If house prices fall rents will rise. Why don't crashtrolls get this?

Crashy_Time

danothy wrote: »

If your rent was £400/month in 2000 then you were effectively overpaying back then by about 50% in terms of purchasing power if what you are paying now is realistic and fair.

No, that is just the average over the years. I paid 350 p.m for a small flat in 1998, I thought that seemed expensive, so I moved to a very large room in a HMO/bedsit for about 200 or 250 a month, then rented a series of houses and flats with people I knew, then went back to a large flat (1 bed and boxroom) for 400 p.m (rising to 450 p.m not long before I left) Now I pay 400 p.m for a flat similar in size to the 1998 flat. The point is that rent on basic Edinburgh flats has gone nowhere in all that time, that`s all.

Crashy_Time

Zxcv_Bnm wrote: »

London and the south east are the only regions of the country that make a net tax contribution. Everywhere else takes out.

So yes, broadly the UK economy = London.

So the North East of Scotland takes out does it? It may well do now that the oil price has collapsed and the bailouts begin, but before? London is the most subsidised section of the UK with HB and banker bailouts, and obviously most Londoners need either HB or I.O I.O to live there :rotfl:

danothy

Crashy_Time wrote: »

The point is that rent on basic Edinburgh flats has gone nowhere in all that time, that`s all.

So therefore, in terms of purchasing power, you're either underpaying now, or you were overpaying then. As I said. Glad we cleared that up.

tkane

Crashy_Time wrote: »

So the North East of Scotland takes out does it? It may well do now that the oil price has collapsed and the bailouts begin, but before? London is the most subsidised section of the UK with HB and banker bailouts, and obviously most Londoners need either HB or I.O I.O to live there :rotfl:

What is your definition of subsidised?

http://www.thisismoney.co.uk/money/news/article-2100345/Londons-taxes-prop-rest-UK-One-pound-earned-capital-funds-rest-country.html

mayonnaise

Crashy_Time wrote: »

I paid 350 p.m for a small flat in 1998, I thought that seemed expensive, so I moved to a very large room in a HMO/bedsit for about 200 or 250 a month, then rented a series of houses and flats with people I knew, then went back to a large flat (1 bed and boxroom) for 400 p.m (rising to 450 p.m not long before I left) Now I pay 400 p.m for a flat similar in size to the 1998 flat.

Living life to the fullest...

danothy

Crashy_Time wrote: »

I paid 350 p.m for a small flat in 1998, I thought that seemed expensive, so I moved to a very large room in a HMO/bedsit for about 200 or 250 a month, then rented a series of houses and flats with people I knew, then went back to a large flat (1 bed and boxroom) for 400 p.m (rising to 450 p.m not long before I left) Now I pay 400 p.m for a flat similar in size to the 1998 flat.

mayonnaise wrote: »

Living life to the fullest...

By my calculations, a mortgage of £76k with a £4k deposit (£80k total, which according to rightmove will net you a flat in Edinburgh) and a 5% interest rate would be paid off in 15 years with a payment of about £600/month. That means that if inflation is about the same over the next 15 years as it was between 2000 and now, that £600/month will be equivalent to about £400/month in terms of purchasing power by 2030. This is basically the situation that Crashy has (allegedly) found themselves in, but without having a mortgage paid off and with prices in Scotland being 65% higher than they were in 2000.

wotsthat

danothy wrote: »

By my calculations, a mortgage of £76k with a £4k deposit (£80k total, which according to rightmove will net you a flat in Edinburgh) and a 5% interest rate would be paid off in 15 years with a payment of about £600/month. That means that if inflation is about the same over the next 15 years as it was between 2000 and now, that £600/month will be equivalent to about £400/month in terms of purchasing power by 2030. This is basically the situation that Crashy has (allegedly) found themselves in, but without having a mortgage paid off and with prices in Scotland being 65% higher than they were in 2000.

His raison d'etre is to be debt free and, in this regard, he's been highly successful. However he's less wealthy as a result and currently needs negative house prices to break even.

Personally I think his last foray into ownership was a complete disaster and he's created the 'crashy' persona to prevent him ever buying again.

wotsthat

Crashy_Time wrote: »

No, that is just the average over the years. I paid 350 p.m for a small flat in 1998, I thought that seemed expensive, so I moved to a very large room in a HMO/bedsit for about 200 or 250 a month, then rented a series of houses and flats with people I knew, then went back to a large flat (1 bed and boxroom) for 400 p.m (rising to 450 p.m not long before I left) Now I pay 400 p.m for a flat similar in size to the 1998 flat. The point is that rent on basic Edinburgh flats has gone nowhere in all that time, that`s all.

Today £400 flats in Edinburgh are as rare as hens teeth and only really available 'off grid'. If you were spending £350 for the same/ equivalent place in 1998 your landlord's rental yield must have been spectacular.

Crashy_Time

danothy wrote: »

So therefore, in terms of purchasing power, you're either underpaying now, or you were overpaying then. As I said. Glad we cleared that up.

I said that I felt I was overpaying, and took steps to start underpaying. What was your point again?

Crashy_Time

wotsthat wrote: »

Today £400 flats in Edinburgh are as rare as hens teeth and only really available 'off grid'. If you were spending £350 for the same/ equivalent place in 1998 your landlord's rental yield must have been spectacular.

Yes, maybe, don`t know and don`t really care (although he was a good honest landlord) but he probably didn`t think then that the rent wouldn`t be rising in 15 plus years though.