Jump to content
House Price Crash Forum

Recommended Posts

3 hours ago, fuzzy_bear said:

For me, no way but then I have kids to worry about & don't have a lot of money I can afford to lose. 

Huge gamble whatever way you look at it - Essentially shorting the housing market. 

+1. Reducing ones leveraged BTL empire would make sense in the current environment. (I'm sure savvy HPC-ers have considered adjusting their portfolios...)

But selling your only property - where you live - to rent is a bigtime gamble. Shag and hassle - and for what return?

Link to post
Share on other sites
9 hours ago, qejunkie said:

Any tips? FWIW I'm looking for reasons not to exchange this week on agreed sale from Boris bounce Feb price?

I have done it twice with family 2007 -2009 - was brilliant interests at normal levels even more so with Icelandic banks (God bless Alistair ) plenty of choice of family homes we rented a 5 bed and 4 bed in good areas £1800 a month each of them and super landlords one set of which we are still friends with 

2nd time 2017 -2018 different story no choice to speak of, so ended up in a three bed semi in good area granted , £1750 a month no direct landlord had to deal with w***** of an agent. Cash making no money in the bank. Could only stick for a year so bought back in, the way I look at it is we are two years in now and with other cost saved £50k over rent in those two years.

the hidden costs are storage, things seem to evaporate - general dissatisfaction

Both times the right move but don't do it to try and bag a bargain in the future - do it to unload a house at peak but might be too late for that 

Don't be fooled its a risky move I won't do again

 

Edited by GregBowman
Link to post
Share on other sites

If houseprices crash I may consider up sizing. Zero chance I would sell to rent as it would be a major inconvenience and it would have to be a major crash to cover costs. 

Link to post
Share on other sites

If you STR'd back in the day and bought physical Gold you would be laughing. This is what I would have done if I owned property :P 

Gold doubles, HPC happens... you would be able to afford a mansion or something.

 

Edited by Warlord
Link to post
Share on other sites
1 hour ago, Warlord said:

If you STR'd back in the day and bought physical Gold you would be laughing. This is what I would have done if I owned property :P 

Gold doubles, HPC happens... you would be able to afford a mansion or something.

 

Accept you wouldn't have timed it correctly.

I would have sold my house and bought Apple shares in 2001. No actually Amazon even better... easy with hindsight?

If you sold your house for physical gold in 2011,2012 you would just about be back to the price you paid for the gold now... having done what? Live in it.. no rented for the last 9 years while the price of property went up. Not ideal.

Link to post
Share on other sites
On 01/07/2020 at 14:02, “Nasty Piece of work” said:

I STR’ed 12 years ago, and still rent.  Simply it suited me,  and the financials have continued to go in the right direction.  I will buy early next year probably.

 The one bit of advice I’d offer is don’t presume you will only be in the rental for 6 months, or so.  I haven’t been - but it’s “nice”area, that didn’t impose a “time limit” on my patience.  I have been lucky by accident.

 

I STR in 2006.  really because I was going abroad.  I was only away a year and I have rented in the UK since....my advice is don't do it.  i should have bought again years ago.

Link to post
Share on other sites

It can work out nicely, but you are at the mercy of lying politicians.

We sold, to move area, in 2005 and didn't buy again until 2017.

From 2005 to 2012 we were quids in, because the interest on the cash we had in the bank, which would otherwise have been tied up in a house, paid our rent more than twice over. That all changed after 2012 when Cameron and Osborne reneged on their election manifesto and introduce HTB, FLS, TLS and other measures to reinflate Labour's housing bubble. We bought again in 2017, because we really needed a secure UK base, but lost half of the gain we had made between 2005 and 2012.

Link to post
Share on other sites
On 01/07/2020 at 22:23, doomed said:

If houseprices crash I may consider up sizing. Zero chance I would sell to rent as it would be a major inconvenience and it would have to be a major crash to cover costs. 

