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Everything posted by twatmangle

  1. I agree with this... I have to say that a lot of bears might be disappointed if and when the crash does come. The first people in the EA offices will be people who already have money, have good credit histories, secure jobs, STRers etc. Those with equity and cash will get preferential treatment. The best properties will go quickly to those with the money. A struggling FTBer with only a small deposit might not have the same resources or opportunities. No matter what people on here think, the general population will always return to property as an investment. Despite everything, despite the same old boom and bust. The only way to stop it is to tax the hell out of BTL, and that's unlikely.
  2. That used to be the case until about 2008. I used to rent a lovely place worth about 250k.... the income from 100k of investments paid the rent in full. My BTL landlord was subsidising my rent. Now your prudently diversified portfolio is as rare as rocking horse poo. I can't think of anything that would pay a significant yield with low to moderate risk.
  3. A few years back my services were required by a company based overseas. They paid for me to live in a lovely hotel for about 6 months on and off. All very nice. There were a number of people who were also long-term guests there. One couple in particular were very nice. They had sold their business (and home) and decided to live in hotels all year round. (Good hotels on the beach, not travelodges etc.) In the summer, they went up to Seattle area, in the winter they went down to SoCal. They had a little mini Cooper with a couple of suitcases and that was everything they owned - apart from some millions in the bank presumably. They really enjoyed the lifestyle. And so did I for my short time there. Interestingly, his name was Bruce too.
  4. Sadly you're in the wrong place for an honest answer. Most people are very polarised regarding this sort of thing.
  5. I was aware that you sold your business. I suspected that you had retired. I am still not so convinced you are as happy renting as you make out. You're confusing these points.
  6. My personal circumstances are complicated. I would say I was 80% in the renting camp rather than with owning.
  7. I am sure some people are happy renting. For example people who are retired and not wanting the hassle of gardening, decorating or maintenance. Or some people who have short term fixed employment contracts away from home. Plenty of cases would fit the bill. But I strongly doubt this applies to the majority on here. I maintain that for most on here, with a few exceptions, renting is not their preferred option.
  8. You are happy renting only because the alternative is so bad. I can fully agree with that, and it was the same for me. You would probably be happier if the alternative was not so bad, which is what it all comes down to IMO. If prices come down 40%, how many of these 'happy renters' would continue to rent? I doubt it would be many, if any at all. "I love the freedom renting gives, I love not decorating, I love this and that, I'm so clever...." Utter ****. The first sign of a cheap house they'll be down the EA office making cash offers.
  9. This is exactly my point. You are waiting for an opportunity to buy.
  10. I disagree. You could be able to buy, but choosing to rent instead, based on financial considerations. You could be desperately unhappy that prices aren't falling fast enough for you to buy your dream home, mortgage free with your existing STR fund. (BB has been waiting 5 years) Whilst you might be able to say that you are satisfied with renting, your ultimate goal is something else. Which is what I feel is the case here. Just for the record. I am a Neither because I have always been in a position to buy, but similarly chose not to. I was 'happy' renting, with my rent being paid from income from my investments and savings. Life was good. But was I really happy? Would I want to rent for the rest of my life? No. I think we will only know the true situation if prices do fall by a significant amount. Will Bruce continue to rent, or will he dive in? I know which I would bet on. I am sure you would bet the same way as me too.
  11. See that's the issue I have. You initially bought a place, in preference to renting, which clearly suggests which of the two you prefer. You seem to be making it clear that you are hoping to buy back into the market at some time in the future, which again suggests where your true preference lies. You are renting, waiting for prices to fall so you can get more for your money - fair enough. I don't believe you are happy renting.
  12. Not from my experience. Of course, there are less desirable parts of Germany, but in general they are no where near half price, like-for like.
  13. Predicted to be -0.4 FFS, this place goes from bad to worse. EDIT: The predicted fall is actually lower than last month's actual fall.
  14. You can't move for 4x4 Citroens and 106.68cm Les Plasmes over there.
  15. You can insult me as much as you want, but the maths is factual for today's scenario. I checked the mortgage rates and the properties. Maybe in 2007 it was different, and maybe tomorrow it will be different, but the maths stands. The problem is that most people didn't do the maths before buying or getting in to BTL. They assumed HPI would continue at 20% pa and didn't care that the rent wasn't covering their IO mortgage, and didn't take into account voids, tax, and other costs. That's their bad luck. Feel free to mock them.
  16. Although I have no houses for sale, which one were you talking about?
  17. BTL. Point noted. But if you were living in it yourself, then it would be 12/12 so overpayments would be even higher. My main point in this is that if you have a mortgage that would normally be 6.5%, and now it costs 3.99% (fixed for 5 years, not a tracker.) You could massively overpay and repay your debt early rather than waiting 5 years for the market to bottom out. Examples: If you could afford a mortgage of £1000 PCM, you could historically borrow £148K at 6.5% or now borrow £190k at 3.99%. If you only needed £148k for the house, you would only be paying £780 PCM at 3.99%. As you can afford to, why not overpay the £220 PCM you're saving each month. Without overpayments, after 5 years your mortgage would be £128k With overpayments, after 5 years your mortgage would be £113k, taking 8 years off your mortgage There is no guarantee that house prices will fall by 20-50%. They might, and they should, but we've seen how they are willing to do anything to prevent this. I have no VI in this at all. I am covered if house prices fall, or go up.
  18. I was just doing that this afternoon. I made some calculations based on having a 50K deposit, and buying a 110K house to rent out. You can get a 60K mortgage for 3.99% fixed for 5 years from YBS. Mortgage would be 316 per month, and the rent achievable (sales and rent for equivalent properties as per Rightmove) would be £575. Assuming 11/12 for voids and costs, this gives a gross yield of 5.75%, which is poor by historic standards, but with interest rates at 3.99% it is now a different story. This gives you a gross margin of more than £250 per month. After 5 years, your mortgage would be down to 52k, but if you overpaid/invested the extra £250 monthly 'profit' your mortgage would be down to 38k. Giving you >£71K in equity from a start of 50K. That's a significant return on your investment however you look at it. Of course, everyone will tell me that prices are going to halve in the next 5 years and you'd be better off renting, and saving at 1% interest, but the fact remains that if you can fix for 5 years, the historic rules (need 12% gross etc.) don't apply, and overpayments at these low interest rates makes a huge difference. I don't like BTL, but the maths doest stack up in some cases. One group of people is being subsidised at the expense of others. I eagerly await someone to find flaws with my master plan - I have probably made some fundamental calculation error....
  19. Give it a go... although in uncertain times, a fixed rate might be an option. I got a similar good deal in spring 2009, reduced house and cheap mortgage, fixed for 5 yr. Of course, you'll get loads of abuse from the usual suspects on here, 'sheeple, looser*, only an idiot would consider buying now, must be an IO mortgage, or bank of M&D, be prepared for negative equity next week, your toast*, bring on the crash' etc. *(SIC) EDIT: And please God, please kill anyone who posts that bloody graph again. :-)
  20. Awesome. I demand to be able to buy a detached house at 2x my call-centre salary, even though I've got no deposit and a ton of debt.
  21. Normally it would be something like this.... 250k is spent on hardware. 100k is spent on service contracts for them. 100k is spent on consumables. 50k is spent employing 2 research assistants. But in this case....
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