Jump to content
House Price Crash Forum

How Are You Doing In Your Hpc Game Plan?


Recommended Posts

Wondering how you are all doing out there on your game plans? I've seen a fair few buying recently, which is what prompted me to write this thread.

STR'd a 3-bed with 1/3rd acre in 2003.

Interest paid rent for 7 years.

Bought a 3-bed with 2/3rd acre in 2010 for <£50K less than I sold for in 2003.

Game over for me.

Link to post
Share on other sites
  • Replies 137
  • Created
  • Last Reply

Top Posters In This Topic

Pluses

Healthy mind + body,  healthy deposit, good job, debt free life, battle hardened from failures, pet project with strong interest from a couple of the biggest players that operate in that space. 

Minuses

High London rents, high school fees, ruled by the corrupt, surrounded by idiots knee deep in BTL and/or living the life of Riley on debt. 

Everything still to play for..... 

Link to post
Share on other sites

We are due to complete at the end of this month.

Nearly bought in desperation at an insane price in 2007. Daft thing is i knew that a crash had to come but began to think it wasnt coming. Fortunately my grudging attitude to buying meant we were beaten by a keener buyer. The house we were going to bid on was taken off the market only a matter of hours before i rang to put in an offer.

Within weeks the banking system melted down and prices started falling. Mrs Caveat saw with her own eyes the price falls I had predicted. I am lucky that ever since then she has trusted me. If I said it wasn't worth buying, she went along with me, I know many arent so lucky.

We've saved and spent a deposit a couple of times since then. At the beginning of this year I started to see some value returning locally. Not on a huge scale, but one or two houses that would have suited us at OK prices. So we started saving with a bit of determination. Couple of months later and HTB2 was announced and this steeled our resolve to buy before stupid people are allowed back into the market.

We were s21'd from our rental in 2011 as LL wanted to let the house to a family friend. This really angered me. Last 2 years we have been renting from a couple of teachers. They bought to paint and flip. By the time we moved in they had taken 10 months to get round to renovating the house and decided to rent as they hadnt finished off. This should have been a warning sign to me. The little jobs never got finished. I did them. When the initial tenancy finished in spring this year they wanted a bit more (quite a few houses have come up for rent on our street at quite a bit more than we were paying, it seems rents may have gone up quite a bit). They even told me they had agreed for a friend to move in if we didnt want to pay what they were demanding. Seems they have a friend who was leaving her husband and would happily outbid us with the help of HB.

The sense of entitlement they displayed - especially her - really wound me up. Apparently the house was worth more because it was nicer than when we moved in. I quickly explained that we only have to return the house in the condition we found it. She fell apart crying that I was threatening to wreck their house. The fact she thought of the house as a wreck when we moved in was pretty telling.

We ended up agreeing £150pm reduction in rent. But a few jobs i couldnt do still needed doing. They stopped answering the phone and I brought out my secret weapon. They hadnt protected our deposit. A letter before action brought them into line very quickly. We agreed £2500 compensation and we also have our deposit back.

I feel like I've exorcised a few of the demons of being treated like shite by landlords in return for being a good tenant who always pays on time.

So, that brings us to present day, we've found somewhere we are happy to buy - right location at right price! Its a small terraced cottage in a nice quiet hamlet. It needs a bit of love after being rented out for the last 5 years, but the huge private, very peaceful back garden sold it to me - despite being overgrown. We'll probably spend 6-8% of the purchase price to make the house how we want it.

Last similar house to sell was 2 doors up. Sold in 2007 for 35% more than we are paying.

Mortgage is very manageable, in fact (worryingly for the wider implications of loose lending) our bank didnt bother to do a credit check as it was a tiny salary multiple. Interest on the mortgage will be little more than half what LLs are asking for basic clean rentals. Once we have spent a bit to get the house how we want it we will be overpaying mortgage in order clear it in 5-6 years.

We have paid 4% more than our vendor paid in 2002. I would be happy to see prices drop across the board so others can have the same opportunity as us. But I fear that the w*nkers in Westminster have other ideas.

