Where have I gone wrong?

nelly_2

kingkano wrote: »

Since everyone else is using history to justify their beliefs, I was just giving the other side of the coin.....

So we earn more and have more tosh, better standard of living, you think house prices should buck this and be cheaper than ever before??

Why not?................

sortofok

kingkano wrote: »

So we earn more and have more tosh, better standard of living, you think house prices should buck this and be cheaper than ever before??
QUOTE]

Not only have confused cause with effect you have also confused the facts.

"We", the majority of ordinary working people do not earn more. In fact, due to rising rising taxation, the sky-high price of housing, increased energy bills, increased transport costs etc. the cost of living is rising and incomes falling . You don't need any experts or statistician to tell you inflation is blah blah % You can feel it in your pocket. But we still need more stuff and holidays and cars and stuff.

Don't worry. House price inflation will come to our rescue.

Everything you ever wanted is yours. Just "release the equity " in your home and voila there it is -more money. From nowhere.

So you can buy more stuff which is getting cheaper and cheaper because globalisation has driven down costs.

Hang on that means lower wages. You said our wages were rising.

No, but the stuff's getting cheaper.

kingkano

LOL!!! I never said we earn more. Try to read a bit closer.... it was your cheerleader nelly!!

No problem with that nelly. Its your right to believe what you wish. It would be a completely different society where nobody wanted to buy houses because the asset didnt appreciate at all? BTL wouldnt exist. Its quite hard to imagine really.

I just used other people's arguments against them. I like to poke holes because people in these debates seem to be wholly on side A or side B and its outrageously funny in some ways.

sortofok

Sorry king. Got a bit mixed up with the cutting/pasting/editing thingy

thesaint

Gorgeous_George wrote: »

<snip>
Anyway, time waits for no-one and today I'm stuck in a house that I only own about 70% of; the remainder belongs to Britannia. I can't even look forward to the inevitable house price crash. It seems that I bought too early.



GG

As penance, sell to rent and join the hoards that bemoan BTL landlords for the current house prices.

What I don't understand is why the moaners let the enemy (BTL landlords) know that the house price crash is coming, and give them time to sell. Surely they would want them to be caught up in it and lose everything?

I shall decline to sell and enjoy another rise in house prices next month.:j

kingkano

I was wondering if a dip starts, say 5-10%.... won't all the BTL landlords start appearing because then the rental value would stack up again?? That's one of the reasons I cant see a crash happening (unless the govt does something about BTL - or the banks do). I can most definitely see a dip/stagnation which will be at whatever level rent stacks to the mortgage of a particular property/area.

Guy_Montag

kingkano wrote: »

I was wondering if a dip starts, say 5-10%.... won't all the BTL landlords start appearing because then the rental value would stack up again?? That's one of the reasons I cant see a crash happening (unless the govt does something about BTL - or the banks do). I can most definitely see a dip/stagnation which will be at whatever level rent stacks to the mortgage of a particular property/area.

I guess it depends on the cause of the dip - a BTLer with whom I corresspond on another board was telling us that despite interest rates rising 100bp or more, the interest rates on his empire are virtualy unchanged due to competitiion between lenders, but now there's almost no margin left to cut.

My point being even if prices drop 10% that wont make the rents stack up if your expenses go up 10%

sortofok

Morning Guy.

You didn't have nightmares did you ?

mystic_trev

kingkano wrote: »

I was wondering if a dip starts, say 5-10%.... won't all the BTL landlords start appearing because then the rental value would stack up again?? That's one of the reasons I cant see a crash happening (unless the govt does something about BTL - or the banks do). I can most definitely see a dip/stagnation which will be at whatever level rent stacks to the mortgage of a particular property/area.

How many of the newbie Landlords are going to stay around when they see the value of their Pension going down.Once sentiment changes it'll be that, that heralds the start of any correction. You can forget fundamentals to a large extent, the worst of the last crash happened when Interest rates were going down!

Guy_Montag

sortofok wrote: »

Morning Guy.

You didn't have nightmares did you ?

I did actually, I dreamt that my car had been towed while I was off putting money in a pay & display machine & it was going to cost me £5k to get it back!

I take it you didn't wake to find a horses head in your bed, or a rabbit boiling on the stove then?