Jump to content
House Price Crash Forum


New Members
  • Posts

  • Joined

  • Last visited

About Muppet

  • Rank
  1. Yes you're right, I should have put "it was sold for £230k", very remiss of me. And have you not heard of, nor seen for yourself properties that have more than doubled over the last 5/6 year periods? 120% is actually less than it went up by - you go do the math but that's what it sold for. Witt the same taps as I left in it, and yes they were gold!
  2. Yeah, it was the number of repossesions being broadcast that brought it home. 1991/92 as far as I recall. Great timing on my part, I bought in Dec 1988 for £93k, interest rate was 6.5% if I recall, £33k deposit, £60k endowment costing £350 or so per moth. Easy I thought By the end of '92 it was 15%, mortgage had doubled to £750/month and I was struggling like hell to pay it. Managed though, hung on for 10 years avoiding negative equity and repossession due to large deposit. Sold it in '99 for £95k (whoopee)to by a business, top price at the time. Within 5 years it had risen by about 120% and is now worth about £230k. So, am I bitter and twisted about losing out on £135k 'profit'? You f**king bet I am :angry: Cost me about £45k in interest payments and the endowments are worth f**k all now too!
  3. You seem to be contradicting yourself a bit here, in an earlier post you said: Now, do you really think the 'average' wage earner earns £50k/year? When you clearly seem to know that people have less money now. I too earnt £30 a week when I got my first job at 16. Multiply that by the 800% your house has risen by and you get £240/week, much closer to what the average person earns today. Average as in real world people whoo have to do day to day jobs like working in shops, driving buses etc etc. Can you get a mortgage to buy a £300k house on £12k/year? Not a hope in hell. If your house rises by a further 800% in 25 years it'll be worth £2.4 million. Very nice, but there ain't no way your average person is going ot be able to afford that on average persons wages. I'd be very surprised if Mr Average earns much more than £50k per year in 25 years let alone a projected (800%) £100k. Even so, he still won't be able to afford a mortgage for your average priced house! With regards to rent vs IO mortgage, lets take the place I'm renting at the moment as an example. A nice 3 bedroom thatched terraced cottage (proper cottgae, not some god awful place someone calls a cottage in the vain hope of getting more money for it) in North Dorset. Rough value about £200k. How much would an IO 90% mortgage be for that? £1000/month? I'm paying £550 per month rent, so in theory I should be able to save £400 (we'll ignore the extra fifty quid) per month. Ignoring for this exercise inflation and IR ups or downs, that gives the following: Cost of IO mortgage for 25 years - £300,000 necessitating a 50% rise in property value to purely meet capital outstanding. Cost of rent over 25 years - £165,000. Money (hard cash in a suitcase!) saved over 25 years £120,000. In both cases, you end up with no property, however as a renter you at least have £120k in real dosh. With the IO mortgage, you may have nothing, you may have a few quid, you may have a lot of money if your predicted 800% increase occurs again. In the case of the latter, note the use of the word may. It's a risk, a gamble, a hope that prices rise enough for you to have the equity to pay off the captial borrowed. BUT! To do that you have to sell the asse (your home) and look for somewhere to live on what you have left. What if you don't have anything left? What if you have £50k. You have nowhere to go, so you have to rent! At least with the £120k as an original renter you have enough to last you a further 20 years. My figures may well be flawed, I'm not any kind of moetary guru just as average man trying to survive in a rather hostile environment, but an IO mortgage fro me is an absolute non starter.
  4. Forgive my brevity and 'cynicism', but what has this to do with house prices? I'm afraid I stopped reading mid-way through about the 4th para, but it sounds pretty much like any other major city of the world these days, one of the many reasons why I live in the country.
  5. I'd like to make a home of it, but not at that price :angry:
  6. A miracle that no-one was killed or even seriously injured, yes. A disaster due to many people suffering loss or major damage to their homes or businesses. What the hell has my outlook on life got to do with whether I, or anyone else perhaps, find this sort of thing funny?
  7. Is this humour? Do you find it funny? Would you be laughing if it were where you lived, and you had just lost your home? I don't think so. Jokes of this nature always appear after a major disaster, but I think these are in particularly poor taste.
  8. Interesting. I've followed this thread all the way through, and at first was very sceptical about BBB's yield figures, and rent received etc etc. However, it may be true that he is achieving this figure, albeit by his own admission on just the last property(s?) purchased. But in relation to the original question posed by the originator of this thread, that fantastic yield is not across the board where his portfolio is concerned. BBB, I'd be interested to know what your average yield is across all your properties, then we can see how it stacks up compared to the other investment vehicles. Also interesting to see that you admit you'll possibly suffer if there was a 40% reduction in prices. At least you're big enough to do that, even if you do come across as similar to the old Harry Enfield character - 'LOOK AT MY WAAAAD'!!!!
