Reply to: The crash nobody heard about?

[Francko]

Fair enough. No further questions, your honour.

You have to be authoritative with babies, you know? Now they look sweet and fluffy, after a few years they are ready to knock you down and take your car keys if you don't set them straight when they are still young.

[KentPhilip]

There's a whole website dedicated to the subject of crashing house prices, and one thread in particular that raises this point:

http://www.housepricecrash.co.uk/for...howtopic=59283

[thunderlizard]

My house (in the middle of my street)

Well I think you're all a bit right.

Being a contractor I am of course a master dealsmith, but aside from that:

my landlord is a big, mainly commercial property investment company that's owned the block for at least 10 years, and has bigger fish to fry than to rent-review every tinpot 1-bedder every year, even if it is in SW1 (and none of your -V or -P neither)

tl

[Zorba]

Well, the proportion between renting and buying is not a linear one. As the property is of much bigger value then the rent is proportionally lower. I was just surprised that you can rent a near 400k house for only 200pw. That would give you a studio flat in London whose value is less. However, I do understand that outside London rents are much cheaper so in this case it might be an appropriate market value. It all depends on location, location, location, you know.

Fair enough. No further questions, your honour.

[Francko]

Or maybe I missed your point, and you have knowledge of the rental market in that area for that type of property.

Well, the proportion between renting and buying is not a linear one. As the property is of much bigger value then the rent is proportionally lower. I was just surprised that you can rent a near 400k house for only 200pw. That would give you a studio flat in London whose value is less. However, I do understand that outside London rents are much cheaper so in this case it might be an appropriate market value. It all depends on location, location, location, you know.

[DBA_bloke]

FFS! Renting is dead dollars. And, as a previously long-term renter, I can say, without fear of contradiction, that all BTL landlords are numpty tw@ts, bumrags, tramp's foreskin knob cheese, and foul-smelling dog eggs. Never, never would I want to assist such a greedy, evil, corrupt sh1thouse bog scraping pay off their mortgage again. The lice.

[Zorba]

That sounds like you are not paying your fair share of rent. I'd say the rent in that price range being more like 300 pw. However, still your considerations apply, although to a less degree.

Eh? Fair share? Just because the apartment has doubled in price or something since it last changed hands?

The whole issue at the moment is that renting at current prices can be cheaper than buying at current prices, simply because so many people have property available to let. Rental prices are also governed by supply and demand - but they are not necessarily shackled to property prices! It would be ridiculous to assume that just because a landlord pays £x mortgage a month, he should make the rent equal at least £x. Yes, it's nice if he can (i.e. if the local market allows) but 'fairness' doesn't come into it.

Or maybe I missed your point, and you have knowledge of the rental market in that area for that type of property.

[chef]

"located on the lower ground floor"

Eh...I think in some countries they might refer to that as 'located in the basement'. A snip though at just £420K

not seen you posting a while Joe, nice to see your still around

[Pondlife]

arguement

The alternate spelling of the word 'argument' in British English, as with 'judgment' and 'judgement'.

For the sake of the arguement, let us say that he is a potato.

I'm saying nothing on this one.

[Francko]

The flat I'm renting for £200/wk is valued at £375,000

If I was going to buy it I'd have to put down £75k deposit, get a 6% mortgage of three times my rent, and pay it for 20 years.

If I was only prepared to pay the same £200/wk, it would never get paid off because the outstanding interest would keep getting bigger.

How is that right?

That sounds like you are not paying your fair share of rent. I'd say the rent in that price range being more like 300 pw. However, still your considerations apply, although to a less degree.

[thunderlizard]

just done some sums

The flat I'm renting for £200/wk is valued at £375,000

If I was going to buy it I'd have to put down £75k deposit, get a 6% mortgage of three times my rent, and pay it for 20 years.

If I was only prepared to pay the same £200/wk, it would never get paid off because the outstanding interest would keep getting bigger.

How is that right?

[AtW]

moron

[Francko]

this is not an argument, its clearly a contradiction

AtW with arguments is an oxymoron.

[AtW]

it's

[scooterscot]

this is not an argument, its clearly a contradiction