House prices falling by c. 2% a month - so falls of 50% over 2 years quite feasible

Max_Headroom_3

chucky wrote: »

hahahaha - i can see that image of carolt rubbing her hands right now!!

But would she then become a BTL landlord, or would falling rents along with falling prices mean that at the point whereby you had to pay someone to take your house, you'd also have to pay someone to live in it?

boyse7en

Max_Headroom wrote: »

But would she then become a BTL landlord, or would falling rents along with falling prices mean that at the point whereby you had to pay someone to take your house, you'd also have to pay someone to live in it?

I thought that many of the BTLs were already paying for people to be in their houses, by 'topping up'

Heyman_2

Yes that's right, EVERY SINGLE house in Britain is going to drop in price by 50% by the end of next year and in a couple of years after that they're going to be giving them away with boxes of cornflakes.

Max_Headroom_3

I thought that many of the BTLs were already paying for people to be in their houses, by 'topping up'

Good point, well made!

Crikey, that must be depressing mustn't it, paying out of your salary each month to top up the rent to cover your mortgage on a fast depriciating house.

I know someone who is doing just this on a place she bought this time last year. I remember her glibly crowing "houses have been the best investment of anything over the last 10 years". I dryly commented that that was probably true, in which case it would be interesting to see what happened over the next ten as a result, but there was no point getting into a discussion with her, she'd already bought (and I doubt there was any point before she bought, she was convinced).

Intrerest only mortgage too, still, she's in it for the "long term" apparently. Well, she is now whether she likes it or not! :rolleyes:

tro127

boyse7en wrote: »

I thought that many of the BTLs were already paying for people to be in their houses, by 'topping up'

If history repeats itself and prices return to peak then surely 'topping up' is not the end of the world and is just further investment. This is assuming that its a repayment mortgage and not just interest only and they considering this as a longterm investment.

I'm not a BTLer and so dont know the complete picture

justpurchased

Heyman wrote: »

Yes that's right, EVERY SINGLE house in Britain is going to drop in price by 50% by the end of next year and in a couple of years after that they're going to be giving them away with boxes of cornflakes.

No way have you seen food inflation, I would say they would give them away with a 1p chew.
I have invested all i have in frozen Peas. Fingers crossed:D

carolt

Heyman wrote: »

Yes that's right, EVERY SINGLE house in Britain is going to drop in price by 50% by the end of next year and in a couple of years after that they're going to be giving them away with boxes of cornflakes.

Do you think so? Which brand?

justpurchased

carolt wrote: »

Do you think so? Which brand?

Don't worry Carol, they are sold out now. Better look next time:D
(I think you can have that for your coments earlier)

Max_Headroom_3

tro127 wrote: »

If history repeats itself and prices return to peak then surely 'topping up' is not the end of the world and is just further investment. This is assuming that its a repayment mortgage and not just interest only and they considering this as a longterm investment.

I'm not a BTLer and so dont know the complete picture

Well this is sort of true, but then everything goes up long term, simply because money becomes worth less (inflation).

Non the less, if buying from a purely investment point of view (as BTL is), then it must still be galling to have bought, and then have to be paying in to, an asset that is dropping in value, even if you are confident that in 20 years time it will sell for more than you paid.

Incisor

Heyman wrote: »

Yes that's right, EVERY SINGLE house in Britain is going to drop in price by 50% by the end of next year and in a couple of years after that they're going to be giving them away with boxes of cornflakes.

If the houses are new builds, I should imagine people will choose to live in the cornflakes boxes.