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AnotherSTR

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I STR about 2 years ago and am getting used to renting. When you realize that you can rent a far better house than you can afford to buy you know it makes sense Rodney...

E.g. I am renting a large bungalow in a walled garden with conservatory in a small rural village just south of Birmingham on the edge of the Cotswolds for $750 a month. The house is probably worth around 375k. My STR funds cover the rent so I am essentially living rent free and watching homes around me drop in value at a current rate of approximately 10% per annum (the crash momentum has not manifested itself yet--maybe after the Spring bounce fails to materialize again). So with a 5% return on savings and a future purchase dropping 10% thats a nice 15% return one third of which is taxable.

Home "ownership" also comes at a price. Maintenance and repairs. High cost of moving when you have to (renters just have pay the Removal man). You can put you house money to work and history does show that the stockmarkets have outperformed houses by nearly 2:1 over the long haul. Right now I am going the ultra cautious route with house money in the bank at around 5%--whereas houses are going the other way so the real return is slightly more after taxes.

"Ownership" is also somewhat of an illusion as you only live in the house all the time you can pay the mortgage and the ever rising council taxes. True, the sense of ownership is a strong emotional factor and I admit that I will consider buying another house after the coming economic storm (HPC) passes. All that can be said for certain is that anyone in a position to buy or rent at this stage of the housing cycle should rent.

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I rent exactly for the same reasons above so clearly illustrates.

I find it amusing to say the least that Alliance and Leicester says people are losing out buy not purcahsing now, and then in their previous report acknowledges that house prices are infact declining.

To be honest my heart does say buy a home etc, but my head tells me why fix something that does not need fixing.

I need very good evidence to suggest otherwise that VI's are not at the heart of positive news about house prices. I have a mate with a home on the market dropped the asking price twice already and the next drop will put him in negative equity zone..facts not fiction are what I believe

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I STR about 2 years ago and am getting used to renting. When you realize that you can rent a far better house than you can afford to buy you know it makes sense Rodney...

E.g. I am renting a large bungalow in a walled garden with conservatory in a small rural village just south of Birmingham on the edge of the Cotswolds for $750 a month. The house is probably worth around 375k. My STR funds cover the rent so I am essentially living rent free and watching homes around me drop in value at a current rate of approximately 10% per annum (the crash momentum has not manifested itself yet--maybe after the Spring bounce fails to materialize again). So with a 5% return on savings and a future purchase dropping 10% thats a nice 15% return one third of which is taxable.

Home "ownership" also comes at a price. Maintenance and repairs. High cost of moving when you have to (renters just have pay the Removal man). You can put you house money to work and history does show that the stockmarkets have outperformed houses by nearly 2:1 over the long haul. Right now I am going the ultra cautious route with house money in the bank at around 5%--whereas houses are going the other way so the real return is slightly more after taxes.

"Ownership" is also somewhat of an illusion as you only live in the house all the time you can pay the mortgage and the ever rising council taxes. True, the sense of ownership is a strong emotional factor and I admit that I will consider buying another house after the coming economic storm (HPC) passes. All that can be said for certain is that anyone in a position to buy or rent at this stage of the housing cycle should rent.

EXCELLENT POST!!!!!! Could NOT put it better!! This is the REALITY out there !!! House prices are TOTALLY ridiculous - UTTERLY absurd - and need to come down 60%. All you FTB's out there !!! Offer 40% - YES........ offer 40% ONLY!!

Edited by eric pebble

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renters just have pay the Removal man

I've always rented furnished, so my moving costs have been nothing more than a van hire for the day. And that's a lot cheaper than stamp duty! :D

In the current climate, only renting makes sense.

Nomadd

Edited by Nomadd

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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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