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10% drop and renting's already cheaper

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I have been renting since 1998, and been in a position to buy since 2011 (married, finished travelling, etc etc), .  We've been holding off becaude of the insane prices, and get a barrage of "renting is dead money" etc etc.

The main basis of that is that the pro HPI brigade in my life honestly believe asking prices equal the "value" of a property. Furthermore once a property is sold at that price, or even just valued at that price, that's IT. It can never be worth less than that .... if it sells for less you're GIVING IT AWAY.  Worse still ... anyone who waits for prices to come down is deluded, and actually pretty inconsiderate of the poor vendor who will lose money!  It would be like trying to buy £1 coins for 50p each - how dare you! You thief!

So, based on that, anyone who rents because prices will come down is immoral, deluded and stupid.... and wasting money of course.

Well lets take this house ...

http://www.rightmove.co.uk/property-for-sale/property-55919380.html

The asking price has dropped from £330k to £300k since september. Regardless of "value", that drop would equate to about £50k of mortgage repayments (had I bought the property at asking price). That £50k is pretty much identical to what I have paid in rent since 2011. So the drops in one month are already enough for me to breakeven versus renting for FIVE YEARS. 

I have no reason to think the drops will stop now, so I'm confident waiting another year or so will allow me to come out of all this on top. 

And if you scale this up to £1m properties in london ... it really won't take much for renters to come out on top financialy compared to those who shackled themselves to insance levels of debt.

 

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It sold last year for 275k, 

Any confidence i had post Brexit has been wiped out by May and Hammond, they're neoliberal  Blairite scum of the lowest order, no decent drops in sold prices with these 2 in charge.

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the problem with that example is in 1998 that house would have probably been on for 50k and in 2011 200k, that's why the pro hpi crew will not believe prices will go down and stay down

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the problem with that example is in 1998 that house would have probably been on for 50k and in 2011 200k, that's why the pro hpi crew will not believe prices will go down and stay down

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the problem with that example is in 1998 that house would have probably been on for 50k and in 2011 200k, that's why the pro hpi crew will not believe prices will go down and stay down

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16 minutes ago, Crumbless said:

It sold last year for 275k, 

Any confidence i had post Brexit has been wiped out by May and Hammond, they're neoliberal  Blairite scum of the lowest order, no decent drops in sold prices with these 2 in charge.

Is that a fair price for that house? No. Would I pay it? No.

I'm just showing that it doesn't take much of a drop for renters to be quids in.

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2 minutes ago, hiace_drifter said:

Is that a fair price for that house? No. Would I pay it? No.

I'm just showing that it doesn't take much of a drop for renters to be quids in.

Are you for real? Quids in because someone lowers a bubble price, i despair.

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1 hour ago, Crumbless said:

It sold last year for 275k, 

Any confidence i had post Brexit has been wiped out by May and Hammond, they're neoliberal  Blairite scum of the lowest order, no decent drops in sold prices with these 2 in charge.

So it would seem.

They've tidied it up a bit.  Who buys a house and tries to sell it within a year at a much higher price?  Too many years that's gone on, and getting the higher prices.  Alongside BTL.

Hello SDLT Surcharge and S24, and more.  I've not got PB but take Hiace Drifter's data (and his future view) that it's now been reduced from £330,000 to offers over £300,000.   Are they going to get out with profitz?

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=52809464&sale=29120388&country=england

http://www.zoopla.co.uk/property-history/18-lindum-road/worthing/bn13-1lx/36511112

 

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15 minutes ago, Venger said:

If for the sake of argument they get 290, they'll break even with a years free rent thrown in.

It looks as if theyve painted the kitchen cupboards and used wood stain on the floor boards, the cheapest refurb in history.Has to be a BTL.

Edited by Crumbless

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Looking at the advert what does "sought after tarring" mean?

 

Using 2002 as a base price (roughly the last time prices were sane plus inflation) I reckon it's worth £210,000 now. So still 30% overpriced

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Was down that way a few weeks ago, never seen so many boomers in my life. I expect the whole place is just one boomer couple selling their HPI gains for another boomer couples HPI gains. Horrible place.

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1 hour ago, eek said:

Looking at the advert what does "sought after tarring" mean?

 

Using 2002 as a base price (roughly the last time prices were sane plus inflation) I reckon it's worth £210,000 now. So still 30% overpriced

Tarring is an area in Worthing. Very popular with retired boomers.

Worthing as a whole is a horrible place. Estate agents try to market it as the new Brighton, which is laughable. But it's popular with retirees looking to be by the sea, commuters (just about commutable to London) and the substantial south coast chav community.

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4 hours ago, hiace_drifter said:

The asking price has dropped from £330k to £300k since september. Regardless of "value", that drop would equate to about £50k of mortgage repayments (had I bought the property at asking price). That £50k is pretty much identical to what I have paid in rent since 2011. So the drops in one month are already enough for me to breakeven versus renting for FIVE YEARS. 

BOOM...someone gets it at last!

And to boot you have been able to live life on your own terms and enjoy yourself.

 

Not sure who said it but "the true cost of something is the amount of life you spend getting it."

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4 hours ago, hiace_drifter said:

http://www.rightmove.co.uk/property-for-sale/property-55919380.html

The asking price has dropped from £330k to £300k since september. Regardless of "value", that drop would equate to about £50k of mortgage repayments (had I bought the property at asking price). That £50k is pretty much identical to what I have paid in rent since 2011. So the drops in one month are already enough for me to breakeven versus renting for FIVE YEARS. 