Basically this. You have stamp duty fees, moving costs, lawyers, then the rent costs more than the interest you pay on the mortgage, and what do you do with the money you have just gained from the sale? Risk it in equities while waiting for a house price crash, knowing that in all likelihood equities will also crash if houses crash. Or do you put it in a bank account earning nothing? 

If you actually did the maths instead of using gut feel, I think you'd find you'd need something like a 15% crash after a year just to break even. And this just keeps getting higher the longer you wait. You better be very, very certain of that house price crash.

I gambled against owning a house once. I now own a small house and I'm definitely not going to gamble again. If prices crash 20%, great, I lose 20% of a small house, but get 20% off of a larger house. Not the optimal outcome but far safer.

Link to post
Share on other sites

I wanted to do this but was vetoed by my wife who has no interest in house prices/finances etc, again kids was a major factor too. My wife has the view of renting being throwing money away, I'm an 'opportunity cost' minded person.

Called the top of our inherited flat a couple of years ago, it was at least 10% down in real terms at start of year so at least another 5% down now. The much smaller amounts I have in global diversified funds have returned at least 10% pa over last 2-3 years so we would be well up assuming a rental cost of 4-5%

So in pure financial terms I was right then, now it's probably more marginal. 

I am still planning to move from a high value area in London to a much cheaper commuter town in next couple of years so I guess that's a halfway solution (assuming London doesn't crash disproportionately)

 

Link to post
Share on other sites
On 7/1/2020 at 4:57 PM, dugsbody said:

No amount of patience is going to take that property back to 2010 levels.

If it is a home and not a financial investment it does not really matter.

If I had a mortgage I would rather pay that off than pay a LL mortgage for him.  

I think too  many folk think of a property purchase as a financial investment rather than a home for themselves and their family

41 minutes ago, dugsbody said:

Basically this. You have stamp duty fees, moving costs, lawyers, then the rent costs more than the interest you pay on the mortgage, and what do you do with the money you have just gained from the sale? Risk it in equities while waiting for a house price crash, knowing that in all likelihood equities will also crash if houses crash. Or do you put it in a bank account earning nothing? 

If you actually did the maths instead of using gut feel, I think you'd find you'd need something like a 15% crash after a year just to break even. And this just keeps getting higher the longer you wait. You better be very, very certain of that house price crash.

Agreed - a load of hassle and time spent -  worrying about property prices - lining a LL pocket - all for what?

To save a few £££ !!!

Think of a house as home not a financial investment 

Link to post
Share on other sites
1 minute ago, richmondtw said:

If it is a home and not a financial investment it does not really matter.

If I had a mortgage I would rather pay that off than pay a LL mortgage for him.  

I think too  many folk think of a property purchase as a financial investment rather than a home for themselves and their family

Agreed - a load of hassle and time spent -  worrying about property prices - lining a LL pocket - all for what?

To save a few £££ !!!

Think of a house as home not a financial investment 

Lol... "Paying your landlord's mortgage", the standard jibe of the VI troll.

Link to post
Share on other sites
1 minute ago, Bruce Banner said:

Lol... "Paying your landlord's mortgage", the standard jibe of the VI troll.

As renting is not doing that....?

Landlord at the end of each month.. oh well... guess im paying off the mortgage again this month, if only i had a monthly income from the tenant to cover this.

Link to post
Share on other sites
3 minutes ago, captainb said:

As renting is not doing that....?

Landlord at the end of each month.. oh well... guess im paying off the mortgage again this month, if only i had a monthly income from the tenant to cover this.

And another one, I love it when they back each other up.

Link to post
Share on other sites
1 minute ago, Bruce Banner said:

And another one, I love it when they back each other up.

You are right. You are not paying your landlords mortgage through renting. Not dilusional at all. 

Some people may wish to have a rational discussion about quantum of falls and advantages of moving when.. 

 

Link to post
Share on other sites
8 minutes ago, captainb said:

You are right. You are not paying your landlords mortgage through renting. Not dilusional at all. 

Some people may wish to have a rational discussion about quantum of falls and advantages of moving when.. 

 

And then they keep digging, priceless ?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 434 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.