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For Those Waiting For An Hpc


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I've been there. I can assure you that the terms and conditions you sign up to are nothing like a private landlords.

some properties maybe...but the ones on rightmove today are mostly refurbished...quite pricey too.

I dont think its legal even to let a property without cooking facilities.

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As I said (but you seem to have missed it) 'value' is not a purely financial measure. Maybe you don't value having somewhere to call your own that much but other people do and good luck trying to convince them otherwise.

I think of the house I rent in the same way as I did the house I bought with a mortgage, before the mortgage was paid off. You can only really call a house your own when it's paid for in full.

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some properties maybe...but the ones on rightmove today are mostly refurbished...quite pricey too.

I dont think its legal even to let a property without cooking facilities.

They might not be consistent nationally - I don't know. I'm familar with the rules in my neck of the woods and they'd decorate, refurbish the place (generally pretty well) between tenants, but the rest was up to you. As an example this is a cope&paste from one part of the tenancy agreement:

"Repairing

Responsibilities

(Summary)

The Trust will be responsible for repairs to the structure, exterior of

the building, installations for the supply of services, external

decoration.

The Tenant will be responsible for internal repairs and decoration,

garden, fences, drives, the cost of servicing appliances. The tenant

will be responsible for ensuring that the septic tank is emptied as

necessary."

The idea is that most tenants are very long term and therefore live in an NT property for many years (or for life) instead of buying, and therefore are open to the greater investment over a rental from a private landlord. Unfortunately they'll only let you take out an initial 6 months so you carry that risk, i.e. you could kit out the place etc and then be served notice in 6 months.

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They might not be consistent nationally - I don't know. I'm familar with the rules in my neck of the woods and they'd decorate, refurbish the place (generally pretty well) between tenants, but the rest was up to you. As an example this is a cope&paste from one part of the tenancy agreement:

"Repairing

Responsibilities

(Summary)

The Trust will be responsible for repairs to the structure, exterior of

the building, installations for the supply of services, external

decoration.

The Tenant will be responsible for internal repairs and decoration,

garden, fences, drives, the cost of servicing appliances. The tenant

will be responsible for ensuring that the septic tank is emptied as

necessary."

The idea is that most tenants are very long term and therefore live in an NT property for many years (or for life) instead of buying, and therefore are open to the greater investment over a rental from a private landlord. Unfortunately they'll only let you take out an initial 6 months so you carry that risk, i.e. you could kit out the place etc and then be served notice in 6 months.

you dont have to accept their conditions...on rightmove, there was one "under negotiation" and the asking rent had dropped...In ANY negotiation, if the landlord wants you to do something he should be responsible for, then of course, you can take it on, but there needs to be a cost saving for you.

Some of the conditions may well be unenforceable too under the housing acts.

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As I said (but you seem to have missed it) 'value' is not a purely financial measure. Maybe you don't value having somewhere to call your own that much but other people do and good luck trying to convince them otherwise.

So you agree it doesn't make financial sense to buy a property now?

If your values require that you have the latest gadget, expensive cars, or buying a house to make you happy, then fine - just don't go dressing it up as something it isn't, and at least walk into it knowing you are going to lose a lot of money.

How much is being able to call the place you live in worth to you? £50,000? £100,000? £200,000???

As has been said previously on this thread - each £1 extra you get a mortgage for, you are paying £3 over the lifetime of the mortgage. £1 for the house, £1 for the interest, and £1 in income taxes to afford the payments.

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So you agree it doesn't make financial sense to buy a property now?

If your values require that you have the latest gadget, expensive cars, or buying a house to make you happy, then fine - just don't go dressing it up as something it isn't, and at least walk into it knowing you are going to lose a lot of money.

How much is being able to call the place you live in worth to you? £50,000? £100,000? £200,000???

As has been said previously on this thread - each £1 extra you get a mortgage for, you are paying £3 over the lifetime of the mortgage. £1 for the house, £1 for the interest, and £1 in income taxes to afford the payments.

No, as always it depends on your circumstances. IF you have a large deposit (>25%) AND you plan to stay there for at least 5 years AND the salary multiples are not too big AND you are in a fairly safe job, etc. etc.

I don't think I have tried to push anyone into buying a house, I am simply saying it is not as clear-cut as some of the rent-only loonies would have you believe.

