shindigger Posted February 9, 2016 Share Posted February 9, 2016 As per title really. My concern would be as much to do with the safety of the cash, than wathcing prices soar further. Is the cash safe? Subject to the £75k limit of course. Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted February 9, 2016 Share Posted February 9, 2016 Can't you spread the cash over several places. Quote Link to comment Share on other sites More sharing options...
Butthead Posted February 9, 2016 Share Posted February 9, 2016 Is it just about cash? What about the enormous hassle of moving house, renting somewhere, storage, all the changing of addresses for everything...? All for maybe making a few thousand pounds (minus fees don't forget, you'll pay SDLT when you buy again) if the government don't do something else to prop up house prices at the expense of the general population (which they have shown consistenly they are minded to do). I wouldn't. Life's too short. Quote Link to comment Share on other sites More sharing options...
headmelter Posted February 9, 2016 Share Posted February 9, 2016 I've considered this as well but as I'm happy in my current abode I see it as too much hassle and fraught with possible risks. If there is a further round of QE & another reduction in rates I plan to fix for an extended period.... Just in case there is a 'jubilee' (highly unlikely) or peoples QE (also highly unlikely) but you've gotta hedge your bets. Quote Link to comment Share on other sites More sharing options...
nome Posted February 9, 2016 Share Posted February 9, 2016 (edited) Throughout 2014 I was seeing a steady rise in properties coming on to the market in my area but sales volumes were stagnant at best, I was convinced that all these vendors struggling to shift their overpriced properties would have to 'get real' and drop their prices if they wanted to sell... so I sold up in Sept 14 on the assumption that prices were going to drop a little (I did have other reasons for wanting to move as well) Anyway, I called it wrong... instead of large numbers of vendors dropping their prices what actually happened was large numbers of vendors threw their toys out of the pram and withdrew their properties from the market, stock numbers are down around 40% from when I sold and all that's left on the market is the dregs, crap houses in crap areas for stupid money. I suppose the mistake I made was assuming that all (or at least most) of the vendors were genuinely looking to sell when it turns out that the large majority of them were just deluded/kiteflyers. Edited February 10, 2016 by mike74 Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted February 9, 2016 Share Posted February 9, 2016 I would (and have) STR'ed. Take retards money. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 9, 2016 Share Posted February 9, 2016 Yes if the price is right. Once a hpc'er, always a hpc'er Quote Link to comment Share on other sites More sharing options...
thejaksie Posted February 9, 2016 Share Posted February 9, 2016 I str in 2012. Timing wrong, but would do it again . I didn't str just for the sake of it, wanted to move in any case and didn't want to buy. Renting has been great for me I have to say. Especially when I took a year off from work to travel - with no property hassle Quote Link to comment Share on other sites More sharing options...
Frugal Git Posted February 9, 2016 Share Posted February 9, 2016 (edited) Depends on how bubblicious the offer is. If the offer is 80k on a house that you think is worth 50k, then it's a maybe considering the hassle. If the offer is 400k on a 2 bed house near Cambridge that you can't believe is really 'worth' even 120k, then yessir! Edited February 9, 2016 by Frugal Git Quote Link to comment Share on other sites More sharing options...
Timak Posted February 9, 2016 Share Posted February 9, 2016 Friends of ours have done so, albeit they were going to be leaving the country regardless in 12 months time. Their tiny, tiny terraced house in Cambridge went for £315k. I cannot stress how small this house is. I can't see how this bubble is sustainabe - but then I've been saying that since about 2006. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted February 9, 2016 Share Posted February 9, 2016 As per title really. My concern would be as much to do with the safety of the cash, than wathcing prices soar further. Is the cash safe? Subject to the £75k limit of course. NS&I will give you 1.1% on £2m. How bubblicious is this offer? Quote Link to comment Share on other sites More sharing options...
Sawitcoming Posted February 9, 2016 Share Posted February 9, 2016 Hell yeah!! Quote Link to comment Share on other sites More sharing options...
Frugal Git Posted February 9, 2016 Share Posted February 9, 2016 Friends of ours have done so, albeit they were going to be leaving the country regardless in 12 months time. Their tiny, tiny terraced house in Cambridge went for £315k. I cannot stress how small this house is. I can't see how this bubble is sustainabe - but then I've been saying that since about 2006. Yep, the reason why I gave the example of a 400k the 2 bed in cambs is because someone I know only today became embroiled in a 'bidding war' on one, saying they thought it was underpriced anyway. I took a shifty on rightmove at it (they gave evetything about it away) and couldn't believe my eyes. I genuinely wouldn't be paying over 100k for it, anything into six figures seems ludicrous for it, and here we are at 4 x that. Pointed out that the extra five figures they'd just bid to 'stave off' the other interested party (who was 'stingily' outbidding up in 1k increments) was one extra year of work over a lifetime with interest. This is a couple of professionals earning good money pledging a huge swathe of lifetime earnings, and the seller must be laughing their head off. Quote Link to comment Share on other sites More sharing options...
