I've Just Become A "forced" Str

[Phaedrus]

I have thought long and hard over the last few days as to whether I should start this thread. It is quite a personal story, but I think it gives an indicator as to some factors which can affect the property market. Things are still a little raw, so I would appreciate it if the "STR-haters" kept their "STR-scum" comments to themselves.

Over the Summer Mrs Phaedrus and myself decided to go our seperate ways. The three options were: 1. Her buy me out. 2 . Me buy her out. 3. Sell up and split the proceeds.

Option 1 was out of the question, she doesn't earn enough. I seriously looked at option 2, despite the time spent on here, and my own feelings with respect to property. However, I ran the figures, and even with a conservative valuation, I would have been paying more than double the current mortgage payment(bought the house tail end of 2000, it was a wreck and has slowly been restored). I wasn't prepared to do this just to set my wife up for the rest of her life.

This left option 3, which is how I have become a "forced STR". I did look into buying another place, but the economics just did not add up. In addition, I really do not need the hassle and expense of buying somewhere else at the moment. I have never really hankered after owning my own place. The only reason I bought when I did, was because I had just got married and my wife wanted us to buy. Don't get me wrong, I wasn't dead set against the idea of buying, it was more a take it or leave it type attitude. I'd rented for 16 years previously and never felt disadvantaged in any way compared to OOs. In fact, I had liked the flexibility, and also the way it forces you to travel light. I notice this time around that I have accumulated an awful lot more "stuff".

Put the house on the market in August. Had 3 EAs rounds to give valuations. Interestingly, they were all remarkably downbeat with respect to the market. The picture was of a slowdown, however, if decent property was "priced to sell" it would. I wanted to go with the Agent who'd given the lowest valuation, I just wanted to get rid of the house. My wife wanted to go with the highest valuation . We ended up going for the middle one.

The area is a good area and the house was very nicely restored, I'd spent a lot of money on it(earned, not MEW'd). I wasn't surprised, however, how little interest it generated. We only had 2 viewings in the first 3 weeks. Both put offers in though, the first withdrew their offer after a few days. We accepted the second, which was 4% below asking, and completed on Friday just gone. I was really relieved when this went through. My main worry if that sale had fallen through was my wifes' attitude. I know for a fact that she would have been really reluctant to drop the price. In fact, one discussion involving the lack of interest, slow market and pricing strategy ended with her uttering the classic phrase "I'm not giving it away!"

I'm renting a lovely big house at the moment. It has a proper garage, so my motorbike is more secure than the shed it was in at the old place. It will be joined in the New Year by another one, I'll keep the old one purely for track days. My only bug bear about renting is that I may have to move again in a year, this weekend was a bit stressful, and I still haven't unpacked everything.

In retrospect, buying that house was not a good move financially. I have lost out. I spent lots of money restoring it, paid lots of interest on the mortgage, and with the way the divorce settlement has panned out I haven't even recouped my costs. Still, you live and learn. I'm not bitter.

So, the question for me is, will I ever buy another house? I'm not really sure at the moment. There do not seem to be many compelling reasons in favour of this currently. My only real worry is how to protect the money I got from the sale from the effects of inflation. Not a bad worry to have really.

[Smell the Fear]

Sorry to hear of your marital breakdown.

As regards renting, if the hat fits, wear it! It is a pity there aren't any longer term options for renting commonly available. E.g. 3 year lease?

Perhaps there is a business opportunity in bringing together those who desire longer releases with those willing to grant them to tenants. I imagine a significant minority of landlords and tenants would appreciate this.

[Marina]

Sorry to hear of your marital breakdown.

As regards renting, if the hat fits, wear it! It is a pity there aren't any longer term options for renting commonly available. E.g. 3 year lease?

Perhaps there is a business opportunity in bringing together those who desire longer releases with those willing to grant them to tenants. I imagine a significant minority of landlords and tenants would appreciate this.

Good point, anyone who has owned for a few years now is still well ahead of the game and likely to stay so - if they are serious about property as a long-term investment - I would have thought long leases would be a great idea. You can imagine it though ...

'At ABZC letting agency we have lots of quality tenants that we have screened blah blah looking now for long-term rental commitments'

2 weeks later, every letting agent in town would be running the same message.

