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Bungo

Time To Rationalise?

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Consider a hypothetical situation.

2 btl properties, West London, LTV below 35%. Gains, supposedly, of 20% per annum currently, if figures are to be believed.

Now, although low proportionately, that mortgage is still 7 figures. Comfortably covered by rental at present.

But if things change....

Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Consider a hypothetical situation.

2 btl properties, West London, LTV below 35%. Gains, supposedly, of 20% per annum currently, if figures are to be believed.

Now, although low proportionately, that mortgage is still 7 figures. Comfortably covered by rental at present.

But if things change....

Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

They don't appear to be unsustainable, they ARE unsustainable. In 5 years the average London property would cost £1million. Can you see that happening?

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Consider a hypothetical situation.

2 btl properties, West London, LTV below 35%. Gains, supposedly, of 20% per annum currently, if figures are to be believed.

Now, although low proportionately, that mortgage is still 7 figures. Comfortably covered by rental at present.

But if things change....

Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

Do you decide to leave the casino with a pocket full of cash or do you leave with nothing?

Hint: Most people leave with nothing.

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Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

Sell both and use proceeds to buy quality north of London. There will be self-kicking - negatively related to London losses and positively to gains, but quality tips the balance.

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Sell both and use proceeds to buy quality north of London. There will be self-kicking - negatively related to London losses and positively to gains, but quality tips the balance.

How do you mean 'quality'?

In this hypothetical situation, I refer to Georgian town houses in a good area, so wouldn't describe as poor quality by any means.

What qualitative improvements would be found by going north? These are btl so more land/quality of life etc not relevant, personally speaking. In addition, they'd be further away, and more of a pain to manage.

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Sell, or hold - it's the perennial question.

With London all bets are off. It looked over priced in 2002, ridiculous in 2007 and absolutely insane now.

Ultimately, it depends how much of a risk taker/greedy you are. Mortgage-free sounds pretty good to me, but then I'm not the person with two BTLs and presumably living in another house.

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Consider a hypothetical situation.

2 btl properties, West London, LTV below 35%. Gains, supposedly, of 20% per annum currently, if figures are to be believed.

Now, although low proportionately, that mortgage is still 7 figures. Comfortably covered by rental at present.

But if things change....

Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

If the rent covers the mortgages etc I would keep them. I think in the long term London will outperform everywhere else. We sold in london 8 years ago. Bad mistake! SO what if it goes down 20%?

I think most of the sell pressure on here comes from people who are not in the market. I would stay in it if you can.

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Wow, well done you. It must have been the name of the website that gave you a clue.....

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

You are talking about greed there. Greed leads people to take on too much risk (ie leverage). Any gains are self-fulfilling, leading to more risk and the situation in London today. If you have the cash to leverage yourself up and get 2 BTL houses in London, you go ahead, why should I care. Just post better questions in future! I don't think anyone here cares about BTL (some may want to buy a home at some point) and there are far better websites for you to bother with questions about your buy to let portfolio!

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Wow, well done you. It must have been the name of the website that gave you a clue.....

You are talking about greed there. Greed leads people to take on too much risk (ie leverage). Any gains are self-fulfilling, leading to more risk and the situation in London today. If you have the cash to leverage yourself up and get 2 BTL houses in London, you go ahead, why should I care. Just post better questions in future! I don't think anyone here cares about BTL (some may want to buy a home at some point) and there are far better websites for you to bother with questions about your buy to let portfolio!

Thanks for the warm welcome.

As mentioned more than once, it is hypothetical, so your vitriol is misplaced.

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No-one knows your personal circs.

I would sell one, buy a place in Spain and live off the income from the remaining one.

It makes more sense to sell in London and buy in Spain now than the other way around.

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Now, my lurking suggests most here are usually of the opinion that it is time to sell up, but I'm wondering.

Consider a hypothetical situation.

2 btl properties, West London, LTV below 35%. Gains, supposedly, of 20% per annum currently, if figures are to be believed.

Now, although low proportionately, that mortgage is still 7 figures. Comfortably covered by rental at present.

But if things change....

Would now be a good time to sell one, pay off mortgages and costs, and be left far less exposed with the single mortgage free property remaining?

Or would you end up kicking yourself for walking when things seem so buoyant, even if the gains at present might appear, to some, to be unsustainable?

Yes, you could be left trying to sell two if it all goes South quickly? Cut your exposure, pocket some money and keep one income stream alive (you are always going to get a tenant for decent property in London?) The other route is a gamble, and not one I would take.

