Halifax July - 0.6% MOM, -0.6% YOY

Dan:_4

Hulkamaniac wrote: »

P.S. Honeymooning anywhere nice?

Somewhere you'll never afford.

Batchy

So, stagnation still... see you in 12 months... to post this again! lol

macaque_2

Its latest monthly survey shows that prices fell by 0.6% in July compared with June,

Good grief! Prices down yet again! The property market is just going one way at the moment.

Sibley

Good grief! Prices down yet again! The property market is just going one way at the moment.

So is your rent.

abaxas

Sibley wrote: »

So is your rent.

In terms of averages. The average house has lost value faster than someone has been paying rent on it.

Ie for the last 5 years (or so) most renters have made a profit from renting.

HAMISH_MCTAVISH

abaxas wrote: »

In terms of averages. The average house has lost value faster than someone has been paying rent on it.

Ie for the last 5 years (or so) most renters have made a profit from renting.

That statement is utter nonsense though really.

First of all the average rent is 5.5% per year. So the average rent for 5 years is 27.5%.

Second, it's only the outlier Halifax index that shows such a large fall from peak, Nationwide shows 11% from peak, Acadametrics is now less than 5% down from peak.

I'n my area for example, the average person would be over £50,000 better off by buying instead of renting for the last 5 years.

Graham_Devon

HAMISH_MCTAVISH wrote: »

That statement is utter nonsense though really.

First of all the average rent is 5.5% per year. So the average rent for 5 years is 27.5%.

Eh? You call the previous post nonsense and then go and post that!?

Rents have risen 10% since 2008. You are simply taking a yearly figure and multiplying it by 5. Doesn't work like that.

Edit: Sorry, my bad. Rents have rose 11% since 2008. I know the percentage point will be a bit deal.

JonnyBravo

abaxas wrote: »

In terms of averages. The average house has lost value faster than someone has been paying rent on it.

Ie for the last 5 years (or so) most renters have made a profit from renting.

Just thinking out loud here... (For a start I'm sure your statement is true but lets go with it...)

Are you suggesting it's great result for someone renting to pass over (for example) £42k in rent (£700/month) to see a reduction in the asking price of (for example) £50k?
A benefit of £8k? Assuming no other costs etc. I wonder what the benefit to the landlord is over that time?

Is it a win:win all round?

Someone work it all out for me please.

abaxas

JonnyBravo wrote: »

Just thinking out loud here... (For a start I'm sure your statement is true but lets go with it...)

Are you suggesting it's great result for someone renting to pass over (for example) £42k in rent (£700/month) to see a reduction in the asking price of (for example) £50k?
A benefit of £8k? Assuming no other costs etc. I wonder what the benefit to the landlord is over that time?

Is it a win:win all round?

Someone work it all out for me please.

If the valuation went down 50k over 5 years, there is no 'benefit to the landlord'.

chucknorris

abaxas wrote: »

If the valuation went down 50k over 5 years, there is no 'benefit to the landlord'.

My property has devalued about 40-50k since peak but my rental profits have increased by over 100k since the base rate hit 0.5%. That is not total profit only EXTRA profit and only since the base rate went down (which was after peak, so a shorter duration).

EDIT: The real advantage of it though is that I have no intention selling until we reach a better market, so the capital losses are merely notional, however the additional rental profit is real.