oh dear: House prices continue long slide, says website

[Rebecca Loos]

there is another way which is even smarter. Buy a house, rent it out so that you make a small profit after monthly repayments, charges, repairs etc, and rent somewhere else. That's out the Rebecca Empire started.

[AtW]

Buy a house, rent it out so that you make a small profit after monthly repayments, charges, repairs etc, and rent somewhere else.

Have you checked calculation I provided? If I bought this house I'd have to pay at least £1200 interest very month... but its rented out at £630 thus having a shortfall of 600 quid a month. Why company rents at that level? Because they owned house for 30 years and did not buy it at todays prices, and competition for renters is high that they only increase their price by 2% every year.

[Francko]

Have you checked calculation I provided? If I bought this house I'd have to pay at least £1200 interest very month... but its rented out at £630 thus having a shortfall of 600 quid a month. Why company rents at that level? Because they owned house for 30 years and did not buy it at todays prices, and competition for renters is high that they only increase their price by 2% every year.

There is something wrong in your hyphotesis. Unless the market in B'gham is so different from the one in London, but here you can rent a flat of 250k for at least 1200 so the cost of the mortgage is lower than renting. That flat is probably worth 150k more likely.

[AtW]

That flat is probably worth 150k more likely.

So you basically saying that my estimate of the current marker price of the house I live in is incorrect and more likely to be £150k rather than £250k?

[Francko]

So you basically saying that my estimate of the current marker price of the house I live in is incorrect and more likely to be £150k rather than £250k?

This or either you are having a very good rent. Or that the market in London is different than the one in B'gham. But I can tell you that for many people in London the choice is either 1200 for rent or 250k to buy. Perhaps in some cities is more convenient to rent rather than to buy, who knows... there is nothing outside Watford as far as I have been told (not that I am either interested in finding out).

[Not So Wise]

House prices fell for the sixteenth consecutive month in October and will continue to slide as buyers maintain leverage over the market, Hometrack, the property website, said today.

Last month, the average house price fell by 0.1 per cent to £160,700, compared with a peak of £167,700 in June. According to Hometrack, prices have fallen by 3.5 per cent in the past 12 months.

Got to ask, how the hell can you have a "peak" 4 months ago if prices have been falling for 16 months straight? To me that would imply the "peak " was 16 months ago.....

[Not So Wise]

Have you checked calculation I provided?

Might work for you whereever you are...one major difference for londoners though

1) Rent for 3 bed room house with front and big backgarden, big living room etc - £630 a month.

2) Morgage on the same house whose prices is no less than £250k, interest only at 5.5% - £1,145

Except for places in druggy gangland estates with a few hundred resident ASBO holders you have got little to no chance of getting a house like that for £630 per month, hell £1145 would be considered cheap rent for a 3 bedroom without garden.

[AtW]

This or either you are having a very good rent

1) Good rent: I regularly check local property news to see if our rents are too good to be true -- they are not: rents have been stable for the last 3 years with small trend towards diving down. In 3 years I had two rent raises, each exactly 2%, which is close enough to normal inflation rate to me. Lots of alternatives even though I think I am lucky to be in this house because its good rent and very good location -- if I were to buy house it would be in place at least as good as that.

2) Cheap house: so you think the house is worth £150k or less? Well I just run a search on rightmove.co.uk for house for sale in my area, lots of houses for sale by the way, and looks like my estimate of 250k is close enough -- looks like prices dropped by 20 grand though: another reason NOT to buy now.

3) Big rents in London? Then fking move out and choose some other place to live in - a LOT of much better places for living are outside of London.

[MarillionFan]

ATW go to bed!

[planetit]

Except for places in druggy gangland estates with a few hundred resident ASBO holders you have got little to no chance of getting a house like that for £630 per month

Just to help you all out. AtW doesn't rent a 250K house in Harborne for £630 a month. He rents a ROOM in a 250K house in Harborne for £630 a month.