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  • FIRST POST
    • Jon5321
    • By Jon5321 30th Mar 18, 12:18 PM
    • 3Posts
    • 1Thanks
    Jon5321
    Thinking of selling up but what about Brexit?
    • #1
    • 30th Mar 18, 12:18 PM
    Thinking of selling up but what about Brexit? 30th Mar 18 at 12:18 PM
    Im thinking of selling up and moving into rented accomodation for a bit as I need to generate some capital. I was a cash buyer so no issues with morgages etc.

    I know no one has a crystal ball but Should I sell up before brexit happens or do you think brexit will not make much difference for the first couple of years?
Page 3
    • buggy_boy
    • By buggy_boy 8th Apr 18, 8:29 PM
    • 311 Posts
    • 194 Thanks
    buggy_boy
    So house prices must be down from 2007 if people have smaller mortgages now, is that what you are telling us? Or do you mean less people have a mortgage because there are less buyers?
    Originally posted by Crashy Time

    If you buy a house and that house increases it does not mean you borrow more. if you pay off some of that mortgage because the rates reduce then yes someone can have a smaller mortgage... That has nothing to do with prices...
    • Crashy Time
    • By Crashy Time 8th Apr 18, 10:08 PM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    If you buy a house and that house increases it does not mean you borrow more. if you pay off some of that mortgage because the rates reduce then yes someone can have a smaller mortgage... That has nothing to do with prices...
    Originally posted by buggy_boy

    Well if your house price increases, and you want to realise that gain, someone ( a buyer) has to have a bigger mortgage than you had? The banks are tightening, the interest rates are going up, Trump is going to cause bond market volatility, the property bubble is going to burst, just stop fighting it, embrace it, run towards the light!
    • buggy_boy
    • By buggy_boy 8th Apr 18, 11:05 PM
    • 311 Posts
    • 194 Thanks
    buggy_boy
    Well if your house price increases, and you want to realise that gain, someone ( a buyer) has to have a bigger mortgage than you had? The banks are tightening, the interest rates are going up, Trump is going to cause bond market volatility, the property bubble is going to burst, just stop fighting it, embrace it, run towards the light!
    Originally posted by Crashy Time
    How many people do that? Maybe before the crash not now... Mortgage interest rates really are not going up, they are going down.. Trump might be a bit of a loony and have an effect on the world but you have to understand he can't just do what he wants, just like in the uk the prime minster has to get things through parliament, this filters the insanity.

    I don't doubt there will be a crash...... At some point, you would be fool hardy to ignore history that tells us a crash will happen sooner or later but saying a crash is imminent with flaky logic does not make you right... You have been saying there will be an imminent crash for years, a broken clock is right twice a day, keep peddling the same rubbish for long enough and im sure eventually you will be "Right".

    I almost followed the "light" as you say 13yrs ago, thankfully I ran the other way and have done very well, Hows your rented bedsit?
    • Crashy Time
    • By Crashy Time 9th Apr 18, 12:10 PM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    How many people do that? Maybe before the crash not now... Mortgage interest rates really are not going up, they are going down.. Trump might be a bit of a loony and have an effect on the world but you have to understand he can't just do what he wants, just like in the uk the prime minster has to get things through parliament, this filters the insanity.

    I don't doubt there will be a crash...... At some point, you would be fool hardy to ignore history that tells us a crash will happen sooner or later but saying a crash is imminent with flaky logic does not make you right... You have been saying there will be an imminent crash for years, a broken clock is right twice a day, keep peddling the same rubbish for long enough and im sure eventually you will be "Right".

