'We've reached a tipping point' Signs of house price weakness

Crashy_Time

ukcarper wrote: »

I don't think that at all but if you are in negative equity you are much better off staying put compared to realising your loss and trying to rent probably at a higher monthly payment.

Most investors are in it for the long term and would rather keep the property and benefit from the rent than sell at a loss.

Their creditors might have different plans though? I don`t see how someone offloading BTL or other investment property is going to be "trying to rent probably at a higher monthly payment", they will just be trying to cut their losses and get out. People in negative equity staying put and lamenting their daft decisions don`t make the market.

chucknorris

ukcarper wrote: »

I can't see why anybody would welcome a crash as it would cause a lot more problems than it would solve. I agree it would be better if prices were not as high as they are in the south east but in my opinion the best thing would be for prices to stagnate or maybe fall slightly.

Sorry ukcarper but you just don't get it! They live in a place called 'round my way' in this magical place, rent prices collapse, house prices collapse, yet amazingly the economy in general absolutely booms with very high salary rises (redundancies? Don't make me laugh, what part of the economy booming did you not understand?). Unfortunately we were doomed at birth to live out our lives on planet Earth, if only we could get to the planet 'round my way' (nature can be so cruel).

ukcarper

Crashy_Time wrote: »

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Their creditors might have different plans though? I don`t see how someone offloading BTL or other investment property is going to be "trying to rent probably at a higher monthly payment", they will just be trying to cut their losses and get out. People in negative equity staying put and lamenting their daft decisions don`t make the market.

The creditors will not care if they payments are being meet.

Crashy_Time

chucknorris wrote: »

Sorry ukcarper but you just don't get it! They live in a place called 'round my way' in this magical place, rent prices collapse, house prices collapse, yet amazingly the economy in general absolutely booms with very high salary rises (redundancies? Don't make me laugh, what part of the economy booming did you not understand?). Unfortunately we were doomed at birth to live out our lives on planet Earth, if only we could get to the planet 'round my way' (nature can be so cruel).

Rent prices have collapsed Chucky, didn`t you notice? A few more EA`s and bankers on the scrapheap won`t do society any harm either.

chucknorris

Crashy_Time wrote: »

Rent prices have collapsed Chucky, didn`t you notice?

I am not chucky (how many times? He is another poster).


No I didn't notice, but probably because we have just increased our rents this year by more than inflation, but of course that was back here on Earth. This is 100% genuine by the way (not a flippant statement).

Crashy_Time

chucknorris wrote: »

I am not chucky (how many times? He is another poster).


No I didn't notice, but probably because we have just increased our rents this year by more than inflation, but of course that was back here on Earth. This is 100% genuine by the way (not a flippant statement).

Where are you, roughly, in the country. Just a general district or town will do.

chucknorris

Crashy_Time wrote: »

Where are you, roughly, in the country. Just a general district or town will do.

I can be more specific than 'general'. We live in Dorking (Surrey) and our 8 investment properties are in SW11 (4), N17 (1) and E8 (3), I think these are where my wife's 3 houses are located in Hackney, but I'm not sure of the post codes. Just for clarity one of the 'investment properties' isn't exactly that, as my MIL lives there rent free (in the most expensive property, £900k damn!)

ukcarper

chucknorris wrote: »

I am not chucky (how many times? He is another poster).


No I didn't notice, but probably because we have just increased our rents this year by more than inflation, but of course that was back here on Earth. This is 100% genuine by the way (not a flippant statement).

We both live in the south east and rents certainly aren't falling here and there is a shortage of good rental property. I suppose things are different in other parts of the country but they aren't the places where there is high HPI.

chucknorris

ukcarper wrote: »

We both live in the south east and rents certainly aren't falling here and there is a shortage of good rental property. I suppose things are different in other parts of the country but they aren't the places where there is high HPI.

We actually rent a bit below the market rent, not because we are generous, but simply because we want a wider choice of tenant. Having a good relationship with our tenant not only makes their lives better, but also ours, at the end of the day, that's all I want, a happier life. So the wider choice of tenant that we have, the more likely that this will be achieved.

ukcarper

chucknorris wrote: »

We actually rent a bit below the market rent, not because we are generous, but simply because we want a wider choice of tenant. Having a good relationship with our tenant not only makes their lives better, but also ours, at the end of the day, that's all I want, a happier life. So the wider choice of tenant that we have, the more likely that this will be achieved.

Don't own any BTLs but know a couple of people who do I know they could more rent than they do but are happy to accept a lower rent for better tenants. The person I know best has mortgage payments of less £500 and rents for £850 he bought about 10 years ago and would think he's not unusual.