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Debate House Prices


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A Bear Story

A guy in my office sold his house and is renting, as he believes house prices have got a long way to fall.

He's now looking at BTL flats as he's so unimpressed with the returns being offered by banks on cash.

:huh:
«13

Comments

  • Pete111
    Pete111 Posts: 5,333 Forumite
    Mortgage-free Glee!
    pinkteapot wrote: »
    A guy in my office sold his house and is renting, as he believes house prices have got a long way to fall.

    He's now looking at BTL flats as he's so unimpressed with the returns being offered by banks on cash.

    :huh:

    Oh dear. didn't really think that through did he.
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
  • Batchy
    Batchy Posts: 1,632 Forumite
    Doesnt make any sense to be honest with you! :-S
    Plan
    1) Get most competitive Lifetime Mortgage (Done)
    2) Make healthy savings, spend wisely (Doing)
    3) Ensure healthy pension fund - (Doing)
    4) Ensure house is nice, suitable, safe, and located - (Done)
    5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
  • Pete111
    Pete111 Posts: 5,333 Forumite
    Mortgage-free Glee!
    Indeed

    Selling a property (and incurring associated costs) only to buy another as an investment (and incurring associated costs - inc stamp duty and far higher BTL mortgage fees if a mortgage is required) seems daft unless proprerty A was unrentable and property B will make loads of cash

    In addition, renting out your previous PPR gives you several years of protection against future CGT should it's value increase. Buying a BTL gives you none.

    Economics FAIL I fear.
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    Don't knock it.

    We need idiots like this, since if everyone was more financially 'savvy' it would hit us hard in our pockets. Why can some of us get 3% on our savings [miserable I know, but...]? It's because there are millions of idiots out there not bothering to check that they are only getting 0.5%.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Don't knock it.

    We need idiots like this, since if everyone was more financially 'savvy' it would hit us hard in our pockets. Why can some of us get 3% on our savings [miserable I know, but...]? It's because there are millions of idiots out there not bothering to check that they are only getting 0.5%.


    This is something that I told my wife years ago which she constantly reminds me of, fools like this contribute to our success.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • pinkteapot
    pinkteapot Posts: 8,044 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Capitalism: The freedom to profit from numpties?
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    pinkteapot wrote: »
    Capitalism: The freedom to profit from numpties?

    Not quite.

    More a case of "Numpty": A person who is free to shun education, to do stupid things, to spend every penny unwisely, and free to become poorer by comparison.
  • geneer
    geneer Posts: 4,220 Forumite
    pinkteapot wrote: »
    A guy in my office sold his house and is renting, as he believes house prices have got a long way to fall.

    He's now looking at BTL flats as he's so unimpressed with the returns being offered by banks on cash.

    :huh:


    His names not pimerne1 is it.
    Bought 2 flats 2007.
    Sold to Rent 2011.
    No?
  • rizla01
    rizla01 Posts: 7,260 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Correct me if I am wrong here but he sold a house and is buying FLATS to rent out.

    mulitiple flats?

    Or just one or two?

    Nothing wrong in BTL's are there?

    Surely OK if the price is right.

    Or am I one of the Numpties referred to earlier.

    As for house prices falling - Dream on, all.
    "Unhappiness is not knowing what we want, and killing ourselves to get it."
    Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))
    Women and cats will do as they please, and men and dogs should relax and get used to the idea.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Bit of a contrast to the thread yesterday, about how well someone is doing on a gamble. Supposed to be nice, or be accused of being jealous or bitter.

    However, someone else takes a gamble and it doesn't go to plan and they are numpties, it doesn't make any sense, a fool, and an economic failiure.

    Strange. Unless they are planks because they don't agree with many peoples lust for HPI.
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