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No, as always it depends on your circumstances. IF you have a large deposit (>25%) AND you plan to stay there for at least 5 years AND the salary multiples are not too big AND you are in a fairly safe job, etc. etc.

I don't think I have tried to push anyone into buying a house, I am simply saying it is not as clear-cut as some of the rent-only loonies would have you believe.

Ad hominem.

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IF you have a large deposit (>25%) AND you plan to stay there for at least 5 years AND the salary multiples are not too big AND you are in a fairly safe job, etc. etc.

So if you have a hundred grand or so kicking around and can comfortably borrow a few hundred more without stretching yourself then maybe.

For everyone else?

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No, as always it depends on your circumstances. IF you have a large deposit (>25%) AND you plan to stay there for at least 5 years AND the salary multiples are not too big AND you are in a fairly safe job, etc. etc.

So if you have a hundred grand or so kicking around and can comfortably borrow a few hundred more without stretching yourself then maybe.

For everyone else?

I think he was maybe describing a case where it would not make financial sense to buy?

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25% of the average house isnt £100k

might as well be for many.

Government recognises this too....the latest scheme(scam) to get housebuilds sold is to help with this part of the puzzle in keeping house prices elevated.

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Re all this stuff about rentals being expensive in relation to the same house for sale. I've just seen a house for sale at £445k and the rent is £850 a month!

This has been covered already in this thread, namely the more expensive the house, the lower the rental yield.

For "the average house" however, circa £166k, things are quite different. I'd be very surprised to see a £166k house rented for the same yield, ie. £310pcm.

Edited by exiges
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This has been covered already in this thread, namely the more expensive the house, the lower the rental yield.

For "the average house" however, circa £166k, things are quite different. I'd be very surprised to see a £166k house rented for the same yield, ie. £310pcm.

Have I got this right?

You can repeatedly post examples of ones that make the house seem cheaper to buy but only one is allowed that makes the house seem cheaper to rent? :lol:

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You can repeatedly post examples of ones that make the house seem cheaper to buy but only one is allowed that makes the house seem cheaper to rent? :lol:

Not at all, I just wasn't sure what point you were trying to make since we'd covered the topic of diminishing yields earlier on in the thread.

"Most people" are going to be buying in the £160k range, as that's the average house price. It doesn't seem right to use high value houses or special deals done with an amateur landlord to argue a case for the market in general.

Edited by exiges
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25% of the average house isnt £100k

1/2 decent 3 bedders are £300,000 - 400,000 round here (and I could find you plenty of more expensive areas).

Since you were talking about the sort of place you'd stay at least 5 years I assume that rules out the one/two bedroom flats that bring the average down.

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Here's some top end buy/rent examples. Buying makings NO sense:

The same, or equivalent houses ( i.e. same size on same street )

http://www.rightmove.co.uk/property-for-sale/property-20006391.html - Guide Price£865,000

http://www.rightmove.co.uk/property-to-rent/property-21654165.html - 2,300pcm -

Equivalent of a £400-500K mortgage

-------

http://www.rightmove.co.uk/property-for-sale/property-36513518.html - £749,950

http://www.rightmove.co.uk/property-to-rent/property-26717170.html - £2,400pcm

Equivalent of a £400-500K mortgage

-----------

http://www.rightmove.co.uk/property-for-sale/property-31304389.html?premiumA=true - £265,000

http://www.rightmove.co.uk/property-to-rent/property-36373544.html?premiumA=true - £895pcm

Equivalent to a £150-180K mortgage.

I could go on all day....

Add in buying selling costs and you can rent something like the last one for 10 years for the price difference....especially with falling rents, which I reckon is a given.

Edited by TheCountOfNowhere
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2 houses next to each other

BUY for £355K http://www.rightmove.co.uk/property-for-sale/property-21629565.html

RENT for £700pm http://www.rightmove.co.uk/property-to-rent/property-21680739.html

2.4% yield :giggle: slight misrepresentation

but this is £275K http://www.rightmove.co.uk/property-for-sale/property-30681244.html without a garden (worth £20K)

and this is under offer £235K without garden too

http://www.rightmove.co.uk/property-for-sale/property-19526349.html

So I think £250K is there or there abouts for terrace with garden VS. £8400 rent = 3.3% yield

Edited by SeeYouNextTuesday
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