Buying Cheaper Than Renting Everywhere except London

carolt

I can agree with that.

wolfplayer

Of course the market will always determine rents, it is up to the landlord to invest wisely and not to place himself in a position where the rents do not cover his payments. Don't forget rents generally rise, the recent fall in rents is temporary and will not seriously effect a landlord who invested a few years ago. Additionally investors should allow eneough flexibility in their finances to cover future unforseen contingencies.

chucknorris wrote: »

You might argue that rents have recently fallen, quite true but that is unusual and temporary and any investor should not invest if has not allowed for contingencies.

Mr Norris, it will become the new normal. Falling rents and crashing house prices.

Chuck Norris gets wiped out by the market as rents crash and house prices crash.

IveSeenTheLight

Entertainer wrote: »

Buying Cheaper Than Renting Everywhere except London

Note McTavish's use of the word "everywhere".



It's good that you wont waste your time doing that because the answer is you wont be able to.

1. Take ten London postcodes.
2. Enter them into Rightmove.
3. Note the sale price and the rental price.
4. Divide one by the other.
5. Behold the sub 6% rental yield.

We even have a pioneering BTL entrepeneur in this thread who is proudly announcing his 5.45% (London) rental yield to the whole world, if you still don't believe.

I don't think you understand the point of the original post.
It was referring to buying being cheaper than rent everywhere except London.
Why do you want to keep referring to London and the rental yield there?

Here's the original link again to refresh your memory
http://uk.news.yahoo.com/21/20091009/tuk-most-renters-better-off-buying-home-6323e80.html

chucknorris

wolfplayer wrote: »

Mr Norris, it will become the new normal. Falling rents and crashing house prices.

Chuck Norris gets wiped out by the market as rents crash and house prices crash.

Not that I buy into your bleak future prediction, why will I be wiped out, why can't I simply pay off my mortgages (which I can afford to do). Its strange that you actually underlined the bit where I said:

and not to place himself in a position where the rents do not cover his payments

Yet you obviously did not understand it lol

IveSeenTheLight

dopester wrote: »

Even ex-hardliners of the feared property-worshipping Aberdeen sort may soon become allies of mine, in expecting values to fall. (see my current sig)

dopester, don't decend into straw clutching as per your new signature.

If you read mitchaa's thread, he clearly does not believe prices will drop in Aberdeen but your snipet he refers to him being dragged down by the doom and gloom merchants on here.

mitchaa wrote: »

I truly believe now that Aberdeen and its shire are in for a period of long long stagnation. I dont think prices will drop that much from here on in, but then again I dont expect prices to rise by all that much so perhaps renting for a while is an option

chucky

mewbie wrote: »

So the more deposit you put down, the higher your yield gets? That's fantastic.

yet again - you miss the point

but then again you were only going Thanks hunting again just to be noticed and trying to be appreciated on the internet - well done :T

chucky

chucknorris wrote: »

Chucky (and others) changing the subject what do you think of this:

I was about to put some more money from a maturing bond (about 25k) into a 5.15% fixed rate bond but the problem is that as a 40% tax payer it only nets me a paltry 3.09% pa. Instead I am thinking of buying a (non isa as I am fully subscribed) FTSE tracker because it is tax free (because the profit will not reach the CGT allowance when I cash it in). Obvioulsly there is a risk but as the FTSE is so low it hasn't got to rise much to outperform that 3.09% pa and of course you can choose your selling point to exit when (if) the ftse is doing ok.

I thought I would canvas opinions as it just ocurred to me today to do this today when I realised that this is a way of utilising my annual CGT allowance to get tax free income.

i wouldn't suggest the tracker option - fees aren't great and performance isn't historically brilliant.

i get your point about the FTSE is 'low' but it has been lower and maybe that opportunity has passed to make the money on a tacker fund - just my opinion though.

i've gone for individual stocks that have good yields - plus 5% and that have a decent dividend cover so that future yield is covered.

also, i've not bought in at any price but have waited for opportunities to buy - Shell dropped to 1450 so bought into that again.

i've missed opportunities to buy but have got others so patience is the key.

btw - ignore the BTL haters. they really haven't got a clue but at least they are good entertainment value.

chucknorris

chucky wrote: »

yet again - you miss the point

but then again you were only going Thanks hunting again just to be noticed and trying to be appreciated on the internet - well done :T

Remember that question I asked you a few days back (not the ftse tracker one) hint hint

chucknorris

chucky wrote: »

i wouldn't suggest the tracker option - fees aren't great and performance isn't historically brilliant.

i get your point about the FTSE is 'low' but it has been lower and maybe that opportunity has passed to make the money on a tacker fund - just my opinion though.

i've gone for individual stocks that have good yields - plus 5% and that have a decent dividend cover so that future yield is covered.

also, i've not bought in at any price but have waited for opportunities to buy - Shell dropped to 1450 so bought into that again.

i've missed opportunities to buy but have got others so patience is the key.

btw - ignore the BTL haters. they really haven't got a clue but at least they are good entertainment value.

I hear what you are saying but I have the reverse of the midas effect in picking individual stocks.

What I like about Fidelity's all share tracker (called moneybuilder) is that the fees are extremely low at 0.1% pa and no initial fees either. I am simply looking for something better than fixed rate bonds and would be happy achieving that. I'm not out to try and make a fortune I am just happy with smalish gains (if they come my way)

IveSeenTheLight

chucknorris wrote: »

Bzzzt! Wrong answer because the tenants pay the interest on the loan for the BTL, please explain how you can borrow to buy shares and get someone else to pay the interest on the loan?

I realise you are only refering to the interest of a loan, but remember additionally they also pay for other associated business costs i.e. advertising fees, factor fees, insurance, maintenance etc.