Selling a house quickly

SouthCoast

You will certainly make far more money, by retaining your asset, than by selling it.

The debt forums on this site would appreciate the benefits of your expert experience.

guppy

IanRR wrote: »

Tax free cash. Lovely!

No capital gains tax then?

IanRR

guppy wrote: »

No capital gains tax then?

Absolutely no capital gains tax! When you release equity, it is your money. You are not selling it. A lot of people cannot get their head round this. It has been fully explored, and agrred by the good old IR. They make the rules, we just play by them!

IanRR

SouthCoast wrote: »

The debt forums on this site would appreciate the benefits of your expert experience.

As you live in Sussex, I am very surprised that you have not heard of the guy who has written the book that I mentioned. Again, his name is Andy Shaw...he owns half of Worthing and Littlehampton. Anyone who has debt problems should read his book. I only became an expert, by learning from an expert! What I dont do, is listen to well meaning, but misguided, men in pubs, who have learned everything they know, from newspaper articles, that were written to sell newspapers!

Tiger_greeneyes

Gangstabird wrote: »

I would offer it to the local council for 5 years. They need it, will do it up to their standards which, going by the fact it's in need of modernisation, can't be worse than what it already is and enjoy the fact that you will get a few quid for it, at the end of the term, see how the market is and either re lease it to them or sell then. They will give you less than the market rent, but it doesn't sound like you need this property to make you money or have a big mortgage on it.

It could prove to be a good earner one day.

I tried that with my last property - 'my' council weren't taking on any properties at the time and weren't going to be taking any more on for at least the short to medium term. I think it's a bit of a postcode lottery.

I'd be tempted to rent it out - leave it with a reputable letting agency and try to forget about it. Remember to run it by the mortgage company though. You might find that by remortgaging with a Buy To Let mortgage it'll be a bit cheaper - best to shop around if you're thinking of letting it. There's going to be a much bigger demand for rental properties as many more repossessions are unfortuately predicted. The added bonus for you is that it'll be a good pension for you in years to come if you don't sell it.

Otherwise, there seems to be a bit of a trend at the moment where purchasers are looking for dated property so they can increase the value to try to avoid negative equity so if it's on the market at the right price then a sale shouldn't be too far off.

ATB with it all

hoggums

IanRR wrote: »

The FTSE? What on earth has that speculation rubbish got to do with anything?

So are you saying that the rocket in house prices throughout 2000-2007 was not speculation on the part of investors? You are buying property in the expectation that it will rise - is that not speculation? Whether it's shares or houses - it's irrelevant. It's still people at either end of the transaction willing to buy/sell - the only difference is what you are buying selling.

IanRR wrote: »

. Here we are, half way through the crunch,

Based on what evidence?

IanRR wrote: »

and property prices are still above this time last year. So in 14 months time, when all this is over, we will see massive rises in property values.

But what happens in the meantime? A 25% rise is undone with at 20% fall. A 100% rise is undone with a 50% fall. I cannot say whether your prediction is true or not, but based on past bubbles this is not typical human or market activity

IanRR wrote: »

As I never sell a property, I really do not care whether prices are rising or falling. I just revisit them, when times are good, and withdraw as much equity as possible. Tax free cash. Lovely!

Actually no, it's not tax free cash - it's debt you are taking on, the only way to realise the value of your property is to SELL it. You are borrowing money that you have to pay back one day. You are not any richer in real terms until you sell the house.

IanRR

OK, lots of principles that you are not getting here. To fully understand it, you need to read a book by Andy Shaw, called "Money for nothing, and your property for free".

House prices will always rise over time. Property is a real asset, not a paper one. Shares can do anything. It does not really matter whether it takes a year, or ten years, with property. So long as you have none of your own money tied up in them, and they are costing nothing to keep. They are being rented out, which, if planned properly, covers all costs. With shares, it will always be your money at risk.With property, it is always someone elses money that you play with. That gives an infinite return on investment. Property is in shortage in Britain. We are now building over 100 houses per day, less than we need. There is no prospect of this being caught up. Prices will continue to rise.

I speak to analysts every day. The main reason for the credit crunch, is a lack of trust between the banks, due to perceptions of bad debts. It will take 2 sets of results, before all bad debt has been declared. That will take us to September 2009. At that stage, confidence will return to that sector, and lenders will get back to the only way they have of making money-lending! Were this not to happen, the monetary systems of the world would collapse. I somehow dont see this happening...

So many people think that the only way to realise the value of property, is to sell it. They also think that the word "mortgage" equals the word "debt". In my book it means "asset". I plan never to repay my mortgages, so I never will have to pay it back. I will take my debt to the grave. My children will inherit loads of property and loads of debt. But each property will have some equity left. Unless, of course, I die during a downturn, which will mean that they will have to wait for a revival in the market, before they sell. But why would they be daft enough to sell them? Just roll the debt forward for another 50 years, and watch the equity grow again! It is a long term game. Once you realise that, the short term panics become irrelevant. This is a tiny blip that we are going through, but all the fools are bailing out. I wish them well!

I seriously suggest that you buy the above mentioned book. It explains all the principles far better than I can.

Lakey

Can I smell some


:spam: ???

IanRR

neverdespairgirl wrote: »

Yes, me. In real terms, it could well be worth the same in 10 years' time as it is now, or even less.

In the last housing downturn, it took the average UK house from 1989 to 2002 to return to the same value in terms of average earnings.

Average earnings have nothing to do with it. We are moving from property ownership, to a nation of renters-just like Europe. In the last "slump", house prices dropped by 3.7%. Thats not to say that some areas did not fall by 20% or more. But the average was 3.7%. My house fell by 12 grand. It is now worth 150 grand more than it was during the slump. It has not dropped in value at all, this time round. All this is about perceptions. Have a look at your local property papers. Apart from over priced, new build flats, nothing has gone down in price. They are just not selling them. They cannot afford to. So they just hang on, where possible, until this tiny blip is over. Its a long term game.

IanRR

Lakey wrote: »

Can I smell some


:spam: ???

I promise you that is not the case. I get nothing out of this, except the satisfaction of stopping people making stupid mistakes.... like selling property, when they would be far better off keeping it.