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Debate House Prices
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Bears, Buy to Lets landlords and House Prices.
Comments
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surely the wages/spending capacity and the fact that most households are now dual income show house price/earnings ratio should/could be higher?
I'm not baiting anyone, I just don't see how a ratio that is used in 1940s/1950s should still be valid today.
3.5 is the long term average (i.e. if you drew a best fit line it would be at a PE of 3.5). Its not artificially set, but it is the average number since the graph starts. A departure away from this average will have a causation e.g. very low interest rates (as was the case in 2001-1007) meaning that it is cheaper to service debt and that more can be taken on (often recklessly, as we have just seen).[/QUOTE]
i'm indifferent to your comments on the long term average of 3.5 - it can be interpreted in many different ways as you say.
my only comment about it is that your house price/earnings ratio will be much lower in Year 10 of your mortgage and year 15 compared to the first 5 years.
don't you think as long as you're up and around it in these first few years that's all that matters?0 -
please tell me what they are and i will try to answer them for you...I am still waiting to see how you can get 7% on a btl as well over the long term taking account of all costs.
Not seen a single example put forward to far as to prove it, using a legal BTL product with its associated higher IR and costs, management fees, accounting for repairs, wear and tear as well as accounting for tennant default.
It costs me nothing to put my cash in the bank.
well, you may model yourself on my sister, but she is dead, so you may struggle.0 -
well, you may model yourself on my sister, but she is dead, so you may struggle.
i'm really hoping you are joking here - not the kind of thing you joke about.
if it's true i apologise and i'll model myself on your mum instead.I am still waiting to see how you can get 7% on a btl as well over the long term taking account of all costs.
Not seen a single example put forward to far as to prove it, using a legal BTL product with its associated higher IR and costs, management fees, accounting for repairs, wear and tear as well as accounting for tennant default.
It costs me nothing to put my cash in the bank.
each to their own - some people may think that cash in the bank is useless and put it in equities, others bonds and some BTL. you prefer cash, it's not a bad option and suits your position as you would like to buy property in the future.
be realistic - you expect someone to give you a break down of all the costs on here...
you can get 7% plus quite easily. don't forget the tax advantages that you have that will not be reflected in your 'profit'.0 -
you can get 7% plus quite easily. don't forget the tax advantages that you have that will not be reflected in your 'profit'.
go on then, show me. Post costs.i'm really hoping you are joking here - not the kind of thing you joke about.
if it's true i apologise and i'll model myself on your mum instead.
Dont worry. I was.0 -
lol - you were going to become a landlord but didn't understand the complexities... hahaha
being someone who likes to highlight other posters for not answering questions put to them... you still haven't answered the questions put to you... nothing to back your statements up again...
It gets better Devon in potential BTL shocker,perhaps thats why he so against BTL,did he miss the boat,hmmm.Official MR B fan club,dont go............................0 -
It gets better Devon in potential BTL shocker,perhaps thats why he so against BTL,did he miss the boat,hmmm.
Oh yer, I missed the boat, didn't buy at peak! I'm sure if I did though as was being suggested to me that houses only ever went up, I would be ramping as much as I could right now!0 -
anyone like my t-shirt?
"For those who understand, no explanation is necessary. Those who don't understand, dont matter."0 -
Graham_Devon wrote: »Oh yer, I missed the boat, didn't buy at peak! I'm sure if I did though as was being suggested to me that houses only ever went up, I would be ramping as much as I could right now!
by your own admission you struggled and couldn't buy a property outright, so you had to go down the social ownership route...
but now it all comes out that you looked into BTL as an investment - how would you have been able to do that if you couldn't afford to own your own home 0
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