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No-one knows your personal circs.

I would sell one, buy a place in Spain and live off the income from the remaining one.

It makes more sense to sell in London and buy in Spain now than the other way around.

This is really good advice. Unfortunately his 2 BTL's aren't real, only hypothetical which means the original question was pointless and what he really wanted to ask (on the openly bearish HPC site) was 'do you think I can speculate in the current house price bubble in London.'

Hence my earlier critical response. In fact, I almost called him an EA but I thought I better leave that for TheCountOfNowhere or Venger to comment on! Getting some really pointless treads from newbies that I'm a bit fed up of (I wish I could just stop bothering to read them!). I welcome bullish input (although, as you can guess I will mostly disagree with it), but potential BTL'ers asking whether they should buy 1 or 2 houses to rent in London! Come on, pull the other one. If you have that much cash to invest go to a real investment site and don't bother us poor sods who just want to live in a reasonably priced home, rented or bought.

Just to be a little more welcoming to bungo and in the hope that bungo's future questions will be a little more HPC'ish (rather than location, location, location'ish!). I would sell both and look to invest in assets that looked far cheaper. Yes that could mean missing out on further gains in the short term but you would be de-leveraged and not exposed to any potential downside risk. It is almost impossible to time markets (unless you are very lucky and of course when most people get lucky they think it is skill) and property is illiquid, so when you need to sell (high interest on the loans, rent no longer covers costs, etc) you may not be able to. In the long term value investing works.

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This is really good advice. Unfortunately his 2 BTL's aren't real, only hypothetical which means the original question was pointless and what he really wanted to ask (on the openly bearish HPC site) was 'do you think I can speculate in the current house price bubble in London.'

Hence my earlier critical response. In fact, I almost called him an EA but I thought I better leave that for TheCountOfNowhere or Venger to comment on! Getting some really pointless treads from newbies that I'm a bit fed up of (I wish I could just stop bothering to read them!). I welcome bullish input (although, as you can guess I will mostly disagree with it), but potential BTL'ers asking whether they should buy 1 or 2 houses to rent in London! Come on, pull the other one. If you have that much cash to invest go to a real investment site and don't bother us poor sods who just want to live in a reasonably priced home, rented or bought.

Just to be a little more welcoming to bungo and in the hope that bungo's future questions will be a little more HPC'ish (rather than location, location, location'ish!). I would sell both and look to invest in assets that looked far cheaper. Yes that could mean missing out on further gains in the short term but you would be de-leveraged and not exposed to any potential downside risk. It is almost impossible to time markets (unless you are very lucky and of course when most people get lucky they think it is skill) and property is illiquid, so when you need to sell (high interest on the loans, rent no longer covers costs, etc) you may not be able to. In the long term value investing works.

Good Lord.

I asked a question, on a website. It was hypothetical. Because I wished the input of the members of this site.

What it relates to in reality is neither her or there, but I am neither an estate agent or looking to buy. My question was relevant to my situation.

I apologise for wasting your time, and even more mine. I shall not continue.

Thanks to those, without a diagnosis on the spectrum, who were able to answer reasonably.

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Good Lord.

I asked a question, on a website. It was hypothetical. Because I wished the input of the members of this site.

What it relates to in reality is neither her or there, but I am neither an estate agent or looking to buy. My question was relevant to my situation.

I apologise for wasting your time, and even more mine. I shall not continue.

Thanks to those, without a diagnosis on the spectrum, who were able to answer reasonably.

Do you mean with the thread or the site? If you leave the site that must be some sort of shortest membership time record I think.

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Do you mean with the thread or the site? If you leave the site that must be some sort of shortest membership time record I think.

LOL :lol: I don't mean to upset anyone, if he had fully read my comment he would have seen that I did give a reasonable answer. (after venting my frustration, which is the point of this site...isn't it?)

I would sell both and look to invest in assets that looked far cheaper. Yes that could mean missing out on further gains in the short term but you would be de-leveraged and not exposed to any potential downside risk. It is almost impossible to time markets (unless you are very lucky and of course when most people get lucky they think it is skill) and property is illiquid, so when you need to sell (high interest on the loans, rent no longer covers costs, etc) you may not be able to. In the long term value investing works.

His final comment did seem to confirm that the question was indeed pointless... but I had fun ;)

Sorry to see you go bungo :(

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