House prices down 0.9% Nationwide report out

HAMISH_MCTAVISH

Generali wrote: »

What does a UK house yield right now? 3-3.5%.

I think the average is closer to 5% than 3%....

It's more like 6% to 8% up here.

Different sources give different answers, but I'm not seeing 3% average yields from any of them.

In January 2002, the average rental yield, according to buy-to-let lender Paragon, was 9.84%, with £8,630 worth of rent a year delivered by an average property costing £87,714.

In January 2008, this had fallen to an average yield of 6.2%, with £11,581 worth of rent delivered by an average property costing £187,748.

http://www.metro.co.uk/money/109140-is-buy-to-let-on-the-brink-of-collapse

According to the latest buy-to-let index from LSL Property Services yields rose to an annual average of 4.8% while rents increased by 0.3% in February to an average of £658 a month

http://citywire.co.uk/money/the-real-prospects-for-buy-to-let/a396404

System

Generali wrote: »

Those predicting nominal stagnation for 2010 are looking likely to be right so far.

:cool:.................................

DervProf

HAMISH_MCTAVISH wrote: »

Property is relatively cheap up here, and incomes relatively high.

But the weather is really crap much of the time.



One house is now mortgage free, the other has a small mortgage of around 1.5 times joint left on it.

But that is the plan in another decade or so, sell up both and move somewhere warm and cheap.

Leaving behind a relatively expensive house in an area where the weather is crap. Fair play if you can "get away" with it. Now get back to your ramping, otherwise you`ll never see your plan come to fruition.

doire_2

Silbey where are you?

Strings

Generali wrote: »

What does a UK house yield right now? 3-3.5%.

if you mean in terms of rent yeild?
Ours is getting near 40%

RenovationMan

sarkin1 wrote: »

and the value of your house is falling faster than you can repay the debt. :rotfl:

The value of my house is irrelevent. I'm repaying a mortgage and the value of that remains static.

I find the lack of financial awareness shocking on many financially related websites such as this one.

Generali

Strings wrote: »

if you mean in terms of rent yeild?
Ours is getting near 40%

It sounds unlikely. Yield = current rent / current price.

Are you comparing current rent to the purchase price by any chance? If you really are getting a yield of 40% where are you? I will quit my day job and become a landlord where you live!

Heyman_2

RenovationMan wrote: »

I find the lack of financial awareness shocking on many financiallly related websites such as this one.

It's all the usual doofuses who come out of the woodwork when there's a few MoM drops, then go into hiding again when prices start rising.

The funny thing is, the people here who have consistently called the market correctly (including the current round of drops which will effectively amount to market stagnation) are the ones labelled rampers and cheerleaders.

Dirk_Rambo

0.9 per cent seems a bit low. are they sure its nor a typo. they definetely fell by more than that round near me

Heyman_2

Dirk_Rambo wrote: »

0.9 per cent seems a bit low. are they sure its nor a typo. they definetely fell by more than that round near me

See what I mean? :T