House prices > Rent = Price fall

[sasguru]

I rent a house. It has got 4 bedrooms (albeit 1 very small - used for server anyway), living room, garage for 2 cars (or a lot of junk), big garden: house is located in a nice leafy squirrelly part of Brum - very nice neighbourhood.

I pay £600 per month for it.


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Yes that's true. And why not pay the going rate till you die. Whereas mortgagers only pay for a property for 25 years of their life.

[AtW]

Yes that's true. And why not pay the going rate till you die. Whereas mortgagers only pay for a property for 25 years of their life.

Why would I want to buy something that I believe is going to fall in price? I am not stupid to overstretch myself either - chickens are coming home to roost now, and a lot of mortagees will not be able to pay their morgage and "their" house will be auctioned.

[Diver]

Why would I want to buy something that I believe is going to fall in price? I am not stupid to overstretch myself either - chickens are coming home to roost now, and a lot of mortagees will not be able to pay their morgage and "their" house will be auctioned.

and we will buy them and rent them back to them for exorbitant amounts, Thus ensuring that these poor people have a roof over their heads

[sasguru]

Why would I want to buy something that I believe is going to fall in price? .

Over 25 years and after you have paid off your mortgage, house price rises and falls are a moot point. Years in which prices rise outnumber years in which they fall by about 3-1 (at a very conservative estimate).
HTH

[AtW]

Over 25 years and after you have paid off your mortgage, house price rises and falls are a moot point.

That's if you can manage it. And also buying houses on top of the bubble will greatly increase morgage repayments and time period.

[sasguru]

That's if you can manage it. And also buying houses on top of the bubble will greatly increase morgage repayments and time period.

That's true. So why did you wait to the top of the bubble? And are you in a position to cash in on a crash? The answer to the latter is clearly no.

[AtW]

and we will buy them and rent them back to them for exorbitant amounts, Thus ensuring that these poor people have a roof over their heads

I think you will find that renting legislation will be improved as more people lose houses and have to become renters - frankly the rights of the tenant in this country are crap, EU should have really stepped into this and get standard continental rights over here too. That shoud also weed out some wanna be BTLers who seen it on TV and wanted to get rich quick.

[AtW]

That's true. So why did you wait to the top of the bubble? And are you in a position to cash in on a crash? The answer to the latter is clearly no.

Let me explain to you - I was on workpermit from 2000 to 2004, this meant that if I lost my job for whatever reason I could have been deported and owning a house was not exactly a reason to get visa. This effectively meant that buying was out of question - I don't think bank would have given me a morgage without long term visa anyway. Cometh 2004 the prices in my view were already too high.

[Diver]

I think you will find that renting legislation will be improved as more people lose houses and have to become renters - frankly the rights of the tenant in this country are crap, EU should have really stepped into this and get standard continental rights over here too. That should also weed out some wanna be BTLers who seen it on TV and wanted to get rich quick.

I agree with you.
My standards are very high however, Houses well maintained, well decorated, Regular NIC/EIC part P, and Corgi checks and services.
Nice well maintained gardens and We do all the outside timber/fence treatment yearly.

[AtW]

I agree with you.
My standards are very high however, Houses well maintained, well decorated, Regular NIC/EIC part P, and Corgi checks and services.
Nice well maintained gardens and We do all the outside timber/fence treatment yearly.

Maybe you are getting more wealthier people who'd pay extra for nice houses, if they are ex-owners it might give them impression that the change is not that high.

I don't hold my breath for renting legislation improvements - it will probably happen when it won't be needed that much at the start of next house pricing cycle.