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davidg

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Everything posted by davidg

  1. A couple of weeks ago my phone was ringing red hot with city institutions looking to hire. A quick ring round shows that plans are currently "on hold" until the situation becomes clearer but likeklyhood is more towards lay-offs than hiring and some, formerly urgent, projects being shelved.
  2. aye but don't forget he's only been in the job a few days
  3. I heard they exported it to Holland where it was turned into Heinicken.
  4. You might be able to buy reasonably priced shares in about a month.
  5. Have you heard of irony? AND TRY NOT TO SHOUT, I'M NOT DEAF.
  6. According to Julia Caesar of the BBC the stock market correction will mean that the BoE will not raise interest rates and people will move money from shares to housing. All good news for home-owners.
  7. Mate of mine, has a doctorate and 3 years post doctoral qualification from a top US university has just got promoted in his job in Grenoble (where a basic family home costs 400,000 euros). He told me his was on a really good wage for the first time in his life. How much? I asked 2200 Euros / month
  8. that's a good point, a crash will benefit more than just STRers, assuming we still have an income
  9. shouldn't you be selling up? Given the great HPC and all that.
  10. an increase in the price of oil say... as everything in our economy depends upon it. Stamps, bread, building houses.
  11. Unlike say the middle ages which rewarded... erm reckless greedy sociopaths who would slit your throat for the shirt on your back.
  12. Not ignoring, I'm aware that different figures give different results, I was commenting on his specific figures. There is also a point where it is better to STR and pay the rent with the interest you are getting on the money. A falling market being the most obvious example but probably with HPI at 3% it is sensible to do this.
  13. Normally it took a long and protracted strike. I think the postal workers took 15 years to make back in their higher wages what they lost through striking. In the print industry there was collusion between management and unions to take the workers out during slack periods. Saved layiing people off.
  14. You are ignoring the cost of renting in your equation. Lets say your 186,000 house costs 650pcm to rent that is 7800 / year or 4% of your total house price. Or to redo your maths you are 185pcm better off buying. You would need to factor for insurance and maintenance but you are still better off buying assuming that you don't intend to move.
  15. That's not strictly true. BTL makes as much sense in a static market with say 1999 levels of house prices. In that scenario rent would cover repayments leaving the BTLer with an asset to sell after 25 years. Boom and bust is only good for those who get out at or near the top of the market.
  16. It has already arrived in the US - the high price of gas has had an affect on housing market as people can't afford mortgage repayments and also a looking to move much closer to where they work. Out of town, high energy cost housing is going to look very unattractive by 2015.
  17. I'm sure there are a lot of BTLers - the late 1990s crowd, who will cash in their chips even if it is not quite the top they can at least get their money out. If I had say 8 properties, wiith 400K capital gains, I would have got rid of at least half of them by now. As another poster pointed out a few days ago, selling once the crash starts (or is recognized) is extremely difficult as most buyers will not budge until they think the market has bottomed - if you know a property was going to be 10% (or to put it another way 25 grand cheaper) this time next year you would be stupid not to rent. This is why the market undershoots in a crash.
  18. After The Crash I'm gonna buy wolverhampton and let the town out to the homeless
  19. One of the reasons for the late 80s house price boom was the losening of credit. In 1989 you could get self certifified mortagages, you could get silly multiples of your income and of course, there were loads of buy to letters, I rented one of their houses from 87-89. A lot of these people got badly burnt by the crash. I rented another BTLers flat in central London in 1994. He was begging me to take it off his hands for a 100K, not a bad price for a two bed flat.
  20. Too true. I think some people don't remember how bad it used to be to find rental property. I rented from 83 to 95 when I finally had saved enough to buy. It used to be a nightmare to find anything to rent in the south. I rented again in 2000 for a few months as I was away from home and the supply was much better. Now if I wanted to rent there is a large supply of new or newish redecorated homes on the market at good rents. I agree for some people short term lets are a pain but now, as a landlord (perhaps soon to be ex-landlord) I find tenants by and large don't want to commit for more than 6 months. I'm always happy when good tennants stay longer. You also don't want too much legislation covering the letting process. In France, where it is almost impossible to evict non-paying tenants many property owners prefer to let their accomodation stand idle than rent and if they do rent it is only to AAA rated tenants. When I rented in Paris I had to pay 12 months rent in advance because of gaps in my employment history and even then the landlord was taking a risk as it can 3 years to evict someone.
  21. I bought my house cash at the end of the last house price crash tail in 1995 so don't pay either.
  22. Transmontagne builds buy to let properties in the mountains - largely France, Switzerland and Eastern Europe. They have a lot of UK leaseback investors and have not been paying rental income since Christmas... now they have gone into receivership with debts of 8 million euros. http://pistehors.com/news/ski/comments/074...agne-goes-bust/ The leaseback investment has basically been sold as free money part financed by the French taxpayer through a range of tax breaks. Now some investors risk losing their shirts.
  23. They were when I stopped by to ask for some details of the properties... the Barratt Sales Woman asked how much I earned before she would let me into their sales beach hut. She was then decidedly sniffy... she probably thought (correctly) that I was a local. The place really is on the sea front, with the prospect of rising sea levels your investment could just dissapear into a surf-reef generated tsunami. Someone mentioned Branksome Chine as a better area to buy but seriously having lived in them both (well Canford Cliffs but it is the same thing) Boscome has quite a lot going for it. The beach is less crowded in summer and there are decent shops and cafes. 1 million is obviously silly money but a two bed flat is close to the seafront in somewhere like Boscombe Manor is probably "worth" around 80-90K.
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