Yonmon Posted August 29, 2008 Share Posted August 29, 2008 I reckon based on the house I'm renting, then taking the fall in house prices (i.e. capital loss avoided) and the amount by which my rent is below the typical monthly interest on a mortgage at current market price then the HPC is worth about £4k per month to me. Perhaps this could be the new dinner party topic of conversation, to offset all those years of bulls going on about how much they'd made on paper each month... Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted August 29, 2008 Share Posted August 29, 2008 I thought of putting this in a smart-arsed sig! The house I would want to buy has fallen by £10,000 in the last year, and I've saved up £9,000 in that time. Total saved by not buying a house: £19,000 + interest. Now, where's that "smug" smiley? I still live with parents, BTW. Quote Link to comment Share on other sites More sharing options...
crown Posted August 29, 2008 Share Posted August 29, 2008 Tricky really my house has 'lost' £50,000 since last year. Although it has 'made' £250,000 since I bought it. I have wanted to trade up for around 3 years, but the step up was too large. So if the gap ever reduces enough I am 'saving' around £60,000 I reckon. Or maybe I will just stay put. My spreadbet is finishing this september and is around £963 in profit Quote Link to comment Share on other sites More sharing options...
Ologhai Jones Posted August 29, 2008 Share Posted August 29, 2008 If the house I vacated in February has depreciated in line with the national average (as per Nationwide's figures), then the depreciation has so far paid for over 27 months of rent at the place I currently live. Quote Link to comment Share on other sites More sharing options...
chubba Posted August 29, 2008 Share Posted August 29, 2008 Sold in November last year, banking £200k. Interest on that pays my rent. So standing still in terms of wealth but the kind of house we want to buy has dropped by around £50k so far so like the OP the crash is worth about £4k per month to me at the moment. Bonus! Quote Link to comment Share on other sites More sharing options...
Realistbear Posted August 29, 2008 Share Posted August 29, 2008 I reckon based on the house I'm renting, then taking the fall in house prices (i.e. capital loss avoided) and the amount by which my rent is below the typical monthly interest on a mortgage at current market price then the HPC is worth about £4k per month to me.Perhaps this could be the new dinner party topic of conversation, to offset all those years of bulls going on about how much they'd made on paper each month... At the peak the kind of house I would like to have bought would have been around 350-400k. Given a 20% drop this year that is about 80k off or £219 a day. I also hold mostly US$ and every time the pound drops a cent I make considerably more than the amount I am making on not buying that 400k house yet. In the words of the great fat man: How Sweet it is! Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted August 29, 2008 Share Posted August 29, 2008 If you consider how many laughs I have had from the BTLers, the uber-bulls (Casual Observer and Europa were particular favourites) and the tin-hat brigade, it must have saved me hundreds of pounds in trips to comedy clubs and the cinema, etc. Quote Link to comment Share on other sites More sharing options...
Selling up Posted August 29, 2008 Share Posted August 29, 2008 I assume I will be buying a house that would have cost 200k at peak. So each monthly 2% drop saves me 4k. Quote Link to comment Share on other sites More sharing options...
Bosh Posted August 29, 2008 Share Posted August 29, 2008 Me too for a smug smiley No mortgage so...STR August 07 (Peak).... With Interest per month and the current rate of decline in my target area, and deducting rent. We are effectively better off by 8-10k per month. I can not touch my STR fund money or interest and the rest is made up from what is happening monthly to the market. Still in the middle of this game of chess though. Patience is the key now. No knee jerk moves, keep focussed and when the time is right move in for the kill. I was very fortunate because my decision to sell was based on the fact they we were going to move in about 18+ months anyway and we did not want to get stuck in an area we wanted to leave. This was never about money for us but location but with what has happened so far I feel so very very lucky. Bosh Quote Link to comment Share on other sites More sharing options...
Moo Posted August 29, 2008 Share Posted August 29, 2008 Based on the highly unscientific measure of... Comparing the recorded price drops of the sort of property which, according to others, we could "afford" and probably "should" have bought, I've saved (in the sense that I haven't lost) more money than I've personally paid in rent during my entire life to date, and that's discounting the £1k pcm difference between the rent and the mortgage on such a place. Quote Link to comment Share on other sites More sharing options...
