Many Upsizers gaining nothing from crash....

bo_drinker

bluey890 wrote: »

Agreed - talking about paper capital gain whilst having no intention to sell is meaningless (spin).

Apparently this was the topic of conversation for years at many dinner partys especially in the S E. What do they find to talk about these days Very sad.

michaels

OK - My house (2 bed terrace ftb property) was down from 315 to 250 (at lowest - may be back up a little now)

Properties (3/4 bed semis in good school catchment areas) I would look to move to were 425-525 and are still 425 - 525

Net cost to move up increased from 80 (just about affordable) to 175 (you have got to be joking) - and I didn't move 18 months ago because I was expecting equal percentage reductions to close the gap.

However I am becoming more convinced that we are looking at a double dip...wishful thinking?

Graham_Devon

chucky wrote: »

you've just blown Graham Devon's argument out of the water completely.
he seems to think the opposite...

for BTL, calculating the yield on assumed market price is very dangerous. it actually doesn't make sense.

Not really, the rental income has stayed the same, regardless of cheaper housing in the above scenario.

That won't / can't happen, as competition from those who bought at lower prices can offer lower prices.

chucky

Graham_Devon wrote: »

Not really, the rental income has stayed the same, regardless of cheaper housing in the above scenario.

That won't / can't happen, as competition from those who bought at lower prices can offer lower prices.

you've missed the point completely (again) and taken it on the usual Graham Devon tangeant...

the yield all depends on what type of mortgage they take out...
i'll repeat it again for you...

if it's a fixed rate it will be less profit possibly a loss with weak rents = less yield

if it's on a SVR/tracker their profit will be increased due to the low rates, regardless of rents dropping. they haven't dropped that much compared to the cash benefit of the drop in rates.

Graham_Devon

chucky wrote: »

you've missed the point completely (again) and taken it on the usual Graham Devon tangeant...

the yield all depends on what type of mortgage they take out...
i'll repeat it again for you...

if it's a fixed rate it will be less profit possibly a loss with weak rents = less yield

if it's on a SVR/tracker their profit will be increased due to the low rates, regardless of rents dropping. they haven't dropped that much compared to the cash benefit of the drop in rates.

We already went over this 2 pages ago, where you swerved every point I put towards you. I'm not going over it again. I am talking solely about NEW btl mortgages, NOT existing. Something which I have said about 3 times to you, each time you ignore it and tell me I'm wrong.

Catch yer later.

bluey890

Harry_Powell wrote: »

Sorry, no matter what spin you put on it, if a house falls 20% then it's cheaper to buy for a FTB.

Only if purchasing outright. If purchasing with a mortgage and the drop in HP is due to interest rates, over the lifetime of the mortgage, it may not be cheaper.

chucky

Graham_Devon wrote: »

We already went over this 2 pages ago, where you swerved every point I put towards you. I'm not going over it again. I am talking solely about NEW btl mortgages, NOT existing. Something which I have said about 3 times to you, each time you ignore it and tell me I'm wrong.

Catch yer later.

you really do talk some cobblers and try to distract the fact that you get things totally wrong... by spouting nonsense like the above!!!

catch yer later Graham "50%-70% drops"' Devon

Graham_Devon

chucky wrote: »

you really do talk some cobblers and try to distract the fact that you get things totally wrong... by spouting nonsense like the above!!!

catch yer later Graham "50%-70% drops"' Devon

Nonsense?

It's on page 2. I keep telling you I'm talking about new mortgages taken out at botom of the market, as that's what we were talking about.

YOU keep talking about current mortgages to try and prove me wrong, something which I have told you no less than 3 times now I am not talking about.

Here:

Graham_Devon wrote: »

You are completely changing the subject to suit. Who said ANYTHING about current mortgages?

It was said "buying a house at the bottom".

Here:

Graham_Devon wrote: »

Buffoon for thinking that higher interest rates would effect the yield on any house bought at the "bottom" am I?

So don't tell me I'm talking nonsense when it's clear I have told you twice what I am talking about, yet you keep trying to change it into current mortgages for currently bought properties.

bluey890

Graham_Devon wrote: »

Not really, the rental income has stayed the same, regardless of cheaper housing in the above scenario.

That won't / can't happen, as competition from those who bought at lower prices can offer lower prices.

A) Not if house prices have decreased as a result of interest rate rises. or
It may be potential (house) purchasers attitude to risk that has resulted in the drop in price. Not rental demand.

Graham_Devon

bluey890 wrote: »

A) Not if house prices have decreased as a result of interest rate rises.
It may be potential (house) purchasers attitude to risk that has resulted in the drop in price. Not rental demand.

As I stated, it's only because of A that a lot of BTL's are clinging on.

If interest rates go up, a lot of those in BTL will have the same problems as private families trying to pay the mortgage.

BTL A, with a property bought for 180k, at 6% interest rates, cannot compete with BTL B who bought at 120k at 6% interest rates.

They will be competing, especially for local housing benefit payments, which look to be being reduced soon.