Mikhail Liebenstein Posted July 20, 2008 Share Posted July 20, 2008 (edited) I have just got this out of one of the Surrey local papers - it is an article encouraging people to Let to Buy, i.e. Let out their old house to buy the new one they want. What really annoys me is I know 3 couples who have done this and they are now deep in up to the neck. This is clearly just a case of the local press being rubbish and having no copy and so printing any old press release, but should I complain to the press complaints commission? The key phrase that rattled my cage was the reference to an average 3 bed attracting rents of £2500 per month. This is utter and total nonsense. First of all 95% of properties to rent are on for less that £2000, and secondly most 3 beds can be had for between £1300 and £1800. So I am not sure where the average came from. Any suggestions on challenging this? Edited July 20, 2008 by mikelivingstone Quote Link to comment Share on other sites More sharing options...
Tokyo_Expat Posted July 20, 2008 Share Posted July 20, 2008 I have just got this out of one of the Surrey local papers - it is an article encouraging people to Let to Buy, i.e. Let out their old house to buy the new one they want. What really annoys me is I know 3 couples who have done this and they are now deep in up to the neck. This is clearly just a case of the local press being rubbish and having no copy and so printing any old press release, but should I complain to the press complaints commission?The key phrase that rattled my cage was the reference to an average 3 bed attracting rents of £2500 per month. This is utter and total nonsense. First of all 95% of properties to rent are on for less that £2000, and secondly most 3 beds can be had for between £1300 and £1800. So I am not sure where the average came from. Any suggestions on challenging this? You seriously need to get out more... Quote Link to comment Share on other sites More sharing options...
Potwalloper Posted July 20, 2008 Share Posted July 20, 2008 (edited) You seriously need to get out more... Don't we all? Shouldn't you be out singing? I agree that lots of people will read that and not have the gumption to see through it. Too bad - stupid should hurt, as they say. On the other hand, you could add a suitably swinging comment to the online article if there is one? Edit to note - it looks like advertorial to me, so best just laugh at it. That 'll get 'em! Edited July 20, 2008 by chute Quote Link to comment Share on other sites More sharing options...
Tin Foil Hat Posted July 20, 2008 Share Posted July 20, 2008 (edited) A friend of mine has done this. Last year he and his wife wanted to move out of gangland Plumstead, London and decided to effectively turn their house into a BTL scenario and rent where they wanted to be. Rental income hasn't ever covered the mortgage, and now they can't sell it either. They're not the brightest when it comes to money and so have MEWed many times, up to a few weeks back (another 12k) when they remortgaged onto IO or something. They are now 30k (16% of house's current value) away from neg eq. I keep telling them to take a bigger hit and put it on noticeably lower than others in the area and just get shot, but the reductions have been too slow and not deep enough, so they're chasing the market down now. No, hold on, you're talking about letting your house out and buying the one you want next. Apologies, my cup of tea and paracetamol hasn't cleared my hangover yet, but it's a good schadenfreude moment anyway TFH Edited July 20, 2008 by Tin Foil Hat Quote Link to comment Share on other sites More sharing options...
Bearback Posted July 20, 2008 Share Posted July 20, 2008 I have just got this out of one of the Surrey local papers - it is an article encouraging people to Let to Buy, i.e. Let out their old house to buy the new one they want. What really annoys me is I know 3 couples who have done this and they are now deep in up to the neck. This is clearly just a case of the local press being rubbish and having no copy and so printing any old press release, but should I complain to the press complaints commission?The key phrase that rattled my cage was the reference to an average 3 bed attracting rents of £2500 per month. This is utter and total nonsense. First of all 95% of properties to rent are on for less that £2000, and secondly most 3 beds can be had for between £1300 and £1800. So I am not sure where the average came from. Any suggestions on challenging this? This is very sneaky by the EA's - this could help to complete chains. Imagine a chain of 5 houses where one is failing to sell, thus preventing the rest of the sales from going through. Well just encourage the house that is failing to sell to go into rent to buy - chain completed. Quote Link to comment Share on other sites More sharing options...
