Property prices should not really matter

GDB2222

Gorgeous_George wrote: »

I paid £15,500 for it in 2001.

Rental income has been more than £25,000 over the 6.5 years that it has been let.

As a BTL, that stacked up nicely from the word go, with a 20%+ rental income. On your current valuation of £80k, though, the rent is down to 5%. So, even taking into account the CGT, shouldn't you think about letting go of it?

Gorgeous_George

GDB2222 wrote: »

As a BTL, that stacked up nicely from the word go, with a 20%+ rental income. On your current valuation of £80k, though, the rent is down to 5%. So, even taking into account the CGT, shouldn't you think about letting go of it?

Great idea - hadn't thought of that

Just tell my tenants that I'm selling up. They move out at a month's notice leaving me with no rental income for an undefined period, an empty house to protect. On sale I have CGT. solicitor, EA to pay eating about £10K from my sale price.

Besides, next year I will be incresing the rent by almost 10% (market conditions permitting) so my yield will be 5.5%. If prices fall, the yield will return to double digits very quickly.

GG

GDB2222

Gorgeous_George wrote: »

Great idea - hadn't thought of that

Just tell my tenants that I'm selling up. They move out at a month's notice leaving me with no rental income for an undefined period, an empty house to protect. On sale I have CGT. solicitor, EA to pay eating about £10K from my sale price.

GG

I know where you are coming from on that. I'm in exactly the same position and haven't sold.

dopester

StevieJ wrote: »

That looks just about right for Berby to knock down an build a decent house.

Took me 5 seconds of thought to work that one out. :rotfl:

I don't think any of the football celebs living or moving around here will be able to help support the wider market.

lostinrates

tomstickland wrote: »

The "FTB's cannot afford a house because their expectations are too high" argument.
Well, the cheapest 1 bed flats in my area are still £80K and that's more than 3 times a typical £20K income.

For some reason I can't find Dan's post to quote from, but there is another point on FTBs. Not all of us are FTbuying first homes, having rented our first homes. Although we may be a rarity some FTBs, have already established careers, ammassed a large amount of money, might already have children or be starting a family. Some FTBs are on salaries higher than the 3rd or fourth time buyers they are buying from!