smilie Posted October 24, 2006 Report Share Posted October 24, 2006 Hello I never post on here because up until now I didn't really believe that a HPC was going to happen. But now I'm not so sure. I am looking to move from my current house which I own and have a fairly low mortgage amount to pay off. I viewed my dream house the other day, and couldn’t resist putting an offer in for it. I offered about 95% of the asking price. But of course 2 other parties went straight in at the asking price. I refused to go higher…..but now I’m starting to regret my decision as there are so few quality houses on the market in my area. It looks like the person who has got it is a buy to let investor. But I can’t for the life of me understand how he has managed to get a mortgage because at best the rental income will equal the interest on a typical BTL 85% interest only mortgage (from my calculations). How can this make financial sense? Thinking now that I should have gone over the asking price to get it (although it would have meant stretching myself a lot financially)….although my other plan is to wait for a year or too and start looking at auctions and maybe then picking up a repossessed property at a discounted price? That of course is dependent on some kind of crash taking place…. Quote Link to post Share on other sites
Jason Posted October 24, 2006 Report Share Posted October 24, 2006 If this is really your dream house, why don't you rent it? Then you can sit down each evening knowing your saving a packet. Round my way large 4 bed detached houses have extreamly low yields... Quote Link to post Share on other sites
DICKDASTARDLY Posted October 24, 2006 Report Share Posted October 24, 2006 If its your dream house, I would go for it and offer over. I was in the same boat a few months ago, and have regretted it ever since. Whats a few more thousand in house price terms ? Quote Link to post Share on other sites
subsidiser Posted October 24, 2006 Report Share Posted October 24, 2006 (edited) I think you've got to get on with your life. Don't rely on a HPC on a decision that is going to shape how you live from day to day. Just live your life as you want to. If this house, or similar is what you want go for it but dont get carried away too badly. The HPC speculation should be of interest only to academics and professionals. If a HPC happens how bad will it be? If its 10 percent or less how will that affect you if you stay in that house for ten years or more? You'll hardly notice it. On the other hand if prices keep going up how will that affect you? As for the buy-to-letter - If he has big pockets he / she might think thats its worth getting hold of the property now rather than wait for something similar to come on the market. Edited October 24, 2006 by subsidiser Quote Link to post Share on other sites
Lionel Richtea Posted October 24, 2006 Report Share Posted October 24, 2006 If this is really your dream house, why don't you rent it? Then you can sit down each evening knowing your saving a packet. Round my way large 4 bed detached houses have extreamly low yields... I've been wondering about this. I reckon it's because those who need a four bed house are the people who are in exactly the wrong postion to become a renter i.e. family, job, etc, and really can't take the risk of being turfed out of their home with four week's notice. Which has the effect of (a) putting the sale price of those houses up whilst (b ) depressing the rent. Which is also why your rarely see four bed family homes being bought as BTLs. Finally, has anyone really had a dream where they rented their home..? Quote Link to post Share on other sites
IamSpartacus Posted October 24, 2006 Report Share Posted October 24, 2006 Finally, has anyone really had a dream where they rented their home..? I did. And an aging popstar with a biscuit for hair was chasing me round and round it. Terrifying. I really should avoid eating cheese before bedtime... Quote Link to post Share on other sites
Guest Charlie The Tramp Posted October 24, 2006 Report Share Posted October 24, 2006 Well my inlaws have rented for 66 years and only the other day the MIL told me that if the FIL really cared about her he would have bought her a house years ago. He replied yes at those bloody prices, my parents paid only £300 for their cottage. That`s the trouble with marriage you can never please the wife can you ? Quote Link to post Share on other sites
IamSpartacus Posted October 24, 2006 Report Share Posted October 24, 2006 That`s the trouble with marriage you can never please the wife can you ? Speak for yourself... Quote Link to post Share on other sites
Guest Charlie The Tramp Posted October 24, 2006 Report Share Posted October 24, 2006 Speak for yourself... Well you can`t be doing your duty, you spend too much time on here. Quote Link to post Share on other sites
a j Posted October 24, 2006 Report Share Posted October 24, 2006 I've been wondering about this. I reckon it's because those who need a four bed house are the people who are in exactly the wrong postion to become a renter i.e. family, job, etc, and really can't take the risk of being turfed out of their home with four week's notice. Which has the effect of (a) putting the sale price of those houses up whilst (b ) depressing the rent. Which is also why your rarely see four bed family homes being bought as BTLs. Finally, has anyone really had a dream where they rented their home..? Other than executive lets, have decent family homes ever made a positive rental return unless let as HMOs? Its a fundamentally different market to one bed flats and FTB type places. Quote Link to post Share on other sites
IamSpartacus Posted October 25, 2006 Report Share Posted October 25, 2006 Well you can`t be doing your duty, you spend too much time on here. She's in Germany at the moment. I'm taking a holiday Quote Link to post Share on other sites
iLegallyBlonde Posted October 25, 2006 Report Share Posted October 25, 2006 Other than executive lets, have decent family homes ever made a positive rental return unless let as HMOs? Its a fundamentally different market to one bed flats and FTB type places. Our last landlord only had 4 bed detached type properties, he went for the executive let and made a lot of money on capital gains, in it for the long term you understand Quote Link to post Share on other sites
blondebier Posted October 25, 2006 Report Share Posted October 25, 2006 Should I Pay Over The Asking Price? Can you afford it? If you've got the money and will be comfortable doing so then why not? It's only money... It won't bring you any happiness sitting in an account. Quote Link to post Share on other sites
Englebert Posted October 25, 2006 Report Share Posted October 25, 2006 She's in Germany at the moment. I'm taking a holiday Bloody hell, you can't even stand being in the same country as your wife?...... Quote Link to post Share on other sites
smilie Posted October 25, 2006 Author Report Share Posted October 25, 2006 Well....going back to the start of this thread....I have just put an offer in at the full asking price (gulp!) Awaiting a response back from the estate agent's.... Quote Link to post Share on other sites
enworb Posted October 25, 2006 Report Share Posted October 25, 2006 Well....going back to the start of this thread....I have just put an offer in at the full asking price (gulp!) Awaiting a response back from the estate agent's.... Did you get a response? If so what was it? If not, good luck, keep us posted Quote Link to post Share on other sites
DICKDASTARDLY Posted October 25, 2006 Report Share Posted October 25, 2006 Well....going back to the start of this thread....I have just put an offer in at the full asking price (gulp!) Awaiting a response back from the estate agent's.... Surley its too late now, if they have two other offers @ asking price ? They'll have you down as a time waster Quote Link to post Share on other sites
Guest Alright Jack Posted October 25, 2006 Report Share Posted October 25, 2006 Should I pay the asking price? If you're in Wilkinsons then YES. Otherwise the ol' bill might have something to say. If you're talking about real estate then NO. Unless you want your **** burnt. Quote Link to post Share on other sites
IamSpartacus Posted October 25, 2006 Report Share Posted October 25, 2006 Bloody hell, you can't even stand being in the same country as your wife?...... Actually, I think she can't stand me... Quote Link to post Share on other sites
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