Its time to buy Posted July 20, 2008 Share Posted July 20, 2008 Its the same rubbish that was peddled at the free property investment seminars [now wound down]. There are still fools that buy into this without checking the actual rents. Quote Link to comment Share on other sites More sharing options...
DementedTuna Posted July 20, 2008 Share Posted July 20, 2008 (edited) Right... this is a very bad move. In order for it to work, the rental yield on the old place must beat the mortgage rate on the new place. Mortgage at 6.5%... rental yields are what, 4-5%? Bit more if you're lucky, but it's not gonna break even.. it would have worked out a year or 2 ago in the era of cheap fixed-rate mortgages, but there's no chance in hell of doing that now. Then factor in the falling market, and things become terrible.. not only are you BUYING close to the peak, you are also FAILING TO SELL close to the peak. Let to Buy only sounds smart if you're convinced that you're buying at the trough with a good mortgage rate (fat chance) and that house prices are about to rise. It's like the Bull's version of STR, only with the added problem of mortgage rates. I have no sympathy for anyone who falls foul of this. Anyone can sell instead if they drop their damn price, only greed or arrogance will see them making stupid decisions like this after they turn their noses up at "insulting offers" from potential buyers. Their blind insistence on remaining a bull in the current market will lose them money, and they deserve it. Edited July 20, 2008 by DementedTuna Quote Link to comment Share on other sites More sharing options...
waitingandsaving Posted July 20, 2008 Share Posted July 20, 2008 I have just got this out of one of the Surrey local papers - it is an article encouraging people to Let to Buy, i.e. Let out their old house to buy the new one they want. What really annoys me is I know 3 couples who have done this and they are now deep in up to the neck. This is clearly just a case of the local press being rubbish and having no copy and so printing any old press release, but should I complain to the press complaints commission?The key phrase that rattled my cage was the reference to an average 3 bed attracting rents of £2500 per month. This is utter and total nonsense. First of all 95% of properties to rent are on for less that £2000, and secondly most 3 beds can be had for between £1300 and £1800. So I am not sure where the average came from. Any suggestions on challenging this? They're not telling the truth - and if you have evidence (average rent data from a website, examples from rightmove rentals section, etc.) then speak to the Advertising Standards Authority - if it's not them you need to speak to (although effectively, it's a misleading advert in a local paper, so I imagine it's them) they'll point you in the right direction. I've found them to be very helpful in the past (EAs advertising properties in a "sale" when they weren't reduced, and in fact, some had gone up in value ). Good luck! Quote Link to comment Share on other sites More sharing options...
chichi Posted July 20, 2008 Share Posted July 20, 2008 ONe amazingly stupid argument I've heard about this situation when mortgage isn't covered by rent on property one is "it's like getting a free house for only 300 a month" Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2008 Share Posted July 20, 2008 ONe amazingly stupid argument I've heard about this situation when mortgage isn't covered by rent on property one is "it's like getting a free house for only 300 a month" OIC... you subsidise tenants for £300, plus repairs and costs, add in a pinch of interest rate rises, toss in a good helping of 10% PA capital loss, et voila! Une beau plat du Merde a la pantalons. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2008 Share Posted July 20, 2008 I have just got this out of one of the Surrey local papers - it is an article encouraging people to Let to Buy, i.e. Let out their old house to buy the new one they want. What really annoys me is I know 3 couples who have done this and they are now deep in up to the neck. This is clearly just a case of the local press being rubbish and having no copy and so printing any old press release, but should I complain to the press complaints commission?The key phrase that rattled my cage was the reference to an average 3 bed attracting rents of £2500 per month. This is utter and total nonsense. First of all 95% of properties to rent are on for less that £2000, and secondly most 3 beds can be had for between £1300 and £1800. So I am not sure where the average came from. Any suggestions on challenging this? If the AVERAGE house is a 3 bed, and the AVERAGE wage is £2100 PCM GROSS, then one of the averages is a bit wrong, IMHO Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted July 20, 2008 Share Posted July 20, 2008 Any suggestions on challenging this? No - let people do what they want. If it takes bailiffs battering down their door at 5am to make them finally realise that it's not viable, then so be it Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.