BristolBuyer Posted February 10, 2016 Share Posted February 10, 2016 I have STR in the past, I will never do it again. The house I currently own isn't perfect but there's no way I'm going to sell unless I buy somewhere else at the same time. A combination of immigration and govenment support for ever-increasing house prices make any significant price reductions very unlikely. Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 10, 2016 Share Posted February 10, 2016 I have STR in the past, I will never do it again. The house I currently own isn't perfect but there's no way I'm going to sell unless I buy somewhere else at the same time. A combination of immigration and govenment support for ever-increasing house prices make any significant price reductions very unlikely. I don't blame people for NOT str-ing, timing is a bitch, but this last comment is so stupid it makes me want to vomit. You think it's that simple? Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted February 10, 2016 Share Posted February 10, 2016 I STR'd in 2003 for high 300's, bought back in 2010, low 300's for a similar place. Made >£50K on the difference, but paid £80K in rent and saved ~£40K in capital repayments => only up £10K which basically covered costs. Unless there is a decent crash in a short period of time or you want to move anyway, it's difficult to justify. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 10, 2016 Share Posted February 10, 2016 I STR'd in 2003 for high 300's, bought back in 2010, low 300's for a similar place. Made >£50K on the difference, but paid £80K in rent and saved ~£40K in capital repayments => only up £10K which basically covered costs. Unless there is a decent crash in a short period of time or you want to move anyway, it's difficult to justify. Would you have been able to sell for high 300s in 2010?Would you have been able to buy for low 300s earlier on? Do your calcs include interest gained on your capital? Back when rates were good. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted February 10, 2016 Share Posted February 10, 2016 (edited) Would you have been able to sell for high 300s in 2010? Would you have been able to buy for low 300s earlier on? Do your calcs include interest gained on your capital? Back when rates were good. First - Yes Second - Yes, but probably only up to 2005. (and did makes offers up to then but all refused as too low). Had to wait until 2010 for an acceptance from desperate seller. Third - No. I was getting an average of 4% on around £300K of STR equity, mostly tax-free as wife is non-taxpayer. Basically, it covered the rent completely. Edited February 10, 2016 by VeryMeanReversion Quote Link to comment Share on other sites More sharing options...
winkie Posted February 10, 2016 Share Posted February 10, 2016 No.....not if I didn't have to........would possibly sell to buy again, in that case a HPC will mean next property even cheaper, less debt to take on or no debt to take on depending........or travel and rent, but only rent value......there are lots of rental places that offer exceptional value at the moment. Quote Link to comment Share on other sites More sharing options...
Caveat Mortgagor Posted February 10, 2016 Share Posted February 10, 2016 I have STR in the past, I will never do it again. The house I currently own isn't perfect but there's no way I'm going to sell unless I buy somewhere else at the same time. A combination of immigration and govenment support for ever-increasing house prices make any significant price reductions very unlikely. Immigration only affect house prices if there is a mechanism for transferring numbers of people into demand for buying a house. It was straight forward before The poorest person got housing benefit and enabled a landlord to outbid someone buying their own home. Gideons changes to rules on BTL interest, stamp duty etc will surely mean the link between immigration and upward pressure on house prices is hugely reduced. Quote Link to comment Share on other sites More sharing options...
shindigger Posted February 10, 2016 Author Share Posted February 10, 2016 I'm not talking huge amounts here. c £280k. However building not in tip top nick, boiler old, and due to new regs, kitchen needs remodelling etc etc. Would be wlaking away about £120k up over 13 years. Sod all really in the scheme of things. The need for alterations due to ageing parent is also hoving in to view. I wouldn't plan to stay out of the market long, i did THAT in London, in 2002. A rather large mistake it has to be said. I'd free up about £450 cash for another place if required. Fancied a trip to the auctions. Hence the str. Have been looking at newer build places to save on maintenance etc. Without exception they are dismal little prisons, with the cost cutting of balance sheet builders evident everywhere you look. A real eye opener that one. This time i'm much less worried about prices soaring away again,but more about where to park the dosh with all this talk of bail ins. There arent enough people in this country with sufficient cash, to be politically significant, so could be open season on cash. Most people would probably enjoy, seeing people they consider well off, having some of it pinched. Quote Link to comment Share on other sites More sharing options...
shindigger Posted February 10, 2016 Author Share Posted February 10, 2016 STRing is like BTLing; you need to do the sums properly (as you have). Just to move in and out of the market, ie sell and buy the same house the next day will cost around 5% (3% SDLT and 2% fees and other costs). Assuming all cash, your interest will be around 2% (can get more but difficult if you want access to the cash to buy back in when YOU want to) and rent (where we are) is about 4% of property cost. So in the first year you need a fall of around 7% to break even rising to 9% in year 2 and 11% in year 3. So I agree it is difficult to justify with the uncertainties of renting and the government and the BBC working against you as well. Nicely put. Quote Link to comment Share on other sites More sharing options...
Funn3r Posted February 10, 2016 Share Posted February 10, 2016 Forced to sell due to the D word, now sitting on cash praying for HPC Quote Link to comment Share on other sites More sharing options...
Guest Posted February 10, 2016 Share Posted February 10, 2016 After more than a decade priced out, if I ever actually manage to obtain my own space the only way I'll be leaving is in a box. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted February 10, 2016 Share Posted February 10, 2016 (edited) Nicely put. Personally don't see the sums working out without a crash so dramatic that the last thing you want is cash in the bank or a house. I STR'd in 2007 and brought early 2010 which was good timing but absolute 100% fluke. What was in place then which isn't now was: 1. Crash happening 2. No gov support for house prices 3. Decent interest rates in Iceland ! Yep thx Alistair 4. Panicking mid chain sellers renting decent family houses 4/5 bed close to London for circa £1600 a month 5. Low gold price so punted on gold and won On reflection the house I sold didn't crash much, but the larger house I bought dropped £150k and was effectively a step away from repo we bought unoccupied and with some improvements and decoration half finished but the new staircase was in ( funny priorities ) So from personal experience it can work but only really if you bet large i.e STR and then trade up. A big risk indeed Edit: meant repo not repro bit sad Eddie George didn't pick me up on that Edited February 11, 2016 by Greg Bowman Quote Link to comment Share on other sites More sharing options...
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