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House Price Crash Forum


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Everything posted by kilroy

  1. To be fair, this period does cover northern rock and Lehman etc so it could be a big woopy do and the sky could be falling. IMO, one should only dismiss short periods of data if nothing significant happened in them....
  2. And if there are capital losses, these can be offset against gains elsewhere. Moreover, landlords can offset mortgage interest against income, which is extremely valuable in a stagnant or falling market.
  3. But where are these houses that yield so much in rent? Paying off mortgage in 20 years with a 80% ltv means that the net annual yield (after interest, upkeep and voids) is 4%. Interest alone on a btl are at least 5% and assuming no voids and higher rate tax payer, yields have to be around 12% for the mortgage to be cleared in 20 years. Sounds like your colleague has been bamboozled....
  4. I blame King Harold myself; if only he had blinked.....
  5. tbf, the budget is good builders, bad for first time sellers and the housing market generally. Why would BDEV prices not go up on what is tantamount to being given free cash?
  6. Just when I thought mr Market had just about reeled in the stragglers. Tee hee
  7. But what will the feckless chavs eat then? I am buying shares in peter's savoury products....
  8. FTBs don't always buy first rung properties...
  9. He appears to be a hawk, far more likely to do the "right thing" than some numpty with a large mortgage
  10. That one is so-o 2010. Maybe they should try the islamic mortgage loophole instead. The scheme uses a similar structure to that of an Islamic mortgage and involves the use of an offshore protected cell company which purchases the freehold title and then grants you a 999 year leasehold title. The leaseholder would have an option within the lease to purchase the freehold back at any time for £1. The Guernsey PCC company only gets an exemption from Stamp Duty if it has passed the requirements for alternative property finance. Basically these are that it must hold a consumer credit licence (can get one forGBP800 or so), purchases interest in for a leaseback and gives theright to the individual to repurchase the freehold during the tenure. Originally designed to stop muslims paying stamp duty twice on shariah mortgages, now yours, for the price of a PCC and CCL.
  11. They have seriously missed the boat on the intergenerational wealth transfer; this has pretty much already happened. However I do find it strange they do not link the decreasing real disposable income bit with the dcreasing ability to pay rent
  12. I think he point tallguy is making Is that they are both on the same wage, but the 100k loan was taken out 10 years ago, and the 200k loan was taken out today, both on equivalent properties.
  13. Increased yields from drop in prices as opposed to increase in rents. I see rents dropping also, but not half as much as house prices as rents are led by wages and prices are led by mortgage multiples. However, I will only be looking to buy when yields are a minimum of 300bps over funding costs. That way you don't need rising prices to be rewarded for risk
  14. Or maybe they reallocated their resources (1.5k) to someone else who would use it and pay interest. When was the last time you spent up to your limit in a single month?
  15. Who needs a price boom with the rental yields we are likely to see?
  16. I think this is an extra 1% on top of interest. Will also sting a bit if you have 25k of credit card debt you have been unable to mew.....
  17. Agree, it's still seen as the best investment, just lost a bit of lustre.
  18. How does that work when the overborrowed all head for the exit en masse?
  19. This appears to be nimbyism as implied by the fact that the best excuse the chap leading the nimbys gives is some twaddle about he A30.
  20. Of course it was unexpected. People actually have to sign on in person. Maybe the it was the snow after all.
  21. How to end up with a million? Invest 2mln in the pwoperdee market now. Simples.
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