Rents rising again....

IveSeenTheLight

chucknorris wrote: »

I just assumed that The J and The_Joker were openly the same person (or an obvious copycat), I didn't realise that it was supposed to be covert. I can't see the geneer connection though.

Maybe, maybe not.
Early idicators were as I described

Wind up merchant who claims "vistories" in a debate without merit, with a fettish for using belittling affectionate names.
Someone who can't reasonably debate posts or stick to the poonts raised.

Graham_Devon

Don't think too much lads. The J was prevelant, giving mortgage and financial advice on the house buying board before coming here. Don't let the conspiracy theories drag you down!

The J is just a very aggresive, sometimes abusive, "financial advisor". Just one of those recently classed in the media as needing more regulation, or to be held responsible for longer for the decisions they have reccomended clients make, as too many clients have walked away out of pocket due to the advice.

IveSeenTheLight

Graham_Devon wrote: »

Don't think too much lads. The J was prevelant, giving mortgage and financial advice on the house buying board before coming here. Don't let the conspiracy theories drag you down!

Was he?
Looks like he joined in March.
IIRC, Geneer last posted late Jan / Early Feb.

To be honest, I'm not too interested in sockies or the likes, just see the warning signs and don;t want to get into the type of debate that transpired previously with similar characters.

I'm not on here so often nowadays and don't have the time to get drawn in to such discussions.

chucknorris

IveSeenTheLight wrote: »

I'm not on here so often nowadays and don't have the time to get drawn in to such discussions.

Can't argue with you there

The_J

I'm abusive to idiots who have zero financial knowledge yet peddle their stupid !!!!ing opinions as fact.

Graham, I welcome more regulation, in fact it means morons like yourself won't be allowed to post financial information on here because you aren't qualified.

I'veseenthelight, since you have stopped trying to argue your completely invalid point, I take it you have thrown in the towel?

Or do you still want to compare a tenant repaying 250k with a landlord repaying 360k son? :rotfl:

IveSeenTheLight

The_J wrote: »

I'veseenthelight, since you have stopped trying to argue your completely invalid point, I take it you have thrown in the towel?

Or do you still want to compare a tenant repaying 250k with a landlord repaying 360k son? :rotfl:

Don't you just love the goading by some?

I've made my points, you've made yours.
I can see that we are not going to come to an agreement.
You think I am incorrect, I have pointed out the posts I was responding to in clarification which you amazingly choose to ignore (another indicator).

Let's agree to leave it there and let those interested and reviewing the posts make up their minds on the data.

Incidently, I'm off to see my FA today and mightily glad it's not you.

IveSeenTheLight

IveSeenTheLight wrote: »

I'm sorry, I don;t have the foggiest how to get a factual or even statistical answer to that question?

Do you have access to data to answer your own question?

I guess the answer lies somewhere between 0 and 30%.

I'm sure some have used equity that has been built up, whilst others have used cash from other sources.

Question back to you: -

At 25, you buy a £100k property and inflation is 5% each year for 10 years.
The property also increases in value by 5% in each of those 10 years.
You pay £644.30 per month on a 6% mortgage.

After 10 years, your mortgage debt has been reduced to £76,351.98, whilst the property value has increased to £162,889.50.

Now at 35, you have built up an additional £25,218.82 in savings (well you have had 10 years of wage and career growth) and consider using those savings along with releasing equity from your existing home to return the mortgage to £100k on a BTL investment.

The similar property you could buy would cost you £162,889.50, with a deposit of £48,866.84 (savings and equity withdrawel) leaving a mortgage of £114,022.60.

The typical rent for this type of property is £760 pcm, which covers the £475 pcm mortgage interest (also at 5% for ease of calculation) and provides a profitable return of £285 pcm (7% return on investment) which also covers capital repayment, maintenance etc.

Fast forward a further 25 years, your now 60, both properties are now paid in full, one by yourself and one by tenants.
In the meantime, both properties are now valued at £550k.

The savings investment £25k and equity withdrawel £23k (£48k) is now providing a valuation of £550k.

You do sell off the investment and have to incur CGT, assuming personal allowance hasn't increased in those 25 years (which most likely it will), you pay £105k in CGT, meaning your £48k investment is now worth £445k

Is this a better investment than in a savings account?
Hint The return is almost 10 times the initial return whilst a typical savings account will provde just over 3 times return.

Was it worth releasing that equity?

Thruglemir, do you have a response to the above questions?

The_J

IveSeenTheLight wrote: »

Incidently, I'm off to see my FA today and mightily glad it's not you.

You couldn't afford me.

IveSeenTheLight

The_J wrote: »

You couldn't afford me.

Your'e right.
I couldn't afford the losses I'd likely make if I followed your advice.

Thrugelmir

IveSeenTheLight wrote: »

Thruglemir, do you have a response to the above questions?

Didn't have to read far.....

The property also increases in value by 5% in each of those 10 years.

Given the current state of the global economy not a good base point for making an investment case.

Running average for past 10 years is now around 56%. Well below that recorded in the golden years of property speculation.

PS Will respond in more detail later.