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Thinking of selling up but what about Brexit?

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  • caronoel
    caronoel Posts: 908
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    Sell before interest rates start going up.

    Ignore the rantings of Crashy.

    He sold up and moved into a rented room in the mid 90s, waiting for the crash that never came.

    Now he's single, still renting a little bedsit and in his mid 50s. What a catch for the ladies!

    He has almost stopped posting on the Debate house prices board, as they rip his wisdom on house prices to pieces over there.
  • In all likelihood we will end up with BINO (Brexit in name only) so it won't make the slightest bit of difference one way or another.
    For Democracy to work, the losers have to accept defeat.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    Fosterdog wrote: »
    Pointless advice for a cash buyer, rising or fluctuating interest rates won't make any difference to OP, unless of course they sell their house but then get stuck in a rental where the landlord's mortgage skyrockets leading them having to raise the rent to meet payments.


    Pardon? OP is thinking of SELLING, their potential BUYER may be affected by higher interest rates, therefore sell soon and don`t mess about trying to play hardball because they offered 5k less ;)
  • Fosterdog
    Fosterdog Posts: 4,948
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    Pardon? OP is thinking of SELLING, their potential BUYER may be affected by higher interest rates, therefore sell soon and don`t mess about trying to play hardball because they offered 5k less ;)

    Yes a buyer may be affected but OP still needs somewhere to live and the alternative will be renting, which once out of any minimum term carries the risk of rent increases to cover any increased interest on the landlords mortgage so in the long run there is no financial benefit to selling during low interest rates vs high interest rates because they affect the whole housing market not just buying and selling.

    You seem to be of the assumption that only home owners will be affected by any crash that may or may not happen but the rental market will be just as at risk. So I stick by my original statement, your advice is pointless. Either both markets will see the effects or neither will, the rental market will not be protected from anything.
  • caronoel
    caronoel Posts: 908
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    Fosterdog wrote: »

    You seem to be of the assumption that only home owners will be affected by any crash that may or may not happen but the rental market will be just as at risk. So I stick by my original statement, your advice is pointless. Either both markets will see the effects or neither will, the rental market will not be protected from anything.

    This won't affect Crashy, as he claims his landlord hasn't put the rent on his bedsit up in over 10 years.

    Crashy's advice is always pointless
  • Doozergirl
    Doozergirl Posts: 33,775
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    I'd rather mortgage a house that was presently mortgage free than move into rented. There's huge costs in agent fees and the physical moving and the interest cost of a mortgage against the value will be less than it would be on a rented.

    And you don't have to move anywhere, or get turfed out after six months. No brainer to me.
    Everything that is supposed to be in heaven is already here on earth.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    Fosterdog wrote: »
    Yes a buyer may be affected but OP still needs somewhere to live and the alternative will be renting, which once out of any minimum term carries the risk of rent increases to cover any increased interest on the landlords mortgage so in the long run there is no financial benefit to selling during low interest rates vs high interest rates because they affect the whole housing market not just buying and selling.

    You seem to be of the assumption that only home owners will be affected by any crash that may or may not happen but the rental market will be just as at risk. So I stick by my original statement, your advice is pointless. Either both markets will see the effects or neither will, the rental market will not be protected from anything.


    Most landlords will already be charging close to the maximum they can get for their local market, and as rents are driven by wages won`t have much wiggle room to raise the rent as their own costs rise. Voids will kill a BTL business much quicker than gradual interest rate rises will, so many landlords will just have to suck up the higher mortgage costs IMO. Your advice is wishful thinking at best.
  • shirlgirl2004
    shirlgirl2004 Posts: 2,983
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    Most landlords will already be charging close to the maximum they can get for their local market, and as rents are driven by wages won`t have much wiggle room to raise the rent as their own costs rise. Voids will kill a BTL business much quicker than gradual interest rate rises will, so many landlords will just have to suck up the higher mortgage costs IMO. Your advice is wishful thinking at best.
    Not true at all, rents are rising as landlords have to pay more tax. If, as you predict, landlords are leaving the PRS then there will be more competition for rental properties and rents will rise.
  • buggy_boy
    buggy_boy Posts: 657 Forumite
    Not true at all, rents are rising as landlords have to pay more tax. If, as you predict, landlords are leaving the PRS then there will be more competition for rental properties and rents will rise.

    I think rents are relatively flat, although as per usual Crashy is wrong when he says there is no room for landlords to increase rents, I like many landlords do not increase rents for sitting tenants... Rents raised just after the section 24 tax was released, you are right there is a lot of landlords leaving the sector and it is likely rents will rise, especially as it looks like wage growth is finally picking up. a high proportion of landlords don't actually have a mortgage and remember when rates dropped, rents did not drop so I don't think there is really that much of a link between rates and rents.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    buggy_boy wrote: »
    I think rents are relatively flat, although as per usual Crashy is wrong when he says there is no room for landlords to increase rents, I like many landlords do not increase rents for sitting tenants... Rents raised just after the section 24 tax was released, you are right there is a lot of landlords leaving the sector and it is likely rents will rise, especially as it looks like wage growth is finally picking up. a high proportion of landlords don't actually have a mortgage and remember when rates dropped, rents did not drop so I don't think there is really that much of a link between rates and rents.


    There is a bigger link between rent and wages, and of course housing benefit, it is always amusing when posters say things like "Housing benefit cuts will mean landlords chucking out benefits claimants and getting in professionals who pay more" Human nature dictates that the higher paying professionals would have been first choice if the landlord really could attract that sort of tenant? Of course when rates rise tenants with debts have less disposable income and can therefore pay less rent. It is not a given that a landlord, or "accidental landlord" can raise rents, or even find a tenant, and rising interest rates will affect the whole market as someone said, but the effect will be to lower not raise house prices and rents.
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