue to ensure that nominal house price falls don't happen to any great degree, but of course no-one knows. If you have considered the risks and can handle them come what may then you're in a strong position. Good luck.
  11. It's common practice, and underhand for sure but not fraud. When selling a load of largely identical properties a developer wants them to appear to be sold for the same price, but different buyers want different deals. Some push harder than others, some expect more thrown in. So you get "deposit assistance" where the developer pays towards the purchase price, or "we'll pay your stamp duty" which amounts to the same thing, or fixtures, fittings, soft furnishings, garden landscaping etc included or upgraded for no extra cost. But the sale price is always at pretty much the same price. As ever, buyer beware.
  12. I can relate to this, but I think the problems you describe are small ones. Floorboards creak because they are put in quickly with a nailgun and the nails become loose, lift the carpets and screw them in properly and you've solved the problem. Window handles and sockets becoming loose are even easier to fix if you own a screwdriver. None of those things are fundamental problems with the design or build, so not really a reason to prefer an older house.
  13. With regards to your second point, a quick Google provides this: http://www.thetenantsvoice.co.uk/advice_from_us/know-who-the-landlord-is/ You have legal right to your landlord’s name and addressSection 48 of the Landlord and Tenant Act 1987 states that rent is not lawfully due unless the tenant has been given, in writing, an address in England and Wales at which notices can be served.
  14. Maybe in Fairyland. Sadly in the real world a 4% drop compensates at 4.32% rise and a drop of 20% will wipe off 25% gains.
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