Property Price Drop

Austin_Allegro

kier333 wrote: »

a house in NW2 is aroung £350-400k totally out of my reach on just under 50k pa salary.

That alone should be enough to tell you that something is deeply, deeply rotten in the state of England.

NW2. Not SW1. NW flipping 2, famous for a rubbish dump, some railway sidings and the street the Goodies lived on.

julieq

dopester wrote: »

Taking an average-priced house last year at around £180,000.... when the landlord who has hogged all the property is now losing more than £100 A DAY, or more than £500 a week, when averaged out over the last year alone - you'd be stupid not to take advantage of their total generosity to rent cheap and wait out the full crash.

That is all landlords exist for now. To allow tenants to rent cheaply as house prices crash hard.

Interesting idea, but how are you going to persuade a landlord to sell you a house to crystallise the loss, when you are fully covering the costs of servicing the debt on it?

kier333

Austin_Allegro wrote: »

That alone should be enough to tell you that something is deeply, deeply rotten in the state of England.

NW2. Not SW1. NW flipping 2, famous for a rubbish dump, some railway sidings and the street the Goodies lived on.

HA HA yes is rough compared to SW1 I agree however the same flat in SW1 would be in excess of £300k, and to be honest the flat borders West Hampstead and i like Cricklewood is vibrant and very cosmopolitian. I think NW2 is an up and coming area and the fact Cricklewood, Brent Cross and West Hendon has a £4 BILLION regeneration programme will only add to the value. I currently live in Hertfordshire since moving from NW2 and totally hate it hence moving back to London.

kier333

kier333 wrote: »

HA HA yes is rough compared to SW1 I agree however the same flat in SW1 would be in excess of £300k, and to be honest the flat borders West Hampstead and i like Cricklewood is vibrant and very cosmopolitian. I think NW2 is an up and coming area and the fact Cricklewood, Brent Cross and West Hendon has a £4 BILLION regeneration programme will only add to the value. I currently live in Hertfordshire since moving from NW2 and totally hate it hence moving back to London.

And who are the Goodies? Correct me if i'm wrong but if its who i think your refuring to then i thought they came from SE16 Bermondsey, again London is a different market.

IveSeenTheLight

dopester wrote: »

Taking an average-priced house last year at around £180,000.... when the landlord who has hogged all the property is now losing more than £100 A DAY, or more than £500 a week, when averaged out over the last year alone - you'd be stupid not to take advantage of their total generosity to rent cheap and wait out the full crash.

That is all landlords exist for now. To allow tenants to rent cheaply as house prices crash hard.

But Dopester, you already know I have furnished figures showing my tenants not only cover the interest part of my BTL's but also contribute significantly to reducing the capital.

From my two BTL's, the tenants are paying monthly almost £1,500 off from my capital each month.

Now don't try to come back and say my properties have lost more than that in value, weve been round the courses showing that my area as yet has not seen price falls. According to ROSEA, average prices in my area are still up on average 16.72% since Jan 2007.

So for my personal experience, my tenants are helping me to pay of my investment in cold hard cash each month.
In return, they have wonderfully maintained properties to live in for as long as they wish.

IveSeenTheLight

julieq wrote: »

The great trick with teaching the BTL LL scum a lesson they won't forget in a hurry will be to leave as big a gap as possible between moving out of the rental property and buying it back so the yields go down enough to make their pips squeak and the BTL LLs are panicked into selling empty properties at a BIG LOSS. Because you do wonder what would make them sell up otherwise, if the debt is being serviced by a vigorous rental market and all.

That might involve living in discarded Plasma TV packaging for a while I guess, plenty of it lying around the council estates.

Few points: -

1. Where do you live while you move and leave the gap before buying?
2. My current void equates to 3.36 days per year per property. Much lower than I have budgetted for. So far, when tenants have given notice, I have been fortunate so far to secure a new tenancy to start immediately (One 14 day void in just over 2 years in two properties with 4 different tenants)
3. If the properties become empty for a longer period, there is still an option to rent for a lower price which can still cover the mortgage payments

kier333

This forum is mad it seems to me most are negative and miserable.

I f people stopped worrying about such trivial things then the world would be alot better place.

I have rented for years and each time have had resonable LL's and i feel they gave me somewhere i could call home even though i paid of/towards there mortgage.

I say good luck to the people that take a risk and provide a service ie BTL LL's, if the goverment stopped handing out free houses to people who dont work or want to work and gave to hard working lower income people then there would be enough social housing for people not wanting to buy or rather not in a position to buy.

chucky

kier333 wrote: »

This forum is mad it seems to me most are negative and miserable.

I f people stopped worrying about such trivial things then the world would be alot better place.

I have rented for years and each time have had resonable LL's and i feel they gave me somewhere i could call home even though i paid of/towards there mortgage.

I say good luck to the people that take a risk and provide a service ie BTL LL's, if the goverment stopped handing out free houses to people who dont work or want to work and gave to hard working lower income people then there would be enough social housing for people not wanting to buy or rather not in a position to buy.

don't worry it's a common thing around here - don't worry about it, it can actually be quite good fun to listen to all of the differeing views; negative and positive.

kier333

Yes i agree it is fun.

Anyway i bought the flat for 155k the flat below sold for 190k last feb so i feel at least i did not pay 190k i have not done to bad although i guess in the near future i will be in negative equity, but i'm in the flat until i move to OZ in around 8-10yrs and then i will just rent it out.

2 yr fix at 6.79%with a 18k deposit and £999 booking makes the payments £892pcm plus i can over pay 20% which i will.

Excited i did not buy last year, from speaking to many many people it seems there is never a good time to buy, its more a case of if you can afford the payments and have the finances to suport them.

Thanks everyone for the advice both positive and negative.

kier333

chucky wrote: »

don't worry it's a common thing around here - don't worry about it, it can actually be quite good fun to listen to all of the differeing views; negative and positive.

Do you think a conversion/ older flat is a better buy? i do hence going for a small block with low service charge.