Edited by Caveat Mortgagor
Link to post
Share on other sites

Tell me yourself.

Are you one of the idiots that has bought a house near a "good school" ?

As someone points out...this is life, not a game. Go to most countries around the world and see what real life is...it's a struggle, it's a fight against everyone else, it's dog eat dog, survive at all cost.

You send you kids to whatever school you choose, I for one will show my children the real world and give them the skills they need to survive and hopefully keep on top of the pile.

We all FOAD, it's how you live that's important.

I hope you will forego your intention to buy a £500,000+ house and move to a sink estate. Then you can send your sprog to the local school where English is a second language.

Not going to hold my breath.

BTW it was me who said this wasn't a game. That's why I'm trying to give my children good opportunities whilst not getting hung up on attaching their identities to home owning. To overcome the issue of tenure my strategy is to have enough resources to provide Security to buffer them from it. Working so far. Good school, good kids, good English, stack of resources.

Link to post
Share on other sites

The missus and I are still living with her sister. We have not bought anything since I joined this site. We did go to look at this on the weekend.

http://www.rightmove.co.uk/property-for-sale/property-40063024.html

But come on, they paid 280 for it in 09 and now want 425 ROFL. We both like it, it's quaint if a bit pokey. But it's small and it just grinds us both that they expect a 50% increase since they bought it just because they have tarted it up a bit.

We both concluded on principal we could not buy it off them for more than 325k and drove off to have tea and cake our favorite Saturday afternoon pastime which I might add did not cost us 425k.

I fear that this is all we will see for the foreseeable in the UK. Still not all bad. we are both IT contractors and both in 6 month rolling projects so netting a lot each month between us. We have a nice life and houses are not everything are they!

Link to post
Share on other sites

Almost bough my first place in 1999 but moved jobs so decided not to.

Eventually bought in Oct 2010 with large deposit - Edwardian 2 bed semi with long (80 foot) sunny garden

Back to brick refurb and insulation of the property

Lived extremely frugally to pay for everything

Just putting finishing touches now (like installing wood burner)

DIY skills massively improved from 2010!! Builders are too damned expensive for anything other than major works

Property valued 2 months ago at £295k

Cash savings currently exceed outstanding mortgage, so essentially mortgage free

Baby arrived 6 months ago - spending almost doubled overnight :rolleyes: Savings no longer going up :lol:

Not the house we want (we want bigger with more land) but it'll meet our needs easily for the next 3-5 years. We can afford to buy bigger, but I'm holding onto cash (I like the balance fo having property and cash as well).

I think things played out very well for us - we are very lucky - have higher than average salaries, and very undemanding lifestyles. Coupled with some lucky investments over the years we have managed to pay down the mortgage in under 3 years. Now we're safe knowing our little spud will always have a roof over their head - it's a lovely feeling :)

Link to post
Share on other sites

Almost bough my first place in 1999 but moved jobs so decided not to.

Eventually bought in Oct 2010 with large deposit - Edwardian 2 bed semi with long (80 foot) sunny garden

Back to brick refurb and insulation of the property

Lived extremely frugally to pay for everything

Just putting finishing touches now (like installing wood burner)

DIY skills massively improved from 2010!! Builders are too damned expensive for anything other than major works

Property valued 2 months ago at £295k

Cash savings currently exceed outstanding mortgage, so essentially mortgage free

Baby arrived 6 months ago - spending almost doubled overnight :rolleyes: Savings no longer going up :lol:

Not the house we want (we want bigger with more land) but it'll meet our needs easily for the next 3-5 years. We can afford to buy bigger, but I'm holding onto cash (I like the balance fo having property and cash as well).

