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Str Sale Completed At Small Loss: Sw London


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I thought I should come back and update my post of Feb/March 09 where I explained how I had recieved an offer for £480k on my house in Hampton Hill bought for £490k in Jan 07. This was in the context of wondering how low an offer I should accept based on going STR for a few years to ride out the HPC.

I had originally bought in 2007 despite having been a reasonably firm HPC believer.

Anyway my post earlier this year explaining how a pregnant woman had fallen in love with the place and offered a near-peak price attracted waves of derision including someone who called me 'stupid' and many who were sceptical. Most were non-believing and the view was 'wait till the deal is completed' - which I thought was fair enough.

So upon exchange of contracts yesterday at the agreed price I resolved to update the sceptics - but the post is gone, even though earlier ones or remain. Did HPC have some sort of wipeout? No posts are listed under my profile anymore despite me having made 1000s a few years ago.

Anyway I'm renting up the road in a slightly better house for £1650pcm so notwithstanding the hassle of moving, probably an OK result. But all my friends/relatives/colleagues/wife think I'm mad.

Am I??

Edited by BoredTrainBuilder
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Anyway I'm renting up the road in a slightly better house for £1650pcm so notwithstanding the hassle of moving, probably an OK result. But all my friends/relatives/colleagues/wife think I'm mad.

Am I??

You're definitely eligible for a 'I'm the one that got away' T-shirt.

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Anyway I'm renting up the road in a slightly better house for £1650pcm so notwithstanding the hassle of moving, probably an OK result. But all my friends/relatives/colleagues/wife think I'm mad.

Am I??

We're looking at buying in Teddington or Twickenham so not too far from you. Asking prices seem to be down a little - say 5%-10% from peak, so I'd say you had either (1) done very well or (2) had a lucky escape. :P

I think you have got out just in time as prices seem to have held up but I expect falls of 30% in the next couple of years and 50% overall, so you have done well to get a price so close to peak, albeit you obviously bought at the wrong time. If the objective is to save as much money as possible before you buy back into the market however, £1650 seems a lot to pay on rent - you can get a perfectly adequate family house for £1200-£1300 a month. Doubt that would help you with the missus though. ;)

Caveat: If Mr Brown gets the hyperinflation he clearly craves then neither of us will be very happy.

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We're looking at buying in Teddington or Twickenham so not too far from you. Asking prices seem to be down a little - say 5%-10% from peak, so I'd say you had either (1) done very well or (2) had a lucky escape. :P

I think you have got out just in time as prices seem to have held up but I expect falls of 30% in the next couple of years and 50% overall, so you have done well to get a price so close to peak, albeit you obviously bought at the wrong time. If the objective is to save as much money as possible before you buy back into the market however, £1650 seems a lot to pay on rent - you can get a perfectly adequate family house for £1200-£1300 a month. Doubt that would help you with the missus though. ;)

Caveat: If Mr Brown gets the hyperinflation he clearly craves then neither of us will be very happy.

Agree with all of that, but I did look into rental prices quite closely. I've got four children plus an au-pair so need at least 4 bedrooms even with children sharing. Some places of the right size in Teddington were upwards of £3000pcm. However since renting in Twickenham a couple of years ago I'd say that rents are down maybe 10%.

Hope you find what you're looking for in the end but I do think this area is a bit 'sticky' and sooner or later will catch up with the rest of the country on the way down.

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This was in the context of wondering how low an offer I should accept based on going STR for a few years to ride out the HPC.

I had originally bought in 2007 despite having been a reasonably firm HPC believer.

Anyway I'm renting up the road in a slightly better house for £1650pcm so notwithstanding the hassle of moving, probably an OK result. But all my friends/relatives/colleagues/wife think I'm mad.

Am I??

:lol::lol::lol::lol:

Talk about late to the party!!!!!!!!!!!!!!!!

OK, I'm going to say this really slowly so you can understand.........

There

is

no

way

in

h3ll

you

will

be

able

to

recoup

the

losses

you

will

incur

by

renting

for

a

couple

of

years

plus

transaction

costs

at

this

point.

Your wife and friends are right, you are absolutely mad as a hatter.

Hope you enjoy losing money, and I hope your wife is a very forgiving sort of person, cause you're about to lose your ar5e big time. :lol:

This website really should come with a financial health warning. Sure, a few people did OK by STR-ing in 2005-2007, but outside of that, or in the very, very few areas/property types with bigger than average falls, most will just lose a lot of time and money.

Edited by HAMISH_MCTAVISH
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You've had some incredible good fortune.

