I Have Lost Interest

[tim123]

I think I have come to the point where I have lost interest in houses and buying one.

Yes, I am seeing some price drops in my area but most are very sticky and in denial IMPO so...

I am thinking more about quality of life, moving elsewhere, my career, investing my money in something else and generally just forgetting about houses for a few years.

Am I the only one on HPC thinking like this?

I was losing interest, with everything that I saw over the summer being 30k overpriced and zero or tiny price reductions.

But in the last week, 3 properties that I considered as suitable (apart from the price) have had serious reductions so I'm off to see them again

tim

[dissident junk]

I've lost interest too.

I saw a house the other day that we could afford and it was a reasonable size. It even had the special DJ obsessions, such as an old working coal hole (complete with iron gate), outside loo still intact, stone floor in the cellar, an enormous boarded up fireplace that may very well have a black lead range behind it and proper thick floorboards ... and it was next to a cobbled ginnel.

But I just couldn't be a*sed. I was like "but where would we put the skip while we were ripping out the 1930s shelves? It needs two new doors. We'd have to put in central heating. It probably needs rewiring; I bet the entire place smells of fish when you turn a light on."

I've just lost the va-va-voom about it all.

[geoffk]

hey whats wrong with you lot..i have only spent 20k on doing my house up since moving in a few months ago....renting is for sensible people and not idiots like me ....painting the interior cost 2k......my wall is coming in at over 4k and thats a mates rates.

[Redcellar]

For most of the last 15 years I consider myself to have been living the good life - made loads of great friends at uni (and no, not p*ssing it up the wall - I'm teetotal) and even stuck around to do a postgrad course. Then took a gap year with a voluntary organisation that stretched on for over four! Saw a very large amount of places, and not as a tourist. Poverty in Africa and some of Asia made me appreciate the opportunities I had (and still have). Met a great woman, married and moved to her country in Asia. Kept in touch with the voluntary organisation and they offered me a paid post back in Blighty. Felt it was right to time to return, so we made the move.

During the years I've been away, house prices skyrocketed. I unwittingly picked the worst years to be away from getting on the housing 'ladder', for sure. Does that mean I regret what I've done and the opportunities I've had? Not at all! When my health fails, I'll look back on some awesome memories, knowing I lived my dreams. And if that means I had to rent all my life, so be it.

Good for you. That made me smile. You have life sussed out much better than most. It's not about turning a profit on everything we buy.

Don't fret about housing. Blips and stuff. It'll become affordable and renting isn't so bad whilst you wait anyway. Good luck to you.

[Johnny Cash]

I've lost interest too.

I saw a house the other day that we could afford and it was a reasonable size. It even had the special DJ obsessions, such as an old working coal hole (complete with iron gate), outside loo still intact, stone floor in the cellar, an enormous boarded up fireplace that may very well have a black lead range behind it and proper thick floorboards ... and it was next to a cobbled ginnel.

But I just couldn't be a*sed. I was like "but where would we put the skip while we were ripping out the 1930s shelves? It needs two new doors. We'd have to put in central heating. It probably needs rewiring; I bet the entire place smells of fish when you turn a light on."

I've just lost the va-va-voom about it all.

Whats a cobbled ginnel?

Also, how do you mean about the house smelling of fish when you put the lights on?

[aussieboy]

It's a funny time right now. Good stuff (in London) is selling even though clearly overpriced. But anything else is either stagnating or falling in small increments. I think bottom line is that it is unlikely London prices are going up any time soon. But will they go down? No real pressure for majority of sellers.

<snip>

If they're selling, they aren't overpriced. Underpriced, maybe.

New oven and furniture for us .

Of all the posts I've read in recent months, the new furniture / windows ones in a rental here have made my spirits slump the most.

I've lost interest too.

I saw a house the other day that we could afford and it was a reasonable size. It even had the special DJ obsessions, such as an old working coal hole (complete with iron gate), outside loo still intact, stone floor in the cellar, an enormous boarded up fireplace that may very well have a black lead range behind it and proper thick floorboards ... and it was next to a cobbled ginnel.

But I just couldn't be a*sed. I was like "but where would we put the skip while we were ripping out the 1930s shelves? It needs two new doors. We'd have to put in central heating. It probably needs rewiring; I bet the entire place smells of fish when you turn a light on."

I've just lost the va-va-voom about it all.