    I almost followed the "light" as you say 13yrs ago, thankfully I ran the other way and have done very well, Hows your rented bedsit?
    Originally posted by buggy_boy

    The point you miss, or ignore, is that a few years ago the central banks were COORDINATING their efforts, now they seem to be out for themselves, that is a MASSIVE difference if you are dabbling in holding large debts.
    • armchaireconomist
    • By armchaireconomist 9th Apr 18, 12:28 PM
    • 213 Posts
    • 289 Thanks
    armchaireconomist
    OK Crashy, two basic principles for you:


    There is a direct correlation between rent fees and mortgage interest rates. Rates go up, so do rents. Unmortgaged properties then usually raise price in line with "going rate"


    Investment in property should be viewed exclusively as long term. If you are in the market long enough, you can ride out any hitches (as many now have in the wake on 2008 crash)
    • Crashy Time
    • By Crashy Time 9th Apr 18, 5:05 PM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    OK Crashy, two basic principles for you:


    There is a direct correlation between rent fees and mortgage interest rates. Rates go up, so do rents. Unmortgaged properties then usually raise price in line with "going rate"


    Investment in property should be viewed exclusively as long term. If you are in the market long enough, you can ride out any hitches (as many now have in the wake on 2008 crash)
    Originally posted by armchaireconomist

    So reading your first point it seems you would agree that I`m correct in saying rents have gone nowhere in over ten years? However your basic point might have been valid in the 80`s and 90`s, maybe even into the 2000`s, but not now, people are too stretched to take much in the way of rent rises and as wages stay put and housing benefit is further cut landlords will learn to take less.


    I don`t agree with your second point, you don`t want to be trapped in a highly illiquid asset for years hoping for gains at some ill defined point in the future (fine if you WANT to stay put for years maybe) better to try that strategy with global equity trackers where you can take gains almost instantly and either rent cheaply or buy the cheapest property you can after a bust. (which would have happened in 2008 but for massive central bank intervention. The next property bust will be all the greater because of this intervention IMO)
    • armchaireconomist
    • By armchaireconomist 10th Apr 18, 11:50 AM
    • 213 Posts
    • 289 Thanks
    armchaireconomist
    By that logic crashy, the vast majority of landlords in England would be charging rent at a lower rate than their mortgage payments. They don't just decide "well, people can't afford to pay that much so i'll not bother"... these are directly correlated.


    It's not as illiquid asset though is it? It's a home. You still need somewhere to live. You can pay X mortgage, of which you get Y in equity back (minus interest), or you can pay X mortgage, gain nothing of Y back in equity PLUS a profit margin for the landlord. All that for the benefit of more flexibility and insecurity. That's before we talk about that rent is indefinite, whereas mortgage is fixed term.


    FYI I do have global equity trackers, as well as having spent around 5k and added 15k value conservatively in value in the last 2 years. As well as having a nice home. As well as having security. I've no plans to move for a while, why do I care if the market crashes? It will have beyond recovered by the time I plan on leaving. Only difference is I will get a return on my money, as opposed to lining the pockets of a landlord.
    • Crashy Time
    • By Crashy Time 10th Apr 18, 1:40 PM
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    Crashy Time
    By that logic crashy, the vast majority of landlords in England would be charging rent at a lower rate than their mortgage payments. They don't just decide "well, people can't afford to pay that much so i'll not bother"... these are directly correlated.


    It's not as illiquid asset though is it? It's a home. You still need somewhere to live. You can pay X mortgage, of which you get Y in equity back (minus interest), or you can pay X mortgage, gain nothing of Y back in equity PLUS a profit margin for the landlord. All that for the benefit of more flexibility and insecurity. That's before we talk about that rent is indefinite, whereas mortgage is fixed term.


    FYI I do have global equity trackers, as well as having spent around 5k and added 15k value conservatively in value in the last 2 years. As well as having a nice home. As well as having security. I've no plans to move for a while, why do I care if the market crashes? It will have beyond recovered by the time I plan on leaving. Only difference is I will get a return on my money, as opposed to lining the pockets of a landlord.
    Originally posted by armchaireconomist

    No, most landlords will take as much rent as the wages/type of tenant in their area will allow, that is just good business sense, although a few may go under the market rent to get long term tenants, but your point was that rents go UP when rates go up, and that is different from saying that landlords would charge rock bottom rent because of rock bottom interest rates, plus it hasn`t been tested in over ten years, so what is the basis for your assertion?
    • Crashy Time
    • By Crashy Time 12th Apr 18, 10:47 AM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    By that logic crashy, the vast majority of landlords in England would be charging rent at a lower rate than their mortgage payments. They don't just decide "well, people can't afford to pay that much so i'll not bother"... these are directly correlated.


