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Jonathan Davis. Front Page FT. Financial Adviser. April 2005. Guess What he said.
Comments
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Not if they are on interest only as his are.
So what?
A house purchased in 1970 for £5,000 would be worth somewhere around £150,000 today.
And the interest only mortgage last year would have been £250 whilst the rent was £7500.
Hold an asset long enough and interest only is irrelevant.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Why would he be in trouble?
Rents are higher today than they were in 2008, when interest rates were also far higher.
If the rent covered the mortgage then, when rates were higher and rents lower, why would it not again when rates return to that level and rents are higher still?
This story smells like sh1te to me.
ANd still waiting for a response to this one, crashy.....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
your on a roll tonight Hamish, kicking bear butt :rotfl:0
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HAMISH_MCTAVISH wrote: »Why would he be in trouble?
Rents are higher today than they were in 2008, when interest rates were also far higher.
If the rent covered the mortgage then, when rates were higher and rents lower, why would it not again when rates return to that level and rents are higher still?
This story smells like sh1te to me.
Believe what you want but he was one very scared bunny.
I also know someone else who has just rented their flat for £25 less per month than before. This is to secure a tenant for a year.0 -
Believe what you want but he was one very scared bunny.
My mother is scared of butterflies.
Immensely illogical and without foundation in any rational way, but there you go.
Your mate is equally illogical if being in temporary negative equity scares him.I also know someone else who has just rented their flat for £25 less per month than before. This is to secure a tenant for a year.
Hmmm, that may in isolated circumstances actually make sense.
You save a 2 week (on average) void at the 6 month mark, plus advertising and letting costs, in return for £300 less a year. Could see that stacking up, but it's certainly not a reflection on the rental market.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »So what?
A house purchased in 1970 for £5,000 would be worth somewhere around £150,000 today.
And the interest only mortgage last year would have been £250 whilst the rent was £7500.
Hold an asset long enough and interest only is irrelevant.
yes I do know I have owned commercial property since 1993 and houses since 2000 but stopped buying in 2005. I expect to take an haircut on some of these but I can ride it because the early ones are paid for.
None of his are paid for. Most of his were bought in 2006 onwards.0 -
HAMISH_MCTAVISH wrote: »My mother is scared of butterflies.
Could see that stacking up, but it's certainly not a reflection on the rental market.
you don`t know that. I know more because I have commercial property and houses that I also rent.0 -
yes I do know I have owned commercial property since 1993 and houses since 2000 but stopped buying in 2005. I expect to take an haircut on some of these but I can ride it because the early ones are paid for.
None of his are paid for. Most of his were bought in 2006 onwards.
Sorry mate, perhaps I should use smaller words or something if you don't understand.
Hold a BTL long enough on I/O and it don't matter.....
No haircut involved.;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
you don`t know that. I know more because I have commercial property and houses that I also rent.
Well good for you crashy, that must make you very special.
You still haven't answered the point.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Sorry mate, perhaps I should use smaller words or something if you don't understand.
Hold a BTL long enough on I/O and it don't matter.....
No haircut involved.;)
Why haven`t you got some then?0
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