  9. You mean you've actually sold your house and pocketed/invested/banked that money then? If not, you've made nothing. Your house has risen in percieved value by that much, but that's all. I'm sorry but people like you who seem happy to quote how much 'money they've made' out of the last crash really piss me off. Many many people were forced out on the street and lost everything they had through the last crash, I myslef was lucky and managed to ride it out. You're coming across as very gloating in your post, please don't. Whilst we (nearly) all want a reduction in house prices here, I, and I'm sure many others, would not want to see a repeat of the misery that was endured by thousands who got caught out in the last crash. Even BTL'rs
  10. BBB, I would love to see this £70k house that you reckon you're going to get £700pcm for in rent. Is it in the Outer Hebrides or something? Highlands of Scotland? It'd need to be quite some house to command that rent, I'm thinking 2 or 3 bedroomed terrace or semi, depending on the area. I know you can buy houses in some areas for that, but I doubt the rents fro them are that high. In my area (Hampshire) I can rent a very nice detached 2 bedroom cottage with a superb garden and location for £750 pcm. Tha property is valued at £325k. Work out your yield using those figures and see if you can come with 42%. Nearer 4.2% I would imagine (I'm no mathmetician, so I'm not even going to try). I'll stick with safe, boring, low but steady investments. Tessa's, ISA's and the like.
  11. For the record, I unfortunately missed any notices that invited anyone to join the show. As a technical FTB'er (I owned a house for 10 years, sold it in 99 for no profit and now cannot afford to buy a smaller version of that house), I'd be happy to appear on any subsequent programme follow up if you need someone.
  12. I bloody well am! Since I've been out of the property market (sold in April 99) houses have at least doubled, if not trebled in price. I now can't afford to buy anything other than a crappy flat/maisonette in a crappy area - Gosport anyone? No, thanks. So, yes I'm bitter because I have no choice now but to rent if I want to live in a reasonable house - by which I mean a simple 2 up 2 down with a kitchen and bathroom. I can't afford anything more than a £60k mortgage, which is what I had when I sold, and that my friend won't even buy me a beach hut in Mudeford. Houses are supposed to be homes, not investments. I want to live in my house, not make money from it!
  13. Ah, merci beaucoup tous le monde! Thanks everyone for your replies, very reassuring and helpful. Gwailo..... interesting, but the Irish climate puts me off a little I don't want year round sun, I actually like the different seasons, but from what I hear it's just too wet over there for me. I'm a keen motorcyclist, so I'm after some good dry roads!!! Sold Up... Yes, I speak a modicum of French, enough to get by at the moment and with some proper tuition would be reasonably fluent within a couple of months. Bubble.... yes I know French prices are on the increase due to the stupid English...fortunately I'm happy to buy a property that will require a level of work that would put most investor buyers' off. Not total renovation, but a degree of hard work and a few thousand quid to get it to a nice standard is well within my means. I like to think I'm a level above those blasted designers on the various so called 'property improvement' programmes. My "throwing money away on rent" comment was a bit flip, as I do equate it to throwing it into the coffers of the banking institutions with a mortgage over here. I'm happy enough to rent for a while, knowing I'll be able to buy a nice house for about a third of the price or less in France, with a mortgage interest rate probably 3 or 4 percentage points lower than in the UK. A win-win situation as far as I'm concerned Pmurray8......Merci ! Je peux jaillir prise vous vers le haut sur votre offre aimable à l'avenir. JBeau...I will most likely be using an estate agent that advertises over here as well as in France and that offers the full range of services needed to complete a purchase. I may pay more for that service, but I will at least have some comeback if things don't go to plan. Once again, thanks all for your helpful comments.
  14. Apologies if this isn't the correct place for this topic, moderators please feel free to move it to somewhere more appropriate. Could you please give me your feelings on buying a property (Not properties note), in France for my retirement home, instead of buying one here. A quick background: Got rather disallusioned in the last boom bust where my house was worth the same as I paid for it after 10 years of onwership (89 - 99), then after bailing out and buying a leasehold shop/flat, property has of course now at least double if not more in the last 5 years. Now I'm selling my shop I'm not going to buy, but will rent for the next 18 months - 3 years to see what happens to the property market. However, I am seriously considering buying a small property in France - either Loire Valley or Poiteau Charentes areas, something up to £50,000. This will, at current prices get me a nice 2/3 bedroom house in a quiet location (not town centre). I should have this paid off in about 10 years or so using a nice low interest French mortgage. My reasoning behind this is I will pay far less in interest, but will of course be throwing money away on rent over here. But I may well consider buying here if the market does what we are all hoping. If i does not, and continues to rise, well, I shall carrying on renting for as long as I feel it is worth staying in this country (basically for work) and until my house in France is paid for, safe in the knowledge that at an time after that point (when it's paid up) I can basically bugger off over there to live without having to worry too much about an income. Just enough for food and a little play money. Am I being idealistic? Living in a dream world, or are my plans basically sound given that we don't really know what is going to happen in the UK just now. If it's relevant, I'm 44 years young, with a partner but no children (none planned either!) Your thoughts and comments would be most welcome.
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.