Mungler Posted September 17, 2012 Report Share Posted September 17, 2012 can we have a bet Vipa £200 says we won't have rates of 8% plus at this time next year. I'm sure Mungler will be round in a bit to put an offer to you as well if you're that confident. I'm already backing my bet - two buy to lets completing in the next month or so. There's a generation that can't get on the housing ladder because they can't get a deposit together or meet the new lending criteria. Buy sub £150k in the South East, in walking distance of a station, look for elbow room to extend or park a car and ignore capital appreciation - those days are long gone. If it goes bent the capital loss is limited by the purchase price (hence buy small and lots of) and will even itself out over the life of the mortgage. In the meantime my letting agent clients have never had it so good in the South East - there's no shortage of renters. Indeed, a whole generation still at home.... and immigration still out of control, people living longer and divorce rates steady. I am uber safe and will want to fix my interest rate though - that way if I am talking ****I can still predict what I'm in for. Mungler's final word - cash is king. Private commercial lenders are getting 10-15% on short term loans / bridging money of £50k to £150k with 1st charge (cast iron) security over property at the moment (plus modest arrangement and legals). Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 17, 2012 Report Share Posted September 17, 2012 i have two out on rental hopefully by xmas Quote Link to comment Share on other sites More sharing options...
spanj Posted September 17, 2012 Report Share Posted September 17, 2012 I think interest rates will stay low for at least 5 years and the government will actually embrace a bit of inflation to inflate away that massive debt that won't go away. Europe won't sought itself out anytime soon, so there's no immediate worry of not keeping up / down with the neighbours. Interest rates of just say 8 or 9% will kill everything stone dead - there is just too much lent out to people who shouldn't have made the lending criteria, who are over stretched and how are facing shrinking household budgets because the cost of living is still going up. Mungler's tip - don't go silly but now is the time to take debt and fix a rate. Sticking money in the bank / markets = F-all return. I'm very disappointed in thiis piece of advice Mungler. Not once have you mentioned punching somebody, get back on track NOW Quote Link to comment Share on other sites More sharing options...
al4x Posted September 18, 2012 Report Share Posted September 18, 2012 I'm already backing my bet - two buy to lets completing in the next month or so. There's a generation that can't get on the housing ladder because they can't get a deposit together or meet the new lending criteria. Buy sub £150k in the South East, in walking distance of a station, look for elbow room to extend or park a car and ignore capital appreciation - those days are long gone. If it goes bent the capital loss is limited by the purchase price (hence buy small and lots of) and will even itself out over the life of the mortgage. In the meantime my letting agent clients have never had it so good in the South East - there's no shortage of renters. Indeed, a whole generation still at home.... and immigration still out of control, people living longer and divorce rates steady. I am uber safe and will want to fix my interest rate though - that way if I am talking shheeittee I can still predict what I'm in for. Mungler's final word - cash is king. Private commercial lenders are getting 10-15% on short term loans / bridging money of £50k to £150k with 1st charge (cast iron) security over property at the moment (plus modest arrangement and legals). similar here we've got one and a small mortgage on our main house the idea is to just let the rental money build up and buy another one, as a pension its then in our control no monkeys involved. Whichever way you've built up a pile of capital and you know as long as you buy the right size house occupancy levels will be high. The time for tracker and variable mortgages has passed at the moment but who is to say they won't be more appealing again if rates go back up and banks set the tracking rates at a sensible amount. Of course the risky approach is instead of 150K houses to go up to the grim north and buy them at auction for 25K and still get your £450 a month but you want someone else to manage the mongs you'd have to deal with and apply the cattle prod for when they don't pay Quote Link to comment Share on other sites More sharing options...
pigeonblasterian Posted September 18, 2012 Report Share Posted September 18, 2012 Of course the risky approach is instead of 150K houses to go up to the grim north and buy them at auction for 25K and still get your £450 a month but you want someone else to manage the mongs you'd have to deal with and apply the cattle prod for when they don't pay It`s hard here up north. Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 18, 2012 Report Share Posted September 18, 2012 dole pay the rent anywhere so you could have cheap houses all over the place and make a packet lol Quote Link to comment Share on other sites More sharing options...
al4x Posted September 18, 2012 Report Share Posted September 18, 2012 ish but don't they now give the tenants the money in an effort to let them buy more beer fags and sky subscriptions rather than giving it to the landlord. Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted September 18, 2012 Report Share Posted September 18, 2012 ish but don't they now give the tenants the money in an effort to let them buy more beer fags and sky subscriptions rather than giving it to the landlord. A few landlords are going to get burnt when universal tax credits come in next year. Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 18, 2012 Report Share Posted September 18, 2012 ish but don't they now give the tenants the money in an effort to let them buy more beer fags and sky subscriptions rather than giving it to the landlord. AFAIK that is now the case, and private landlords do not get it direct from the DSS, or whatever it's called nowadays. Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 18, 2012 Report Share Posted September 18, 2012 (edited) they do get it direct from the council and mortgage insurance gives you rent if they dont pay while u get them out Edited September 18, 2012 by storme37 Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 18, 2012 Report Share Posted September 18, 2012 im off clay shooting come back to this later Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 18, 2012 Report Share Posted September 18, 2012 ish but don't they now give the tenants the money in an effort to let them buy more beer fags and sky subscriptions rather than giving it to the landlord. One of my 'acquaintainces' went belly up recently. He had a large portfolio of rental properties, almost all DSS tenants.. he was sitting back raking it in at one point... the most certain tenants possible, after all, the dss don't miss payments.. then the way housing benefit was paid changed and something like 40% of his rentals were going unpaid each month, meaning he had to find the mortgage payments for them! suffice to say, he didn't last long and now I see his £1.25M house has been repo'd and is on the market at a distress price of £600k! Quote Link to comment Share on other sites More sharing options...
al4x Posted September 18, 2012 Report Share Posted September 18, 2012 to an extent he was probably flying close to the wind with equity and repayments anyway if he went under that fast, but on the upside he will have upset a load of the tenants when the mortgage companies evict them during repossessing their houses. Quote Link to comment Share on other sites More sharing options...