I think things played out very well for us - we are very lucky - have higher than average salaries, and very undemanding lifestyles. Coupled with some lucky investments over the years we have managed to pay down the mortgage in under 3 years. Now we're safe knowing our little spud will always have a roof over their head - it's a lovely feeling :)

Congratulations to you......careful planning, wise choices, doing much yourself and hard work must help.....but do you really care what it is worth once it is paid for? ;)

Link to post
Share on other sites

The missus and I are still living with her sister. We have not bought anything since I joined this site. We did go to look at this on the weekend.

http://www.rightmove.co.uk/property-for-sale/property-40063024.html

But come on, they paid 280 for it in 09 and now want 425 ROFL. We both like it, it's quaint if a bit pokey. But it's small and it just grinds us both that they expect a 50% increase since they bought it just because they have tarted it up a bit.

We both concluded on principal we could not buy it off them for more than 325k and drove off to have tea and cake our favorite Saturday afternoon pastime which I might add did not cost us 425k.

I fear that this is all we will see for the foreseeable in the UK. Still not all bad. we are both IT contractors and both in 6 month rolling projects so netting a lot each month between us. We have a nice life and houses are not everything are they!

Agreed a very nice property. We used to go on the same principle, the price they paid ( referring to nethouseprices) times the movement in the indicies and you are looking at 325k tops with a bit of work thrown in. But maybe it has had more than a bit of tarting.

Link to post
Share on other sites
blimey. has hpc been taken over by the banker propagandists?

...

I've done ok out with housing too. saved a fortune since 2007, i rent a lovely house for at least half what it would cost to buy and bank tho rest. why would you buy when that is possible!

Not at all, certainly round my way rentals are very expensive, such that renting anything other than a disused toilet burns through most of my income, making it almost impossible to save.

I'm sure Bruce Banner will point out that the rent he pays is very cheap, and has been for many years, however, would he still say the same thing if he was looking to rent a property on the market at the moment? For me it's an absolute nightmare.

I could understand why someone, if they had toughed out a cheap horrible rental and saved over several years, why they would want to buy with little or no mortgage, rather than face renting a nicer property and throwing all their income at a land lord.

The question is, if someone were to purchase a house now, would the money saved between now and a crash in prices, minus the value lost on the house, exceed the amount that would have been paid renting an equivalent home? It's not an easy call to make, particularly given that the government will do literally anything to prop-up the rotting zombified corpse of the UK economy.

In terms of purchasing a home, I would question doing so in the South East, particularly London, with prices being so high, as the potential capital losses are huge. Looking further a field however, particularly where prices have continued to fall, where the relative losses following a fall in house prices would not be so large, it's not so clear.

Link to post
Share on other sites

I could understand why someone, if they had toughed out a cheap horrible rental and saved over several years, why they would want to buy with little or no mortgage, rather than face renting a nicer property and throwing all their income at a land lord.

This is one of the things I can' t understand.

Having toughed it out and saved - to the point that I could buy outright the type of modest property I wanted if prices returned to fair value - my savings now buy me freedom and I will not trade that for an overpriced asset in order to fund someones retirement.

The question is, if someone were to purchase a house now, would the money saved between now and a crash in prices, minus the value lost on the house, exceed the amount that would have been paid renting an equivalent home? It's not an easy call to make, particularly given that the government will do literally anything to prop-up the rotting zombified corpse of the UK economy.

The thing is, I wouldn't want to pay the price of the property I rent, and that is where the above argument falls apart for me.

Edited by LiveinHope
Link to post
Share on other sites

Started building my VCT portfolio at the beginning of 2009. Looking for the income to cover my rent, so - financially speaking - it's broadly equivalent to having paid the mortgage off.

So far I've invested £75k net, and my dividend income for the first half of the financial year (April-September) exceeds rent by £1571. So it looks like £75k has bought me a "virtual house".

Next-door-but-one is on the market asking just over £300k. No thanks.

Looks like a game plan, yesno?

Link to post
Share on other sites

I'm sure Bruce Banner will point out that the rent he pays is very cheap, and has been for many years, however, would he still say the same thing if he was looking to rent a property on the market at the moment? For me it's an absolute nightmare.

I pay market rate for the area. My rent is covered by the interest I receive on the money I would have had to spend, six years ago, to buy the house I'm currently renting.

