BCR approaching 100%

westernpromise

Crashy_Time wrote: »

Can you imagine being someone who "bought" in 2015?
Can you imagine being someone who spends every waking moment on here (preaching to about 12 regulars) because they are so insecure about their decisions?


IMO the flat is worth 50k, but lets see what it goes for.

Why? It's irrelevant. Because you're a short-term speculator who's loss-averse, you're doomed always to talk yourself into a position where it's never safe to buy at any price, relying on spurious logic.

What matters is not the nominal price of a property from one day to the next, but the overall economics over your likely actual holding period. Instead, your thinking is based on the assumption that there'll be a crash as soon as you buy. You then go on to applaud yourself for not having bought in, say, 2015, looking at a holding period of at most year.

In fact you're worse off than if you had bought in 2015. In 2015, based on the above your BCR would have been about 110%.

Do you actually expect a 125% price crash? Do you grasp that even if you saw a 90% price crash you'd still be out of pocket? Do you get that even if you bought it for the £50k you imagine it's worth you'd still be out of pocket?

Crashy_Time

Filo25 wrote: »

Market conditions change, brown stuff happens.;)

If I was waiting to buy a house at a price that I was certain would never go down in value, I would never buy one, no matter what the circumstances were.

This is a flat in Dalry we are talking about though, not someone`s "Forever" house (although for some that piled in at peak prices it will end up being their Forever Flat no doubt) Here many people just stretched for a basic flat "to get on the ladder" or thought that if it was a BTL with some voids "HPI would make up the difference" We then see a Ponzi in reverse as this most recent seller crosses his fingers to get a price similar to 12 years ago.

Crashy_Time

westernpromise wrote: »

Why? It's irrelevant. Because you're a short-term speculator who's loss-averse, you're doomed always to talk yourself into a position where it's never safe to buy at any price, relying on spurious logic.

What matters is not the nominal price of a property from one day to the next, but the overall economics over your likely actual holding period. Instead, your thinking is based on the assumption that there'll be a crash as soon as you buy. You then go on to applaud yourself for not having bought in, say, 2015, looking at a holding period of at most year.

In fact you're worse off than if you had bought in 2015. In 2015, based on the above your BCR would have been about 110%.

Do you actually expect a 125% price crash? Do you grasp that even if you saw a 90% price crash you'd still be out of pocket? Do you get that even if you bought it for the £50k you imagine it's worth you'd still be out of pocket?

Tell that to the guy on Caledonian Rd trying to get 2004 prices for his flat. :rotfl:

Crashy_Time

wotsthat wrote: »

Different city - same tragic maths I'm afraid.

Try again.....


.http://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=REGION%5E4&minPrice=300&maxPrice=500&propertyStatus=all&includeLetAgreed=true&_includeLetAgreed=on&sortType=1&numberOfPropertiesPerPage=10

Crashy_Time

Try Aberdeen at under 500 p.m, and bear in mind that my actual rent (In Edinburgh) is 400 p.m from a private landlord (This is the actual rent, not some EA/VI puff piece based "averages") :rotfl:

westernpromise

Crashy_Time wrote: »

Try Aberdeen at under 500 p.m, and bear in mind that my actual rent (In Edinburgh) is 400 p.m from a private landlord (This is the actual rent, not some EA/VI puff piece based "averages") :rotfl:

The Office for National Statistics rental data? That "EA / VI puff piece"?

Desperate stuff, seriously. But tell us. What is your actual BCR?

westernpromise

Crashy_Time wrote: »

Tell that to the guy on Caledonian Rd trying to get 2004 prices for his flat. :rotfl:

He's still ahead of you even if he exists. He's spent less on the mortgage than you have on the rent, plus he's amassed equity. I wonder what he thinks of you?

mwpt

Crashy_Time wrote: »

Tell that to the guy on Caledonian Rd trying to get 2004 prices for his flat. :rotfl:

I sway to and fro between thinking you know exactly what the figures show, and they show you what you don't want to hear but you just like trolling, or if you're just a complete loony who quite literally blanks any inconvenient facts from his world view so that the little bubble (go on, I dare you) can continue.

wotsthat

Crashy_Time wrote: »

Try Aberdeen at under 500 p.m, and bear in mind that my actual rent (In Edinburgh) is 400 p.m from a private landlord (This is the actual rent, not some EA/VI puff piece based "averages") :rotfl:

Love to see what £400 buys when the only google search finds this at £400 - a room in a crap HMO.

http://www.citylets.co.uk/property-rent/prestonfield-dalkeith-road-eh16-386804/

The 1 bed LHA for that area is £116/ week.

Crashy_Time

westernpromise wrote: »

He's still ahead of you even if he exists. He's spent less on the mortgage than you have on the rent, plus he's amassed equity. I wonder what he thinks of you?

Can you show the numbers for how the lucky buyer in 2015 has "amassed equity" please.