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House Price Crash Will Be Delayed

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I am just moving into new rented accomodation. This family had bought their new house thinking they would sell their old house quickly. But this did not happen.

As he could not afford two mortgages he quickly replied to my advert in the paper and rented us the property for two years.

The house is on at £335,000. I would of been interested at £250,000. My valuation of the real price at this time and at these prices but not my valuation of its real worth.

My point however is if people like these, of which there are many, rent their houses instead of selling them they are taking the houses out of the market and therefore delaying the inevitable reducing of prices.

These BTL have no intention of renting the property long term (he wants to sell within the next three years to avoid CGT)

He was told by the local EA to rent out the house get £20,000 in rent and wait for the house to increase in value.

I believe the house will reduce in price over the next two years by more than the price of the rent.

Who will be right .... Who knows that's the gamble.

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I am just moving into new rented accomodation. This family had bought their new house thinking they would sell their old house quickly. But this did not happen.

As he could not afford two mortgages he quickly replied to my advert in the paper and rented us the property for two years.

The house is on at £335,000. I would of been interested at £250,000. My valuation of the real price at this time and at these prices but not my valuation of its real worth.

My point however is if people like these, of which there are many, rent their houses instead of selling them they are taking the houses out of the market and therefore delaying the inevitable reducing of prices.

These BTL have no intention of renting the property long term (he wants to sell within the next three years to avoid CGT)

He was told by the local EA to rent out the house get £20,000 in rent and wait for the house to increase in value.

I believe the house will reduce in price over the next two years by more than the price of the rent.

Who will be right .... Who knows that's the gamble.

But that property will not set the price for the next 2 years (it is not on the market and cannot influence it) - others will have to sell for other reasons (and will)!

Edited by Tempest

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Likely scenario, if they don't get repoed or otherwise forced to sell

is that people like this will take a loss for a few years, and as soon as

there is a slight profit, will flood the market, thus stifling any recovery.

Just draws things out for longer.

Good deal on a rented gaffe though :D

ABB

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As the market gets worse. Tell them you want a Rent Drop or you will Buy. When prices to buy are more favourable no one will rent - therefore you have them by the boll0x. Cruel I know, but these b*stards have had us by the balls for a few years now.

THERE IS NO SENTIMENT IN BUSINESS

TB

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Likely scenario.....is that people like this will take a loss for a few years, and as soon as

there is a slight profit, will flood the market, thus stifling any recovery.

Ohh....we have a thinker!

Good point.

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  • 302 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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