Whats a fair price to pay

getmore4less

The asking rent is £230-£250pw
http://www.rightmove.co.uk/property-to-rent/find.html?searchType=RENT&locationIdentifier=POSTCODE%5E1717223&radius=0.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=&maxDaysSinceAdded=&sortByPriceDescending=&_includeLetAgreed=on&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&letType=&letFurnishType=&houseFlatShare=false&x=58&y=19

landlords look for gross yields over 10%

No more that £230k

kier333

getmore4less wrote: »

The asking rent is £230-£250pw
http://www.rightmove.co.uk/property-to-rent/find.html?searchType=RENT&locationIdentifier=POSTCODE%5E1717223&radius=0.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=&maxDaysSinceAdded=&sortByPriceDescending=&_includeLetAgreed=on&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&letType=&letFurnishType=&houseFlatShare=false&x=58&y=19

landlords look for gross yields over 10%

No more that £230k

Sorry for my stupidity, can you explain what you mean?

Cleaver

kier333 wrote: »

I honestly think that your living in another world, where is the evidence?

Prices have dropped to a resonable rate it clearly they were 20-30% over priced but i doubt very much if they will drop further. I recon come end of 2009 things will have leveled off and life will move on.

I think we can sum this up that many, including myself, don't agree that this will be the case.

But if you've looked at the facts and are convinced that this will be the case then buy the flat. However, if I remember your other post my main issue is that you've only got an 11% deposit which means if you buy, you get your gamble wrong, the flat drops 20% over the next year or so and you lose your job then you'll have no place to live and will owe the bank a good few thousand. If you had a 50% deposit then all you'd lose is your house and your own cash.

But hey, life is full of people who bought 'stupid investments' and ended up a with a load of money. I was too young to remember, but I was chatting to my Dad the other day and my parents bought a house in 1989 for 95k. People told them they were mad then, but they had a kid, wanted a nice house with a garden, didn't want to rent, had a good deposit and could comfortably afford it. Most importantly they didn't see themselves moving for a very long time. My Dad was telling me that it dropped to around 60k in value in the mid 90s, which was obviously worrying but they had paid the mortgage off fully by the end of the 90s. The one next door sold for near to 300k fairly recently but that's still fairly irrelevant as my Dad still lives there.

I have no idea what relevance that story has. Maybe the moral is: stop asking us for approval, you're probably not going to get it, we probably won't be convinced that it's good value, but do what you feel is best. Good luck.

kier333

Cleaver wrote: »

I think we can sum this up that many, including myself, don't agree that this will be the case.

But if you've looked at the facts and are convinced that this will be the case then buy the flat. However, if I remember your other post my main issue is that you've only got an 11% deposit which means if you buy, you get your gamble wrong, the flat drops 20% over the next year or so and you lose your job then you'll have no place to live and will owe the bank a good few thousand. If you had a 50% deposit then all you'd lose is your house and your own cash.

But hey, life is full of people who bought 'stupid investments' and ended up a with a load of money. I was too young to remember, but I was chatting to my Dad the other day and my parents bought a house in 1989 for 95k. People told them they were mad then, but they had a kid, wanted a nice house with a garden, didn't want to rent, had a good deposit and could comfortably afford it. Most importantly they didn't see themselves moving for a very long time. My Dad was telling me that it dropped to around 60k in value in the mid 90s, which was obviously worrying but they had paid the mortgage off fully by the end of the 90s. The one next door sold for near to 300k fairly recently but that's still fairly irrelevant as my Dad still lives there.

I have no idea what relevance that story has. Maybe the moral is: stop asking us for approval, you're probably not going to get it, we probably won't be convinced that it's good value, but do what you feel is best. Good luck.

Thanks,

I agree that short term its not going to make any money hoever, long time i think the fact there is a re generation program will work in my favour. I have previous explained i have a secure job for the next 2 yrs and in the worst case senario i'll just rent it out which will cover the Mortgage. Its not approval i was looking for it was opinion and thats what i have been getting, mainly negative however its only someones view i'm sure a year ago people were claiming rates would rise and look where we are now.

rong I also cannot see how a flat in NW2 can drop another 20% in a year, maybe i'm wrong only time will tell.

Cleaver

Is this the place? If it is, I've changed my advice. Don't buy it. It's dull, dull, dull, dull, dull. If you do want to buy, just wait a while and get somewhere with a bit of character in a year or two when you have a good deposit.

