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House Price Crash Forum

Rent For £595/month

Guest DissipatedYouthIsValuable

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If that was my house for sale and some ***** of an EA thought it look better with two cars on the front I'd rip his eyeballs out.

That's just indicating subtly where the MEWed equity of the house has been spent. Maybe the cars come with the house.

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After expenses, that rental yield is around 2%. A few years ago rental yields were in the 10-15% range. On that score a price of £45-55K would seem about right.

This is the aspect of the UK property market that makes me think falls here will dwarf what has been seen in the US. For all of the insanity of the subprime lending boom in the US, it was still generally cheaper to buy than it is was to rent at the peak of the boom. As prices fall in the US, and the ratio between rents and prices increases more, and it makes even more sense for renters to buy.

In the UK, there's no such floor for how low prices can fall. For this cottage, the interest on a mortgage at 6% for 280,000 pounds is 1,400 a month -- versus 595 in rent. I rent a house where the monthly rent covers about 1/4 of the interest payments on the size of a loan required to buy the house. This makes no sense. House prices will have to fall by almost 60% to make these rent/buy ratios reasonable. The value of houses in the UK is based almost entirely on the belief that the momentum of past house price increases will carry on forever into the future. This is nothing but a classic bubble.

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Purchase for £279,000

I know this because I moved out of here 2 months ago.

I was going to put in an offer of £60k


Just to state the obvious......

So you can either rent it from the bank and be responsible for all the maintenance for the princely sum of £1,526* a month or rent it from the landlord/agency for £595 a month.

It's a no brainer really isn't it.

*I/O mortgage @ 6.5%

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I'm very seriously thinking of spending the next few years doing medical aid work in Brazil or Nepal while everyone gets their heads out of their arses.

Good thinking...up their a*ses or up in the clouds, I sometimes wonder do people know what the real world is?

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get a room :rolleyes:

Not in Dorset 'e can't ..... for sensible money..... being a man of principle; unlike some ...

Tis a blessing in disguise DYIV ............. there are plenty of other places needing your skill; & some may be a darned sight more grateful

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I used to pass this twice a day. It's been on the market since at least last Oct/November (I stopped driving that route at the end of November):

Buy at £800,000: http://www.rightmove.co.uk/viewdetails-976...=1&tr_t=buy

Or rent at £2,250 from one of these four agents trying to punt it out:





Highly regarded area. Good property. Small plot. Right on the road.

I wonder what it cost them and when ... and why they can't drop the price.

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