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Just thought I'd put up a picture of the house we are currently renting.

http://www.rightmove.co.uk/viewdetails-514...a_n=1&tr_t=rent

We gave notice last month so the LL is readvertsing it, but we are actually going to stay at least until the end of the summer.

BTW we are paying £1350 pm, the house was valued this time last year at £550k so godness knows how the figures work out for LL.

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Well done, £1,350 pcm represents about a 3% gross yield on £550,000, even if he can get £2,000 pcm that is less than 4.5%. Any idea when your landlord bought the place and how much he paid? If recent he must be losing an absolute fortune!

Any body else still think renting is money down the drain?

Edit: My spelling is as bad as his financials!

Edited by Young Goat

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Well done, £1,350 pcm represents about a 3% gross yield on £550,000, even if he can get £2,000 pcm that is less than 4.5%. Any idea when your landlord bought the place and how much he paid? If recent he must be losing an absolute fortune!

Any body else still think renting is money down the drain?

Edit: My spelling is as bad as his financials!

Of course it's money down the drain, always will be!

Renting's dead money.

Who can afford to flush 16k in rent money down the drain every year? What a waste.

You probably wouldn't lose that if you owned your house in this falling market.

But it isn't down the drain it's straight into the hands of your LANDLORD the person you despise so much but you all keep feathering his nest.

Until you stop renting from BTL'rs you will just keep fueling the fires of all you hate.

Chances are he owns the house outright and it's alll profit anyway.

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Guest The_Oldie

Of course it's money down the drain, always will be!

Renting's dead money.

Who can afford to flush 16k in rent money down the drain every year? What a waste.

You probably wouldn't lose that if you owned your house in this falling market.

What utter nonsense. In a falling market, £16K a year on rent is much cheaper than spending £20K+ on mortgage interest only to find that your house is worth less than you paid for it at the end of the year.

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What utter nonsense. In a falling market, £16K a year on rent is much cheaper than spending £20K+ on mortgage interest only to find that your house is worth less than you paid for it at the end of the year.

You should compare rent with the interest part of the loan. When one is greater than the other you can see whether to buy or rent.

As for whether the capital price rises or falls its irrelevent. When its cheaper to rent prices are usually falling or about to fall, when its cheaper to buy prices are likely to rise. Cycles are wonderful things when you understand them.

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Of course it's money down the drain, always will be!

Renting's dead money.

Who can afford to flush 16k in rent money down the drain every year? What a waste.

You probably wouldn't lose that if you owned your house in this falling market.

But it isn't down the drain it's straight into the hands of your LANDLORD the person you despise so much but you all keep feathering his nest.

Until you stop renting from BTL'rs you will just keep fueling the fires of all you hate.

Chances are he owns the house outright and it's alll profit anyway.

I assume this is sarcasm.

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Firstly i don't despise my LL he's a good guy, my point was purely we could never afford to live here if we had to buy it. I'm not great at maths but I don't think £1350 would even cover the interest assuming we could ever save the 10% deposit and stamp duty costs.

I know he paid £160k for it 5 years ago but has remortgaged tobuy other property.

He was getting £2k a month from a corporate let but then after it stood empty for 6 months we were in the right place at the right time.

I don't consider it money down the drain at all, I love living here, it's abit of a fantasy and not forever so i'm enjoying it whilst I can.

BTW our neighbour still look down their noses at us because we're renters which makes me laugh as we live in the biggest house on the development.

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Just thought I'd put up a picture of the house we are currently renting.

http://www.rightmove.co.uk/viewdetails-514...a_n=1&tr_t=rent

We gave notice last month so the LL is readvertsing it, but we are actually going to stay at least until the end of the summer.

BTW we are paying £1350 pm, the house was valued this time last year at £550k so godness knows how the figures work out for LL.

Is there not a 3 bedder for sale there at approx. 260-280K? It`s worth 300K IMHO at todays prices. ;) If they`ve owned for some time I shouldn`t think they`re too concerned, the original development 10 years ago, some units were less than 100K. BTW £1350 rent is extortionate :o

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some units were less than 100K. BTW £1350 rent is extortionate :o

Yes I agree £1350 is extortionate. Why not get get a cheaper place and use the change more wisely.

The LL will be having a nice Christmas and summer holiday on this one. You're filling his pockets.

Remember, not everybody relies on a mortgage to buy a property

No this isn't sarcasm! If you can't afford it don't buy it! It's simple common sense.

Never a borrower or lender be.

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No this isn't sarcasm!

