Flat Next Door

[gilf]

I haven't been on the site much of late, busy working and such like. It seems there has been a transition since I last visited reguarly from people waiting and hoping for good bearish news to now where it comes thick and fast and the site now is more about how we interperate that information.....

Anyway, I walk past a couple of estate agents on the way to the station in the morning, for about 4-5 months I stopped getting the train but now a new job has me passing once again. I have noticed that many of the properties are the same as 4-5 months ago. I know this because many are on the same private estate I rent on currently, I have been keeping and eye on these to get a general idea of the market locally, one particular one is this.....

http://www.rightmove.co.uk/viewdetails-927...pa_n=1&tr_t=buy

It's been on for a few months, but then this week it's come on for rent.

http://www.rightmove.co.uk/viewdetails-103...a_n=1&tr_t=rent

So you can pay a mortgage on it for circa £1200 a month or rent it for £850.

Why not go interest only? If you look at the small print it's lease hold with a twice yearly service charge plus a compulsory £70 a month gym fee, at interest only it's £820 a month plus adding on the gym charge it's still cheaper to rent.

I rent a flat around the corner (under the water tower in the picture) which is about 3 times the size of this one, my landlord kindly pays the gym fee for me and the rent is much less than it would cost me to buy this smaller place.

[red]

...

I rent a flat around the corner (under the water tower in the picture) which is about 3 times the size of this one, my landlord kindly pays the gym fee for me and the rent is much less than it would cost me to buy this smaller place.

Aye, but he's in it for the long term...

[judas]

Aye, but he's in it for the long term...

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

[New Bear]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

I'm not struggling to understand the concept and I'm quite happy to see landlords doing it if that suits them - just as long as they don't expect me to follow their example.

[Take me to the cleaners]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

What exactly is "the long term"?

[El_Pirata]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

Would you put all your cash in a very low interest bank account because you were "in it for the long term"?

[Marina]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

Absolutely. It is clear that in an age of globalization - with China and India making most of our goods and now providing lots of our services - with stagnant wages and ever-increasing competition - it is clear that this 1 bedroom flat for £192k will obviously be worth double that in 10 years time.

Or, of course, and in my opinion much more likely, it could be worth 92k then. Or maybe just 52k.

[red]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

So buying now for the 'long term' makes sense rather than waiting for prices to drop? Yes, I can see how this simple concept is lost on most of us here...

[Guest Bart of Darkness]

Exactly. A fairly simple concept that seems to be lost on so many House Price Crash regulars.

Perhaps in the way that sarcasm is lost on you?

(Re-read reds post again, particularly the choice of Smiley).