House market - how low will it go?

[pjt]

If you aren't leveraged and rents don't decline, you should be fine. Rents generally decline with prices though. But if you aren't leveraged, not a big problem. The problem is mainly for those that are highly leveraged themselves (e.g., AirBnB numpties) or those caught up in the resulting panic, such as those who need to move and have Help to Buy, shared ownership or other high LTVs.

I've always wondered why anyone would buy to let in the South East the numbers dont add up. Interest only and the hope of price increases seem to be the model. Thats where I see problems, different up where I live. I'm making more than 50% cashflow on the turnover from my places thats including paying captial repayment mortgages plenty of wiggle room if rents drop which I supsect they wont.

[Whorty]

Makes no difference to me where house prices go, we've no need to sell. We have no mortgage so interest rate changes won't impact our outgoings.

[jamesbrown]

I've always wondered why anyone would buy to let in the South East the numbers dont add up. Interest only and the hope of price increases seem to be the model. Thats where I see problems, different up where I live. I'm making more than 50% cashflow on the turnover from my places thats including paying captial repayment mortgages plenty of wiggle room if rents drop which I supsect they wont.

Should be golden then. Many are not in your position. The worst hit are those that were desperate to stop renting and took a high LTV and, post-apocalypse, may find themselves needing to move for a job. Prices always move at the margins. If you can avoid getting caught up in those margins, the ups and downs are non-events. Same for all asset classes.

[rogerfederer]

I've always wondered why anyone would buy to let in the South East the numbers dont add up. Interest only and the hope of price increases seem to be the model. Thats where I see problems, different up where I live. I'm making more than 50% cashflow on the turnover from my places thats including paying captial repayment mortgages plenty of wiggle room if rents drop which I supsect they wont.

Are you in Glasgow?

Ultimately the trend is increased rights and benefits for tennent's lager and increased charges (tax or otherwise) for landlords. I see those increasing and rents decreasing.

It's important to recognise that wages in real terms for much of the population are at pre-2000 levels, in the UK and USA. I don't see wages shooting upwards any time soon and therefore I don't see much other option except rents going down. Could just be 10-15% down.

[eek]

Are you in Glasgow?

Ultimately the trend is increased rights and benefits for tennent's lager and increased charges (tax or otherwise) for landlords. I see those increasing and rents decreasing.

It's important to recognise that wages in real terms for much of the population are at pre-2000 levels, in the UK and USA. I don't see wages shooting upwards any time soon and therefore I don't see much other option except rents going down. Could just be 10-15% down.

When I looked at Glasgow I couple of years back what I noticed was how low prices were compared to elsewhere and how high the council tax was compared to similar properties elsewhere.

[pjt]

Are you in Glasgow?

Ultimately the trend is increased rights and benefits for tennent's lager and increased charges (tax or otherwise) for landlords. I see those increasing and rents decreasing.

It's important to recognise that wages in real terms for much of the population are at pre-2000 levels, in the UK and USA. I don't see wages shooting upwards any time soon and therefore I don't see much other option except rents going down. Could just be 10-15% down.

Glasgow yes. Much of the tax changes wont impact me as I'm part way through moving all my properties to a LTD, costly to begin with but looking at the LTD as my pension or warchest top up income if required. Wont be taking much out cash wise any excess will be used to pay off existing mortgages or purchase more propoerties. Leaving me with hopefully a fairly hefty pension. Rent decreases may happen if they do it means less cashflow shorter term but longer term I should end up with a healthy portfolio of mortgage free properites to live off of in retirement, then ultimatly a generous inheritance for my kids. Seems a much better option than an other pension plan I can think of.

[pjt]

When I looked at Glasgow I couple of years back what I noticed was how low prices were compared to elsewhere and how high the council tax was compared to similar properties elsewhere.

Yip my House is worth about £350K and the council tax just went up to £312 a month

[AtW]

Yip my House is worth about £350K and the council tax just went up to £312 a month

Is is a mansion?

[scooterscot]

Makes no difference to me where house prices go, we've no need to sell. We have no mortgage so interest rate changes won't impact our outgoings.

You're in a privileged position, health concerns notwithstanding.

[pjt]

Is is a mansion?

Lol compared to what you'd get for that price down south its not too bad.