BCR approaching 100%

Crashy_Time

mwpt wrote: »

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.

He ran his figures for the wrong city and for too much rent, so if you think you are so smart why don`t you explain to us what the figures show, and why anyone should give a monkeys :rotfl: At the moment I am not in NE on a flat in Dalry, and won`t end up owning a flat in Dalry, both things I can happily live with.

mwpt

Crashy_Time wrote: »

He ran his figures for the wrong city and for too much rent, so if you think you are so smart why don`t you explain to us what the figures show, and why anyone should give a monkeys :rotfl: At the moment I am not in NE on a flat in Dalry, and won`t end up owning a flat in Dalry, both things I can happily live with.

I don't think I'm so smart, because a smart person wouldn't engage in your trolling in the first place.

System

Crashy_Time wrote: »

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

Crashy_Time wrote: »

At the moment I am not in NE on a flat in Dalry, and won`t end up owning a flat in Dalry, both things I can happily live with.

Am I unable to see some posts or something? Who the hell are you talking about?

westernpromise

125%BCR wrote:

He ran his figures for the wrong city and for too much rent,

Says who? The rent is based on the ONS data and the city makes very little difference. Zoopla reckons flats in Aberdeen are up 10% year on year. You've produced nothing of substance.

So why not work out your real BCR for us? If it's not 125%, what is it?

By the way, if your rent never goes up again and remains £400 a month forever, and if you live for 30 more years, and applying a typical savings rate of 1.5%, the NPV of your future rents is about £115,000. That's right - you have a £115k debt hanging over your head because you haven't bought, in the shape of all the rent you will thus have to find.

Best not buy though. I mean, one year, the price might go down.

Crashy_Time

westernpromise wrote: »

Says who? The rent is based on the ONS data and the city makes very little difference. Zoopla reckons flats in Aberdeen are up 10% year on year. You've produced nothing of substance.

So why not work out your real BCR for us? If it's not 125%, what is it?

By the way, if your rent never goes up again and remains £400 a month forever, and if you live for 30 more years, and applying a typical savings rate of 1.5%, the NPV of your future rents is about £115,000. That's right - you have a £115k debt hanging over your head because you haven't bought, in the shape of all the rent you will thus have to find.

Best not buy though. I mean, one year, the price might go down.

Mmmmm........must have been really cheap before then


http://www.rightmove.co.uk/property-to-rent/property-40754922.html


Makes one wonder why you can`t do your little sums with the right rent level for basic flats? :rotfl:

Filo25

westernpromise wrote: »

Perhaps, but these tend to be trivial and substantially balanced by costs to renters that owners don't face (can't let out a spare room, more frequrnt moving costs, loss of deposits, etc). There may be marginal cases where they make the difference one way or the other, but 125% is not one of those.

Personally I'm just looking forward to moving into a property where I can do what I like with it within reason rather than being continually restricted in what I can do by my landlord, and I am lucky enough to have a pretty fair and decent landlord.

In terms of price moves my only real concerns will be that I still have positive equity when I remortgage in 5 years time, and that it can make a decent contribution to retirement when I sell up and move somewhere a hell of a lot cheaper than London then.

What its worth next year or the year after I really won't get too excited about, its pretty much irrelevant to me financially.

You would have to be a hell of a lot smarter than any of us, to time your buying and selling to perfection.

westernpromise

Filo25 wrote: »

Personally I'm just looking forward to moving into a property where I can do what I like with it within reason rather than being continually restricted in what I can do by my landlord, and I am lucky enough to have a pretty fair and decent landlord.

The best route to which is to buy as soon as you can, so you can get on with paying off the debt and amassing equity, rather than (as some would have you believe) hold off buying speculatively in hopes of picking up a bargain. As some of the contributions to this thread show, to do so is a mug's game in which you are picking up pennies from in front of steamrollers.

In terms of price moves my only real concerns will be that I still have positive equity when I remortgage in 5 years time

That's exactly the way to think about it IMHO - you have a sensible horizon in mind and you don't have to care what happens to the nominal price of anywhere you buy inside that horizon. At the end of five years, you'll have paid off about 15% of the mortgage so at that point you can take stock and think about what to do next.

What its worth next year or the year after I really won't get too excited about, its pretty much irrelevant to me financially.

You would have to be a hell of a lot smarter than any of us, to time your buying and selling to perfection.

I couldn't agree more. Someone who bought for £100k in 1988 could have bought for £70k in 1989, but by 2013 the place was worth £400k so what's £30k in that? By 2013 it was a rounding error. Nobody knows what a £400k property is worth within +/- £30k.

Crashy_Time

wotsthat wrote: »

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.

Well if you think about it, and the landlord probably has for about 8 seconds, you can get a one bed flat for 400 p.m, so one with FOUR beds must be worth close to 1600 p.m, WOWCHER, roll up! roll up! live with some other students and a cheap TV! :rotfl:


This is what 1k p.m gets you in Aberdeen now


http://www.rightmove.co.uk/property-to-rent/property-53080150.html


So either Edinburgh students are substantially richer (and thicker) than Aberdeen students, or maybe the Edinburgh Landlord is a complete mentalist, or maybe the Aberdeen economy is totally in the pan, or maybe all three!


Keep the links coming, fascinating stuff.

dktreesea

Mistermeaner wrote: »

http://www.rightmove.co.uk/property-for-sale/property-47630194.html

Stoke. Best value in the land and equi distant to everything

I wonder if the lease is coming up on the land and about to be renegotiated...

mayonnaise

Joeskeppi wrote: »

Am I unable to see some posts or something? Who the hell are you talking about?

It's a hypothetical person who bought in Dalry in 2015.
I assume Dalry prices are flat or down, so this hypothetical person is the perfect illustration of how it makes sense not to buy in '98 and live until your 50's in HMO's, bedsits and flatshares.