You're a HPC member from 2005 (I was in spirit as a non-homeowning saver, if not in registered presence.)

I remember your story of how you got tired of waiting, caved-in to pressure and bought near peak.

Just keep renting now. Keep reading the gems of wisdom you'll find on here, and believe it this time.

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I've got four children plus an au-pair so need at least 4 bedrooms even with children sharing.

Actually, with that size entourage £1650's not bad.

You could cut a bedroom out though - might I suggest you save some money by asking the au-pair to share the bedroom with you and the missus? :P

(depends on aesthetics of au-pair of course)

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:lol::lol::lol::lol:

Talk about late to the party!!!!!!!!!!!!!!!!

OK, I'm going to say this really slowly so you can understand.........

There

is

no

way

in

h3ll

you

will

be

able

to

recoup

the

losses

you

will

incur

by

renting

for

a

couple

of

years

plus

transaction

costs

at

this

point.

Your wife and friends are right, you are absolutely mad as a hatter.

Hope you enjoy losing money, and I hope your wife is a very forgiving sort of person, cause you're about to lose your ar5e big time. :lol:

This website really should come with a financial health warning. Sure, a few people did OK by STR-ing in 2005-2007, but outside of that, or in the very, very few areas/property types with bigger than average falls, most will just lose a lot of time and money.

Hamish, if you had manged to get clear of this with only a 10k loss you would be jumping for joy. We are watching as your posting style morphs from Benji to Cujo. This guy has got out by the skin of his teeth, he is in the same league as people who survive Great White attacks. His rent at 1600 p.m is a bit extravagent for my tastes, but the coming shitstorm will see to it that he pays much less going forward IMO ;) All he has to do is keep his income/ have enough savings to see him through until the very bottom to knock the average "homeowner" out of the ballpark?

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Actually, with that size entourage £1650's not bad.

You could cut a bedroom out though - might I suggest you save some money by asking the au-pair to share the bedroom with you and the missus? :P

(depends on aesthetics of au-pair of course)

What`s the joke about the little boy who thinks you can use your willie to clean your teeth, because he always sees his dad cleaning the Au-pair`s teeth with his?

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Actually, with that size entourage £1650's not bad.

You could cut a bedroom out though - might I suggest you save some money by asking the au-pair to share the bedroom with you and the missus? :P

(depends on aesthetics of au-pair of course)

The thought crosses my mind frequently. Like every day. But sadly not hers or the missus'!

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What an escape .. Hat's off to you .. I was in the same position in 2007 MASSIVE pressure from the wife to buy ... The whole "YES DEAR I KNOW HOUSE PRICES ARE GOING TO FALL BUT WHEN?, YOU'VE SAID THAT SINCE WE WERE MARRIED AND ALL THEY HAVE DONE IS GONE UP" and in the end she just wore down my resistance. We had a 50% mortgage arranged, survey was done .. going to complete on Friday.

Estate agent phoned us on Friday morning, the vendor had had another offer £50,000 more than ours would we match it ..

I said "NO" and turned off the "Estate agents" PAYG mobile (cos I'm buggered if I'm going to let them have my real mobile number). The next two weeks were the hardest in my marriage. My wife was either crying or tearful the whole time ..

As we would not answer the mobile number we had given the EA's they came round and put a note through our door stating that the other buyer had dropped out and we could have the house for the previously agreed price. This caused even more distress and I got our solicitor to write them a letter asking them not to attempt to contact us again.

The house is still on the market for the same asking price ..

Even my wife calls it a lucky escape now ..

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I thought I should come back and update my post of Feb/March 09 where I explained how I had recieved an offer for £480k on my house in Hampton Hill bought for £490k in Jan 07. This was in the context of wondering how low an offer I should accept based on going STR for a few years to ride out the HPC.

I had originally bought in 2007 despite having been a reasonably firm HPC believer.

Anyway my post earlier this year explaining how a pregnant woman had fallen in love with the place and offered a near-peak price attracted waves of derision including someone who called me 'stupid' and many who were sceptical. Most were non-believing and the view was 'wait till the deal is completed' - which I thought was fair enough.

So upon exchange of contracts yesterday at the agreed price I resolved to update the sceptics - but the post is gone, even though earlier ones or remain. Did HPC have some sort of wipeout? No posts are listed under my profile anymore despite me having made 1000s a few years ago.

Anyway I'm renting up the road in a slightly better house for £1650pcm so notwithstanding the hassle of moving, probably an OK result. But all my friends/relatives/colleagues/wife think I'm mad.

Am I??

YES

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:lol::lol::lol::lol:

Talk about late to the party!!!!!!!!!!!!!!!!