[Warwickshire Lad]

I have thought long and hard over the last few days as to whether I should start this thread. It is quite a personal story, but I think it gives an indicator as to some factors which can affect the property market.

Very sorry to hear of your split, Phaedrus. Sounds like you are already planning for the future, rather than getting caught up in recriminations.

Unfortunately family events have also taken a nasty turn for me over the last several days as well. I'll still try to keep posting as often as I can though.

[ganymede]

Same thing here Phaedrus. Two years down the line I'm happily renting; the rent hasn't risen in that time and I've just signed for another six months. Looking forwards not backwards certainly helps. Looking forward to a market correction too!

[Nomadd]

I'm renting a lovely big house at the moment. It has a proper garage, so my motorbike is more secure than the shed it was in at the old place. It will be joined in the New Year by another one, I'll keep the old one purely for track days. My only bug bear about renting is that I may have to move again in a year, this weekend was a bit stressful, and I still haven't unpacked everything.

Seems to mirror my situation entirely - although I've been through about 20 motorcycles in the last 10 years!

As regards the landlord wanting the place back - yes, it's always a worry, but if you are a good tennant he'll want to keep you as much as you him. Me and my landlord get on really well. My rent is cheap, he knows the house is well taken care off and the rent always paid on time. We are both very happy with the set-up and see no reason to change it.

Renting is very little hassle - that's why I like it so much.

All the best with your new life - although we might end up tripping over each other at Brands :-)

Nomadd

[Phaedrus]

All the best with your new life - although we might end up tripping over each other at Brands :-)

Nomadd

Only really got into TDs this year, did 5, all at Croft. I want to spread my wings a little next year, so was thinking Oulton, Cadwell and Donnington, Brands may be a little far to go. Just bought a Factory R, leaving the GSXR750 as a dedicated track day tool.

[Catch22]

As regards the landlord wanting the place back - yes, it's always a worry, but if you are a good tennant he'll want to keep you as much as you him. Me and my landlord get on really well. My rent is cheap, he knows the house is well taken care off and the rent always paid on time. We are both very happy with the set-up and see no reason to change it.

Renting is very little hassle - that's why I like it so much.

All the best with your new life - although we might end up tripping over each other at Brands :-)

Nomadd

Phaedrus I agree with Nomadds comments, especially the best wishes with your new life, it cannot have beeen easy this past year or so for you.

Also you don't need to justify your actions as "being a forced STR" you looked at the options and you take the view right now it's better to rent. We know there's people on this site with a problem regards STR'ers, but it's exactly that, their problem not yours.

We are renting a house who's owners are living abroad and have been for years. They keep the house because it was/is their UK home. So in esscence we can stay as long as we want, although it is rented out on a SHTA. So as it stands seeing as we complete the six months agreement this week, we can give them one months notice, and they can give us two months. But the fact of the matter is the landlord prefers longer lets for obvious reasons.

And like Nomadd states landlords like and respect good tenants. Only way Nomadd has it over on me is the lucky blighter knows his landlord, I'm doing it via an agent. But they admit it will be the only tenancy they get back that will be in a better condition than it was when let out. But that's me being a tradesperson who cut his milk teeth on building sites, I like everything spot on and don't mind putting stuff straight.

Best of look mate, and think on don't go and falling off that new bike

[OzzMosiz]

Phaedrus

Went through the same situation last year! Split with my girlfriend.

Put house up for sale, we eventually had an offer 5 months in at around 3-4% below asking (after dropping

it as well) then found I couldn't really afford to buy, unless I wanted a crap life!

I feel for your situation mate, its not easy is it! Good luck for the future!

[verolution]

i'm not married but presumably will be some time in the future, is there any way to avoid losing your house in event of divorce? how about putting it in your parents name and then 'renting' it from them, or tying it up in a trust somehow ?

[Phaedrus]

i'm not married but presumably will be some time in the future, is there any way to avoid losing your house in event of divorce? how about putting it in your parents name and then 'renting' it from them, or tying it up in a trust somehow ?

I don't think most people go into a marriage with those thoughts to the forefront of their mind. Although I put more money down for the deposit, spent more money on the house and paid more into the mortgage than my wife, it was still also her house too. In the eyes of the law all assests in a relationship are joint assests. I don't begrudge my wife her share, and wouldn't change a thing, as this has been a huge learning process for me.