Edited by Bruce Banner
Link to post
Share on other sites

Started building my VCT portfolio at the beginning of 2009. Looking for the income to cover my rent, so - financially speaking - it's broadly equivalent to having paid the mortgage off.

So far I've invested £75k net, and my dividend income for the first half of the financial year (April-September) exceeds rent by £1571. So it looks like £75k has bought me a "virtual house".

Next-door-but-one is on the market asking just over £300k. No thanks.

Looks like a game plan, yesno?

...best plan of action is to have a nice affordable flexible rental plus cash in the bank/ alternative investments to hand....best of all worlds. ;)

Link to post
Share on other sites

Started building my VCT portfolio at the beginning of 2009. Looking for the income to cover my rent, so - financially speaking - it's broadly equivalent to having paid the mortgage off.

So far I've invested £75k net, and my dividend income for the first half of the financial year (April-September) exceeds rent by £1571. So it looks like £75k has bought me a "virtual house".

Next-door-but-one is on the market asking just over £300k. No thanks.

Looks like a game plan, yesno?

As long as your investments keep on working for you. That's the tricky bit i suppose.

I am probably a year or two away from buying somewhere that i would like in cash. Not sure if i will though.

Link to post
Share on other sites

This is one of the things I can' t understand.

Having toughed it out and saved - to the point that I could buy outright the type of modest property I wanted if prices returned to fair value - my savings now buy me freedom and I will not trade that for an overpriced asset in order to fund someones retirement.

The thing is, I couldn't afford to buy the property I rent, and that is where the argument falls apart.

Last point first, I don't find that with renting at all. Anything other than a toilet in a bad part of town, and land lords are asking for half of my income every month. Renting 2-3 bedroom house with a garden is impossible, and I've spent most of my adult life living in cramped flats with bad neighbours.

Did you read the end?

In terms of purchasing a home, I would question doing so in the South East, particularly London, with prices being so high, as the potential capital losses are huge. Looking further a field however, particularly where prices have continued to fall, where the relative losses following a fall in house prices would not be so large, it's not so clear.

It's a way out for me. I expect to lose some money at some point in the future, but with the government doing what it is doing, we are all going to lose, the trick is to lose as little as possible, which is difficult when it all hangs on trying to second guess the politicians.

Link to post
Share on other sites

Last point first, I don't find that with renting at all. Anything other than a toilet in a bad part of town, and land lords are asking for half of my income every month. Renting 2-3 bedroom house with a garden is impossible, and I've spent most of my adult life living in cramped flats with bad neighbours.

Did you read the end?

It's a way out for me. I expect to lose some money at some point in the future, but with the government doing what it is doing, we are all going to lose, the trick is to lose as little as possible, which is difficult when it all hangs on trying to second guess the politicians.

I agree the trick is to lose as little as possible. Renting and holding cash is best for me and gives me much more than owning at the moment.

Edited by LiveinHope
Link to post
Share on other sites

I pay market rate for the area. My rent is covered by the interest I receive on the money I would have had to spend, six years ago, to buy the house I'm currently renting.

Where I am that just doesn't hold true, the interest paid on the savings required to buy the home I'm currently renting would cover about half the rent.

Annecdotely I've noticed that friends and family who have been renting the same place for years, have not had their rents raised in line with the market and are paying significantly below market rates.

Everyone else seems to be doing their best to make a choice between space, neighbourhood and distance to work, of which there is very little room to wriggle, in order to afford to live.

Link to post
Share on other sites

It's all gone very well thank you.

Bought 3 bed semi in 2004 for £90k. Rough area, but great house for the money. It needed decorating, insulating, double glazing, new bathroom. Garden was a mess. We spent about £10k on it over 4 yrs bringing it up to scratch. I learnt how to plaster. Also paid down the mortgage over that time. Sold for £125k just as the banks were imploding in 2008.

Rented a cheap place to protect our deposit while we waited for something decent to come up, and to see what the govt would do to stimulate the market.

