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Str Sale Completed At Small Loss: Sw London


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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'.

Oddly it was not so terrible, there was an American program (I think Saturday night live) with a "Wifesitter" he's a gay guy who looks after your wife while you go off and do "Boys Stuff" ..

Martin was that guy .. but then he met another guy in a club in Reading and setup home together ..

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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 ..

Is it Peter Pan`s bottom or your`s Hamish? well is it punk? :lol::lol::lol:

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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.

Don't worry my friend-you will look back and think "well done". Hamish is a WUM and not a very good one. Must be all that haggis. I don't take notice of any man that wears a skirt.
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congrats on selling. i am in hampton and prices here are dropping slowly. still you did very well to get out when you did. what were your selling costs as a % of the sale price of the house. how much is the differential between the mortgage payments and rent payments now. two years down the line assumign a conservative 20 -30% decrease in house prices, how much would you have really saved by selling now rather than selling then.

whatever happens you have got out without too much injury so it will give you peace of mind

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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 - when the Oil & Gas lolly disappears Aberdeen will go back to being a smelly, decrepid, unheard of, 'kipper-town' again - make the most of it!

This is not a general slur on Aberdonians - although I'm appalled at your 'image' in the "Urban Dictionary"!

Just like Sibley - your town H.P's are 'propped up' by a totally artificial market compared to general UK towns!

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congrats on selling. i am in hampton and prices here are dropping slowly. still you did very well to get out when you did. what were your selling costs as a % of the sale price of the house. how much is the differential between the mortgage payments and rent payments now. two years down the line assumign a conservative 20 -30% decrease in house prices, how much would you have really saved by selling now rather than selling then.

whatever happens you have got out without too much injury so it will give you peace of mind

Nothing out of the ordinary.

In my mind they were effectively zero, since I was planning to upsize at some point in the future anyway. I managed to cut good deals with the EA and solicitor bringing down the costs down. At the very most 1.5-2%.

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Hamish - when the Oil & Gas lolly disappears Aberdeen will go back to being a smelly, decrepid, unheard of, 'kipper-town' again - make the most of it!

This is not a general slur on Aberdonians - although I'm appalled at your 'image' in the "Urban Dictionary"!

Just like Sibley - your town H.P's are 'propped up' by a totally artificial market compared to general UK towns!

Oddly Aberdeen will do better than Maidstone .. bit more of a work ethic in Aberdeen ..

Little Maidstone reminicence ..

I was 15 years old (so this would be 1985 or 6) and I was walking past Maidstone East Station, Two blokes in Overalls ask me "Is there a Cafe anywhere local" I look confused so they add "You know like a workmans cafe" the first thing I thought and said was "Nobody WORKS round here .."

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Well done for selling. My situation is almost identical. After deciding to buy in 2007(pregnant wife) we spent a chunk on doing the place up and have nearly sold. We exchanged last week. Lost around 20% I would guess. Pretty pissed off, but I am convinced I have done the right thing having made the mistake in autumn 2007.

THat cooky crazy fool Hamish does obviously think that we are complete muppets. Only time will tell.

I am happy with the decision I have made and I sleep better at night for having acted rather than sat this one out!

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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.

That's your mistake right there.

I specifically remember telling him what a huge mistake he was making at the time. He is an intellingent poster as well BUT iirc he believed the stats at the time, rather than using his eyes, ears & experience.

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BTB I see you have quoted some round numbers, do you mind quoting actual purchase price, purchasing costs selling price and selling costs ?

Genuinely interested in your result on thie one, ie

purchase price =

purchasing costs = price + stamp duty + legals + loan costs etc

selling price =

selling costs = EA fee + maybe nothing else

result = (SP-SC) - (PP + PC)

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BTB I see you have quoted some round numbers, do you mind quoting actual purchase price, purchasing costs selling price and selling costs ?

Genuinely interested in your result on thie one, ie

purchase price =

purchasing costs = price + stamp duty + legals + loan costs etc

selling price =

selling costs = EA fee + maybe nothing else

result = (SP-SC) - (PP + PC)

PP = 490 + 14.7 + 1 + 0.3 = 506

SC = 4.8 + 1 (legal) + 0.6 (physical move) + 1.5 (allowance to buyer - damp works) = 7.9

result = (480 - 7.9) - 506

= 34k loss

Offset against this the mortgage was about £700/month cheaper than equivalent rental for 30 months = 21k brings loss down to 13k (not counting what I spent in Wickes doing the place up!!).

But remember, as I pointed out in an earlier post, I put £200k capital into the purchase, which would otherwise have been in the stockmarket where it would have lost more.

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when the Oil & Gas lolly disappears Aberdeen will go back to being a smelly, decrepid, unheard of, 'kipper-town' again

There's an American guy I know - a geologist in the oil industry. His company relocated him to Aberdeen. He stuck it out for six months before he gave his company an ultimatum: relocate him out of there or he would quit. Now this is a genuinely nice bloke, but he couldn't get his head round people actually choosing to live there - he'd lived all over the world and he thought Aberdeen was just too miserable.

Fortunately his company saw sense and relocated him down here in Richmond.

As for Teddington prices - they seem down but holding up better than the national figures. Rents have dropped a lot though.

