How high can they go? Rents keep breaking records

crash123

chucknorris wrote: »

We also bought a house in 2007, for 243k with a mortgage of 198k at 0.38% over the BOE base rate, so £145 per month, the rent is currently £1,185/month. Those figures haven't changed much since March 2008 when the base rate hit 0.5% (prior to that we also enjoyed quite a few months of the rate below 4% too). That's a total of about 45k difference between mortgage interest and rent in that time period but obviously there are other expenses in addition to the mortgage, but as we refurbished it there really hasn't been anything but very minor maintenance and the usual (gas safety cert, insurance etc.) to pay for.

EDIT: Just remembered we put the offer in and had it accepted in Sept 2007 but due to problems with the vendor we didn't actually complete until Feb 2008. At which point we decided to still buy despite the gloomy outlook.

yes interest only mortgage. why do you miss out certain facts

chucknorris

crash123 wrote: »

yes interest only mortgage. why do you miss out certain facts

What relevance is that, why does that matter?

Are you always so unpleasant? (or is English not your first language which makes you look abrupt, if thats the case ignore my comment).

Sorry I forgot to mention the fact that I take a size 9 shoe (size 10 trainers)

HAMISH_MCTAVISH

crash123 wrote: »

How can I believe you when the actual selling price was £230,000 not £240,000 on the 6th DEc 2006.

https://www.yourhomeprice.co.uk/freesearch/searchpmfreetestlocnw.php?q=AB11+&q1=6tx&submit=search+

Gosh, thanks for making my point for me.

So it sold 8 months or so before absolute peak for slightly less than I thought.

That's a rental yield of 7%. Versus mortgage interest of 2.5%.

Hundreds of pounds a month cash flow positive even with a full repayment mortgage.

Making the buyer tens of thousands of pounds better off versus the renter since.:beer:

Does it completely shatter your worldview to find real life examples like that? Or is it something you find best to just ignore and pretend it didn't happen?:rotfl:

crash123

chucknorris wrote: »

What relevance is that, why does that matter?

Are you always so unpleasant? (or is English not your first language which makes you look abrupt, if thats the case ignore my comment).

Sorry I forgot to mention the fact that I take a size 9 shoe (size 10 trainers)

its Yorkshire mate and yes it does matter.
A repayment mortgage would be a lot more.

crash123

HAMISH_MCTAVISH wrote: »

Gosh, thanks for making my point for me.

So it sold 8 months or so before absolute peak for slightly less than I thought.

That's a rental yield of 7%. Versus mortgage interest of 2.5%.

Hundreds of pounds a month cash flow positive even with a full repayment mortgage.

Making the buyer tens of thousands of pounds better off versus the renter since.:beer:

Does it completely shatter your worldview to find real life examples like that? Or is it something you find best to just ignore and pretend it didn't happen?:rotfl:

Just saying you should get your facts right. You got this wrong so what else have you twisted to suit your way of thinking.
You don`t like to be shown up do you in front of your adoring fans.:beer::beer::beer::beer::beer::beer::beer:

DervProf

HAMISH_MCTAVISH wrote: »

Making the buyer tens of thousands of pounds better off versus the renter since.:beer:

We get it Hamish, buyers > renters. Big whoop, I am > renter, therefore my **** is bigger than a renter's ****. And FWIW, your's is too !

chucknorris

crash123 wrote: »

its Yorkshire mate and yes it does matter.
A repayment mortgage would be a lot more.

I don't quite know how to respond to you because I don't think you know much about owning and running a business, what makes you think you have to physically buy the business premises, which is exactly what the capital repayments on the loan would be doing. Many successful businesses do not buy their business premises. You are trying to apply the logic of an owner occupier to a property investment business and it does not perfectly match.

Of course it would be more but you would be getting something for those extra payments wouldn't you! You would paying off the capital and buying a property with those repayments, unlike paying rent, therefore it is not appropriate to add the repayments to the figures, my loan is interest only anyway so there are no capital repayments.


I prefer not to use the profits in part or full to repay off the loan, it would be crazy to be doing that anyway at this point in time as the mortgage rate on that particular property is only 0.88%. However even when rates go back to normal I would not be inclined to pay off the loan, because it is tax deductable (40% in my case) which makes it a very cheap loan even in times of normal base rates. Especially as I am considering a move into commercial property where loans are more expensive, so my capital would be put to better use there.

crash123

chucknorris wrote: »

I don't quite know how to respond to you because I don't think you know much about owning and running a business, what makes you think you have to physically buy the business premises, which is exactly what the capital repayments on the loan would be doing. Many successful businesses do not buy their business premises. You are trying to apply the logic of an owner occupier to a property investment business and it does not perfectly match.

Of course it would be more but you would be getting something for those extra payments wouldn't you! You would paying off the capital and buying a property with those repayments, unlike paying rent, therefore it is not appropriate to add the repayments to the figures, my loan is interest only anyway so there are no capital repayments.


I prefer not to use the profits in part or full to repay off the loan, it would be crazy to be doing that anyway at this point in time as the mortgage rate on that particular property is only 0.88%. However even when rates go back to normal I would not be inclined to pay off the loan, because it is tax deductable (40% in my case) which makes it a very cheap loan even in times of normal base rates. Especially as I am considering a move into commercial property where loans are more expensive, so my capital would be put to better use there.

how wrong you can be about people. I do run my own business but we all run them differently. I am an antiques dealer that dabbles in buying and selling property along with other things but my partner is different as he likes to buy commercial property but keeps it for the long term.
different ways of making money

chucknorris

crash123 wrote: »

how wrong you can be about people. I do run my own business but we all run them differently. I am an antiques dealer that dabbles in buying and selling property along with other things but my partner is different as he likes to buy commercial property but keeps it for the long term.
different ways of making money

Then you should have understood why the original interest only payments were appropriate in my calculation

crash123

chucknorris wrote: »

Then you should have understood why the original interest only payments were appropriate in my calculation

I understand but I thought you should have made it clear in the post that`s all. I didn`t mean to come across as rude, it is just the Yorkshire way. English is not my strong point in fact I failed at school but excelled in Mathematics and the sciences.
forgot to say good luck with all your investments