BTL Boom continues

crash123

Percy1983 wrote: »

By all means I agree not all types of property move up and down at the same rates. but the odds on one type dropping massively while another increases massively aren't too high, ie my 3 bed semi drops 25% and the 4 bed detached drops 20% I will still be better off taking on less debt than them both increasing by 40%.

Yet again I really am happy for prices to drop, if I want to move up the ladder I will just work harder and pay down more, I don't expect or want HPI to gift me a deposit from doing nothing.

With that I have bought a house big enough to live in for the next 25 years all being well, I am not going to be chasing bigger houses/flasher cars, happiness is much more than that.

As it is I can say unless anything drastic happens I will be happy here for the next 25 years

I hope everything goes well for you as you come across as a very nice person.

chucky

crash123 wrote: »

I hope everything goes well for you as you come across as a very nice person.

Thanks, you sound like a nice person too.

the_flying_pig

chucky wrote: »

Percy, we're talking about the real world here... Do you really think that all property types increase in value by the same amount?

Let me expain it to you a little easier for you... In London there was a time from 2000 onwards that flats increased more in value than maisonettes and even houses. At the moment I believe that houses are increasing more in value than flats. Both in absolute and percentage terms so your little 'dream' or gamble could fall flat on it's face or you could be a HPI junkie that gets helped up the housing ladder.

well, chucks, yeah, i mean, if your house goes up in value by much more [less] than the average in a rising market, or goes down by much less [more] than the average in a falling market, or whatever, you're quids in [screwed].

but the underlying principles are clear enough for wannabe trader-uppers:

price falls are good for you unless [by reducing your deposit/equity] they push you into a high risk lending category.

so someone who buys a FTB house with a big deposit & whose earnings are rising/large relative to mortgage repayments [helping them to put together a deposit for their trader-upper place, either by repaying/overpaying on their FTB mortgage or just filling a savings account] is very likely better off as a result of falls.

someone who buys a FTB house with the minimum possible deposit & who's unable to save much money after making mortgage interest payments might be better off as a result of HPI [they'll quite likely never be able to afford to trade up anyway].

other people mabye somewhere in the middle.

the_flying_pig

crash123 wrote: »

I hope everything goes well for you as you come across as a very nice person.

i'll be honest & admit that i do rather like chucky's online persona. only he can tell you if he's really a "very nice person".

Wookster

the_flying_pig wrote: »

i'll be honest & admit that i do rather like chucky's online persona. only he can tell you if he's really a "very nice person".

Sounds like something only someone as deluded as chemical ali would say.

chucky

the_flying_pig wrote: »

i'll be honest & admit that i do rather like chucky's online persona. only he can tell you if he's really a "very nice person".

Thanks FP, very kind. It's only an internet forum after all.

The principle remains the same when house prices fall less people buy or are able to buy houses because of a number of reasons. Not sure if you agree with that.

So assuming 1. You're able to sell 2. You're able to get finance to get a further loan for the bigger property then you're onto a winner.

But... A few more curve balls for you. When property prices fall the supply of property is reduced and it becomes harder to buy what you would like, I mentioned problems with getting finance and I'll throw in employment issues too.

You're principle in your post is fine in theory but I don't see it as easy as that for everyone in real life in an economic crisis.

Graham_Devon

chucky wrote: »

Thanks FP, very kind. It's only an internet forum after all.

The principle remains the same when house prices fall less people buy or are able to buy houses because of a number of reasons. Not sure if you agree with that.

So assuming 1. You're able to sell 2. You're able to get finance to get a further loan for the bigger property then you're onto a winner.

But... A few more curve balls for you. When property prices fall the supply of property is reduced and it becomes harder to buy what you would like, I mentioned problems with getting finance and I'll throw in employment issues too.

You're principle in your post is fine in theory but I don't see it as easy as that for everyone in real life in an economic crisis.

Bizzarely, if I'd stated any of that (which is completely true) I'd have been dismissed and called Mr Muddle in an instant.

chucky

Graham_Devon wrote: »

Bizzarely, if I'd stated any of that (which is completely true) I'd have been dismissed and called Mr Muddle in an instant.

It's all pretty obvious really. Please don't be paranoid or even try to make this thread about you. I'm nothing like you.