Selling Up and Bailing Out

keeperbear wrote: »

For example, London prices are still booming, and it would be madness to "sell to rent" here, especially with the Olympics fast approaching.

This Olympics thing never ceases to make me laugh. The olympics will last a month and, as Athens discovered, will require paying for a loooonnnng time after the circus has rolled out. Any positive effect on house prices is more than likely be centred in East London which is and always has been the most unpopular part of the city.

I live in W.London and am selling up. Fed up with mortgage and the obligation to participate in the rat race to service it.

Take the dosh and run . . .

Gorgeous_George wrote: »

Good luck to all MSEers selling to rent!

if your reading of the market is right, you will make £££s out of other people's misery.
GG

Thats rich coming from a BTL investor...:rolleyes:

meanmachine wrote: »

Come again?

The poster is renting a 500K pad for 1250 a month.

If they wanted to "buy" the place interest only (in other words rent from the bank) they'd be stumping up 2100K a month.

That's insane.

Read the words I wrote not the words you see in your head. I said " Aye but if you bought a place " I said A not THE.

Insanity a good sign of which is seeing things that aint there ;-)

Gorgeous_George wrote: »

If I sold my home I could bank just under £200K. That would be £200K of the buyer's money. A crash would see the buyer in misery while I would be laughing all the way to the bank.

My BTL on the other hand is a property that I have spent lots of time and energy on not to mention many £££s. In return, I offer it to the rental market at a competitive price and I have loads of people wanting to rent it. If any of my tenants wished to buy it from me, I would consider their offer very carefully - providing they are good people. HB claimants generally do not wish to buy their own property. People with insecure employment are also better off renting. I don't see any misery being inflicted on my tenants.



GG

GG I am sure you are a very good LL so don't take this personally.

BTL has fueled high HPI.
High HPI has meant people not affording to buy = misery
High HPI has caused people to borrow beyond thier means = misery
High HPI = People unable to move up "ladder" = misery
High HPI = People putting off having children = misery
High HPI causes boom bust cycle.
High HPI makes LLs feel wealthy = Joy
Bust = repossessions and NE = misery.
Bust = some people now affording to buy a home = Joy

Please don't think that all people predicting a correction in house prices are vultures waiting for a repossession. Most just want a decent home to call their own. We never created this situation.

BTman wrote: »

I live in the SE and my rent is just over half of what a 100% INTEREST ONLY mortgage would be, so I wouldn't even be buying the property, just renting from the bank...

And the money that I save goes into ISA's, stocks and high interest savings accounts which is keeping up with HPI..
Bring on those IR rises...

It is interesting to see the realisation dawning that people with little capital have a choice of renting bricks & mortar OR renting some else's money. They end up either hating the landlord or the bank.

Politicians have a nasty habit of resorting to taxation by inflation; ie when they cannot pay the bills they have created, by exaggerated promises to buy votes, they simply print the money. In the UK at the moment we have money supply growing at 12% and inflation at 4.8%. (I bet Brown is pleased someone else will have to pick up his miss judgement).

It could go either way and we might end up the worst of all worlds - loss of confidence = loss of jobs = loss of national output = inflation because of too little goods for everyday purchases while house prices drop.

Harry

PS There is a "third way" roll up your sleeves and build your own home BUT land prices would suffer a multiplier effect and come down at twice the speed of house prices. It is a good time to be renting.