Reply to: Rental Doom

[Sysman]

That's simply not true....I think you'll find you mean you couldn't sell it for the price you wanted.

Ok, let's say I couldn't sell it for the price I needed. I wasn't willing to see my hard work saving for a deposit plus an inheritance disappear just like that. It was a variation on what Tim said above, as I did have equity in the place:

Personally I think there're better off than the people who put 30% in. If you don't have any equity in your portfolio, declaring bankrupt and walking away is a much better deal than if you put 150K of your own money in

[Olly]

Going back to the early 1980s what hurt was that I ended up running 2 homes because I couldn't sell my house.

That's simply not true....I think you'll find you mean you couldn't sell it for the price you wanted.

[Sysman]

My bum will start squeaking this time next year / the year after when interest rates are beginning to look like throwbacks to the 70's, but by then I'll be locking myself into fixed rates again.

The question there is when will fixed rates come back?

As a previous poster stated, the only people hurting are those who followed the 'mortgage it to the hilt' school of thought.

Going back to the early 1980s what hurt was that I ended up running 2 homes because I couldn't sell my house.

[Cyberman]

Who was it who said rents would rise as the housing slump took hold ?

http://www.guardian.co.uk/business/2...ettings-market

The For Sale and To Rent boards ( or both ) are starting to line up in my neck of the woods, particularly in the lower end BTL stuff.

It is going to be fun if ( when ! ) interest rates start to climb again

... and I didn't say rents would rise at the moment, anyway. long-term they definitely will alongside inflation. All I said was that rental income was a good idea as part of a pension strategy. It beats shares at the moment that's for sure !!

[Cyberman]

Yesterday 13:39 - http://forums.contractoruk.com/782524-post42.html

Guess who?

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You were right!

It obviously depends on the area and where the jobs are. Where I am we have one of the lowest unemployment rates in the country, so demand for housing is obviously higher. Plus my house is a 4-bed detached, not a ten-a-penny pokey repossessed buy-to-let flat.

[tim123]

Whilst my rental income on my property hasn't increased with the downturn, my yield on my property has with the drop in interest rates, so what do I care if I have to drop £50 / £100 a month on a single property. My bum will start squeaking this time next year / the year after when interest rates are beginning to look like throwbacks to the 70's, but by then I'll be locking myself into fixed rates again.

As a previous poster stated, the only people hurting are those who followed the 'mortgage it to the hilt' school of thought.

Personally I think there're better off than the people who put 30% in. If you don't have any equity in your portfolio, declaring bankrupt and walking away is a much better deal than if you put 150K of your own money in

tim

[tim123]

That post you link doesn't say rents would rise.

Anyway, it would be no different under the Tories...

At lease we wouldn't have to suffer "I saved the world" Brown.

tim

[tim123]

Some idiot who didn't think it through properly.

whs

tim

[Incognito]

Who was it who said rents would rise as the housing slump took hold ?

http://www.guardian.co.uk/business/2...ettings-market

The For Sale and To Rent boards ( or both ) are starting to line up in my neck of the woods, particularly in the lower end BTL stuff.

It is going to be fun if ( when ! ) interest rates start to climb again

Whilst my rental income on my property hasn't increased with the downturn, my yield on my property has with the drop in interest rates, so what do I care if I have to drop £50 / £100 a month on a single property. My bum will start squeaking this time next year / the year after when interest rates are beginning to look like throwbacks to the 70's, but by then I'll be locking myself into fixed rates again.

As a previous poster stated, the only people hurting are those who followed the 'mortgage it to the hilt' school of thought.

[ratewhore]

Yesterday 13:39 - http://forums.contractoruk.com/782524-post42.html

Guess who?

.
.
.

You were right!

That post you link doesn't say rents would rise.

Anyway, it would be no different under the Tories...

[Solidec]

I think I was lucky in finding a flat last November for below market rates in Camden, even with the glut of properties for rent rigth now, I couldnt find ANYTHING comparable for even 20% more a month than what I am paying.

That said, I am all for rents coming down as 2009 progresses, will be keen to upgrade come Nov 2009 and move into something flashier for the same money.

[minestrone]

Our rent is 1250 a month, when we signed that 2 years ago it was a pretty good deal considering the mortgage on out last gaff was about 1750, now I am getting shagged and have really seen rental prices drop over the last 3 months.

I'm just to lazy to move for the 300/400 quid a month we could save on a similar property.

[the_duderama]

Our landlord is trying to charge us for clearing the drains a couple of weeks ago - seems to think that using toilet paper is "misuse". Far as i was conerned we don't live in Greece and don't have 2000 year old drains.

With this news I'm tempted to call his bluff - had a quick look around and there are cheaper properties in better areas.

[Gonzo]

Who was it who said rents would rise as the housing slump took hold ?

http://www.guardian.co.uk/business/2...ettings-market

The For Sale and To Rent boards ( or both ) are starting to line up in my neck of the woods, particularly in the lower end BTL stuff.

It is going to be fun if ( when ! ) interest rates start to climb again

The one-bedroom flat at Canary Wharf that we moved out of in December has been re-decorated and re-carpeted, the asking rent has been reduced 12%, and it is still vacant.

I am glad now that we rented it and didn't own it.

Rent may be dead money, but we were free to bugger off when we wanted to.

[Moscow Mule]

Who was it who said rents would rise as the housing slump took hold ?

Some idiot who didn't think it through properly.