Jump to content
House Price Crash Forum

Neighbour Thinks I'm Courageous


Recommended Posts

  • Replies 51
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Guest DissipatedYouthIsValuable
Bumped into a neighbour yesterday who said "still renting? I think you are very courageous, I would be afraid house prices would move too far away"

I am begining to believe him, here are the circumstances:

Sold in July 2005 £480K

Paid agent £5K

Put £475K in bank

Interest earned £44K

Rent paid £29K

Current net house buying fund £490K

House sold in 2005 now "worth" £554K (8% per annum I think)

Add stamp duty plus expenses I would need £584K to buy it back

16% fall in price needed to be back where I was 2 years ago

What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

I'd be working on my newly bought smallholding in a country with low housing costs and using some of my interest earned as a salary for necessities.

Link to post
Share on other sites
Sorry, no sympathy for you here.

You took a chance - in other words gambled with the roof over your head.

Were you hoping to pick up on some other poor bugger's misfortune/repossession in the event of a crash and get a bigger/more expensive house at rock bottom?

When markets crash they are rarely in isolation and a huge recession will come with a HPC. IMO many will inevitibly suffer terribly.

Stop begging for a crash, why not wish for sensibly priced housing for all instead and hope we all get a soft landing? Stop sitting in your rented accomodation watching house prices like the vulture you are and get a camper van and have some fun.

Oh and by the way, yes you are in a MUCH better position than the majority so stop winging! <_<

I'm not looking for sympathy, the reason for selling was emotional, I,m not begging for a crash, the point of the post was to indicate that once you sell your house the costs of buying and selling make it almost impossible to buy it back and to give others an insight into the actual numbers involved.

Link to post
Share on other sites
Bumped into a neighbour yesterday who said "still renting? I think you are very courageous, I would be afraid house prices would move too far away"

I am begining to believe him, here are the circumstances:

Sold in July 2005 £480K

Paid agent £5K

Put £475K in bank

Interest earned £44K

Rent paid £29K

Current net house buying fund £490K

House sold in 2005 now "worth" £554K (8% per annum I think)

Add stamp duty plus expenses I would need £584K to buy it back

16% fall in price needed to be back where I was 2 years ago

What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

Being a cash buyer at this present moment in time would allow you to get a good discount anyway....And from next year properties should be lower in price and you'll still get a good discount....Just look at all the repossesions that are starting to be sold at auction, in a few months time they'll be even more.....I wish I was in your position.

Link to post
Share on other sites
Bumped into a neighbour yesterday who said "still renting? I think you are very courageous, I would be afraid house prices would move too far away"

I am begining to believe him, here are the circumstances:

Sold in July 2005 £480K

Paid agent £5K

Put £475K in bank

Interest earned £44K

Rent paid £29K

Current net house buying fund £490K

House sold in 2005 now "worth" £554K (8% per annum I think)

Add stamp duty plus expenses I would need £584K to buy it back

16% fall in price needed to be back where I was 2 years ago

What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

So how much profit did you make out of the original price of the house you bought? A tidy profit no doubt , jeez!

Link to post
Share on other sites
Guest Cletus VanDamme

You should think yourself lucky mate, what about those who STRd in 2003 or 2004? They're going to need falls of 30-40% just to buy back in at the same level they sold at.

Interesting sentiment on this thread though, seems we're seeing a bit of a backlash against the smug STRs.

Edited by Cletus VanDamme
Link to post
Share on other sites
...the point of the post was to indicate that once you sell your house the costs of buying and selling make it almost impossible to buy it back and to give others an insight into the actual numbers involved.

Perhaps your insight into the failings of ‘sell to rent’ will appeal to like minded folk. But for some, selling to rent has been a boon. Your frustrations I think stem from the fact that you did not recognise that houses have turned into a type of tradeable commodity in a market that is awash with a thousand types. At the very least your decision to sell should have included seeking financial advice.

Link to post
Share on other sites
Guest Skint Academic
You should think yourself lucky mate, what about those who STRd in 2003 or 2004? They're going to need falls of 30-40% just to buy back in at the same level they sold at.

Doesn't this suggest that the bubble has just got bigger in the meantime and that the resulting crash will be larger? Not to mention that corrections always over compensate and so post-crash the prices will be even lower than the long term average.