Was this in Sheffield, DJ? Sounds a bit Crooks-y, with the cellar and the gennel and all. Prices there seem to have been the same since 2004/5.

Tulip, probably a good idea to get on with life. When I think of all the things that have happened to me in the last five years since joining the site or, worse, six since starting to lurk - bought two houses, sold two houses, emigrating, re-emigrated, new jobs / cars and more, I would hate to have missed out on by sitting waiting for houses to fall 10%.

If they fall 35% like some still seem to think, given the low interest rate environment and Sterling's weakness, it would be a no brainer for expats to gear up and buy for yield even if it's <5%.

[dissident junk]

Whats a cobbled ginnel?

Also, how do you mean about the house smelling of fish when you put the lights on?

A cobbled ginnel ....

I have an odd thing about cobbled ginnels, probably because I grew up in an old textile mill town and spent the formative years of my life walking up and down them to school. They have a wonderful, magical atmosphere, particularly when it is a bit drizzly and dark and the lamp light hangs over them ... but you might have to be a Northerner to like them.

Old houses, particularly from the 1930s, sometimes still have electrical fittings made of shellac. When shellac gets warm, it can give off a strong fishy smell, a very strong fishy smell.

Edited to add: it's a bit of a problem with bakelite fittings as well ... indeed any old wiring in a house that could be overheating or overloaded.

Edited October 6, 2010 by dissident junk

[nohpc]

I think I have come to the point where I have lost interest in houses and buying one.

Yes, I am seeing some price drops in my area but most are very sticky and in denial IMPO so...

I am thinking more about quality of life, moving elsewhere, my career, investing my money in something else and generally just forgetting about houses for a few years.

Am I the only one on HPC thinking like this?

It's difficult to be interested when the market is made up of overpriced rubbish, As soon as prices drop you will be very interested again

[Reluctant Heretic]

Interesting.

I have long said that I believe the majority of the Welsh are clinically depressed. You have to live here to understand why.

It wasn't a dig at you, my very best friend was Welsh (lost contact). I seriously believe that there is something geophysically wrong with Wales which messes with people's heads. You have to wonder what gives rise to all that morbid poetry and funereal singing.

[Kyoto]

"There really isn't rental yield to be made. 5% if that compared with 3% or so for a 'capital risk free' 2 or 3 year deposit at the bank. "

Yes but if prices drop just a few % then there will be yield to be had.

That's not how it works if you do the sums.

£100k house yielding £5k per year rent = 5% yield.

House crashes by 50% so becomes a £50k house yielding £5k per year rent = 10% yield.

50% crash = just 5% increase in yield.

In reality, the average house costs more than £100k, prices would fall by less than 50% (sadly) and rent would drop roughly in parallel with the cost to buy the house. All three of these reduce the differential between how much a fall in value influences yield. For example:

£200k house yielding £10k per year rent = 5% yield.

House crashes by 10% so becomes an £180k house yielding, say £9.8k per year = 5.4% yield.

10% crash = 0.4% rise in yield.

You made a throw away comment but it raises some interesting numbers on how nominal house price falls do not suddenly make property an attractive yielding investment.

IMO, houses as investments have never stacked up on yield alone whether in a falling or rising market.

Brits who have lived through the bubble will always want their go at the BTL millions, but it really isn't an attractive an investment as it might seem. Especially when you consider the capital risk, voids, agent fees.

Edit - I would actually take the opposite to you that a 1% rise in interest rates will add further downside pressure to the housing market, and make savings in the bank disproportionately more appealing. Again, BTL is a much more finely balanced tradeoff than it initially appears compared with the alternatives.

Edited October 6, 2010 by Kyoto

[juvenal]

A cobbled ginnel ....

Old houses, particularly from the 1930s, sometimes still have electrical fittings made of shellac. When shellac gets warm, it can give off a strong fishy smell, a very strong fishy smell.

Edited to add: it's a bit of a problem with bakelite fittings as well ... indeed any old wiring in a house that could be overheating or overloaded.

Agreed. But it's only the bit that holds the lightbulb. Replace those in each room at a fiver each and the smell's gone. If only all problems in houses could be sorted so easily.

Edited October 6, 2010 by juvenal

[Bruce Banner]

Of all the posts I've read in recent months, the new furniture / windows ones in a rental here have made my spirits slump the most.

Yes, depressing for a property bull isn't it. Minimal yield, capital depreciation and having to cough up for maintenance .

