Is there going to be a scramble for properties????

confused31_2

SouthCoast wrote: »

Why invest in a depreciating asset?
My rented property is dropping in value by £2500 a month.

Look for example a person who owns their own house outright, and has 100,000 pounds in the bank but decides instead of putting 100,000 pound in the bank but buys a house and rents it out.

They are not loosing any money until they try and sell, but they are investing so they would rent the house out which they paid cash for 100, 000 pounds and have the rent coming in each month.

Houses may drop but all they will be doing is taking the rental money and using that as a income, it doesnt matter how much the house is worth until they come to sell it, and if they are earning 500- 700 pound a month of it there wont be a need for them to sell it.

So in other words they would not loose any money, they would have paid cash for everything but have money coming in off the rent, the only time they would lose money is if they had to sell, but why would they??

confused31_2

It was thought we all have our own opinions, i think its a good idea if you can get a property at a real low price, im not saying you have to buy now, you could buy when the market hits bottom.

But sureley if you could buy a property when the prices hit bottom, or you get a property at a real good price now, you would be a mug not to, esepecially if you had cash.

I dont know when the last crash was but when prices bottomed out and people bought properties to let out they must have made loads of money.

So why not again??

I bought my house in dec 1999 and it was for 70,000 pound, now in 2004 the same style house went for 160,000, so if someone at the time with savings could have bought my house, they could have rented it out for 4 years and then made 90,000 pound on the sale aswell, and thats a little under 5 years.

lol

socrates

I will let someone more eloquent than me answer that.

Because my answer would involve shovels and digging holes!

Pyewacket338

During the last house price crash, one of my friends bought almost an entire street in Rotherham (Warden St) he rented out those houses for years, then when the prices went up, he sold them, one by one, he now lives in Cyprus and is worth over £2.5 million, there's not much difference between playing the property market and the stock market.

confused31_2

Pyewacket338 wrote: »

During the last house price crash, one of my friends bought almost an entire street in Rotherham (Warden St) he rented out those houses for years, then when the prices went up, he sold them, one by one, he now lives in Cyprus and is worth over £2.5 million, there's not much difference between playing the property market and the stock market.

Now thankyou, at least you can see where im coming from, i think they must all be first time buyers.

Like i said if i had some spare cash i would definately be looking, but thats my choice, im sure there will be a lot of greedy savers out there thinking the same.

I heard a story about people buying whole streets in Liverpool, i know robbie fowler had bought a block of houses.

confused31_2

socrates wrote: »

I will let someone more eloquent than me answer that.

Because my answer would involve shovels and digging holes!

I can dig myself out of holes if you can not see where im coming from how come loads of people have made loads of money out of the buy to let market before the house crash?

I admit a few have made mistakes and bought when house prices where at their peak, but you tell me how you can go wrong by buying a property at bottom price.??:p

socrates

Pyewacket338 wrote: »

During the last house price crash, one of my friends bought almost an entire street in Rotherham (Warden St) he rented out those houses for years, then when the prices went up, he sold them, one by one, he now lives in Cyprus and is worth over £2.5 million, there's not much difference between playing the property market and the stock market.

That was last time NOT now. In those days you could get a mortgage at your local corner shop. We are talking about here and now. There is a whole minefield for new inexperienced LL's.

confused31_2

socrates wrote: »

That was last time NOT now. In those days you could get a mortgage at your local corner shop. We are talking about here and now. There is a whole minefield for new inexperienced LL's.

hmmmm who says it wont happen again??? once houses hit botton they will only go one way and thats up.:p

same as shares, they go up they go down, i know a load of people who have lost loads on shares. at least you have a choice with a house you can rent it out until it reaches the price your are happy to sell it at, and your still getting money from the rent.

Pyewacket338

confused31 wrote: »

Now thankyou, at least you can see where im coming from, i think they must all be first time buyers.

Like i said if i had some spare cash i would definately be looking, but thats my choice, im sure there will be a lot of greedy savers out there thinking the same.

I heard a story about people buying whole streets in Liverpool, i know robbie fowler had bought a block of houses.

I'm in exactly the position you mentioned in your previous posts, mortgage paid off and cash in the bank, I've considered buying a house to rent out while the market is down, renting it out isn't a problem, my son is renting a flat from a private landlord and he'd be my tenant.... the only thing stopping me from doing it is I intend on moving abroad, tying my cash up long term isn't really an option.

Pyewacket338

socrates wrote: »

That was last time NOT now. In those days you could get a mortgage at your local corner shop. We are talking about here and now. There is a whole minefield for new inexperienced LL's.

I never mentioned a mortgage, he paid an average of £10,000 cash per house and sold for £70,000ish.