Edited by Skint Academic
Link to post
Share on other sites
Bumped into a neighbour yesterday who said "still renting? I think you are very courageous, I would be afraid house prices would move too far away"

I am begining to believe him, here are the circumstances:

Sold in July 2005 £480K

Paid agent £5K

Put £475K in bank

Interest earned £44K

Rent paid £29K

Current net house buying fund £490K

House sold in 2005 now "worth" £554K (8% per annum I think)

Add stamp duty plus expenses I would need £584K to buy it back

16% fall in price needed to be back where I was 2 years ago

What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

what age are you ? with 500 k the world is your oyster, why buy a place in the most expensive country for property in the world ?

i mean why ?

Link to post
Share on other sites
What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

Indeed you are very courageous. As every bear on here will tell you the last crash happened not in nominal house price reductions but in high inflation erroding debt.

If, as the bears enjoy to say, it isn't different this time - then look forward to the double whammy of house prices not reducing and inflation turning your cash mountain into a cash speck.

Very very courageous... I just hope you got proper finiancial assistance, not just listened to the bears on this website.

Link to post
Share on other sites
still renting? I think you are very courageous, I would be afraid house prices would move too far away

Still owning? I think you are very courageous, I would be afraid house prices will crash.

I love the way homeowners love to talk down to non-homeowners, like they are in some

sort of exclusive club. Laugh in their face and walk away.

Link to post
Share on other sites
Guest X-QUORK

I get a bit tired of repeating this, but please consider that there are some STRs who had to move for family/career reasons and simply couldn't afford their next property...hence deciding to rent. Some of you guys (Cletus, I thought better of you mate) seem to make broad judgements about STRs whilst being ignorant of the facts.

Link to post
Share on other sites
Guest grumpy-old-man
Personally I wouldn't try selling at the top of the bubble. Throw a ball up into the air and it slows down as it nears its highest point before falling again. You can't ever tell when the bubble will burst and the nearer the top you are the greater the risk that you won't be able to sell in time. I'd personally be looking for the sweet spot where mass sentiment is only just starting to change but the risk is minimal and you can still sell and make a decent enough profit. If I had bought a house and sold in 2004 or 2005 then I would still be content with my decision. Lowering interest rates in 2005 certainly wasn't the wisest decision the MPC made and it would have been very risk to rely on that happening!

spot-on & my sentiments exactly. :)

it's greed that gets them in the end. (not the op btw)

Link to post
Share on other sites
what age are you ? with 500 k the world is your oyster, why buy a place in the most expensive country for property in the world ?

i mean why ?

58, and I have thought about trying another country, one of the benefits of my position is that I can go and try it for period, its still apossibility.

Link to post
Share on other sites
Was made redundant and decided to move back "home" had'nt seen this site at the time, not trying to keep up with anyone, not expecting any sympathy, cant help when I was born, just trying to give an insight into my situation, I've worked all my life and the house money is the outcome.

You are lucky - the uber bears want to castrate anyone that has made cash off houses, but you have not had them posting as yet.

Link to post
Share on other sites
58, and I have thought about trying another country, one of the benefits of my position is that I can go and try it for period, its still apossibility.

This is true.

My beloved step father who I cant remember ever not knowning as he was in my life since I was 2, and I'm 38, Died on the 26/6/07 at "59" of a heart attack and was found alone by the police on the bathroom floor of his council provided 1 bed maisonette a week ago this Thursday. He had serious mental health issues that developed over the last 15 years and was unable to work. His answer machine was full of ecer more concerned messages from me and my siblings and his friends who dindn't know he was already dead. So we knew when he died.

He got his first passport this year to attended my wedding in South Africa after saving for 2 years out of his benefits to make the trip to see me get married.

He had never owned property, had always rented off the council his whole life, my mum still lives in the same council house he gave up to her when the divorced 12 years ago. His estate will just about pay for his £1600 funeral I arranged for next week.

I have been lucky to be the first member of my family to get on the housing ladder in 96 and am in the process of STR. I will bank £120k. Suddenly house prices dont matter so much to me. I feel almost ashamed to be banking so much money when he was dead and undiscovered for 10 days.

You are 58. You have £500k in the bank. I advise you to live and don't worry about if buying into the housing market again is slipping away. The market has always been proved to be cyclical, it will drop again sometime, who knows when.

But if you have health, the money and somewhere rented to live that is nice, reflect on my father's situation and yours, none of us know if we will be here tomrrow, and as a fellow STR maybe your STR dilemas will seem less important in the scheme of life.

An emotional MarkyH.