Bought 4 bed semi in 2010 for £125k. Needed completely gutting, insulating, double glazing, new kitchen and bathrooms. Garden was so overgrown we couldn't even get down it. In a rough area, so we knew we'd be moving again within a couple of years. I fitted a new (v cheap) kitchem, we tarted up the existing bathroom. Replaced the windows with cheap stuff. Replastered most of it and painted it all magnolia. Cleared the garden and laid some turf. Total spend was in the region of £12k.

The key thing was working hard during this period to get the mortgage paid down. We overpaid by massive amounts, throwing lump sums at it in the region of £2k-£5k a few times per year.

We have just sold that place for £145k.

So. 9 years after starting our journey, and playing the property market (with advice from this forum along the way), we were in a position to buy somewhere we actually liked!!!!

We have moved to a 3 bed detached house in a nice area. Bought for £300k. Previously valued at around £350k-£400k, though hard to put a figure on it because it's quite different to other stuff in the area. Previous owners paid £125k in 1996. Large garage. Very large garden. Needs no DIY doing in the immediate future.

Mortgage is 3x my salary and is covered by about 30% of my net income.

So. It can be done, but it meant years of hard work, paying down the mortgage, sacrifice and above all keeping a careful eye on the market.

We don't plan to ever move.

Edited by the stig
Link to post
Share on other sites

Where I am that just doesn't hold true, the interest paid on the savings required to buy the home I'm currently renting would cover about half the rent.

So a FTSE tracker would generate income to cover the rent with plenty to spare. Or interest on a good low-risk fixed-interest investment you could get double the rent. Or double that again for higher risk.

The comparison to cash that's being debased is vacuous.

Link to post
Share on other sites

Recently moved back to the UK after working abroad for several years. Joined this site and followed the property market hoping the crash would have happened by the time I moved back as the money I was earning was always earmarked for a house.

Unfortunately prices have remained sticky in my area and sellers have remained entitled. It wouldn't be so bad but things are going SSTC even at the overinflated asking prices. I've offered on a couple of places and my only competition has been BTL or FTBs buying with HTB or BOMAD. My offers of just 10% below are being flat out refused without even counter offers being touted. Regardless of how much I want my own place, I refuse to overpay so I've arranged a back up plan to move in with a friend for 6 months whilst still looking for a house I'm willing to buy in my area.

Looks like I've managed to find a job at least though which is a fairly big hurdle out of the way.

Link to post
Share on other sites

Where am I now:

In 1998 my best mate bought a house, I went to a Russell Group Uni (late)

By 2002 I had secured a successful career path and I have survived all the mergers and redundancies of the Engineering industry

Always not quite enough money to buy even with 20% and 30% regular pay rises, meanwhile my best mate was paying off his mortgage quickly.

2004 moved in with ex-bankers ex-wife with a very small mortgage. She was getting a lot (2k/month I think) of money from the Government prior to me moving in for being low paid and three kids.

Where asset values and 30k p.a plus in child maintenance is not assessed as “wealth”, insane. I moved in, it effectively cost her 1k a month as my wage was assessed.

Checked out of the whole housing issue but started to get jumpy about the kids affording and was starting think about “investments” for them.

Repeatedly I recall saying “but someone has to pay the money back eventually” and “I don’t get it this is crazy”

2007 I started with HPC, after seeing an interview on the TV. Now single realized I was well off the mark as I was not financially in a good place, but I was debt free with 3k in my pocket

2007 and recall chatting to a lady just about to upsize. She described how she would really have to tighten the belt to pay the mortgage I said

“I think house prices are about to come down a bit” this turned out to be an understatement on my part

2009 managed to get out of UK and move to Switzerland riding some of the exchange rate benefit. I thought three years and the crash would be over and prices would be “normal-ish”

I could come in a buy something with about 50-60% mortgage and be roughly where my best mate was

Now its 2013, I have saved quite a good deposit and the craziness has started again, I could come back but I think the UK has lost its way.

I did not save hard just my Bonuses and 13th Month I have a good life in Switzerland. Living here has given me perspective and I know it is pointless to try and return to the UK.

