Rents soar to (another) record high

Crashy_Time

westernpromise wrote: »

So if rents have gone nowhere, would I be correct in surmising that house prices have gone up over that period?

You see I think these are connected causally. Rents can only go up when there's more demand than supply, and demand to rent goes up when the alternative to renting (buying) looks bad.

Conversely, if house prices are going up, rents will tend not to; you are better off owning than renting, so rental demand stays weak.

So if rents have gone nowhere, house prices must have gone up.

The obvious exceptions to this are boom towns and ghost towns. If a place booms like London then both rents and prices can go up, although prices would tend to go up more. This is what we have seen in London, with 300% house price inflation over the last 15 years but only ~100% rental inflation.

In ghost towns everyone leaves so nobody either buys or rents.

The question really is will your locale turn into a ghost town? If so life will get cheaper but you do wonder when if ever it would be wise to buy in.

I often wonder what became of the last owners of property in places like this:

https://upload.wikimedia.org/wikipedia/commons/b/bd/Bannack.jpg

What did the owners of the Hotel Meade do? Walk away, write everything off and get a salaried job elsewhere? Only possible if they owned it outright, I guess.

There is always demand for renting that is not affected by house prices, someone with a really nice pad to rent can try for any price they like, and they might get someone to pay it, and private landlords can under-cut the "headline" rents we see on the VI articles you guys on here like posting to keep good tenants long term. There will always be people who want to rent for whatever reason, and people who want to buy (or be mortgaged) for whatever reason.

westernpromise

Crashy_Time wrote: »

There is always demand for renting that is not affected by house prices, someone with a really nice pad to rent can try for any price they like, and they might get someone to pay it, and private landlords can under-cut the "headline" rents we see on the VI articles you guys on here like posting to keep good tenants long term. There will always be people who want to rent for whatever reason, and people who want to buy (or be mortgaged) for whatever reason.

So am I right? Have rents stood still while prices rose?

Crashy_Time

westernpromise wrote: »

So am I right? Have rents stood still while prices rose?

My bet is that over the next year or so you will have to revise many of your pet economic theories. Most of them strike me as wishful nonsense.

westernpromise

Crashy_Time wrote: »

My bet is that over the next year or so you will have to revise many of your pet economic theories. Most of them strike me as wishful nonsense.

But your bets have been exactly wrong for 20-odd years. Even if you were right now that doesn't evidence judgment or shrewd insight. It evidences that a stopped clock is right twice a day.

How much does Aberdeen property have to crash by in order for renting for the past 20 years to become a smart bet?

On my property in London the figure is 78% since 2004. What's it on your bedsit?

Crashy_Time

westernpromise wrote: »

But your bets have been exactly wrong for 20-odd years. Even if you were right now that doesn't evidence judgment or shrewd insight. It evidences that a stopped clock is right twice a day.

How much does Aberdeen property have to crash by in order for renting for the past 20 years to become a smart bet?

On my property in London the figure is 78% since 2004. What's it on your bedsit?

I have only had an interest in the housing market, and it`s need to correct for about 7 years. I get the feeling you don`t really believe half the nonsense you post.

Crashy_Time

http://www.rightmove.co.uk/property-to-rent/property-37493466.html?showcase=true


Wonder how low rents will eventually go on stuff like this?

padington

Crashy_Time wrote: »

My bet is that over the next year or so you will have to revise many of your pet economic theories. Most of them strike me as wishful nonsense.

You've made this bet for the last seven years and you were wrong. I think you've run out of money to be making any more bets.

Crashy_Time

padington wrote: »

You've made this bet for the last seven years and you were wrong. I think you've run out of money to be making any more bets.

Run out of money.......:rotfl:You really are a clown, and you do amuse me!

Crashy_Time

http://www.rightmove.co.uk/property-to-rent/Aberdeen.html?sortType=1&maxPrice=500&propertyStatus=all&includeLetAgreed=true&_includeLetAgreed=on&index=30

wotsthat

Crashy_Time wrote: »

I have only had an interest in the housing market, and it`s need to correct for about 7 years. I get the feeling you don`t really believe half the nonsense you post.

Yeah, the decade you rented after selling up in 1998 don't count because you weren't interested in the housing market then.