Should people wanting to sell hang in there?

tara747

Turnbull2000 wrote: »

Nope. You just rent it out and let tenants pay you a future income/pension.

...and if you don't have enough money to supplement the rent, letting fees (if applicable), maintenance, council tax, repairs etc on a monthly basis...? Most peak buyers can't rent their places out for enough to cover the mortgage, let alone the other associated costs of being a LL.

chucky

tara747 wrote: »

...and if you don't have enough money to supplement the rent, letting fees (if applicable), maintenance, council tax, repairs etc on a monthly basis...? Most peak buyers can't rent their places out for enough to cover the mortgage, let alone the other associated costs of being a LL.

is this your opinion or do you have anything to back that up?

btw the tenant pays the council tax not the landlord...

ukcarper

tara747 wrote: »

...and if you don't have enough money to supplement the rent, letting fees (if applicable), maintenance, council tax, repairs etc on a monthly basis...? Most peak buyers can't rent their places out for enough to cover the mortgage, let alone the other associated costs of being a LL.

I would have thought that depends on the deposit they put down.
I know someone who bought in 2006 and they get their mortgage and fees covered easily and it's a repayment mortgage.

tara747

chucky wrote: »

is this your opinion or do you have anything to back that up?

btw the tenant pays the council tax not the landlord...

Yes, I know plenty of people in this exact situation. Can't sell, can't let as the rent would nowhere near cover the mortage, let alone the other costs.

BTW, in N. Ireland the LL pays the council tax (or rates as it's called here).

ukcarper wrote: »

I would have thought that depends on the deposit they put down.
I know someone who bought in 2006 and they get their mortgage and fees covered easily and it's a repayment mortgage.

What about the opportunity cost of the deposit money?

ukcarper

tara747 wrote: »

.



What about the opportunity cost of the deposit money?

Well if he sold house he might get £25k after fees. 20 years at 4% would get him about £55k might as well let someone buy a £140k house for him.

neverdespairgirl

Sibley wrote: »

I've been looking at UK houses this week. There has been no price reductions in des res areas whatever people on here will try to tell you.

Next level down are houses that you make you think ' It's not perfect but'.....

there have been price reductions in central London, which most people think of as a "des res" area, I reckon.

Surely there's no such thing as the "perfect house"? There's always compromises to be made.

My parents are selling their London house at the moment. They bought it when they had 4 children at school nearby, and now they're finding it a bit big and might as well downsize and pay off the mortgage.

They are looking for 3-4 bed houses in SE3 / SE10 for about £1 million, but they still need to compromise on their "ideal" wish list.

HAMISH_MCTAVISH

tara747 wrote: »

...and if you don't have enough money to supplement the rent, letting fees (if applicable), maintenance, council tax, repairs etc on a monthly basis...? Most peak buyers can't rent their places out for enough to cover the mortgage, let alone the other associated costs of being a LL.

That may be the case in Northern Ireland, but it's certainly not the case in the majority of the UK.

In 80% of areas in the UK, rent is now more expensive than mortgage interest payments, even when those mortgage interest payments are calculated at 5% instead of the current average of 3%.

Rental voids have reached a new all time low of just 14 days per year on average, rents have reached a new record high and are still rising, tenants pay the council tax, not the landlord, etc.

You should probably put a disclaimer in your sig that you're from N.I., so any "advice" you offer is probably not applicable in the mainland UK.....;)

HAMISH_MCTAVISH

nutsohazelnuts wrote: »

My daughter would take issue with you over that. She says that prices will continue to drop until at least the next General Election so buyers know that if they just wait a few months they can have the property for less, or something nicer, as better properties slide down into their price range. As people cut their asking prices it forces others to do the same.

Your daughter is wrong, for most people in most areas.

Prices are currently stagnant, and average just 11% below peak, which is around 10% higher than they were in early 2009. In around 10% of areas, they're rising slightly. In around 20% of areas, they're falling slightly. But for 80% of the people in the UK, they are not dropping at all, and haven't done for over 2 years now.

Some areas have already exceeded the previous peak, and not just in London. In my area for example, which is about as far from London as you can get, actual selling prices are now 15% or so above where they were at the start of 2007, and are up 4% year on year. As every year passes we will see more and more areas recover to their previous peak prices, so the clock is most certainly ticking.

Rents are soaring, now at a new record high and still rising at twice the rate of wage inflation, as the mortgage famine forces a generation of FTB-s to enrich their landlords instead of themselves.

Buy to let lending is the one section of mortgage lending that is dramatically up year on year, as landlords buy up the cheaper houses instead of FTB-s, due to the yields being so good.

And housebuilding is at it's lowest levels in over 100 years, whilst population continues to grow at near record levels. We only build around 100,000 houses a year, but form 250,000 new households a year.....

And that's before the biggest generation of FTB age people in history, bigger even than the baby boomers, starts reaching the age to buy from 2012/2013 onwards. This generation will peak in size by around 2020 at almost a million a year versus 680,000 a year at present, and it will be 2028 before there are as few FTB age people in the UK again as there are today.

FTB-s have one more year, maybe two, of the current stagnation..... And then the biggest generation in history crashes into the lowest level of housebuilding since Victorian times, with only one possible result....

debtistheft

DervProf wrote: »

Most human's are therefore a bit stupid.

If you sell for less than you expected, or have an offer for less than you expected (especially after 2+ years of waiting for a sale), then shouldn't that tell you something ? It would tell me that the market is cwap, and that there are likely to be lots and lots of other sellers in the same situation. If you sell a bit lower and buy you next place a bit lower, then you are probably going to be financially better off.

But no, the majority just want as much as possible for the place they are selling, and although I suspect they'd like their next place for as little as possible, will just borrow what it takes and say "I made £xxxxx on my old place, you can't go wrong with properdy, innit".

Totally agree. 2.5 years to sell a propety. Let's add that to the growing list of reasons why people should not put all of their wealth into a single asset. The bulls on this site will have everyone think that life is just a pleasure boat ride from birth to the grave, but unfortunately it isn't. When a storm whips up a lot of home owners are going do drown, especially those who have gotten into huge debt just to buy a pile of bricks.

When will this insanity end? Rent and build wealth instead of debt.

chucky

tara747 wrote: »

Yes, I know plenty of people in this exact situation. Can't sell, can't let as the rent would nowhere near civer the mortage, let alone the other costs.

BTW, in N. Ireland the LL pays the council tax (or rates as it's called here).

that's Northern Ireland, that's a little bit different.

it's not the case on the mainland.