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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??

I think it is a great result - well done.

The proof that you are not mad is surely that you could go out and buy an equivalent house for less money already if you wanted to. Not sure how the general market is in Hampton Hill, but in Kingston/Surbiton asking prices are up to 20% down already (10% on the really good stuff). If you got peak price less £10k, the benefit should already be starting to show.

In general, it is too late to STR now, so it is good to hear it can still be done. I guess the only issue is what to do with the fund now IRs are so low.

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PP = 490 + 14.7 + 1 + 0.3 = 506

SC = 4.8 + 1 (legal) + 0.6 (physical move) + 1.5 (allowance to buyer - damp works) = 7.9

result = (480 - 7.9) - 506

= 34k loss

Offset against this the mortgage was about £700/month cheaper than equivalent rental for 30 months = 21k brings loss down to 13k (not counting what I spent in Wickes doing the place up!!).

But remember, as I pointed out in an earlier post, I put £200k capital into the purchase, which would otherwise have been in the stockmarket where it would have lost more.

Thanks BTB, good to see that you have allowed some other costs and done the loan payment to rent calc as well, you could be pedantic and include the cost of moving in.

With your 200k I understand the haircut on the market that you would have received, but for the purposes of comparison the lost opportunity cost should be based on what you would have got in interest from the bank. So that being the case and say using 5% its about 25k so loss would be 13 + 25 = 38K.

Now that you have done it then I guess you wouldn’t be rushing in again and you now have the flexibility to make some interesting offers to the desperate when the notion takes you.

Edited by Bardon
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We bears are all wrong and Hamish is right. Halifax just brought out a new product. You can borrow 500 times yearly jobseeker allowance. Crap!- looks like prices are on the way up. I bow to you Hamish.

:lol:

And now, some light reading for anyone who just STR-ed to slit their wrists to..........

From todays Sunday Times. Lloyds banking group predicts houses only have another 6% to fall, and prices will be rising by the end of the year.

Shhhhhh, don't tell BTB's wife..... :lol:

Lloyds, Britain's biggest lender, has predicted house prices have only 6% further to fall and could rise by the end of the year.

The forecast comes as commentators grow increasingly optimistic about the outlook for the UK economy and stock market, with the FTSE 100 now showing a gain for the year. The index closed at 4,462 on Friday, above 2009's starting level of 4,434 and 27% higher than its March low.

Lloyds, which has a 30% share of the mortgage market, previously thought house prices would fall 15% this year — or a drop of about 34% from the August 2007 peak price of £199,612.

However, it now believes this year's decline is likely to be closer to 10% — or 28% from the peak to a trough — with prices probably bottoming within months. Prices are already down 3.8% this year, according to the Halifax house price index.

Stephen Noakes at Lloyds said: "I think we will only see about 10% to 12% falls this year. For the first time people are thinking that house prices will increase over the next 12 months."

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PP = 490 + 14.7 + 1 + 0.3 = 506

SC = 4.8 + 1 (legal) + 0.6 (physical move) + 1.5 (allowance to buyer - damp works) = 7.9

result = (480 - 7.9) - 506

= 34k loss

Offset against this the mortgage was about £700/month cheaper than equivalent rental for 30 months = 21k brings loss down to 13k (not counting what I spent in Wickes doing the place up!!).

But remember, as I pointed out in an earlier post, I put £200k capital into the purchase, which would otherwise have been in the stockmarket where it would have lost more.

gold hasn't lost any value since 2007 in any currency. ;)

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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 ..

EXCELLENT! Well done Shed.... Tell'em to F*CK RIGHT OFF!!! :D:D:D

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Thanks BTB, good to see that you have allowed some other costs and done the loan payment to rent calc as well, you could be pedantic and include the cost of moving in.

With your 200k I understand the haircut on the market that you would have received, but for the purposes of comparison the lost opportunity cost should be based on what you would have got in interest from the bank. So that being the case and say using 5% its about 25k so loss would be 13 + 25 = 38K.

SNIP

Absolutely: you need to add in either that or your imputed rent rather than the mortgage costs which will change your figures quite a bit.

Still: not a bad decision to cash out now at the loss you describe (all things being equal). Many parts of London have dropped 10-20% since Summer 07, the property next door to the one we sold then in SW being a good example.

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:lol:

And now, some light reading for anyone who just STR-ed to slit their wrists to..........

From todays Sunday Times. Lloyds banking group predicts houses only have another 6% to fall, and prices will be rising by the end of the year.

Shhhhhh, don't tell BTB's wife..... :lol:

I would trust them with my wife Hamish, sorry life. These guys correctly priced every derivative on their books-remember? Now Hamish-I will ask you again, what about CDS's? When will this become mainstream press?

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:lol:

And now, some light reading for anyone who just STR-ed to slit their wrists to..........

From todays Sunday Times. Lloyds banking group predicts houses only have another 6% to fall, and prices will be rising by the end of the year.

Shhhhhh, don't tell BTB's wife..... :lol:

Lovely Hamish .. but I ask again WHERE DOES THE MONEY COME FROM ?

Given that Lloyds bank would no longer exist if it had not been helped by the government, I don't put much store by it's "predictions"

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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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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