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

silvercar

stevetodd wrote: »

There's a big difference in the comparatively small effort to selling the property you live in compared to selling a number of BTL properties, in addition to the effort involved there is:

Rental voids whilst selling
Loss of rental yield
We are now probably over halfway down from the overall % drop

Additionally some STR's may not have had great mortgage tracker products and/or perhaps they knew in the back of their minds that they would prefer to have a different house/flat (larger/smaller) or different location in a few years which would have meant selling at some point anyway.

I actually think it is a greater effort to sell up your family home.

Greater risk in having to move at the whim of a landlord; risks of not finding a decent family home to rent; unsettling on the family; constant worry of when to buy and hope that a suitable home is available at the right time....

We know people that went to France for a few years. Tried to get the timing right and jumped to soon. Came back to face the prospect of renting ( not much available round here) or having to pay more for their home than they sold for.

Get the timing wrong on a BTL sale and repurchase and you delay the repurchase. Get the timing wrong on your family home and you, at the very least, have to move to rented then move again. At worst your great plans to make some money have fallen.

macaque_2

Mr_Matey wrote: »

That's not what he said. He said he's making 6.3% on the current property value. He may have had capital losses over the past year, but if his rental yield versus purchase price is higher than 6.3%, he's made capital gains overall.

I think I get it. What you are saying is that GG's losses of 16% are more than offset by the income of 6.3%. Presumably, this is because the income component comes with a big dollop of pixie magic.

stevetodd

silvercar wrote: »

I actually think it is a greater effort to sell up your family home. Have you owned and sold many investment properties, are you drawing from personal experience of selling?

Greater risk in having to move at the whim of a landlord; risks of not finding a decent family home to rent; unsettling on the family; constant worry of when to buy and hope that a suitable home is available at the right time....

Many BTLers incl myself don't live near the property whereas I would assume most people live quite close to their own home. Although my properties are in good condition, if I sold I would want to sell them in absolutely tip top condion so work would need to be organised. This would also unsettle the tenants, who would be unsettled anyway by the fact that I would be selling. So I would have to co-oordinate the work from a distance and liaise with tenants and of course risk chasing them out early before any viewings have even taken place (most of my tenants are on periodic contracts so only have to give one months notice).

We know people that went to France for a few years. Tried to get the timing right and jumped to soon. Came back to face the prospect of renting ( not much available round here) or having to pay more for their home than they sold for.

Get the timing wrong on a BTL sale and repurchase and you delay the repurchase. Get the timing wrong on your family home and you, at the very least, have to move to rented then move again. At worst your great plans to make some money have fallen.

Get the timing wrong and you will lose money, the whole point of investment is to make money, if you sell too late (like now) then the price has dropped too far. Buy again and get the timing wrong it means that you have gone through all that effort to lose money (which was my point in the first place, this is just going to make it worse).

Also I would add that STRer could go quite far down the road to selling before finally comitting him/herself (ie exchange 2 weeks before completion) at which point he would have signed up for his first rental. However if I started marketing a btl property the tenants would mostly likley become unsettled and a rental void would most likley ocurr, well before that stage.

I would also like to add that I was offered a 100k over the market value of my house by a developee but I had ZERO interest in selling because its my family home and I put my family WELL above mere money. Which might go to someway to support your arguement but goes even further to dispell the greedy landlord arguement (not by you I hasten to add)

Gorgeous_George

macaque wrote: »

I think I get it. What you are saying is that GG's losses of 16% are more than offset by the income of 6.3%. Presumably, this is because the income component comes with a big dollop of pixie magic.

Quite clearly you do not get it.

I like people not getting it as it avoids unnecessary competition.

GG

islandannie

Generali wrote: »

Index linked Gilts will return more in the medium term I suspect.

Having said that, if I was in your apparent position, I'd hold on to the asset right now unless you think you'll need or want to sell in the next 5-10 years.

I suspect that your assessment of returns in the medium term in the present climate in any market will be about as accurate as anyone elses guess.

As for my APPARENT? position! Well I have documented my financial situation many times on MSE.

I can see no circumstances where i would leave the property market at the behest of the doomongers just to place my faith in the hands of the spivs of the Gilts,Bullion,Stocks,Shares,markets etc.

I`m about as happy with the current situation as anyone can be,i`m in total control of my own destiny and i survive or fail at my own hands.

I wish it were better for all ,but such is life.

Generali

islandannie wrote: »

I suspect that your assessment of returns in the medium term in the present climate in any market will be about as accurate as anyone elses guess.

As for my APPARENT? position! Well I have documented my financial situation many times on MSE.

I can see no circumstances where i would leave the property market at the behest of the doomongers just to place my faith in the hands of the spivs of the Gilts,Bullion,Stocks,Shares,markets etc.

I`m about as happy with the current situation as anyone can be,i`m in total control of my own destiny and i survive or fail at my own hands.

I wish it were better for all ,but such is life.

I say apparent because if you're lying on a bulletin board you'd hardly be the first.