OK, I'm going to say this really slowly so you can understand.........

There

is

no

way

in

h3ll

you

will

be

able

to

recoup

the

losses

you

will

incur

by

renting

for

a

couple

of

years

plus

transaction

costs

at

this

point.

Your wife and friends are right, you are absolutely mad as a hatter.

Hope you enjoy losing money, and I hope your wife is a very forgiving sort of person, cause you're about to lose your ar5e big time. :lol:

This website really should come with a financial health warning. Sure, a few people did OK by STR-ing in 2005-2007, but outside of that, or in the very, very few areas/property types with bigger than average falls, most will just lose a lot of time and money.

You're not right. The extra transaction costs are minimal compared to selling and buying another house:

- 1 x extra physical move, say £600

- 1 x odds and sods associated with tenancy say £500 tops

- (at very worst) 1 x costs at end of tenancy eg cleaning etc, partial loss of deposit say £500

So at the very most say £1500. Granted there's the extra hassle of one extra move. But I'd say all of that and a lot, lot more would be recouped by the extra bargain-power, come buying time, of not being in a chain.

I have undoubtedly been foolish and mad, but that was when I bought the house in 2007 against my instincts, not now.

If HPC proceeds at only 4%pa that's the rent fully covered compared to my previous situation: it's going to carry on going faster than that, I suspect.

So I'm not that worried about my ar5e, whatever that is.

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I have undoubtedly been foolish and mad, but that was when I bought the house in 2007 against my instincts, not now.

I would have said understandably more than undoubtedly .. I was so close ..

Will be very interesting to see what that house sells for next time it comes on the market .. And how it comes on the market ..

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You're not right. The extra transaction costs are minimal compared to selling and buying another house:

- 1 x extra physical move, say £600

- 1 x odds and sods associated with tenancy say £500 tops

- (at very worst) 1 x costs at end of tenancy eg cleaning etc, partial loss of deposit say £500

So at the very most say £1500. Granted there's the extra hassle of one extra move. But I'd say all of that and a lot, lot more would be recouped by the extra bargain-power, come buying time, of not being in a chain.

I have undoubtedly been foolish and mad, but that was when I bought the house in 2007 against my instincts, not now.

If HPC proceeds at only 4%pa that's the rent fully covered compared to my previous situation: it's going to carry on going faster than that, I suspect.

So I'm not that worried about my ar5e, whatever that is.

:rolleyes:

Yeah...... Forgetting about the transaction costs for buying, selling and stamp duty there?

Whats that, another 10K ish?

The latest CEBR report puts the market within 8% of the bottom. Thats your two years rent right there. Plus your 10K transaction costs, plus your renting transaction/moving costs........

Oooooops.

Although of course, that 8% is only an average. Half the houses will fall by less, half by more.

So tell me, do you feel lucky punk? Well, do you? :lol:

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The only Au-Pair we have ever had was Martin a 20 year old gay chap from Prague ...

Mrs Sheddweller made the arrangements ..

I've already learnt the hard way on the score, the first we ever had, missus chosen, was double-sized and chosen, unlike everything else in the house, precisely for lack of aesthetic quality . . . now fortunately the internet makes the whole exercise more 'democratic'.

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:rolleyes:

Yeah...... Forgetting about the transaction costs for buying, selling and stamp duty there?

Whats that, another 10K ish?

The latest CEBR report puts the market within 8% of the bottom. Thats your two years rent right there. Plus your 10K transaction costs, plus your renting transaction/moving costs........

Oooooops.

Although of course, that 8% is only an average. Half the houses will fall by less, half by more.

So tell me, do you feel lucky punk? Well, do you? :lol:

You really are a silly person.

The marginal transactions costs are only those associated with the rental. At some point in the future I would have moved upmarket anyway and would have incurred all those transactions costs at that point. I really thought that was clear.

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:rolleyes:

Yeah...... Forgetting about the transaction costs for buying, selling and stamp duty there?

Whats that, another 10K ish?

The latest CEBR report puts the market within 8% of the bottom. Thats your two years rent right there. Plus your 10K transaction costs, plus your renting transaction/moving costs........

Oooooops.

Although of course, that 8% is only an average. Half the houses will fall by less, half by more.

So tell me, do you feel lucky punk? Well, do you? :lol:

Hamish .. Given the potential downside of a 1/2 million pound house at the moment £10,000 worth of fees are not really significant.

If you think that the price of this house was sustainable at 1/2million .. answer one question .. Where does the money come from? .. If you can answer that then I'm sure almost all the bears on this board will jump back into the market right now ..

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  • 442 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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