Link to post
Share on other sites
Guest X-QUORK
This is true.

My beloved step father who I cant remember ever not knowning as he was in my life since I was 2, and I'm 38, Died on the 26/6/07 at "59" of a heart attack and was found alone by the police on the bathroom floor of his council provided 1 bed maisonette a week ago this Thursday. He had serious mental health issues that developed over the last 15 years and was unable to work. His answer machine was full of ecer more concerned messages from me and my siblings and his friends who dindn't know he was already dead. So we knew when he died.

He got his first passport this year to attended my wedding in South Africa after saving for 2 years out of his benefits to make the trip to see me get married.

He had never owned property, had always rented off the council his whole life, my mum still lives in the same council house he gave up to her when the divorced 12 years ago. His estate will just about pay for his £1600 funeral I arranged for next week.

I have been lucky to be the first member of my family to get on the housing ladder in 96 and am in the process of STR. I will bank £120k. Suddenly house prices dont matter so much to me. I feel almost ashamed to be banking so much money when he was dead and undiscovered for 10 days.

You are 58. You have £500k in the bank. I advise you to live and don't worry about if buying into the housing market again is slipping away. The market has always been proved to be cyclical, it will drop again sometime, who knows when.

But if you have health, the money and somewhere rented to live that is nice, reflect on my father's situation and yours, none of us know if we will be here tomrrow, and as a fellow STR maybe your STR dilemas will seem less important in the scheme of life.

An emotional MarkyH.

Thanks for sharing this with us Marky, it kind of puts a lot of things into perspective.

Link to post
Share on other sites
This is true.

My beloved step father who I cant remember ever not knowning as he was in my life since I was 2, and I'm 38, Died on the 26/6/07 at "59" of a heart attack and was found alone by the police on the bathroom floor of his council provided 1 bed maisonette a week ago this Thursday. He had serious mental health issues that developed over the last 15 years and was unable to work. His answer machine was full of ecer more concerned messages from me and my siblings and his friends who dindn't know he was already dead. So we knew when he died.

He got his first passport this year to attended my wedding in South Africa after saving for 2 years out of his benefits to make the trip to see me get married.

He had never owned property, had always rented off the council his whole life, my mum still lives in the same council house he gave up to her when the divorced 12 years ago. His estate will just about pay for his £1600 funeral I arranged for next week.

I have been lucky to be the first member of my family to get on the housing ladder in 96 and am in the process of STR. I will bank £120k. Suddenly house prices dont matter so much to me. I feel almost ashamed to be banking so much money when he was dead and undiscovered for 10 days.

You are 58. You have £500k in the bank. I advise you to live and don't worry about if buying into the housing market again is slipping away. The market has always been proved to be cyclical, it will drop again sometime, who knows when.

But if you have health, the money and somewhere rented to live that is nice, reflect on my father's situation and yours, none of us know if we will be here tomrrow, and as a fellow STR maybe your STR dilemas will seem less important in the scheme of life.

An emotional MarkyH.

Very sorry about your Step Father and I hope taht the funeral goes as well as a funeral can go.

I've lost quite a few of my immediate family, my Mum back in 1993, eldest brother 1998 and another brother in 1999.

I also put things into perspective at the time - but over the years have realised that we have little choice but to worry about money, what with everything going up in price much faster than our incomes. I also belive that having money CAN increase life expectancy.....in which case having money can be a beneift. Not to mention the stress one can suffer from being in debt or living on the bread line.

Any one of us on these boards may not see tomorrow but we still have to live as though we will...unless any of us are multi millionaires in which case just enjoy your life as much as possible. Even though I am the youngest brother, I thought i'd probably die before my brothers....if any of us were to die young. My eldest had a heart attack just into his 40's and my other brother, who was also my best mate, died at 29 in a motorcycling accident. Yet I was always the most likely to die on my motorbike or have a heart attack because of my poor diet.

But as a Christian I do believe in fate. I did ask questions of God. Why so many from one family, why me etc. And then I think of others who have lost far more than I have.

My Father owned his house outright 20 years ago or so and retired early at 55. I think that this is one of the reason he will be celebrationg his 70th birthday next Wednesday...and probably his 100th in little over 30 years. He has no stress, enough money in the bank to do as he chooses and eats a very good diet, heating on when it's cold (not all pensioners have this luxury)

Longevity and wealth is all too often related.....which is why it angers me that our country's elderly are allowed to die because they couldn't afford to eat a balanced diet or heats their homes...while we pay for illegal immigrants and prisoners :angry:

I've been to many Christian funerals - my West Indian family always celebrate the lives of the ones that have left us. Plenty of food and drink, meeting new people and most of all thanking God for allowing that person to be part of our lives. I hope that you can do the same.

