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London Has Peaked
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Crashy_Time wrote: »Yes, but most people buying into this bubble will take many years to pay off their debt, many who went I.O will never pay it off. Property ownership/debt servitude is over-rated
How is the rating on servitude to rent payments? Is it rated better than a similar servitude (a mortgage) that has an end date? To be honest, renting sounds a lot like being one of those interest only borrowers that will never pay off the loan, except that you can't redecorate without someone's permission.If you think of it as 'us' verses 'them', then it's probably your side that are the villains.0 -
Crashy_Time wrote: »Yes, but most people buying into this bubble will take many years to pay off their debt, many who went I.O will never pay it off. Property ownership/debt servitude is over-rated, and that will become very clear when prices correct. My figures are correct, although the owner did say that they were pricing for an immediate and long term rental, and that they were " equity, but not cash rich", so they basically needed the money (a lesson in there for some of the posters here IMO)
I'm not sure why you keep going on about interest only as no one is advocating that as good option. While in your defence you choose a property with an extremely low yield which the majority of people would not be able to find.0 -
How is the rating on servitude to rent payments? Is it rated better than a similar servitude (a mortgage) that has an end date? To be honest, renting sounds a lot like being one of those interest only borrowers that will never pay off the loan, except that you can't redecorate without someone's permission.
My rent has been average 400 p.m for many years, simply because the demand just isn`t there to raise it any further. This is basically pocket change, nothing like being on the hook for a highly leveraged I.O bet at all.0 -
I'm not sure why you keep going on about interest only as no one is advocating that as good option. While in your defence you choose a property with an extremely low yield which the majority of people would not be able to find.
Found it through a lettings agent, these deals do come up a lot more than people might expect.0 -
I've been after another flat in cheaper parts of outer N London in the last fortnight and I can say with certainty the prices are rising very fast and trying to even get a viewing is difficult.
As an example studios in a block I keep an eye on were £115k April last year, now changing hands at £135k.
Or 1 bed concrete ex council were £120k 1 year ago and today £155k and rising fast. They will be £175k by year end.
I buy for rent yield and re-invest the monthly proceeds but none the less it's a nice feeling growing your capital whilst you sleep.
Same in NE London. I save most properties I find interesting/look sensibly priced even If I have no interest in placing an offer...I'm shocked myself at how much has gone SSTC despite being a complete bull.
People being sidetracked by feeble price reductions in the centre, I would advise them to buy now before the election because this is really as good as it's going to get for buyers.0 -
Crashy_Time wrote: »Found it through a lettings agent, these deals do come up a lot more than people might expect.
Well I would consider £400 for a room bad value compared to £0 for a 4bed house to myself. The yield on that property was 1.5% which would equate to a rent of £200 a month on an average priced house or £125 a month on a £100k house I suppose there are plenty of properties like that around.0 -
Crashy_Time wrote: »My rent has been average 400 p.m for many years, simply because the demand just isn`t there to raise it any further. This is basically pocket change, nothing like being on the hook for a highly leveraged I.O bet at all.
So you are a slave to a rent payment, and, unless you buy, you will be forever? If you have an interest only mortgage payment of £400 per month then you're looking at a mortgage of about £120k at 4%. I wonder if "highly leveraged" is actually the appropriate term for that.If you think of it as 'us' verses 'them', then it's probably your side that are the villains.0 -
I pay less than £400 pm and I get a whole house that has the added bonus of not being a crack den in Edinburgh. Pocket change indeed.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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What with 500 billion plus soon spilling into Europe ( and therefore the city of London) we could be seeing ...
A) Europeans trying to find safe have investments ...
The city boys getting some fat boy bonuses once the London banks get to play with all that dosh.
3) More pressure for negative interest rates because we'll feel more upwards pressure on the pound.
I really wouldn't want to be going short on London property right now.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
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