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

chucknorris

Crashy_Time wrote: »

Hamish spouts rental figures that are optimistic to say the least. My rental bill for central Edinburgh is about 80k for 17 years, yet Hamish has saved 100k on rent in Aberdeen in how long?

That's less than £400/month rent, I'm not having a go at you but I wouldn't want to live somewhere that cheap. That is probably why Hamish's figures seem large to you. Here are some real figures:


If I had rented my house 7 years ago instead of owning I would have saved about £100,000:


12 months rent at say £1,450/month x 7 years = £121,800


less


Mortgage interest (assumed as I bought with cash) = £2,880 (1) x 7 years = £20,160


Saving = £101,640, I don’t recall any major repairs, although strangely I do have to pay about £1,800 soon for a roof repair, so it does approximate to £100,000 since peak.


(1) My average mortgage rate is 1%, £360k x say 80% mortgage at 1% = £2,880


EDIT: I've just checked rental prices in Dorking (my investment property is in London) and I don't think I could get what I wanted for £1,450/month. So it would be more than £100k.

Crashy_Time

IveSeenTheLight wrote: »

If it was IO, then their (bank) rent would be far cheaper than the market rent. Probably about 1/2 the market rent, with the market increasing over the 16 years whilst the (bank) rent remains static on the IO.
Actually the (bank) rent would have reduced over those years as people have capitilised on low rates.

Your not making a good effort to sell that the benefits of renting exceed the benefits of buying.

Each goalpost you move to finds your new proposal just as bad as the previous one.

The links in the post above yours show a flat not increasing in price over a ten year period, so they would still owe the 70k and, you hope, have paid less rent than me? If they made equity withdrawals it will be even worse. Although I`m sure if that flat had been for sale around `07 it would have been worth a bit more maybe, but the point is that there has been no HPI for ten years, and they still have to find a buyer.


If they need to move for work they have a headache, where if they rented they could pack up and move in a day or two. Please don`t say "They could just rent it out" because there are masses of empty BTL in the area, and your posts are moronic enough already.

Crashy_Time

Joeskeppi wrote: »

The biggest argument buster is that if renting was so wonderful your average normal human wouldn't create a username called "Crashy Time" and spent their days worrying about the prices of things that they have no interest in.

Mmmmm....and is this ideal world people who supposedly are living the winners life in their big properties wouldn`t spend their days trying to shut down the opinions of people like Crashy Time?

System

Trying to shut down :laugh:

Rota

Crashy_Time wrote: »

Mmmmm....and is this ideal world people who supposedly are living the winners life in their big properties wouldn`t spend their days trying to shut down the opinions of people like Crashy Time?

Because your views are so ridiculous they are funny. When do you admit you are wrong? Is it 10, 15 or 20 years of being on the losing side of life's biggest trade?

Regardless of whether renting is or isn't slightly dearer or cheaper than owning means nothing. Ill make it really simple for you.

A house is always worth more than you paid for after 25 years and when you own it there is no monthly cost. With renting all you see is a smiling landlord because you paid his house off for him.

IveSeenTheLight

Crashy_Time wrote: »

The links in the post above yours show a flat not increasing in price over a ten year period, so they would still owe the 70k and, you hope, have paid less rent than me?

here is no hope involved.
A £70k (assume 100% mortgage for your benefit) @ 4% IO rate would be £233 per month.

Are you hoping to appear at the Fringe festival by claiming you were renting for less than this including moving between properties?

Crashy_Time wrote: »

If they need to move for work they have a headache, where if they rented they could pack up and move in a day or two.

Are you inferring the renter has not signed up to a lease?

Crashy_Time wrote: »

Please don`t say "They could just rent it out" because there are masses of empty BTL in the area

Really, that'll be why there is only 1 property listed on Gorgie Road in ESPC at £425 pcm.

https://www.espc.com/properties/details.aspx?pid=341257

Crashy_Time wrote: »

and your posts are moronic enough already.

A clear sign you accept you have lost this debate.

Crashy_Time

Joeskeppi wrote: »

Trying to shut down :laugh:

Got any more earth shattering "argument buster`s" Joeskeppi?

wotsthat

Crashy_Time wrote: »

Hamish spouts rental figures that are optimistic to say the least. My rental bill for central Edinburgh is about 80k for 17 years, yet Hamish has saved 100k on rent in Aberdeen in how long?

...and it's been shown for the same rent money that you could be the mortgage free owner of a nicer place than you currently inhabit.

You fail to grasp the maths - even if we go along with the Bruce Banner assertion that there's been no HPI during this time you'd still be mortgage free and out of the 'ponzi'.

Jason74

Crashy_Time wrote: »

Mmmmm....and is this ideal world people who supposedly are living the winners life in their big properties wouldn`t spend their days trying to shut down the opinions of people like Crashy Time?

Why would anyone want to shut you down. Your posts are one of the most enyertaining things on this site. Keep up the good work
:T

Rota

wotsthat wrote: »

...and it's been shown for the same rent money that you could be the mortgage free owner of a nicer place than you currently inhabit.

You fail to grasp the maths - even if we go along with the Bruce Banner assertion that there's been no HPI during this time you'd still be mortgage free and out of the 'ponzi'.

It makes me laugh that they call it a "Ponzi". By definition, in a ponzi you end up with absolutely nothing. I'll end up with 2-3 properties providing me an income. Houses don't just vanish like Bernie Madoff or Charles Ponzi.