Link to post
Share on other sites
Very sorry about your Step Father and I hope taht the funeral goes as well as a funeral can go.

I've lost quite a few of my immediate family, my Mum back in 1993, eldest brother 1998 and another brother in 1999.

I also put things into perspective at the time - but over the years have realised that we have little choice but to worry about money, what with everything going up in price much faster than our incomes. I also belive that having money CAN increase life expectancy.....in which case having money can be a beneift. Not to mention the stress one can suffer from being in debt or living on the bread line.

Any one of us on these boards may not see tomorrow but we still have to live as though we will...unless any of us are multi millionaires in which case just enjoy your life as much as possible. Even though I am the youngest brother, I thought i'd probably die before my brothers....if any of us were to die young. My eldest had a heart attack just into his 40's and my other brother, who was also my best mate, died at 29 in a motorcycling accident. Yet I was always the most likely to die on my motorbike or have a heart attack because of my poor diet.

But as a Christian I do believe in fate. I did ask questions of God. Why so many from one family, why me etc. And then I think of others who have lost far more than I have.

My Father owned his house outright 20 years ago or so and retired early at 55. I think that this is one of the reason he will be celebrationg his 70th birthday next Wednesday...and probably his 100th in little over 30 years. He has no stress, enough money in the bank to do as he chooses and eats a very good diet, heating on when it's cold (not all pensioners have this luxury)

Longevity and wealth is all too often related.....which is why it angers me that our country's elderly are allowed to die because they couldn't afford to eat a balanced diet or heats their homes...while we pay for illegal immigrants and prisoners :angry:

I've been to many Christian funerals - my West Indian family always celebrate the lives of the ones that have left us. Plenty of food and drink, meeting new people and most of all thanking God for allowing that person to be part of our lives. I hope that you can do the same.

These stories put pay to the myth that the baby boomers had it all. Not everyone had a cast iron gold pension, in fact very few other than Government Employees.

It is a disgrace that we can spend millions on legal aid for a man that spouted filth outside a mosque on the streets of London for years, whilst the British Taxpayer financed his housing and food. Yet our elderly that have made a lifetimes contribution are not worthy of our benefits system, a system they paid for.

For me, when I hear the Labour Party talk about inequality, this is what I think of, this is the great inequality, Taxpayers being denied services over and above those who have not contributed a penny towards them.

With regard to the poor man being left in his flat for 10 days, this is yet another indicement of our broken community. How in the this century of marvels, can we allow people who need care to be left on their own.

Care in the Community was for me a complete and utter sham, it has led to many thousands of people who desperately need care being left alone. The recent case of Arsonist in London, who was attacking non Christians with firebombs. He was a Schizzo, known to the Health Services, but treated in the Community, the NHS have excused themselves by saying he didnt return for treatment.

Funny that, a mentally ill patient not having the good sense to go to outpatients every day for his medication!!!.

Link to post
Share on other sites
What should I do? I feel I must continue renting and hope for price reductions, I know I am in a far better position than many on the forum but we all have different circumstances.

You made a tough call. The hard thing now is to wait it out. Don't fall for the trap of buying back in as soon as prices are even with your bank account.

Link to post
Share on other sites
Indeed you are very courageous. As every bear on here will tell you the last crash happened not in nominal house price reductions but in high inflation erroding debt.

If, as the bears enjoy to say, it isn't different this time - then look forward to the double whammy of house prices not reducing and inflation turning your cash mountain into a cash speck.

Agreed

Link to post
Share on other sites
You made a tough call. The hard thing now is to wait it out. Don't fall for the trap of buying back in as soon as prices are even with your bank account.

I agree, the damage has been done and its very easy to jump back, in an attempt to make good. The would only double the mistake, its best to hang on now, and in Ten years buy back when the prices are lower.

Link to post
Share on other sites
I agree, the damage has been done and its very easy to jump back, in an attempt to make good. The would only double the mistake, its best to hang on now, and in Ten years buy back when the prices are lower.

Buy a pad in spain, away from the fish n chip brigade - live the easy life with plenty of your cash left over. A great position to be in.

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.



×
×
  • 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.