OMG Posted October 28, 2008 Share Posted October 28, 2008 We've been in our rental for just over 2 years and had started getting itchy feet. Went to look at a house today that's been on for sale since July at £565K and soon after on for rent for £1500 PCM; empty all that time as the vendors have emigrated. We've just said we'll take it for £950 PCM. We currently pay £890 PCM for a 4 bed semi in a semi rural location but on an A road. We're moving 25 mins further away from the motorway link but are getting 7 beds and various other extra rooms plus 1/2 acre of land in a picture postcard setting. We almost didn't bother because it's so big - we certainly couldn't (and wouldn't) afford to buy it - but for a few quid extra a month (ok, more again due to increased heating bills) it seems rude not to. Why anyone would want to buy a house right now is beyond me. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted October 28, 2008 Share Posted October 28, 2008 (edited) double the council tax, double gas/elec bills, double the water rates Owners are probably happy they don't need to be forking out bills, mortgage and council tax.... Edited October 28, 2008 by moosetea Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted October 29, 2008 Share Posted October 29, 2008 double the council tax, double gas/elec bills, double the water rates Owners are probably happy they don't need to be forking out bills, mortgage and council tax.... Still, even with these extra expenses, for the space it isn't bad. Quote Link to comment Share on other sites More sharing options...
Pezerinno Posted October 29, 2008 Share Posted October 29, 2008 What do you plan on doing with the extra space? Don't get me wrong; it sounds a good deal money wise I have just never understood the desire for these large homes unless you have lots of kids. Quote Link to comment Share on other sites More sharing options...
OMG Posted October 29, 2008 Author Share Posted October 29, 2008 What do you plan on doing with the extra space? Don't get me wrong; it sounds a good deal money wise I have just never understood the desire for these large homes unless you have lots of kids. I have 3 kids and the need desire for 2 home offices, plus it'd be nice to have a dedicated guest room (we have lots of visitors). We're still thinking it through. It doesn't feel particularly prudent taking on such a big place. This all started because we thought we'd take a slightly smaller house in the same area to save a few quid but there we're talking maybe £100 a month saving for the loss of at least 2 rooms and much less garden which didn't seem much point. I guess the main attraction with this one is so much more space for a headline figure of £60 extra per month. Moving down or up will cost the same in terms of removal costs etc. Anyway, that's not the point, the anecdotal was to highlight the 33% rent reduction on a house 'worth' the best part of £600K. Quote Link to comment Share on other sites More sharing options...
Telometer Posted October 30, 2008 Share Posted October 30, 2008 Wow, that's 2% gross yield. Assuming a yield-based valuation, and assuming a 7% gross yield, that makes the property "worth" £163,000. That's what it would have to be worth before it was worth taking out a 100% mortgage on it, anyway. Quote Link to comment Share on other sites More sharing options...
OMG Posted October 30, 2008 Author Share Posted October 30, 2008 Wow, that's 2% gross yield. Assuming a yield-based valuation, and assuming a 7% gross yield, that makes the property "worth" £163,000. That's what it would have to be worth before it was worth taking out a 100% mortgage on it, anyway. We've decided to take it. On second viewing today I found out that they had it on for £650K for ages before dropping to £565K. So to summarise: July 06 - Large 4 bed semi with decent garden, valued at around £400K peak was renting for £850 PCM Oct 08 - 7 bed detached with 1/2 acre plot valued at around £600K renting for £950 (after a long void as they tried to get it for £1500) Worcs/Hereford borders. @moosetea council tax is £800 extra per year but I feel that this is somewhat negated by the fact they throw in a gardener to do the hedges and grass. Quote Link to comment Share on other sites More sharing options...
dave Posted November 2, 2008 Share Posted November 2, 2008 We've been in our rental for just over 2 years and had started getting itchy feet. Went to look at a house today that's been on for sale since July at £565K and soon after on for rent for £1500 PCM; empty all that time as the vendors have emigrated. We've just said we'll take it for £950 PCM. We currently pay £890 PCM for a 4 bed semi in a semi rural location but on an A road. We're moving 25 mins further away from the motorway link but are getting 7 beds and various other extra rooms plus 1/2 acre of land in a picture postcard setting. We almost didn't bother because it's so big - we certainly couldn't (and wouldn't) afford to buy it - but for a few quid extra a month (ok, more again due to increased heating bills) it seems rude not to. Why anyone would want to buy a house right now is beyond me. According to the 10% yield calculation, this property is only worth £114, that is what a professional landlord would buy it for to get a 10% yield. So it looks like your area has to come down a hell of a lot to get in line with current expectations. Quote Link to comment Share on other sites More sharing options...
cells Posted November 2, 2008 Share Posted November 2, 2008 We've decided to take it.On second viewing today I found out that they had it on for £650K for ages before dropping to £565K. So to summarise: July 06 - Large 4 bed semi with decent garden, valued at around £400K peak was renting for £850 PCM Oct 08 - 7 bed detached with 1/2 acre plot valued at around £600K renting for £950 (after a long void as they tried to get it for £1500) Worcs/Hereford borders. @moosetea council tax is £800 extra per year but I feel that this is somewhat negated by the fact they throw in a gardener to do the hedges and grass. rents on the high end stuff are dirt cheap, look at this http://www.rightmove.co.uk/viewdetails-212...p;mam_disp=true http://www.rightmove.co.uk/viewdetails-221...p;mam_disp=true http://www.rightmove.co.uk/viewdetails-189...p;mam_disp=true Quote Link to comment Share on other sites More sharing options...