I have no reason to think the drops will stop now, so I'm confident waiting another year or so will allow me to come out of all this on top. 

And if you scale this up to £1m properties in london ... it really won't take much for renters to come out on top financialy compared to those who shackled themselves to insance levels of debt.

 

You're missing the cost of maintenance out.I recently looked at buying somewhere with Mrs P,who used to be a 'renting is dead money' type.I pointed out to her we could rent the place for fifty years at the purchase price excluding interest payments and maintenance.

The quid pro quo of renting is that generally,you get to live in a nicer house than you could buy for the same monthly sum.The advisory here is that that is less the case as you move down the housing ladder.I've seen a lot of higher end rentals on 2-3% gross yields..One bed flats in places like Leicester are nearer to 6/7%.Having said that,I still wouldn't buy a one bed flat in Leicester as if prices drop you may be there forever.

 

 

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6 hours ago, hiace_drifter said:

I have been renting since 1998, and been in a position to buy since 2011 (married, finished travelling, etc etc), .  We've been holding off becaude of the insane prices, and get a barrage of "renting is dead money" etc etc.

The main basis of that is that the pro HPI brigade in my life honestly believe asking prices equal the "value" of a property. Furthermore once a property is sold at that price, or even just valued at that price, that's IT. It can never be worth less than that .... if it sells for less you're GIVING IT AWAY.  Worse still ... anyone who waits for prices to come down is deluded, and actually pretty inconsiderate of the poor vendor who will lose money!  It would be like trying to buy £1 coins for 50p each - how dare you! You thief!

So, based on that, anyone who rents because prices will come down is immoral, deluded and stupid.... and wasting money of course.

Well lets take this house ...

http://www.rightmove.co.uk/property-for-sale/property-55919380.html

The asking price has dropped from £330k to £300k since september. Regardless of "value", that drop would equate to about £50k of mortgage repayments (had I bought the property at asking price). That £50k is pretty much identical to what I have paid in rent since 2011. So the drops in one month are already enough for me to breakeven versus renting for FIVE YEARS. 

I have no reason to think the drops will stop now, so I'm confident waiting another year or so will allow me to come out of all this on top. 

And if you scale this up to £1m properties in london ... it really won't take much for renters to come out on top financialy compared to those who shackled themselves to insance levels of debt.

For me, a 3-bed end of terrace is not worth £100,000 let alone £300,000.  Prices can never fall low enough for me to ever buy in the UK - it just will not happen in my lifetime (mid 40s).  You'll get your 20%-25% drop and the media will blow it up as a major crash, and yet that end of terrace will still cost £225,000+ - absolute rip-off that will be touted as "great value". 

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6 hours ago, RentingForever said:

Tarring is an area in Worthing. Very popular with retired boomers.

Worthing as a whole is a horrible place. Estate agents try to market it as the new Brighton, which is laughable. But it's popular with retirees looking to be by the sea, commuters (just about commutable to London) and the substantial south coast chav community.

My word, which town gets the benefit of your good taste and charm? I'm pleased its not Worthing... Which I happen to love. 

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5 hours ago, Roman Roady said:

BOOM...someone gets it at last!

And to boot you have been able to live life on your own terms and enjoy yourself.

 

Not sure who said it but "the true cost of something is the amount of life you spend getting it."

Thanks for getting the point of my thread!

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6 hours ago, RentingForever said:

Worthing as a whole is a horrible place. Estate agents try to market it as the new Brighton, which is laughable. But it's popular with retirees looking to be by the sea, commuters (just about commutable to London) and the substantial south coast chav community.

This is exactly what I thought of the place, everyone there was either a boomer or a chav. Lots of ridiculously priced houses/bungalows next to the sea for boomers.

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10 hours ago, hiace_drifter said:

I have been renting since 1998, and been in a position to buy since 2011 (married, finished travelling, etc etc), .  We've been holding off becaude of the insane prices, and get a barrage of "renting is dead money" etc etc.

The main basis of that is that the pro HPI brigade in my life honestly believe asking prices equal the "value" of a property. Furthermore once a property is sold at that price, or even just valued at that price, that's IT. It can never be worth less than that .... if it sells for less you're GIVING IT AWAY.  Worse still ... anyone who waits for prices to come down is deluded, and actually pretty inconsiderate of the poor vendor who will lose money!  It would be like trying to buy £1 coins for 50p each - how dare you! You thief!

So, based on that, anyone who rents because prices will come down is immoral, deluded and stupid.... and wasting money of course.

Well lets take this house ...

http://www.rightmove.co.uk/property-for-sale/property-55919380.html

The asking price has dropped from £330k to £300k since september. Regardless of "value", that drop would equate to about £50k of mortgage repayments (had I bought the property at asking price). That £50k is pretty much identical to what I have paid in rent since 2011. So the drops in one month are already enough for me to breakeven versus renting for FIVE YEARS. 

I have no reason to think the drops will stop now, so I'm confident waiting another year or so will allow me to come out of all this on top. 

And if you scale this up to £1m properties in london ... it really won't take much for renters to come out on top financialy compared to those who shackled themselves to insance levels of debt.

 

Hi HD...seem my thread about the neighbours place dropping their asking price again to around 2013 price they paid.

Renting from 2007-2012 maqde perfect send...2012->2014 it was 50/50...but right now it makes perfect sense again.

 

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I might need to spell it out ... I am NOT saying the house is good value, or  that I would be quids in by buying it. I am saying that renting has left me quids just compared to buying a £30k overpriced house. I expect much bigger drops to come so I will be even better off.

 

Edited by Guest

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