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Everything posted by kilroy

  1. aren't the official figures that the boe look at gross pay. If so, then this will translate into something closer to 4% gross?
  2. did any of you look at the date on the article?
  3. I don't see how maintaining a high leverage to property so that you can put what you otherwise would have repaid on the mortgage into other investments in less risky. You are still essentially borrowing to invest (Brown's golden rule), but in this case borrowing against your house. This only works until it doesn't.
  4. I think that at high HPI, BTLers can MEW more easily and stash the cash away to subsidise the negative carry a lot of them are undeniably experiencing (i.e. rental income less than mortgage outgoings). At low HPI, MEW becomes a lot trickier/not possible which will lead to en masse cash flow problems with BTLers, especially as rates continue to rise. Only choice for them is to then sell.
  5. The competent real property millionaires, I would argue will be the first out of the door. THey are not going ot sit on a depreciating asset just because they bought it cheap and the yield is good. Devil takes the hindmost.
  6. SHould corn futures be banned? I would argue that this is even more of a basic human need. I think that you are confusing "having" somewhere to live with "owning" somewhere to live. I'll probably get flamed for this but I think that owning is a nice-to-have but not a god-given right. It's unfortunate that people get priced out but history suggests that until WWI this was pretty much always the case. Maybe the period of increased home ownership between 1914 and early 21st century is actualy the exception, not the norm? It is clearly to do with distributino of wealth, and under new labour, the rich have got richer and the poor have got poorer. The rich don't make the rules, they (well the majority) just play by them.
  7. -------------------- "Don't live by other people's standards. Set your own." "They bought their tickets. They knew what they were getting into. I say, let 'em crash!" Airplane, 1980 Glad you are telling us not to live by your standards. At the end of the day, it is important that people move up the ladder to make more room on the first rung. I think that the politics of envy on this board is really quite ugly. Just because Alex can get on the ladder if he chooses and does not live with his mum does not mean he is not worthy to ask a perfectly sensible and reasonable question. In fact, many people on this board have str, with some people being positively encouraged to do so. Why is this any different. Also to the guy who thought he had "stumbled into first class", I was at a property viewing open day last week. House was put on at GBP1.35mln. Lots of people there, but everybody turned up in 4-5 year old bmws and audis. Just a classic sign of an asset rich/cash poor society. Doubt you would see many of these people in first class. Alex, in my opinion, in the event of a crash I think that older houses (pre-1940s) will probably retain more value than a new build as the build quality is superb and also living space proportinos are a lot more generous than new builds. Also new builds are the bread and butter of the btl market (buying offplan etc) which means we should see a lot of them come to market. There are already a lot of LL in negative carry situations. Also, I would guess that rural environs will hold value better also (just be careful that GB does not repeal green belt and build an ikea estate at teh end of your garden!)
  8. I have never seen anyone on property ladder developing for buy to let, they do it for profit. Agree that most of the profit comes from rising market; you just need to look at the series shot in 2005, far higher proportion of people losing money there.
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