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

danothy

wotsthat wrote: »

Bit of a newsflash in there - £81,600 might just have been enough to buy a 1 bed flat in Edinburgh in 1998.

He could've bought 2 for that. At least he hasn't had to pay 'bankers interest'.

I'm confused too about what £80k could have bought when. There's flats in Edinburgh now for £80k. Prices in Scotland have gone up at least 65% since 2000, so that implies about £50k for the same flats back then. With a 15 year mortgage at 5.95% and a deposit of £2.5k the monthly payment would have been £400 and it would have cost £72k in total (including "bankers interest"), leaving some left over for the insurance/repairs, and then no rent going forwards.

How exactly are we defining "no brainer"?

robmatic

Crashy_Time wrote: »

The only example I have is the one I am sitting in, that is the only example I care about. The last flat was through someone at work, and started at 400 p.m, going up to 450 p.m towards the end of my time there. Maybe I am just lucky, but I think Edinburgh landlords who try to get say 600 p.m for basic flats have lots of voids, smart landlords know that 400 - 450 p.m may net them someone who stays for five years.

The LHA rate for a 1 bedroom flat in Edinburgh is £500pm. Landlords who aim for less than that are well and truly at the bottom of the market.

lisyloo

Maybe I am just lucky

Some people have a weird definition of luck.
I'm living in a very nice area of London for triple what crashy is paying.
Do I feel lucky? Damn right I do.
Should I be wishing I was paying less to live somewhere much less desireable? Taking that to extremes then those living on the streets or on rubbish tips for nothing are really lucky.

Surely this should be a race to the top not to the bottom.

Zoology_Dragon

wotsthat wrote: »

Bit of a newsflash in there - £81,600 might just have been enough to buy a 1 bed flat in Edinburgh in 1998.

He could've bought 2 for that. At least he hasn't had to pay 'bankers interest'.

In 1998 you could buy a decent sized one bed flat in Edinburgh, 10 min walk from the centre for £40,000. I know because I bought one!

And we now rent it out for £600 pm unfurnished. Could get a bit more but it's not worth potentially upsetting the (good) tenant, I imagine we will put it up a little next year. Never had a void either in six years of letting it.

Crashy_Time

danothy wrote: »

That you said your rent hasn't changed in 15 years.

I said I am paying £50 p.m more for a similar flat than I was 15 years ago.

Crashy_Time

mayonnaise wrote: »

Maybe you are.
Sitting in a 1-bed rental in your late forties. Such luck.

We can`t all be in I.O debt-hutches Mayon-AISE, GET DOWN AND GIVE ME FIFTY ! :T

danothy

Crashy_Time wrote: »

I said I am paying £50 p.m more for a similar flat than I was 15 years ago.

Ten days ago you made the same claim and I quoted a selection of your posts in which you were saying it hadn't changed. It seems you're either lying to yourself or to us, which is it?

Scrubber

westernpromise wrote: »

This is why I worry about some of the nuttier crashtrolls. There is a bloke called Venger on HPC who is so angry, malicious and bitter it's clear that rage at his own hopeless lack of judgement is impairing his mental faculties and ability to function as a proper person. He is so barmy he blocks people who present an alternative view of the world - they're "anti-HPC", you see. How far gone are you when you can't stand the expression of a different view?

Our crashtrolls would do well to have a look at the archives of uk.finance and consider that all their tickboxes were being ticked in 1996. EAs, VIs, ZIRP, TPTB, Japan 1990. It's all there - and it was all wrong. And as you say, this time it's not different, it's the same; only more so.

At least he can identify 'cuddly' trolls who join HPC trying to plant doubt, on their own HPI missions. Too often they can't accept any HPC view either, complacently on the winning side of things for now, until things turn.

I will admit though, he is very HPC.

It is my view rents will fall. In fact seeing hints of that at the moment.

Crashy_Time

danothy wrote: »

Ten days ago you made the same claim and I quoted a selection of your posts in which you were saying it hadn't changed. It seems you're either lying to yourself or to us, which is it?

It is very simple Danny, and please use this quote the next time you quote anything to do with my rent claims - I paid 350 p.m in 1998, and I pay 400 p.m now, for a similar sized flat.

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Ouch that must really sting, you can add another yrs rent on top of that figure now!!!

No wonder you post with such animosity, must be incredibly frustrated...[/QUOTE]


No debt, sizeable savings, flexibility, and landlord doing any repairs that need done tend to offset any "frustration"....but thanks for your concern :rotfl: To my mind real frustration would be sitting in the same house for forty years because no one wants to buy it, or being deep into I.O in a declining market. The money I mentioned averaged out over 15 plus years is pocket change.