For the record, we bought a two bed flat in 2007 *prepares to be pelted with rotten fruit* so I'm not anti someone buying a property if it's right for them. However we paid less than 80k for it and had an 80% deposit. I've rented four properties and hated every single landlord and letting agency I had to deal with and didn't ever want that ever again. But our place at least has some character and is in a lovely old building. No offence, but that place looks like an unloved 80s Centre Parcs chalet.

lostinrates

Cleaver, great post ...kier, good luck.

But while I'm on it re regeneration programmes a relatively local town was subject to one to great success, went from being considered a bit of a dive to a really popular town, but I remember reading somewhere theAthens Olympics were meant to have a regenerative effect on some parts of Athens and in fact the aftermath did not live up to the hype at all.

mewbie_2

kier333 wrote: »

Thanks,

I agree that short term its not going to make any money hoever, long time i think the fact there is a re generation program will work in my favour. I have previous explained i have a secure job for the next 2 yrs and in the worst case senario i'll just rent it out which will cover the Mortgage. Its not approval i was looking for it was opinion and thats what i have been getting, mainly negative however its only someones view i'm sure a year ago people were claiming rates would rise and look where we are now.

rong I also cannot see how a flat in NW2 can drop another 20% in a year, maybe i'm wrong only time will tell.

Rent may well cover the mortgage, but it isn't going to cover a 20% drop. I would suggest 20% is in the middle of expectations by respected economists (if there is such a thing). So I suggest you work out what 20% is, and how long and loudly your mates / colleagues will laugh at you... and keep your powder dry for a while yet.

Of course I may well be wrong. It could be 0% or 40%. Too scary for me.

kier333

Cleaver wrote: »

Is this the place? If it is, I've changed my advice. Don't buy it. It's dull, dull, dull, dull, dull. If you do want to buy, just wait a while and get somewhere with a bit of character in a year or two when you have a good deposit.

For the record, we bought a two bed flat in 2007 *prepares to be pelted with rotten fruit* so I'm not anti someone buying a property if it's right for them. However we paid less than 80k for it and had an 80% deposit. I've rented four properties and hated every single landlord and letting agency I had to deal with and didn't ever want that ever again. But our place at least has some character and is in a lovely old building. No offence, but that place looks like an unloved 80s Centre Parcs chalet.

can i ask where you purchased?

Cleaver

kier333 wrote: »

I agree that short term its not going to make any money hoever, long time i think the fact there is a re generation program will work in my favour.

Remember that a 'regeneration programme' can often be a euphamism for a new bus stop, an NHS walk in centre, a bribe to get a Starbucks, one quirky apartment building designed by John Rocha that no locals can afford to buy and possibly a bar that sells cocktails that has a name like 'Cloud', that looks great on the brochure as people sup cosmos in the sunshine, but doesn't seem such a good idea on a wet, dark, Tuesday in November when the place is empty.

It also involves naming things differently that don't actually change. For example, a 'canal' becomes a 'wharf', a 'shopping precinct' has a flat and office built above it and becomes an 'urban solution complex' and the 'corner shop' becomes a 'lifestyle solution'.

I live in an 'urban regeneration' area and, although I've been a bit sarcastic, you do honestly need to check exactly what that means. If it's additional schools, a real public transport network, more poilce, genuine extra funding for public services then the area could genuinely be 'regenerated'. My area is doing okay, with a mixture of the real stuff and the modern rubbish listed above.

SingleSue

kier333 wrote: »

Thanks,

I agree that short term its not going to make any money hoever, long time i think the fact there is a re generation program will work in my favour. I have previous explained i have a secure job for the next 2 yrs and in the worst case senario i'll just rent it out which will cover the Mortgage. Its not approval i was looking for it was opinion and thats what i have been getting, mainly negative however its only someones view i'm sure a year ago people were claiming rates would rise and look where we are now.

rong I also cannot see how a flat in NW2 can drop another 20% in a year, maybe i'm wrong only time will tell.

One slight problem with renting it out, is if prices do drop you will find it very difficult to get your bank to allow you to do that. Right now, banks are asking for fairly decent LTV to transfer a mortgage to a BTL....and they can also just say no.

Remember, you only have a small amount of equity to start with.