Vipa Posted September 18, 2012 Report Share Posted September 18, 2012 to an extent he was probably flying close to the wind with equity and repayments anyway if he went under that fast, but on the upside he will have upset a load of the tenants when the mortgage companies evict them during repossessing their houses. to an extent he was probably flying close to the wind with equity and repayments anyway if he went under that fast, but on the upside he will have upset a load of the tenants when the mortgage companies evict them during repossessing their houses. Well... if you are going to spend your housing benefit on anything other than the rent then it shouldn't come as too big a surprise... I think he held on for about 2 years but it got him in the end! Quote Link to comment Share on other sites More sharing options...
al4x Posted September 18, 2012 Report Share Posted September 18, 2012 its a crackers system what you won't believe is they then usually manage to get a new house even when its a housing association they owe the money to. Absolutely barking mad Quote Link to comment Share on other sites More sharing options...
Thunderbird Posted September 18, 2012 Report Share Posted September 18, 2012 its a crackers system what you won't believe is they then usually manage to get a new house even when its a housing association they owe the money to. Absolutely barking mad Agreed. A client of mine was telling me about the kerfuffle concerning a rental house owned by her mother. The story is hard to believe but it's true. The tenant had actually abandoned the property but still the landlord had to 'give' it back to the tenant after changing the locks, and at that point they were owed 6 months DSS rent. Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 18, 2012 Report Share Posted September 18, 2012 (edited) the tenant has to agree to the direct payment then it happens in kent., no agreement no flat we will prob go for private tenants not dss anyway. wifes a lawyer 1/2 the week and a housing advisor the other 1/2 so she knows both sides. rent insurance quite cheap they pay up to 6 months Edited September 18, 2012 by storme37 Quote Link to comment Share on other sites More sharing options...
al4x Posted September 19, 2012 Report Share Posted September 19, 2012 if you can get away without going DSS so much the better, my other half is a housing officer giving away houses and sorting out homelessness and well lets say ours we're doing anything to try and avoid her customers. Quote Link to comment Share on other sites More sharing options...
mr williamson Posted September 19, 2012 Report Share Posted September 19, 2012 To my way of looking at things when they said the other day that it was cheaper to buy a house than to rent one then there has to be something wrong would you rent a car if it was cheaper to buy one. I am not talking overall but monthly payments if you through no fault of your own cannot find the deposit you have to spend your life paying someone elses mortgage and end up with nothing while they get a free house. thats just life mate. no point twining about it you can only play the cards you were dealt Quote Link to comment Share on other sites More sharing options...
al4x Posted September 19, 2012 Report Share Posted September 19, 2012 to an extent, though more is about financial planning, a lot more could get on the ladder but it involves self restraint with spending. Possibly giving up a few nights a week in the pub dropping the "essentials" like sky tv etc etc Its about saving rather than spending and you get there with sacrifices. However if you're not prepared to then renting is the way forward or if you plan it right getting a council house and you are laughing then its cheaper than buying. Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 19, 2012 Report Share Posted September 19, 2012 stay in a council house 5 years you could buy it 1/2 price as i remember Quote Link to comment Share on other sites More sharing options...
al4x Posted September 19, 2012 Report Share Posted September 19, 2012 yup then what happens is a lot get them re valued and re mortgaged on the market value blitz the money and borrow as much as possible against it get repossessed and they have to be given a new one. There are good reasons this country is going bankrupt and thats a cracking example of whats wrong. Quote Link to comment Share on other sites More sharing options...
TbirdX Posted September 19, 2012 Report Share Posted September 19, 2012 Inflation down in case no one had noticed Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 19, 2012 Report Share Posted September 19, 2012 yup then what happens is a lot get them re valued and re mortgaged on the market value blitz the money and borrow as much as possible against it get repossessed and they have to be given a new one. There are good reasons this country is going bankrupt and thats a cracking example of whats wrong. cant blame some one from exercising the right to buy option half price they would be a fool not to Quote Link to comment Share on other sites More sharing options...
AVB Posted September 22, 2012 Report Share Posted September 22, 2012 Article in todays Daily Mail "A new report has predicted that most homeowners will be mortgage free by 2015. The report from Hometrack said that with few younger buyers able to afford mortgages more than 50 per cent of homeowners will be older people owning their property outright by 2015. Many will have taken out their mortgages in the 1960s, 70s and 80s and have benefited from low interest rates to pay them off." As people get older and are forced to use the capital in their houses to live on the number of sales will increase dramatically but with younger buyers not being able to afford them them the only outcome is a crash. (In my defence I wasn't reading the Daily Mail I just get a summary of news headlines sent to my work e-mail) Quote Link to comment Share on other sites More sharing options...
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