House prices

Herzlos

MobileSaver wrote: »

Similarly tenants cannot just do what they want when they want in their landlord's property. They have to phone and ask permission and usually there's very little they can do if their landlord says no.

One of the places a friend rented didn't even allow blu-tac for holding posters on the wall; had to be white-tac, no pins.

Plus being able to phone a landlord about getting something fixed and actually getting something fixed is a whole other matter. We can issues that took weeks to sort. In my owned home, I can either fix them myself or just phone someone to do it and get it done right away.

Sure, I'm going to have problems if I want to move to another city/country, or suddenly need a bigger place, but not significantly any worse than if i was renting.

Thrugelmir

Herzlos wrote: »

I can either fix them myself or just phone someone to do it and get it done right away.

If only finding good and reliable tradespeople were that easy. The ones I use are extremely good. However get booked up quickly. As a consequence unable to fix issues immediately.

chucknorris

Crashy_Time wrote: »

Obviously Norris knows how to time the market, he saw Brexit and Trump coming a mile off after all, this sort of stuff will plummet in a proper correction, but I`m sure Chuck can exit nice and cleanly with a fat profit When were you aiming to sell up again Chuck, last week, next week, next decade, sometime? I can never keep up!

Our plans are not based around 'timing the market' Crashy, they are based around profitable rental income, and have been for over 26 years (and still counting). But as it happens, coincidentally the market was timed quite well, as we sold approx £1.5m of property earlier this year, which was bought in the 90's for less than £200k. How did your timing of the market go :rotfl:

All my selling plans are flexible, why box myself in with silly parameters?

Jack_Johnson_the_acorn

chucknorris wrote: »

Our plans are not based around 'timing the market' Crashy, they are based around profitable rental income, and have been for over 26 years (and still counting). But as it happens, coincidentally the market was timed quite well, as we sold approx £1.5m of property earlier this year, which was bought in the 90's for less than £200k. How did your timing of the market go :rotfl:

All my selling plans are flexible, why box myself in with silly parameters?

It's so painful when I read Crashy's posts.

His story is pretty grim. I couldn't imagine his mental anguish knowing that had he been just a little braver he would be mortgage/rent free with an asset that he could sell for over £100,000.00. :eek: I'd feel sorry for him if he wasn't so green eyed & bitter.

westernpromise

It's actually even worse than that, Jack. Not only has he missed out on a £120k asset, but if he'd put the additional £60k that buying would have saved him into another property, his £60k would by now be £90k, and he'd have had an income too.

So: mortgage free with two assets worth over £200k. Or renting a bedsit for ever waiting for a 130% price crash. Hmm, what was the better choice?

Herzlos

Thrugelmir wrote: »

If only finding good and reliable tradespeople were that easy. The ones I use are extremely good. However get booked up quickly. As a consequence unable to fix issues immediately.

Very true, but at least I can be on the phone to them immediately, get something booked and some temporary measures in place, rather than having to get hold of a landlord and getting them to sort out a tradesperson, likely after they or their handyman has a look first to see if he can bodge it.

There's benefits either way round though - renting was great as a student when you just wanted something cheap, convenient and low commitment was brilliant. Now I'm an adult I prefer nice & stable, with the ability to make my own decisions. Plus I loathe moving so I like only having to do it on my terms

Gorgeous_George

One saving grace for house prices will be increased inheritances. With ££££s being passed to the younger generations as baby boomers die off there will be more money to pay those pesky deposits. The noses they spend their inheritances on junk to keep consumer spending growing.

GG

GreatApe

Thrugelmir wrote: »

Negative equity isn't so much the issue. But mortgage arrears upon a change in financial circumstances. Loss of income soon results in equity evaporating.

People can lose their jobs but mostly it doesn't happen often and when it does we have the lowest Raye if unemployment for forty years so there is a 99% chance you would be back in work within a few weeks.

GreatApe

The biggest mistake the crash cheerleaders make is thinking landlords would sell AFTER a crash.

Why would landlords do that. If they are getting 5% yield today they would get 10% yield post a 50% crash. Why sell a 10% yield asset to do what put it in a 1% yield bank account?

What happened in the 2008-2010 crash is that landlords become big net buyers adding hundreds of thousands of properties to the rental stock.

While the crash cheerleaders hate landlords they fail to see most landlords become landlords by buying cash or inheriting Property. If prices crash 50% someone who just inherited their parents house is much less likely to sell it and much more likely to rent it out so someone who wasn't a landlord and was not interested in becoming a landlord does so due to a house price crash.

Koldweather1

True great ape, though I will say that the landlords (and overstretched residential buyers) were massively aided by the large crash in interest rates, there were obviously cash buyers as well, but there was a big amount that were propped up by record low interest rates. No certainty that would happen in any crash in the future as the macro pattern globally may well look very different. Landlords brought because their money was doing jack all in savings accounts, so may as well speculate to accumulate. I know I would have done so if I had the means at the time.

Equally I do agree with your last paragraph Great ape, though obviously with inheritance there can be a huge range of need within that.

I suspect more and more parents are going to be going down the route of "have your inhreitence now" so that they can get onto the property ladder. I myself had an advance, not the whole lot but a decent chunk of the savings. Better I get it now than the state through possible care homes in the future. Without it, I suspect any home would have been at least 2-3 years away.