Oh, sorry, I asumed you were taking the mickey.

If you can't see that it is better to pay £16,000 to use a house owned by someone else rather than £30,000 to use a house owned by the bank then what can I say?

As far as not losing £16,000 in a falling market is concerned, that is 3% of the value of the property, can't say that i'm confident that prices won't fall more than that. To put it another way, a 30% fall is the same as living in the property rent free for ten years.

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Yes I agree £1350 is extortionate.

What utter rubbish. They are doing very well renting it like that.

If the place costs £550k, it would be better to sell it and then rent. With £550k in the bank you are going to get about £20k (mind) per year in interest. That covers your rent. If prices fall, well you do even better.

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Yes I agree £1350 is extortionate. Why not get get a cheaper place and use the change more wisely.

The LL will be having a nice Christmas and summer holiday on this one. You're filling his pockets.

Remember, not everybody relies on a mortgage to buy a property

No this isn't sarcasm! If you can't afford it don't buy it! It's simple common sense.

Never a borrower or lender be.

Change your font color. Its hard to read, and offensive.

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What utter rubbish. They are doing very well renting it like that.

If the place costs ?550k, it would be better to sell it and then rent. With ?550k in the bank you are going to get about ?20k (mind) per year in interest. That covers your rent. If prices fall, well you do even better.

£1350 is a stunningly good deal!

A morgage on that would cost circa £3000 of which circa £900 would be capital in the first 2 years. Based on a loan of 515k

That leaves £2100 interest to a bank vs £1350 to your landlord.

BTL trolls for people who don't already own houses these are the choices. Rent cheaper than buying, or pay a premium for buying at the top of the cycle.

Loan Stats

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No-one has commented on the fact it is up for £2k a month now. If I were the landlord I'd be saying to the letting agency (Countrywide - say no more) - 'why the feck am I only getting 1350 now when you clearly think the market rate is 2000?'

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Of course it's money down the drain, always will be!

Renting's dead money.

Who can afford to flush 16k in rent money down the drain every year? What a waste.

You probably wouldn't lose that if you owned your house in this falling market.

You clearly don't understand basic arithmetic. If you bought that place on a 80% mortgage you'd pay around £20,000 in interest in the first few years. If the value of this house falls by 1% in real terms i.e. after taking acount of inflation that's another £5,000 lost! Compare that to the rent and sdon't forget interest/ROI on your 20% deposit, housing maintenance costs etc.

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£1350 is a stunningly good deal!

A morgage on that would cost circa £3000 of which circa £900 would be capital in the first 2 years. Based on a loan of 515k

That leaves £2100 interest to a bank vs £1350 to your landlord.

BTL trolls for people who don't already own houses these are the choices. Rent cheaper than buying, or pay a premium for buying at the top of the cycle.

Ahem....that would be OK if the property was truly worth 550K, but it isn`t,

http://www.rightmove.co.uk/viewdetails-940...pa_n=1&tr_t=buy :D

http://www.rightmove.co.uk/viewdetails-948...pa_n=1&tr_t=buy

As for rent, a fair rent in this area?

http://www.clivewatkin.co.uk/full-details....ropertyid=76153

http://www.vebra.com/home/search/vdetails....79&pid=10087839

Edited by Converted Lurker

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It would depend on much the LL paid for it. I am in similar position I am renting house for 600 per month and there are 3 properties on my street for sale. Two of these properties been on the market for at least 1 year asking price for both is £210K, the 3rd one on the market for 3 months priced at 269K. I tried to find out what the LL paid for my rented house via land registry but price stated was not available. The LL stated that he lived there for the last 12 years but the last update on land registry was in 2003?

Is there any other way to find out how much LL paid for this house?

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Yes I agree ?1350 is extortionate. Why not get get a cheaper place and use the change more wisely.

The LL will be having a nice Christmas and summer holiday on this one. You're filling his pockets.

Remember, not everybody relies on a mortgage to buy a property

No this isn't sarcasm! If you can't afford it don't buy it! It's simple common sense.

Never a borrower or lender be.

This rubbish about rent being lost money is absolute tosh, its the type of thing my gran says. If you have 500K cash to buy a house then it would be earning at least interest until you spend it. When you buy your house you give up the investment gains. If you have a mortgage for a house it costs you interest which is still outgoing funds....The arithmetic is what is important....

A point on the other side is of course when comparing yields then you need to use figures of what you would realistically pay for it when you start to rent. You cannot use asking price as its clearly not accurate.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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