changing from interest only to buy-to-let

dopester

neilsc99 wrote: »

who knows whats around the corner in the current housing market or life in fact

neilsc99 wrote: »

nobody knows what the future hold.

We can make reasonable future assumptions for the housing market on available data and logic and historical data. It's what we are forced to do, although in a inflating bubble normal rules sometimes defy expectations as things peak to the most extreme levels.

However the situation has rapidly changed in that regard and therefore logical conclusions can be drawn with more certainly.

Please keep in mind that even the Government's own housing minister, Caroline Flint, was found to have documents to brief the cabinet the fears about the future direction of house prices:

Given present trends they will clearly show sizeable falls in prices later this year - at best down 5-10% year on year." That represents a big correction later this year.

So if the Government has a housing minister which fears 5-10% falls at best for this current year, that does not concern you for a strategy of keeping your flat and also buying a flat in London?

I don't know Feltham, but do know it will be less frequent an occurrence where people buy an apartment with a future expectation it will rise by tens of thousands in such a short space of time (20 months).

Also given the change in the market, I think you might have to revise your expectations. Buyers are fewer on the ground for properties which are still in last years asking prices.

Keep in mind what Miles Shipside (Commercial Director of Rightmove) said recently:

"New sellers can see the storm clouds overhead but seem to believe it's only raining on other people," Shipside said. "The reality is it started raining last September, and has reached storm force in the last month."

neilsc99

3under3 wrote: »

I would reduce the price of the flat to a quick realistic sale price, say 10% less than it's on for now? Then negociate a similar discount on the next house you buy. Your mortgage on this must be quite high if you will only have 20k to put on the deposit for the next house. Are you sure the rent will cover the mortgage interest/service charges etc if you let the flat? How will you cover void periods? Think carefully, you may end up with two properties in negative equity if you buy now...at least with a house you have a better chance of making it your long term home with more scope for improving and adding value in the long run.

as another poster said the buy-to-let may not be the right direction to go now but the 20K deposit would be from the sale of our flat on the bases it sells arounf the asking price and we have some cash in savings as well. Our home we are looking to buy will be a place to stay for a good few years so we could look to improve over time

3under3

Seems you are in a tricky position as without the 20k from the sale of your flat you'd be unlikely to secure a decent mortgage rate based on your LTV on your new house.

neilsc99

it's abit up in the air at the moment but we are working on figures now but if prices drop on our place then fingers crossed they will drop in the area we are looking to move to

neverdespairgirl

neilsc99 wrote: »

we thought the value was alot on the flat but when we looked at others on the estate it did not seem that high, it's one of the higher ones on the estate but it's one of the largest flats on the estate, we did even drop it down from 187K as well. Also I know Feltham is not great but alot of invesment has gone into it over the past years plus it's great for public transport which in many places people struggle to find

But, but - it's FELTHAM! Honestly, really not the most expensive area in London. I go there a lot, for my sins, to the Asylum & Immigration Tribunal.

neverdespairgirl

dopester wrote: »

I don't know Feltham,

You've not missed anything.....

neilsc99

neverdespairgirl wrote: »

But, but - it's FELTHAM! Honestly, really not the most expensive area in London. I go there a lot, for my sins, to the Asylum & Immigration Tribunal.

end of the day it's ware my parents brought me up and i had no choice but trust me there are many other places i would not want to have been brought up. Why are you making a personal attack on me and where i live ? i came on this site for some opionions on my current situation and not on where i live. If I wanted to I could have moved to other places and live a life of debt like many people do but I chose not do

neilsc99

neverdespairgirl wrote: »

You've not missed anything.....

i would stooped to this person's level but not going to..grow up please

dopester

neilsc99 wrote: »

Why are you making a personal attack on me and where i live ? i came on this site for some opionions on my current situation and not on where i live. If I wanted to I could have moved to other places and live a life of debt like many people do but I chose not do

Relax. She was only talking about the area. You hold a view that investment in the area has raised the standards of the area, which it might well have done compared to before, but it is fair someone holds a personal view on how it compares to many other areas of London.

Keep in mind I have almost no knowledge of areas in London, as forums get visitors worldwide, so the post gave me a rough idea that it's not amongst the very best areas of London. And fair play to you for living to your means which I think we can all agree on is a sensible thing to do.

neverdespairgirl

neilsc99 wrote: »

Why are you making a personal attack on me and where i live ?

Not a personal attack on you at all, and I can't see why you think it is.

I think that the price for a 2 bed flat in Feltham is too high, and can't be sustained by any market fundamentals. And the fact that it is Feltahm, and not Chelsea, is important.