My money is mostly in Shares and I am starting to get nervous as things seem to be changing, but I feel I would rather get robbed by the market than the banks and government in savings

My best mate has a good business and has upsized massively, he knows he taking some risks, but has his wife’s parents will back him if TSHTF.

He’s worked hard and been lucky; I think I worked hard and have been unlucky

I am getting older I am starting to need roots more than a fair price, I cannot wait forever.

I am moving to Sydney next month I have looked at property prices, they are high but I can get 3.5/4x income, just

I will have to wait 2 years let’s hope they are in my favour

I am being told it’s a bubble too but it looks better value than the UK

Link to post
Share on other sites

Not at all, certainly round my way rentals are very expensive, such that renting anything other than a disused toilet burns through most of my income, making it almost impossible to save.

I'm sure Bruce Banner will point out that the rent he pays is very cheap, and has been for many years, however, would he still say the same thing if he was looking to rent a property on the market at the moment? For me it's an absolute nightmare.

I could understand why someone, if they had toughed out a cheap horrible rental and saved over several years, why they would want to buy with little or no mortgage, rather than face renting a nicer property and throwing all their income at a land lord.

The question is, if someone were to purchase a house now, would the money saved between now and a crash in prices, minus the value lost on the house, exceed the amount that would have been paid renting an equivalent home? It's not an easy call to make, particularly given that the government will do literally anything to prop-up the rotting zombified corpse of the UK economy.

In terms of purchasing a home, I would question doing so in the South East, particularly London, with prices being so high, as the potential capital losses are huge. Looking further a field however, particularly where prices have continued to fall, where the relative losses following a fall in house prices would not be so large, it's not so clear.

A few points.

1) If the rental costs are high for rents in your area then I suspect asking prices for buying will be astronomical. Please provide some emperical evidence for your claims?

2) If you are waiting for the crash to start, you might be disappointed...it started 6 years ago ( see graph on front page as proof ) and will continue unabated for the next decade or so.

3) Asking prices outside of London are at 2007++ levels now, losses can be huge for anyone buying at peak prices never mind the prices we are seeing now, but some people are!!!

4) It's not all about money. If you buy a house and have to sell you are screwed at present. If you buy a house and can't move to take up a great opportunity you will regret it. Most of the country have NIL job security and could be called into a meeting tomorrow to be told their job is no more.

This may sound like a total insult but you sound like an estate agent.

Link to post
Share on other sites

Caveat: we (me and wife) live in London so prices and incomes are relative to the market here. We are luckily both in good jobs (we used to receive bonuses - no we are not bankers!!!- which we have always used to pay down debt quickly). Plus I think we have been lucky to have spotted a good area where values have (nominally) gone up considerably. So our numbers are maybe going to look unusual and we believe the market around us is highly inflated, we have just tried to make that work for us!!

Our plan as it played out:

We started in Jan 2003 buying a small maisonette for £210k. 85% mortgage which we worked hard to pay down quickly. We still own the place (next door has sold for £400k last year) which we have rented since. We owe just over £50k for this mortgage.

In 2006 (October) we upgraded to a small 3 beds town house in the same area. Price paid was £420k. We paid a £70k deposit saved up and used a lot of resources to pay the mortgage as fast as we could. Woolwich in 2008 (literally days before the BoE started reducing IR to 0.5%!!!) was kind enough to offer me a 0.69% above base for the lifetime of the loan. We kept repayments to the originally quoted amount so have been killing the capital over time. Currently we owe £220k to the bank for the house and are paying capital down to the rate of about £1k a month. Thanks Barclays! We kept this place also and rent it as from this Jan. Next door house just sold for £640k.

In 2012 we bought again (our family also had increased by then) we bought another place. Big one, this is for life, for £775k (5 beds Victorian) in same sort of area. We had again saved every penny we could and used every resource to raise a £200k deposit and got a 75% on a 2 year fixed 2.34%.

