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Very dot-com. Didn't people learn anything?

How many years of losing money will it take before he realises he's made a stupid investment?

Peter is adamant that he does not want to buy a house in or near London. “I am quite fearful because I think the housing market is heading for a big fall,” he says.

He's bought a place in NI on a 5% gross yield.

You can get better than that in London.

Unbelievable. :blink:

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But what swung the decision was the fringe benefits. “I can claim the cost of flights as a business expense, while visiting family at the same time,” he explains.

Regrettably for him, HMRC wil disagree. Looks like he took tax advice from his investment adviser.

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He is getting married next year and estimates that he will have to pay about £16,000 towards the cost of the wedding.

£16K to impress a few drunken friends and relatives for 6 hours. Everyone wants to kid themselves that they are actors or football stars these days.

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Peter is adamant that he does not want to buy a house in or near London. “I am quite fearful because I think the housing market is heading for a big fall,” he says.

He's not completely stupid then. I think he has a point about NI being behind London/SE on the boom curve.....but it only makes sense if you can get in and out in time before NI crashes as well. Risky.

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I do think Peter is away from the heard tho (which is a good thing), but is a bit complacent with regards to the housing market in NI. He do far better being a bubble watcher (in NI) and sell at the top (when ever that is)!

Also, how did he buy in NI? With Sterling (as I expect he is paid in Sterling)? Or in Euro's (then he has to substitute the rental income with sterling money)? If this is the case, this could add a huge complicated dimension to it all - currency markets!

£16k for a wedding??? My lord! £10k max for meeee...

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Guest Guy_Montag

I do think Peter is away from the heard tho (which is a good thing), but is a bit complacent with regards to the housing market in NI. He do far better being a bubble watcher (in NI) and sell at the top (when ever that is)!

Also, how did he buy in NI? With Sterling (as I expect he is paid in Sterling)? Or in Euro's (then he has to substitute the rental income with sterling money)? If this is the case, this could add a huge complicated dimension to it all - currency markets!

£16k for a wedding??? My lord! £10k max for meeee...

I went to (the evening part) of a wedding recently. It cost £20k, was nice enough, but nothing great. The meal was apparently pretty good, but not exceptional. The evening do was an expensive bar & a cheap dj.

According to my girlie, this is about the normal cost of weddings she's been to in the last couple of years.

We've decided to have a Vegas wedding & spend the £19,500 balance on a yacht or house or any of countless other things we want & will last more than a day.

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My wedding cost 800 quid for everything and my missus had to fight for every penny. We got everybody to cook something, like a ham or whatever, a mate who has a micro brewery supplied the beer, Jascots, who my dad built a warehouse for supplied the wine and champagne and another friend who has a morrice minor convertible supplied the wedding car and a friends boyfriends band provided the music. Happiest day of my life and great fun. It does not have to cost a lot. At the risk of sounding like a snob, I think it's a bit chavy to spend a lot of bread on a wedding.

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Losing 1000 a year on a BTL is not bad though. At the end of it you have a house (as long as they have a repayment mortgage) Saving £1000 a year over 25 years wouldn't get you as much as a house by the end of it.

As lets face it most people who get a BTL wouldn't have the initial capital to make an investment in an alternative. Of course alot of BTL must be losing about that a month though :)

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You people just can't see the logic can you?

1 rent rise & Peter has that place in the bag & can move on to his next conquest.

It's a competition & you lot are losing!!!!

How do you mean?

He gets £450 pcm in rent and loses £80 pcm.

One rent rise of almost 20% and then he's not losing money on the rent any longer?

Up the rent by 30% plus and then he can start (slowly) to make up his previous loses?

Double the rent and he can boast about what good cashflow he is getting from it?

This is presumably on the basis that you still believe that landlords are price-setters rather than price-takers.

He may be bailed out by a Greater Fool who is willing to pay yet higher prices (and take yet lower yields)... or then again it might all go tits up as the Northern Irish decide prices have gone too high.

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As far as I read the story, the guy has made a profit after taking his revaluation into account. So he needs 2 or 3 rent rises to make a cashflow profit, but by that stage he should also have made a higher profit from price rises as well.

He'll be well in the money and you lot will say he was lucky because blah blah blah.

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My wedding cost 800 quid for everything and my missus had to fight for every penny. We got everybody to cook something, like a ham or whatever, a mate who has a micro brewery supplied the beer, Jascots, who my dad built a warehouse for supplied the wine and champagne and another friend who has a morrice minor convertible supplied the wedding car and a friends boyfriends band provided the music. Happiest day of my life and great fun. It does not have to cost a lot. At the risk of sounding like a snob, I think it's a bit chavy to spend a lot of bread on a wedding.

i partially agree, though when i got married my wife/bride complained at the time of being driven to the church on the back of a tesco shopping trolley.

we had egg sandwiches and a tartan flask of soup. the music was provided by a radio.

too cheap perhaps ?

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You people just can't see the logic can you?

1 rent rise & Peter has that place in the bag & can move on to his next conquest.

And is the current economic climate one that will support rent rises? Teetering on the brink of exploding living costs (e.g. food etc.) caused by soaring transport costs, the public sector make-work jobs spree about to end, taxes probably about to rise, unemployment looking dodgy.... Where are you going to get people to pay a rent rise? (Note, just because you'd like a bit more money to cover your costs doesn't mean that you can expect to get it).

It's a competition & you lot are losing!!!!

It's not a competition. You're getting delusions of grandure if you think people who rent out houses are winning any sort of competition.

:lol::lol:

Edited by Levy process

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Lets not forget the additional cashflow he'll get from the coming rate drops either!!

Lets not bet the house on a rate drop :)

P.S

You've been called a chav :lol:

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Guest Bart of Darkness
Lets not forget the additional cashflow he'll get from the coming rate drops either!!

Ain't gonna happen mate. A few weeks ago you might at least have had a case for arguing this. Now, even with Gordon's stooges in place, the best you can hope for is rates being held at 4.5%.

There's a whole world out there y'know. The UK doesn't exist in isolation from that world (much as though GB might wish it did).

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As far as I read the story, the guy has made a profit after taking his revaluation into account. So he needs 2 or 3 rent rises to make a cashflow profit, but by that stage he should also have made a higher profit from price rises as well.

He'll be well in the money and you lot will say he was lucky because blah blah blah.

The problem is the "re-valuation" is a theoretical number... it's easy to get your house re-valued to a higher amount, you walk in to an estate agent, tell them you paid £107k and gently explain that a lower figure than this means no business.

His £122k "re-valuation" puts the property on a rental yield of below 4.5%. That MIGHT be a realistic valuation but I'd say it probably isn't (back in the world where risk should be priced rather than ignored).

I see you've now moved on from one rent rise to two or three. Like I said, once the rent goes up almost 20% he'll reach cashflow break-even (assuming his outgoing don't change).

And if he just gets another "re-valuation" perhaps up to £200k then he really will have made a packet.

Fuggin 'ell, is it just me or is this game where you make up a new valuation for your property and (hey, presto) you're rich bulls-hit?

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  • 301 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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