Abandoned hope for all ye FTBs

mewbie_2

I think my council tax is more than those Spanish property rentals. Seems ridiculous.

dopester

Max_Headroom wrote: »

Doesn't mean a lot without the asking price. £25K off of a two and a half million pound mansion is a 1% drop. £25K off a £50K studio flat in a dodgy area is a 50% drop.

Either way however, I'd suggest that a further 70% as the top end of your prediction is wishful thinking.

It was off £295K to £270K. Yet £25K is a lot of money. Would pay for.. 30 months rent + a big chunk to paying council tax and bills through that time, in a fairly decent place @ £800 pm rental. Or downsize further still, to keep costs to a minimum, until values correct.

A similar house on the connecting street now asking rent of £975 pm (been empty and un-tenanted for 6 months as cut the rental price down from £1200 pm).

dopester

Max_Headroom wrote: »

Fair enough, but that's not what you said is it? You said that if you lived in a house that you owned outright and were out of work, you'd sell it and gamble on significent falls.

I don't think they will. But they'd have to fall a hell of a long way to make the selling of a house I've spent 10 years and a fortune renovating and furnishing and paying for in the hope that I'll buy something similar later, and cover the selling costs, moving costs, accommodation costs and buying costs, all whilst unemployed, a good bet.

Do you really think that would be a sensible gamble for me to make? Honestly..?

Yes. To be honest. If I were in your position, owing outright, recently made redundant, and some concern for employment prospects* I would personally sell and look for very cheap rental solutions.

(*and lets hope you do find employment you enjoy and which pays well - whether you were to sell your house or not sell).

Say you have a terrace you believe is worth £140K, by comparing similar properties in the area and what they have been selling at... if I could get a quick sale on for sell for £125K, or £115K, I'd sell. That would be my gamble and decision.

I could be wrong of course and understand perfectly the fear and reluctance involved, even if I were correct about house values continuing to fall and fall.

My expectation is that people who are in similar situations to yourself - or much worse - will continue to lower their asking prices, as we've seen since peak, which will eat away at the value of your own home.

You'd also be off the safety net of JSA with that much money in the bank. (Is it £64pw? = £3,328 per year). A job would be a must.. even minimum wage to protect your STR fund. You might also fear STR fund being inflated away or banks failing.

Another reason to be reluctant to sell, and especially when you would have time to start over from scratch. The emotional connection you seem to have with your house, and your expectation that all you've spent on it, in renovating and furnishing, really adds up to much in a crash. With a house at £140K though, sold for £120K say.. I'd be looking at finding very cheap rental solutions. I don't think it is too late to STR.

BitterAndTwisted

What planet is Dopester on?

dopester

[QUOTE=StevieJ;21852575Sounds_'to_good_to_be_true'_and you know what they say about TGTT.

I have been looking at places around there it is not bad, I think it a very Spanish that side of Malaga. Decided to wait until the fate of the Euro was more obvious.

At those rates you could rent a hoiday home for a year :T[/QUOTE]

It does. I'm going to try and search out other sources, to see if there are other comparable deals about.

About 3 months a Spanish-language newspaper caught my eye for some good long-term rental deals.

IveSeenTheLight

dopester wrote: »

http://www.inspain.tv/AllProperties885/442743/PropertyDetails_442743_2.aspx

And a few others.

http://www.inspain.tv/searchresults.aspx?ptype=2&sd=42275&prop=4&price=-100

Unless it is a pricing mistake?

I think it would be a pricing mistake.
I recall three years ago I rented an apartment in Barcelona for a week.
These prices seem to be dailly rates (I do see they say monthly).

If it was true, I'd have to consider giving up work and moving there.

Definately would be one for the STRers

dopester

IveSeenTheLight wrote: »

I think it would be a pricing mistake.
I recall three years ago I rented an apartment in Barcelona for a week.
These prices seem to be dailly rates (I do see they say monthly).

If it was true, I'd have to consider giving up work and moving there.

Definately would be one for the STRers

Well how about these... town-houses and apartments from £250 pm.
http://www.thinkspain.com/costa-del-sol-long-term-rental/

StevieJ

I think I will have this one :beer:

Not too happy with the funiture though.

http://www.inspain.tv/AllProperties383/191820/PropertyDetails_191820_2.aspx

StevieJ

dopester wrote: »

Well how about these... town-houses and apartments from £250 pm.
http://www.thinkspain.com/costa-del-sol-long-term-rental/

Still would not be confident that those prices are correct.

Max_Headroom_3

dopester wrote: »

With a house at £140K though, sold for £120K say.. I'd be looking at finding very cheap rental solutions. I don't think it is too late to STR.

Great, OK, so I have a mental breakdown and follow your advice. I sell for £120K, and I bank, what, £115K at best after expenses (estate agent fees, moving costs, solicitors etc)?

Now I can't get JSA anymore so I scrabble around like mad for a job, all the while with a grand a month being drained away in rental and expenses.

So a couple of months later and I'm working as a car park attendant taking home £900/month, I'm down to £113K now and still sinking.

In a years time I'm at shall we say £110K? So what then, buy back a house like mine? Well they were asking £140K, (I panic sold mine at £120K remember?). So lets say they're down to £112K asking (and that's being optimistic, that's another 20% off in one year). I bag one for £105K cos I'm a cash buyer.

Obviously there's moving costs, solicitors costs, survey costs, all the inevitable "oh I need to buy a new sofa cos mine won't fit through the door and I need to re-decorate the lounge and maybe put a new bathroom in" costs, blah blah, so my £113K is down to £110K at best, probably less.

So great, I've taken a huge gamble, moved twice, rented for a while, had to scrabble for a job as my (admittedly meagre, see other thread) benefits were stopped the minute I sold my house, and generally put myself through a year of stress and hassle.

For five grand!!?? :eek:

And that's assuming you're actually right!!!

Appreciate your wisdom, insight and advice Dopester, but I think I'll pour myself a nice drink, stick the telly on, and put my feet up instead if it's all the same?