shindigger Posted November 6, 2008 Share Posted November 6, 2008 I have 3 kids and the need desire for 2 home offices, plus it'd be nice to have a dedicated guest room (we have lots of visitors).We're still thinking it through. It doesn't feel particularly prudent taking on such a big place. This all started because we thought we'd take a slightly smaller house in the same area to save a few quid but there we're talking maybe £100 a month saving for the loss of at least 2 rooms and much less garden which didn't seem much point. I guess the main attraction with this one is so much more space for a headline figure of £60 extra per month. Moving down or up will cost the same in terms of removal costs etc. Anyway, that's not the point, the anecdotal was to highlight the 33% rent reduction on a house 'worth' the best part of £600K. Go back and offer what you're paying now. Bet you get it. Quote Link to comment Share on other sites More sharing options...
athom Posted November 9, 2008 Share Posted November 9, 2008 (edited) http://www.rightmove.co.uk/viewdetails-18767860.rsp 2.5k down to 1.5k and it ain't up north, no offence but south is rip-off Britain heartland 09 November 2008 * Price changed: from '£1,950 pcm' to '£1,500 pcm' 01 October 2008 * Price changed: from '£2,450 pcm' to '£1,950 pcm' [Found by jash] 05 August 2008 * Initial entry found. [Found by Oolong] Edited November 9, 2008 by athom Quote Link to comment Share on other sites More sharing options...
athom Posted November 9, 2008 Share Posted November 9, 2008 (edited) and here's another one http://www.rightmove.co.uk/viewdetails-18559768.rsp It seems £1500 is a ceiling, the prices don't come much down for smaller properties but i guess the market for big places is just where it begins. 27 October 2008 * Price changed: from '£1,900 pcm' to '£1,500 pcm' [Found by chungo] 08 October 2008 * Price changed: from '£2,150 pcm' to '£1,900 pcm' [Found by niclab2001] 24 August 2008 * Price changed: from '£2,500 pcm' to '£2,150 pcm' [Found by Griptool] 13 July 2008 * Initial entry found. [Found by Hairlocks] Edited November 9, 2008 by athom Quote Link to comment Share on other sites More sharing options...
Wad Posted November 9, 2008 Share Posted November 9, 2008 We've been in our rental for just over 2 years and had started getting itchy feet. Went to look at a house today that's been on for sale since July at £565K and soon after on for rent for £1500 PCM; empty all that time as the vendors have emigrated. We've just said we'll take it for £950 PCM. We currently pay £890 PCM for a 4 bed semi in a semi rural location but on an A road. We're moving 25 mins further away from the motorway link but are getting 7 beds and various other extra rooms plus 1/2 acre of land in a picture postcard setting. We almost didn't bother because it's so big - we certainly couldn't (and wouldn't) afford to buy it - but for a few quid extra a month (ok, more again due to increased heating bills) it seems rude not to. Why anyone would want to buy a house right now is beyond me. I told my wife about your story and she actually remembered which house this is as she saw it on Rightmove or Primelocation. She remembers the £650k asking price and the drop to £565k. I will not say exactly where you are for the sake of privacy but it is lovely house in a lovely setting - looks like you get a real bargain renting it. The only thing about it as I recall was that it was miles away from anywhere. However, I see that you work at home or not have to go to work every day so that is probably good for you. By the way we are trying to do the same thing - renting a large house in grounds for 10% less than our current one and getting 3 extra bedrooms for free. I calculated the net yield today after agent fees and repairs as about 1.5% - its mad to buy when rental yields are so low. We work at home too so 4 beds is cramped with an ever expanding office. Quote Link to comment Share on other sites More sharing options...
OMG Posted November 10, 2008 Author Share Posted November 10, 2008 By the way we are trying to do the same thing - renting a large house in grounds for 10% less than our current one and getting 3 extra bedrooms for free. I calculated the net yield today after agent fees and repairs as about 1.5% - its mad to buy when rental yields are so low. We work at home too so 4 beds is cramped with an ever expanding office. Good luck. It feels a bit naughty taking such a big house on but at least we'll be doing it without getting into debt. One concern is how we'll manage when the inevitable move to our own, more humble, home comes. Who knows, If prices got to 60%+ off peak then I may even buy it We move in 3 weeks. Have gone for a 12 month contract so we can at least ensure the kids are in the school for a full year. Quote Link to comment Share on other sites More sharing options...
richc Posted November 16, 2008 Share Posted November 16, 2008 The difference in what you get between renting and buying is mind-boggling. I'm renting a 7 bedroom place on 2 1/2 acres (with gardener for 2 days a week included) and our rent covers about a 1/4 of what a mortgage would be on the house. We've been here for a year and signed a 2 year lease last December, after offering 25% off of what they were asking at the time. The space is a bit excessive, but it's nice to be able to have guests over. We're having a dinner next week for 14 people and everyone is going to spend the night afterwards. It's a great way to catch up with friends and no one has to drive home after drinking. Quote Link to comment Share on other sites More sharing options...
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