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Debate House Prices
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Whither house prices?
Comments
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Thrugelmir wrote: »Few BTL mortgages are on repayment basis. For the simple reason that the after tax income (i.e. net cash) isn't sufficent to meet the capital required to discharge the mortgage.
BTL was a fad born out of a rapidly rising property market where capital appreciation was the key. Without significant capital appreciation, property investment looks very different. Certainly when you look at the costs of owning a property for 30 plus years the returns diminish somewhat.
Add to that legal and necessary capital expenditure. Depending on rent a new boiler and central heating checks could easily wipe a couple of years net cash flow. Windows, roof, maintenance, what pleasure."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
hurstpierpoint wrote: »I was pondering buying a larger family home, getting it paid for, and downsizing later. As we are happy where we are your point about capital appreciation is key. Without that it makes no sense (much like BTL in my opinion)
..unless you want a bigger family home.
Nothing to stop you downsizing later whether prices rise or fall.0 -
..unless you want a bigger family home.
Nothing to stop you downsizing later whether prices rise or fall.
Apart form the the best part £20k lost each way in the transaction - estate agents, solicitors, land registry, SDT, valuers, removal costs, new carpets etc."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Apart form the the best part £20k lost each way in the transaction - estate agents, solicitors, land registry, SDT, valuers, removal costs, new carpets etc.
Yes there are moving costs to consider - goes without saying I would've thought.
They should be included in all savvy potential buyer's spreadsheets.0 -
Yes there are moving costs to consider - goes without saying I would've thought.
They should be included in all savvy potential buyer's spreadsheets.
Makes them a lot easier to face if you think they can be swallowed up in asset appreciation.
Might end up with a + on your spreadsheet rather than a -.
Do you keep spreadsheets on everything?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Do you keep spreadsheets on everything?
Quite a lot of stuff yes.
If I was the OP I would be able to tell you to the penny what the cost would be to sell and buy, what the new mortgage would be, difference in council tax, extra time and costs involved in getting to work etc.
There would be two pieces of real data a) one-off moving costs and b) difference in monthly costs between the two houses. Once that's done it's much easier to think about what I need, want or think will happen to house prices.0 -
More of a back of an envelope type myself. Thinking back to before I posted originally on this subject my gut feeling was that things will bump along like this for years and most of what I've read since seems to support this.
I recently bought a second property (not BTL) pretty firm in the belief that no real capital appreciation would be achieved over a 10 yr period. That was a flat with an age-occupancy clause but I'm now pretty convinced that the same will apply across the board except for a few hot-spots. Your comments were all much appreciated, cheers.0
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