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moneymad

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About moneymad

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  1. 1 type of property and 1 location is hardly representative is it? Or can we show examples from all property types and areas? And from you earlier post..... Quote: Purchase price: £250K Now time to put it on the market to let. http://www.rightmove.co.uk/viewdetails-154...4&tr_t=rent Rent: £850pm (Please note all happening today not in 1998) Gross yield: 4% (remember you don’t think 6.30% is a good enough investment) Void: £850 (One month’s rent usually 2 but never mind) Who decides the void periods? I think it is legal to let a property for a whole 12months, perhaps i should check! Management fee: £1020 (10%) What if you mange it yourself? 0% Insurance & Maintenance: £1800 (£150pm) FXXK me!! Flats aren't really my thing but is this made up? Insurance is unavoidable (about £400?/year) but maintenance is very subjective, if you spending £30/week on maintaining a property, esp a new build, then somethings wrong. Total cost: £3670pa So in my humble lowlife scumbag opinion this could be less than £1000/year. Rent received : £10200 Cost: £ 3670 Net: £6530 as it stands his yield is 2.6% Net £9200, still not brilliant. You don’t think 2.6% return on £250K investment good enough do you? You wish you did! We have not finished yet my friend. Average BTL interest rate is 6% that means £250K @ 6% for 25 years; IO Mortgage: £1250 100% mortgage!! Thought purchase price was £250k so wouldn't 80% LTV be more realistic? IO mortgage = £1000/month. Wouldn't argue about the 6% though. Repayment: £1629! Let's now do the figures again with our LL chipping in a whopping £400pm to be able to pay the mortgage Now only chipping in a paltrey £150/month Mortgage cost: £15000pm (just IO) Or £12000 Annual cost of BTL: £3670 Or £1000 Total cost: £18670 Or £13000 Annual rent received: £10200 Landlord's year end return: -£8470 -£2800 You'll no doubt quickly point out that my figures are wrong which i concede they maybe but can you prove yours as factual? But you don't have to because you're a bear and i'm a bull so on here that makes you right and me wrong! I empathize with the point tommy was trying to make because there are a lot of bears who seem to have a pathological hatred of BTL (you know who you are, RB!) as an investment choice, if it was a moral issue i could understand more but to wish finacial hardship upon someone becasue their investment choice is different to yours seems a little peculiar to me. That aside, that property looks like a sound investment to me!! Only joking it's pants!
  2. If you drank more guinness you'd have the odd "black" in there!!
  3. I know this property as been for sale for approx 2 years, original price £425k or £430k ( so long ago i can't remember), it's shown as first listed in March 2007 for £400k and reduced in april to £380k. propertysnake details Still over priced, £300k would be about right in my opinion which equates to a "crash" of about 30%!
  4. Keeps pushing prices down until.................??? Or is it different this time? £40k less next year? lets wait 2 years and get it for £80k less? It's really very simple. What goes down must go up.
  5. No idea what any of that means but sounds impressive! Regarding the propertysnake, seems a good idea but i'm aware of bigger drops than seem to be shown. Highest shown for my area -12% but most single figures. One is reduced by £50 in £130K!! And how far back does the "original price" go? What if the vendors switch agent and change price at the same time? Who cares anyway? I read some where a poster on here as suggested a similar idea to be added to rightmove along with a "no chain" search facility, don't think they'll buy it to be honested.
  6. The examples from the other posters were across a 20/25 year time scale, so i was talking about rents rising with inflation and you surely cant believe that rents will not rise at all over 25 years? A glut of rental accommodation will drive rental income down but different sectors will experience different demand. I don't wholly subscribe to the oversupply of rental argument either, where i live rental demand is fairly bouyant but i don't live in an area overrun with flats. I think i sort of answered the question you posed, let me know if it's not sufficient.
  7. It's widely stated on here that the UK market is much more speculative than the US, could it be the uk speculators will dive back in sooner than "normal" buyers in the US? Also the next round of city bonuses are reported to be bigger than the last and they'll have to spend it somewhere so why not on property or more probaly London property? A large portion of this housing boom as been fuelled by speculation which in my opinion does mean "it's different this time" because no-one (not even the all-seeing all-knowing oracle that is RB) knows how it's going to unfold.
  8. Slightly off topic and acknowledged as unscientific so please don't start a RB/Wrongmove/D23 style debate with me but i did a very quick search to see which town had the most flats for sale on rightmove: Manchester 2432 Birmingham 2273 Nottingham 1627 and last but not least Leeds 984. That's a lot of bloody flats! In Manchester there are only(?) 2642no. houses for sale. Couldn't be bothered to do rentals.
  9. Not really sure what your asking people (I use the term loosely when speaking of us Bulls!) to agree or disagree with but i can't agree that HPI will carry on forever and, with the exception of SE/London, as probably remained fairly flat in most areas since mid 2004. People can still "afford" to buy property because they're still selling and while they're still selling there's opportunity for people to make money, which i'll endeavour to do. The future for children does look bleak at the moment but how bleak did it look at the end of the 70s' and through the early 80's? Mass unemployment, riots, etc? Each generation encounters their own problems.
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