Something to cheer the renters up

artherfouxache

kazd wrote: »

One day my hubby came home and said the money just sits there, so we went out and bought a brand new family car

But did you NEED a new car? I could could do the same but I chose not to.
....and the commodity (car) you bought ..... what would have happened to the price of the car had you NOT bought it? The answer is, the price would have (in broad terms) lower. In other words you would have been reduced demand and the price would have been lower for others. This is the reason houses have risen so much, and is the reason some are unable to afford goods........ and some of those some are our children.

kazd

thanxabunch wrote: »

I wanted to buy houses for my children, but prices had been pushed so high by buy-to-letters that I couldn't afford it. Guess I'll just have to wait until yours is repossessed and then snap it up at auction at an affordable price.



Problem is that it's taxpayers money that is baling out NR. So long as you can keep paying the extra then it's a good deal for taxpayers. But if you default then taxpayers are left with the bill...

Then you aren't any different to me, are you. I am not going to default so the tax payer won't be left with the bill. Incidentally I am a taxpayer as well.

kazd

poppy10 wrote: »

To be fair, you've had plenty of warning that BTL might not be as straightforward as you thought. You could have gotten out long ago.


September 2006

November 2006

July 2007

You are quite right, these are the posts about the original tenants, you read horror stories and you never imagine its going to happen to you. If you could have seen the house after they left it was a nightmare.

We redecorated the whole house, had it professionally cleaned and recarpeted. Cost us a fair bit but when we had finished it looked like a brand new house again. Afterall it was only three months old when they flit. We then proceeded to market it for sale or rental whichever came first. The rental came first, also there was a large redemption and it was doubtful that we would have even broken even if we had sold at the time.

Obviously with hindsight we now wish that we had sold because its costing us in the long run. You know though its not necessarily sympathy or even advice that I was after it was proably just a rant because I was so frustrated not to say a little devastated by the whole event.

Having said that any advice that LL have about the pros and cons of selling with tenants insitu would be gratefully received.

Our tenants are now on a rolling contract, I believe we have to give 2 months notice and they have to give 1. We are thinking about giving them two months notice with the option to stay on a month to month basis until the house sells, which less face it could take months and months. Obviously we would give them as much notice as possible when we did get an offer.

I don't think our tenants would be interested in purchasing it because althought they love it and are wanting to stay for awhile, they will eventually leave and go back to their own country.

kazd

artherfouxache wrote: »

But did you NEED a new car? I could could do the same but I chose not to.
....and the commodity (car) you bought ..... what would have happened to the price of the car had you NOT bought it? The answer is, the price would have (in broad terms) lower. In other words you would have been reduced demand and the price would have been lower for others. This is the reason houses have risen so much, and is the reason some are unable to afford goods........ and some of those some are our children.

The answer is probably no we didn't need a brand new car. We had two cars one we had both were pretty old and one was in a fairly bad way. We are not particularly car people as long as it gets us from a to b. Our thinking was though we would buy new because we knew we would keep it. That was in Nov 98 and we still have that car. I have a new car now (well I have had it almost two years, big mistake, got pranged in the super market in the first three months, had the spare wheel pinched in Sainsbury's and sups petrol like its going out of fashion. But again we will keep this car until it is no longer financially viable like my old car which was starting to cost more than it was worth.

We have always preferred to put our money into property and in that I mean that we had some spare cash and were thinking of another property abroad but then decided to put it towards a bigger house here for us, rather than house that we would only use once or twice a year.

Lotus-eater

Oliveru wrote: »

I do, and you don't. That's why you shouldn't have gambled on the housing market.

If you want my opinion on what prices (and values) will be like in 10 years time there is a thread I made in my posting history full of educational hints and tips.

Sorry, I can't read through the whole thead. I do have sympathy for the OP as one human being to another. Bad choice can happen to all of us.

I got as far as this post from Oliveru, just brilliant, he knows exactly where the housing market is going to be in 8 - 10 years time When someone tells me that they know what will happen in the future, I block up my ears and sing to myself whenever they speak, because thats the moment I realise how full of carp they are.

izzybusy23

johnny_storm
I am one of those nasty housepricecrash people, perhaps had you actually used that forum before jumping unprepared into a market you knew nothing about you would not be in this position now.

Me too, been a member for quite some time now. Get a bit fed up with people slating HPC.. its far more informed than MSE, although I agree it can be abit OTT sometimes.