[Kyoto]

Failed double glazing units in the conservatory replaced for us. Those are big windows, I'm glad we aren't paying for them.

As each day goes by the idea of staying in the UK for the rest of my life is less and less appealing. I feel that renting keeps my options open better. Interesting that Naeem Walayat sees strength in sterling, that would shift some soil from the escape tunnel and disperse out it in the grounds of stalag UK.

Edited to add link.

I too am monitoring the Sterling appreciation for this reason - even if we don't get our HPC, such a strong Sterling could present some really useful opportunities.

Really, really interesting times, and I say that having watched the economy closely for the last 5 or 6 years.

[neil324]

I too am monitoring the Sterling appreciation for this reason - even if we don't get our HPC, such a strong Sterling could present some really useful opportunities.

Really, really interesting times, and I say that having watched the economy closely for the last 5 or 6 years.

I'd pull the trigeer well before 1.90 if i was you.

[Ifonly]

I've just returned to New Zealand where we bought a place at the peak of the market for $350k, had it valued today at $295k

What do we do now, nothing! It is being rented out and it is making a small margin everymonth, hardly a gold mine though.

The thing is, we wanted to buy another place, but there is no point us selling given the loss we'll see.

I am guessing this is common place

[Si1]

x2 you're speaking for the HPC generation there.

a falling market has a certain je ne sais quoi...

[aussieboy]

New curtains and washing machine... Tax deductible crumbs from a rich man's table.

[happily renting]

I am starting to be OK with renting. I have even thought about changing my forum name, from "Tired of Waiting" into something more positive, like "Happy with Renting".

Heh.

Admittedly we're lucky because we found our version of paradise. It just happens to be rented. These days especially we're happier not to be tied down, even if we choose to live here for the rest of our lives (which would please our landlords, a trust who are in it for the long term).

It's all about quality of life, and buying a house has never been a guarantee of that.

[Bloo Loo]

I've just returned to New Zealand where we bought a place at the peak of the market for $350k, had it valued today at $295k

What do we do now, nothing! It is being rented out and it is making a small margin everymonth, hardly a gold mine though.

The thing is, we wanted to buy another place, but there is no point us selling given the loss we'll see.

I am guessing this is common place

thats fine..if you bought it with your money...

[aussieboy]

That's interesting.... I may be losing the plot, but a couple of posts seems to have disappeared from this thread.

[Bruce Banner]

That's interesting.... I may be losing the plot, but a couple of posts seems to have disappeared from this thread.

I asked the mods to delete my post, along with yours quoting it, as it contained too much personal information.

[The Masked Tulip]

It wasn't a dig at you, my very best friend was Welsh (lost contact). I seriously believe that there is something geophysically wrong with Wales which messes with people's heads. You have to wonder what gives rise to all that morbid poetry and funereal singing.

I did not take it as a dig at all - no offence was taken.

I totally agree with you and have had long conversations with friends about this. I think partly for historical reasons, partly for economic reasons and partly for all this obsession with the welsh language that is basically a tiny minority dominating the majority, that the Welsh are clinically depressed as a nation.

I have talked to mental health experts about it.

So, no offence taken - there are many of us inside Wales who have worked and lived in the real world who agree with you.

Dylan Thomas described Swansea as the graveyard of ambition so, a few years back, the Council went and engraved it in the pavement so it was the first thing that you saw when you walked out of the train station - only a clinically depressed nation would do that!!! We had to have a protest to get it removed.

[aussieboy]

I asked the mods to delete my post, along with yours quoting it, as it contained too much personal information.

Fair enough.

[Reluctant Heretic]

I did not take it as a dig at all - no offence was taken.

I totally agree with you and have had long conversations with friends about this. I think partly for historical reasons, partly for economic reasons and partly for all this obsession with the welsh language that is basically a tiny minority dominating the majority, that the Welsh are clinically depressed as a nation.

I have talked to mental health experts about it.

So, no offence taken - there are many of us inside Wales who have worked and lived in the real world who agree with you.

Dylan Thomas described Swansea as the graveyard of ambition so, a few years back, the Council went and engraved it in the pavement so it was the first thing that you saw when you walked out of the train station - only a clinically depressed nation would do that!!! We had to have a protest to get it removed.

That's OK then

[okaycuckoo]

This is good news! As night follows day, house prices will now continue their fall. Please don't let the last bear return too soon.

MT, seems that timing was spot on!