So we now sit on a portfolio with some money in it, we are also almost (nominally) mortgage free. We receive an income from rentals that is the same as our mortgage outgoings. So effectively what we have to meet is the cost of keeping the two rentals going (maintenance, fees, income tax etc!) and this is a commitment about the same as before we bought our last place in 2012.

Now we have one big decision, as we both believe that a HPC is coming. Out LTV for the overall portfolio is about 40%. We could sell the two rentals and live mortgage free. We however would like to hold on to the portfolio to pass it onto our kids when they grow up. On the one side we are exposed to IR escalating and if that couples with a crash then the maths would not work anymore, we would be screwed. On the other, we do get a really good income from rentals and are starting to save again to pay down debt aggressively.

I am really not sure what is the right call…

Link to post
Share on other sites

Was a daily HPC lurker from around 2003 when I moved back to the UK after working in Japan. Couldn’t see value in buying and managed to rent a 3-bed semi on the cheap from a friend who had just started working abroad. Relocated a small distance with work and moved into a nice city-centre apartment from 2006-2013 paying our boomer landlord a yield of around 2.25%. Rent was quite a lot more than the semi but got that back in reduced commuting costs for me and my partner. Made redundant in 2009 and started working as self-employed. Being a tenant rather than an owner gave me freedom to look for contracts further afield. Moved to former East Germany in April this year to set up a consultancy business. Earning almost double what I was in my old job, and for a similar rent to our 70sqm flat in the UK we are in a 120sqm riverside penthouse with a 40sqm terrace. Only problem I see is that we both want to put down firmer roots somewhere soon as we have a 2 year old son and may start for another, and where we live right now doesn’t feel like home yet.

I have never really worked out whether not buying in 2003 was financially a good choice, but I am pretty sure it was a good life choice. We have been flexible in the face of redundancy and could move again at the drop of a hat without any excessive selling or relocation costs. We are also well protected by German tenancy laws and have a private housing company as a landlord rather than a dodgy BTL merchant. I can imagine we will be here for at least another two years, then perhaps we’ll move further south down to Munich or if it coincides with a UK crash we might come back. Already have enough funds to buy a nice place outright, but they have been earnt so I am not willing to overpay wherever we go.

Link to post
Share on other sites

1) If the rental costs are high for rents in your area then I suspect asking prices for buying will be astronomical. Please provide some emperical evidence for your claims?

2) If you are waiting for the crash to start, you might be disappointed...it started 6 years ago ( see graph on front page as proof ) and will continue unabated for the next decade or so.

3) Asking prices outside of London are at 2007++ levels now, losses can be huge for anyone buying at peak prices never mind the prices we are seeing now, but some people are!!!

4) It's not all about money. If you buy a house and have to sell you are screwed at present. If you buy a house and can't move to take up a great opportunity you will regret it. Most of the country have NIL job security and could be called into a meeting tomorrow to be told their job is no more.

This may sound like a total insult but you sound like an estate agent.

Points 2 & 3 contradict.

Where I am buying and renting are both absolutely dreadful, did I not make this clear in my previous posts? I'm looking for a way out and buying outright in a much cheaper area, although not ideal, is one way to mitigate future losses (it would also allow me some space, a garden, and some decent neighbours).

For example, buying a naff, cramped, 3 bedroom semi in the South East, in some areas is £300,000+, if that halves in value, the absolute loss is £150,000. In some places further from London, it seems possible to buy 3 bedroom semis for under £130,000, if that halves in value, then the absolute loss is £65,000, however some of the areas I'm looking at, have already had some pretty decent falls (I think Khards posted a chart showing regional house price falls), and I might be lucky enough to get away with losing only a third for example, or £43,000.

Renting the equivalent house where I am now could easily cost me that sort of money in 3 years, assuming that I could afford it in the first place.

You are correct when you say that another down turn is on its way in the next 2-5 years, and I've accepted that the response from the politicians is going to be even more extreme, and arbitrary. I think everyone is going lose as a result, second guessing how it will unfold and responding appropriately is not so easy.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.