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John The Pessimist

More Stupidity A La The Telegraph

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I saw this after reading the other crazy house give away. Did think about posting it myself but thought it was a bit old news, after all, doesn't everyone with a house do this! BTW, my sister has just bought a second house, apparently it's her pension!

I firmly believe that it will be over leveraging and speculation in the BTL market that will cause this bubble to finally burst! Anyone up for decorating an old rental property! :P

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Sound tempting? You bet. And that's just earning on the rent. There's also the possibility that your new buy-to-let will rise in value. The Office for Budget Responsibility, the official body responsible for checking the Government's figures, forecasts house prices will rise 19pc in the four years from April. That would give you a capital growth of £57,000, on top of your monthly income.

It's ok; according to some on HPC, we have to sacrifice our lives on behalf of 'conformists' who, are victims of advertising for paying ever higher prices, BTL portfolios, victims of everything but their own decisions. ONS predicting 19% HPI glory - HPI is the best - so it must all be true, for the victims. Get that debt, buy at high prices, renters to carry all the owners/buyers paying ever higher prices.

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What irks me most about that article is the way it pretends to be balanced, but has 'subtle' bias and psychology, like the way they imply repayment is goody two-shoes rather than shrewd, or the borrow option is last so the freshest in your mind.

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"Right now you can buy a three-bed ex-local authority property in Peckham, south-east London, for instance, for £300,000. It's currently renting at £420 per week, or £1,820 per month."

Is this right? That's a 7.3% gross yield.

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It's ok; according to some on HPC, we have to sacrifice our lives on behalf of 'conformists' who,we makeup our own minds while others continue to get sucked into the ponzi are victims of advertising for paying of ever higher prices, BTL portfolios, but will become victims of everything but their own decisions when the Government props are removed. ONS predicting 19% HPI glory - HPI is the best - so it must all be true, for the victimsto further blind people to the bubble they are joining. Get that debt, buy at high prices, renters to carry all the owners/buyers paying ever higher prices. It will end badly for us all, but them first.

fixed

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"Right now you can buy a three-bed ex-local authority property in Peckham, south-east London, for instance, for £300,000. It's currently renting at £420 per week, or £1,820 per month."

Is this right? That's a 7.3% gross yield.

Checked right move

Rental price looks right

Purchase price only correct fofor a wreck. Try 375k instead

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Checked right move

Rental price looks right

Purchase price only correct fofor a wreck. Try 375k instead

But who pays almost 2k/month of their earned money to live in a sh1thole in Peckham?

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Checked right move

Rental price looks right

Purchase price only correct fofor a wreck. Try 375k instead

I had a nose around RM too and came to the same conclusion - that still equates to a gross yield of 5%ish and probably nets to about 3%.

As Spy guy says - who the hell is renting at these prices?

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I had a nose around RM too and came to the same conclusion - that still equates to a gross yield of 5%ish and probably nets to about 3%.

As Spy guy says - who the hell is renting at these prices?

maybe no-one.

Rents are asking prices as much as any other.

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maybe no-one.

Rents are asking prices as much as any other.

The local 3 bed housing allowance is apparently 1430 per month. So that's a base. I concur with the other views, how on earth?

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If you assume you're working and getting £1000 per month housing benefit, then that brings it down to less than £1000 per month

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The local 3 bed housing allowance is apparently 1430 per month. So that's a base. I concur with the other views, how on earth?

Peckham is within easy commuting distance of central London. £1800 divided among three working flatsharing adults is considered a bargain in London.

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Probably some of the rent prices are set by corporate workers from overseas.

Even some US workers are prepared to live in circumstances far far short of those they'd expect in the US.

Living in a short stay (few months) small flat is probably considered to be better than hotel life. Overseas people again setting prices but a different group to the rich buyers.

The average UK person/transient worker won't be able to afford them because UK corporates would be too mean/cash strapped to "fork out" for it - likely at best it would digs for them.

Edited by billybong

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