Telometer Posted August 29, 2008 Share Posted August 29, 2008 I assume I will be buying a house that would have cost 200k at peak.So each monthly 2% drop saves me 4k. Except just like the smug bulls on the way up, you overexaggerate. With 10% over a year, that's under 1% per month... Quote Link to comment Share on other sites More sharing options...
pablopatito Posted August 29, 2008 Share Posted August 29, 2008 I was careful not to treat house ownership as making money when my house was rocketing in value in the last fifteen years, so I'm not going to start treating renting as making money. Its still 250k to buy a small family home round here, so I'm hardly quids in - even if prices fall by another 10%. Easy come and easy go. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted August 29, 2008 Share Posted August 29, 2008 Despite well >2x average salary and 90K in savings, nowhere near enough yet to buy the average semi in which I live. at 3.5x salary mortgage + 10% Long way to go yet....... Quote Link to comment Share on other sites More sharing options...
roblpm Posted August 29, 2008 Share Posted August 29, 2008 Personally if we had bought in 2004 when we had the chance we would still be quids in! I can't see us being any better off in the end buying at 20-30% down now than we would have been if we had stayed in the market from 2004 on. So those of us who STR'ed too early will be even stevens maybe but not rich! Quote Link to comment Share on other sites More sharing options...
Prof Posted August 29, 2008 Share Posted August 29, 2008 Hard to say. What I do know is this - due to my own instincts, along with the information on this forum, I didn`t get involved in BTL or taking on a bigger mortgage. In fact, while I was being encouraged to "join in the fun", I kept my head down, and did something very stupid, I overpaid my mortgage and also saved a bit of money. I thought that was the best idea. I thought right. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted August 29, 2008 Share Posted August 29, 2008 (edited) its not costing me yet ;p I have approx 50k buffer between my price and my neighbour who bought a month after me, and a bit more of a buffer if you look at the peak 04 price... I still wonder if I should have gone for the 10 year fix instead of the 5 year fix... I have 3 and a bit years left until mine resets... Edited August 29, 2008 by moosetea Quote Link to comment Share on other sites More sharing options...
dryrot Posted August 29, 2008 Share Posted August 29, 2008 What I do know is this - due to my own instincts, along with the information on this forum, I didn`t get involved in BTL or taking on a bigger mortgage. In fact, while I was being encouraged to "join in the fun", I kept my head down, and did something very stupid, I overpaid my mortgage and also saved a bit of money. I thought that was the best idea.I thought right. Well put. Much the same here. Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted August 29, 2008 Share Posted August 29, 2008 It would be vulgar to detail actual figures but the last year has seen me save an amount that would take me about 5 years to earn ( after deductions) ( I am including the interest earnt from my STR fund ). However, I STRd in 2004 so I have a little way to go before it fully pays off - should be by this Christams by my reckoning. Quote Link to comment Share on other sites More sharing options...
Home_To_Roost Posted August 29, 2008 Share Posted August 29, 2008 (edited) At the current rate: £6.27 per hour, 24 hours a day Edited August 29, 2008 by Home_To_Roost Quote Link to comment Share on other sites More sharing options...
Bosh Posted August 29, 2008 Share Posted August 29, 2008 At the current rate: £6.27 per hour, 24 hours a day above minimal wage and 365 days holiday entitlement Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted August 29, 2008 Share Posted August 29, 2008 Rent is about the same as my mortgage. I reckon by selling when I did I am £75k better off in terms of depreciation avoided. In terms of what I will eventually buy, I reckon that has dropped by £130k. Quote Link to comment Share on other sites More sharing options...
libspero Posted August 29, 2008 Share Posted August 29, 2008 I reckon based on the house I'm renting, then taking the fall in house prices (i.e. capital loss avoided) and the amount by which my rent is below the typical monthly interest on a mortgage at current market price then the HPC is worth about £4k per month to me. Shhhhhhh....... Or Gordon will make non home ownership a taxable benefit Quote Link to comment Share on other sites More sharing options...
Bosh Posted August 29, 2008 Share Posted August 29, 2008 Rent is about the same as my mortgage. I reckon by selling when I did I am £75k better off in terms of depreciation avoided. In terms of what I will eventually buy, I reckon that has dropped by £130k. £205,000 to the positive. Go Mikey, Go Mikey, Go Mikey.. Good stuff, I enjoy your informative and well researched posts as we share common interest in target areas. maybe not price bracket but area info and price movement is priceless. Quote Link to comment Share on other sites More sharing options...
juvenal Posted August 29, 2008 Share Posted August 29, 2008 By preaching the HPC message I have lost all my friends. I thus have no one to go out with, and stay in all the time Boredom has driven me to redecorate every room in the house HPC.co.uk - It's saving me thousands!!!! Quote Link to comment Share on other sites More sharing options...
TT1 Posted August 29, 2008 Share Posted August 29, 2008 If the Mrs and i had bought at peak, our deposit wouldn't have made 1.2k. The house we'd be buying 'should' have dropped ~25K. We are saving 2K per month. On those savings the interest is about £600 So about 51k so far and thats not taking mortgage interest into account. And the best bit, its getting more and more every month Its enough to make us not want to leave the country now! Quote Link to comment Share on other sites More sharing options...
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