Sorry, but after reading the posts, I agree the OP was being 'greedy'.. in the context that she wanted 3 houses for her children. Well !!!!!! about our children??? So sod the next generation as long as 'I'm alright Jack'.

Not a nice post to read, but she should had been up to speed with the economy rather than being a typical sheeple.

Rabiddog_2

I am a bit surprised tho.. unless I am mistaken .. someone made the point of making the mortgage interest only..(you state you don't wish to?) So surely any handwringing on your part is very minor..Its merely the point that you may lose (note the spelling) some money if you sell, .
Also it is disingenuous to say you are not in it for the money, as surely you did not go into it expecting to lose money??

Re Btl's pushing up prices .. as some have stated, they do have some effect, but of an average of every 100% house price inflation only 10% is down to BTL. Far more relevant is the increasing multiples lent by banks, and the entrance to the mortgage market of new and different lenders.
It is not just young people who wish to rent.. I think it is only the lack of good quality long term rentals that pushes so many to buy a house. If your income is flexible (contract worker, actor, Santa Claus) then renting is sometimes the only option where you will not get into serious debt (rent covered when out of work).
The point above is exacerbated by the selling off of council houses and the fact that councils cannot use the money gained to build other council houses, only to lower council tax (thank you Margaret). If there was a greater supply of HA flats etc then I believe people would be happier to rent long term, rather than being "coerced" into buying at ruinous cost to themselves.
I think when I first bought I only did so because the mortgage was roughly the same as the rent I was paying.
Good luck with whatever you decide, and look after the next generation (thats not a startrek reference!)

kazd

Rabiddog wrote: »

I am a bit surprised tho.. unless I am mistaken .. someone made the point of making the mortgage interest only..(you state you don't wish to?) So surely any handwringing on your part is very minor..Its merely the point that you may lose (note the spelling) some money if you sell, .
Also it is disingenuous to say you are not in it for the money, as surely you did not go into it expecting to lose money??

Re Btl's pushing up prices .. as some have stated, they do have some effect, but of an average of every 100% house price inflation only 10% is down to BTL. Far more relevant is the increasing multiples lent by banks, and the entrance to the mortgage market of new and different lenders.
It is not just young people who wish to rent.. I think it is only the lack of good quality long term rentals that pushes so many to buy a house. If your income is flexible (contract worker, actor, Santa Claus) then renting is sometimes the only option where you will not get into serious debt (rent covered when out of work).
The point above is exacerbated by the selling off of council houses and the fact that councils cannot use the money gained to build other council houses, only to lower council tax (thank you Margaret). If there was a greater supply of HA flats etc then I believe people would be happier to rent long term, rather than being "coerced" into buying at ruinous cost to themselves.
I think when I first bought I only did so because the mortgage was roughly the same as the rent I was paying.
Good luck with whatever you decide, and look after the next generation (thats not a startrek reference!)

I think the person who referred to us changing the mortgage to interest only was talking about our personal mortgage not the btl.

I think you will find that I have already said that when I said I was not in it for the money what I meant was for using for a quick gain for holiday or something frivolous. Of course I did not go into it hoping to lose money as previously stated I was trying to invest for my childrens future.

As to the other poster who put !!!!!! about her children well !!!!!! about your children. We all have the choice to try and provide for our children in the best way we see possible. Unfortunately we made the wrong choice and its bit us on the bum.

neverdespairgirl

Lakey wrote: »

One thing I've learnt in life is what goes around comes around.

I've never thought that to be true, comforting as it may seem.

dsypml

I know this is an old thread but I got onto it somehow and thought I could add a new answer to a question raised herein. I'll not comment on the ridiculous attacks on Cells' spelling, that his name is plural so he is not the smallest living life form, or point out that someone wanting to buy multiple BTLs and only eventually buying 1 still wanted multiple BTLs ;-)

seven-day-weekend wrote: »

How does buying a house to rent out push prices up? (This is a serious question)

As well as the supply/demand issue there is the issue of credit availability, which I think was more important in the recent housing bubble. Because BTL owners can offset the interest portion of their mortgage against tax (ie we taxpayers subsidise them) they can finance a larger mortgage. This means that, all things being equal, the BTL purchaser can pay more for the same new-build 2 bed city centre [STRIKE]flat[/STRIKE] luxury apartment with the obligatory unnecessary en suite.