STRs oh dear. Better get buying

Dithering_Dad

keeperbear wrote: »

I know someone who sold to rent about four years ago. He has lost out on prices rises of approx 35% in my area of West London, and cannot afford to repurchase his property. Prices are still increasing here!

I know someone on MSE (named Keeperbear) who bought a 1 bed flat in London in '93 and instead of using this as a springboard to move up the property ladder, had such lack of faith in the property market that he decided to stay put. He can now only look at the 35% increases he could have had on a 3 bed house and weep.

keeperbear wrote: »

Will a STRer who sold two or so years ago admit their mistake? It is funny how you never hear anyone document how much they have lost. I think STRers are idiots as they forget that a house is a home, not an investment vehicle. Factor in the transaction costs of STR, and it is just too risky.

Will Keeperbear , who decided to stay put and not invest in a booming London property markey admit his mistake? It's funny how he'll never document how much he lost. I think he should look in a mirror before he starts calling other people idiots. He has forgotten that for most people, their home is their single largest investment and downsizing will help fund many people's retirement.

keeperbear wrote: »

In constrast, I am certain that my London home will be worth more in 20 years time and also provide me with a landlord-free roof over my head. As I am mortgage free, I can also invest my "rent" payments into a investment vehicle that does not affect my home life. .

I'm sure it will be worth more in 20 years time, but not as much as a larger house would have been worth. What investments are you choosing to put your mortgage money into? Will they have netted the same returns as you could have had by moving up the property ladder?

Off topic, but it seems strange that in this post you are saying that people shouldn't invest in property because it may affect your home life, but on other posts you say that property is king and that anyone who rents is a fool. Make your mind up!!

p.s. Dithering Dad would like to point out that he feels that pursuing a strategy of buying a home, paying it off and staying put is not a bad thing. Doing that and then pontificating on about how "Stupid" other people are for pursuing their own strategy, whether that involves STR, BTL, Upsizing, Downsizing leaves yourself open to criticism from bored Ditherers who have too much time on their hands

lynzpower

dannyboycey wrote: »

0.0% growth in the notoriously strong South East..... yeah, it's 'thundering' mate.

The interest rate is going up again next week, and it wont be the last. Gordon looks set to announce Alistair Darling as chancellor later today.... The perfect fall guy to take the blaim for his miracle economy.

This is gonna be funny! I hope you have some decent equity in your home and a stable job nollag, coz you're going to need it with a financial knowledge like yours! :T

not wrong mate. Here I am in "booming" london, the city which allegedly has its own little microclimate of lunacy, and there are 3 properties up for sale on my road, have been for some months, and are still sat there, after being reduced and remaining unsold. And only 4 stops from Liverpool street. cracking places too, lovely area round here In london terms, they are not expensive ( under the 250 barrier).

tenroom

The only people who should be STRing are those who own ex-local authority like me. I've just exchanged on my 3 bed in Notting Hill at a price that I couldn't have DREAMED of last year. So glad i waited till this year cos I had an offer £30K higher than I would have got if i'd put it on the market last year. Ex-local authority property will plummet further and faster than anything else come the correction.

A slow down will turn into a slump faster than you can blow the froth off your skinny latte. Yes a flat or a house is a home . . . to some of us but SO many of those who've bought in the last year or two have done so for speculative purposes thinking they're Sarah Beeny turning a quick profit for a lick of paint and some laminate flooring or they've bought to let that as soon as the headlines read "house prices stall", there'll be a dash for the exit the likes of which you've never seen. There'll be property for sale everywhere

Romani_Ite_Domum

nicola1982 wrote: »

To be honest I don't really understand STRers, but that is because I don't see a house as an income source but as a home

And how do you feel about BTL?

Most people who STR are going to move anyway but think that renting for a while will put then in a better position to buy again and have a little breathing space to see what happens to the market.

Of course that is my opinion. Many people on here seem to think they are vultures waiting to pick on the bones of somebody elses misfortune.

Romani_Ite_Domum

keeperbear wrote: »

I think STRers are idiots as they forget that a house is a home, not an investment vehicle.

<wry smile> Oh the Irony. </wry smile>