Titanic news: 90% of landlords decide to 'ride out' ice berg

exil

mower5 wrote: »

Your mate has the ablity to sell his portfolio while prices are still relatively high and buy back in again in a few years. Why should he hold onto a sharply depreciating asset? If he sells soon he realises some of the past 10 years hpi, although he will have tax to pay on the gains.

He's a successul property developer. Are you?

dopester

Alan_M wrote: »

Yup never been a better time to sell, houses flying off the shelves at Estate Agents.....:rolleyes:

What does that tell you?

stevetodd

Gorgeous_George wrote: »

What is the problem?

There is a clue in the term buy to ***let***. (I've adding a little highlighting to the relevant word for those of you are a little slow this afternoon).

I've just agreed to raise the rent by 7.1% while my mortgage payments have fallen by 64% over the last year. I must be barking to hold on to this dummy when I could sell up and bank the cash to earn 1.5% if I'm lucky.

GG

Not to mention paying or suffering the following before/at the point of buying back into the market later on:

Estate agents fees
Rental void whilst selling (couldn't expect to sell quickly)
Stamp duty
Solicitor's fees selling
Solicitor's fees buying
Valuation fees
Mortgage fees
Loss of great tracker mortgage deals (in my case 0.5 above base)
The time and effort to sell
As you say moving from a great rental yield to a low sayings rate

Gorgeous_George

Petrol has fallen from £1.30 per litre to just 89p.

Shell should sell up quick.

GG

Lotus-eater

stevetodd wrote: »

Not to mention paying or suffering the following before/at the point of buying back into the market later on:

Estate agents fees
Rental void whilst selling (couldn't expect to sell quickly)
Stamp duty
Solicitor's fees selling
Solicitor's fees buying
Valuation fees
Mortgage fees
Loss of great tracker mortgage deals (in my case 0.5 above base)
The time and effort to sell
As you say moving from a great rental yield to a low sayings rate

Very well said.

I can't believe some of the people on here are seriously advocating selling up a portfolio of houses to buy back when the house prices are higher again. This is real life, not some numbers on a piece of paper!

mower5

Alan_M wrote: »

Yup never been a better time to sell, houses flying off the shelves at Estate Agents.....:rolleyes:

Sales are still happening with the right properties in the right areas. To have made a killing your mate should have sold up two years ago (hindsight is great) but if he bought and developed property pre-bubble-1999 he has been fortuate to recieve massive hpi over a 9 year period and i am saying that it may be advisable to diversify. I have no problem with landlords, they provide a useful service to transient peolpe. It just seems to be a UK/USA/AUS obsession with property owenership to the exclusion of other assets that i fail to understand.

mower5

exil wrote: »

He's a successul property developer. Are you?

No i am not. I am interested in the discussion though.

mower5

Lotus-eater wrote: »

Very well said.

I can't believe some of the people on here are seriously advocating selling up a portfolio of houses to buy back when the house prices are higher again. This is real life, not some numbers on a piece of paper!

What do you think money is then?

stevetodd

mower5 wrote: »

To have made a killing your mate should have sold up two years ago.

Don't forget that capital gains tax was 40% then and now it is only 18%! So properties do not have to necessarily reach summer 2007 levels in order to financially out perform them for a seller getting out in the future

Lotus-eater

mower5 wrote: »

What do you think money is then?

I suggest you relook at your figures then and include all the things that stevetodd mentioned, also not being able to buy at the bottom of the market due to the real life problem of not knowing when it is till its gone.
Its all very well sitting there at home saying everyone is the same, sell blah blah now and buy back when the market has dropped another 20% blah, if you want to do it fine, or if you want to play fantasyhouseBTLportfolio I'm sure its very easy to buy and sell just like that <snaps fingers> but in RL its not.