House price fall "accelerating"

DreamBreaker

neverdespairgirl wrote: »

I think your maths is a bit dodgy there! £505 per month rent is a yearly totaly of £6,060. If you are paying £5,000 a year interest (5% on your £100k) that means your rent is £1,060 a year over the mortgage, or c. £88. But the mortgage isn't your only cost, I presume, there is also maintaining the place, fees for getting tenants, wear and tear, your time etc to factor in.

What? I know for a fact I am earning approx £80 to £100 a month on this property. End of, get back to the original point of this forum, is there going to be a crash which is not about the financial status od me!!!!! As I said "off the top of my head"!!! I would have to speak to my accountant to find exact figures but I will not go into that on this forum!

neverdespairgirl

DreamBreaker wrote: »

What? I know for a fact I am earning approx £80 to £100 a month on this property. End of, get back to the original point of this forum, is there going to be a crash which is not about the financial status od me!!!!! As I said "off the top of my head"!!! I would have to speak to my accountant to find exact figures but I will not go into that on this forum!

I was going by the figures you posted, that's all.

secondtoughest

I know for a fact I am earning approx £80 to £100 a month on this property.

That barely seems worth it to me. That's an overtime shift on the national average wage. And £505 for a full property rental is very cheap, no matter where you are! You could put your price up and still fill the property IMHO.

Zammo

DreamBreaker wrote: »

Yes, if rates continue to rise as they are I could find that I am not making a profit at all, BUT rates are unlikely to rise at the moment and infact are likely to fall. SO I am not in any panic to say the least.

You are deluding yourself if you think rates are going to keep falling. The remit of the BofE is to target inflation, not house prices. They have no choice but to start raising rates again.


http://news.independent.co.uk/business/news/article3249938.ece

neverdespairgirl

DreamBreaker wrote: »

What? I know for a fact I am earning approx £80 to £100 a month on this property.

If you stuck the £15 deposit in a savings account, you'd get £93.75 interest per month, no risk of falling houseprices, and no risk of tenants not paying / maintaing / fires / thefts.

I know which I'd choose for the hassle factor alone!

DreamBreaker

secondtoughest wrote: »

That barely seems worth it to me. That's an overtime shift on the national average wage. And £505 for a full property rental is very cheap, no matter where you are! You could put your price up and still fill the property IMHO.

Give over! Most ways of making money do not have high margins. For example, a shop selling a bar of chocolate buys it for nearly full price and makes a matter of pence on the bar. BUT they sell lots of bars and the profits can be great! Can you you understand analogy or do I have to explain further?

You may have a point in that I could possibly raise the rent BUT i have long term tenants in that property, for at least 5 years, so if I raise the rent I could possible frighten them off and risk losing money on void periods. Besides I am a good landlords and amnot the type to rip people off. £505 is the going rate for properties in my area, we certainly are not talking London here and I do my research!

DreamBreaker

Zammo wrote: »

You are deluding yourself if you think rates are going to keep falling. The remit of the BofE is to target inflation, not house prices. They have no choice but to start raising rates again.


http://news.independent.co.uk/business/news/article3249938.ece

I would have a bet that this time next year the rates are around 5% if not lower..........I will put my reputation on the line and say in the first half of next year rates will be cut 1 maybe even 2 times!

DreamBreaker

neverdespairgirl wrote: »

If you stuck the £15 deposit in a savings account, you'd get £93.75 interest per month, no risk of falling houseprices, and no risk of tenants not paying / maintaing / fires / thefts.

I know which I'd choose for the hassle factor alone!

Again, I will admit on this particluar property I have been slightly lucky and this is not always the case in my experience, but I have made a nice sum of equity.....certainly more that I would have earned in any bank!!! The only way I could have made the same for less hassel is probably by pumping more into the sockmarket, and the volitality of that at the moment makes me think I made the correct choice . Furthermore, I have been lucky with low maintenance costs and good tenants!

Anyway, what is this put DreamMaker off being a landlord day or what? :rotfl: Not all properties are hassel especially once you have a few but I won't bother you with why. Again people are drifting off the topic of this forum, please get back to it.

IS THE PROPERTY MARKET GOING TO CRASH?????:p

Hereward

DreamBreaker wrote: »

Give over! Most ways of making money do not have high margins. For example, a shop selling a bar of chocolate buys it for nearly full price and makes a matter of pence on the bar. BUT they sell lots of bars and the profits can be great! Can you you understand analogy or do I have to explain further?

A shop buys the chocolate bar for about 50% of the retain price, but from the retail price it has to subtract most of its overheads. A 50p bar of chocolate probably makes between 2p and 5p profit; therefore, the shop is achieving 4-10% profit on each bar sold.

DreamBreaker

THE PROPERTY MARKET IS GOING TO CRASH ..................DEBATE!:p