[Milkshock]

I don't think most people go into a marriage with those thoughts to the forefront of their mind. Although I put more money down for the deposit, spent more money on the house and paid more into the mortgage than my wife, it was still also her house too. In the eyes of the law all assests in a relationship are joint assests. I don't begrudge my wife her share, and wouldn't change a thing, as this has been a huge learning process for me.

I take it the sale was 50/50 in profit then?

Is this normal? It sounds like there were no kids involved?

[classixuk]

i'm not married but presumably will be some time in the future, is there any way to avoid losing your house in event of divorce? how about putting it in your parents name and then 'renting' it from them, or tying it up in a trust somehow ?

Firstly let me express some sympathy to Phaedrus and Warwickshire Lad about the tough times you're having with your family situations at the moment. I hope everything turns out OK for both of you.

Mescalinemonkey...NEVER put your house into someone else's name. My partner is involved in a court battle that's cost us over a year of our lives and £20,000 so far over doing just that. We're actually attending our first mediation session tomorrow, which the judge has ordered both parties to do before setting a trial date. Why? Because the trial is expected to last at least 8 full days and cost in the region of £100K! The house being argued over is the house we live in, a 3 bed semi worth just £170K. All of this could have been avoided if my partner had put the house in his name in 1994 when he purchased it.

I'm 28 and am extremely glad to have learned this very valuable lesson first-hand and I will share it with everyone here. I cannot express how important this lesson is. It's cost me £20K so far to learn this and I'm going to give it away now for free to all my HPC colleagues...

You are more likely to be stabbed in the back by a desperate family member or friend than you are your worst enemy. This is because if you enter into an agreement involving money or secrets with someone you trust you will generally just shake hands on it. The same forced agreement with an enemy would be fully documented and signed for as proof.

The problem you now face is in predicting the future. While you'll be saved from your enemies, you are laid entirely open to those you presently trust (even your parents, loved ones etc). This may seem quite a shocking and cynical way of thinking at first but bear in mind that whilst your mum and dad may never change as people (i.e. they'll always be your mum and dad who love you very much), the situations your mum and dad find themselves in at some point in the the future may change them.

An agreement with anyone is not worth jacksh1t until it is written down in ink, signed by both/all parties involved, dated and witnessed. Take this approach with your accountant, solicitor, parent, child, spouse, best friend, credit card company...anyone with whom you have agreed to take from or give money to for any purpose that may leave you vulnerable if their situation changes.

As I've already said, it's not people that change, it's situations that change people and nobody is immune to that...not even someone you love very much.

Thanks for reading!

[Phaedrus]

I take it the sale was 50/50 in profit then?

Is this normal? It sounds like there were no kids involved?

No children involved. However, my wife got the bulk of the proceeds, due to the disparity in incomes and pensions between us.

[jpidding]

Sorry to hear about your sad split story and that despite your hard effeorts you have lost out. Like the trackdays on the bike idea....I'm a personal fan of the Nurburgring, having completed 250 laps in my Scooby. Dont recommend this one for bikers necessarily though....too few run off areas plus many high speed corners. Also the mixture of quality of maintenance of the vehicles means the odd drip of oil of water on the track....not too bad in a car, but puts the fear of God into bikers. Anyway I digress....

On the subject of money, I've been thinking long and hard about how to protect my 100k saved so far towards a house, which I intend to buy at some point over the next 1-5 years, market depending. In the next few weeks I'm gonna sink at least half of it into gold. All the indicators are that depsite rises over the past few years (and esp recently) its still undervalued when compared to other indicators (oil, systemic risk, inflation then deflation etc). Dont mind a few ups and downs along the way, but my bet is that it will be the best place for money over the next few years.

Only question now is whether to have a gold account, gold mining shares physical gold etc.

Best regards,

James.

[Milkshock]

No children involved. However, my wife got the bulk of the proceeds, due to the disparity in incomes and pensions between us.

so what was the split in percentage terms? sorry for being nosey, its just good to know these things for future reference.

[Phaedrus]

so what was the split in percentage terms? sorry for being nosey, its just good to know these things for future reference.

60:40 split.