    It's not as illiquid asset though is it? It's a home. You still need somewhere to live. You can pay X mortgage, of which you get Y in equity back (minus interest), or you can pay X mortgage, gain nothing of Y back in equity PLUS a profit margin for the landlord. All that for the benefit of more flexibility and insecurity. That's before we talk about that rent is indefinite, whereas mortgage is fixed term.


    FYI I do have global equity trackers, as well as having spent around 5k and added 15k value conservatively in value in the last 2 years. As well as having a nice home. As well as having security. I've no plans to move for a while, why do I care if the market crashes? It will have beyond recovered by the time I plan on leaving. Only difference is I will get a return on my money, as opposed to lining the pockets of a landlord.
    Originally posted by armchaireconomist

    You need to re-think your definitions of Liquid and Illiquid IMO, many people have been treating housing like a cash deposit account, with very high interest rates, that approach is going to come unstuck pretty soon (it already has actually)
    • armchaireconomist
    • By armchaireconomist 12th Apr 18, 12:07 PM
    • 213 Posts
    • 289 Thanks
    armchaireconomist
    Crashy,


    On what planet is charging rent below mortgage repayment rates good business sense? They are intrinsically linked.


    Also nobody said it was a liquid asset. In the long term however, it is almost always substantially cheaper to buy a house, not to mention the additional security. You made a mistake in the 90s, just accept it. Spending your time plaguing a forum with your irrational and nonsensical drivel isn't going to change that.
    • Crashy Time
    • By Crashy Time 12th Apr 18, 12:45 PM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    Crashy,


    On what planet is charging rent below mortgage repayment rates good business sense? They are intrinsically linked.


    Also nobody said it was a liquid asset. In the long term however, it is almost always substantially cheaper to buy a house, not to mention the additional security. You made a mistake in the 90s, just accept it. Spending your time plaguing a forum with your irrational and nonsensical drivel isn't going to change that.
    Originally posted by armchaireconomist

    That is the reason many BTL landlords will sell up, or try to, when rates rise, and you said "It's not as illiquid asset though is it? It's a home." Or did you mean "Not as illiquid as you might think"? Many people have been assuming that their home is also a liquid asset (with a high fixed or rising price) that will be a costly mistake for many IMO.
    • jeanzbeanz
    • By jeanzbeanz 12th Apr 18, 4:23 PM
    • 51 Posts
    • 44 Thanks
    jeanzbeanz
    If your life is so fulfilling why would you even care, and go to the trouble of posting? You remind me of the poster who at regular intervals tells the forum that he has me on ignore, absolutely no way he will be bothered reading anything I write, then a few days later he is trolling everything I post The reason, he is a member of the PRICE POLICE, and doesn't like any talk of falling house prices at all You are obviously heavily invested (literally and emotionally) in prices staying high, and your last bit of advice is one of the worst I have seen in a while, on any forum.
    Originally posted by Crashy Time
    Just seen this now. The reason I bother replying is because I find you extremely irritating and your constant trolling is very unhelpful. I wish you would let posters on this forum have a sensible conversation with sensible people without derailing their threads every time. I don't think you realise how unwanted your constant bilge is or how ignorant it makes you look. I hope that OP can realise that just because you are shouting the loudest, it doesn't mean you are the one to listen to!
    • Crashy Time
    • By Crashy Time 16th Apr 18, 1:37 PM
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    Crashy Time
    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.
    Originally posted by shirlgirl2004

    Do the landlords take the properties with them when they leave More BTL flats being sold to private owners means LESS competition for rental properties, and so does new landlords picking the properties up cheap from the landlords who couldn`t make it work.
    • Crashy Time
    • By Crashy Time 18th Apr 18, 7:29 PM
    • 5,904 Posts
    • 2,326 Thanks
    Crashy Time
    If you buy a house and that house increases it does not mean you borrow more. if you pay off some of that mortgage because the rates reduce then yes someone can have a smaller mortgage... That has nothing to do with prices...
    Originally posted by buggy_boy

    But someone buying now would have a larger mortgage, because house prices are increasing, right? This is the reason that sales are falling, houses are just too expensive.
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