Reply to: BTL - sell or remortgage

[shoes]

Finally, the green eyed monster has shown it's colours.

Yeah, a 1 bed flat in Glasgow that you blew a couple of grand not selling. And an audi too, Living the dream dude.

Fantastic troll, had me going for a bit, well done.

But if you are real,

[scooterscot]

What is on the market for 100k today?

Apparently the UK is made up of countries other than England, where prices have not run away with themselves.

The required deposit size is expressed as a percentage of the 'value' of the property, it has everything to do with the price you're asking.

A perfect example of the arrogance. You expect the seller to adjust their price according to your financial circumstances?

Imagine owning an Audi garage, pricing the cars at a 10 times the average wage

Yes, I bought one last year, snort snort.

You crack me up. If you want to sell something you'll have to price it at a level a customer can afford. You're not in charge of the market, you don't price it right, it won't sell. As you have found to your cost.

If I priced my sales at 50% of it's paper value it would still not sell because of the doubt. Even then the sale value would be half the re-build value. What manufacturer would sell something for less than it cost them to build?

Blah blah. Listen, your poxy hole didn't sell. Chase the market down then, I couldn't give a fk. Your loss, my amusement.

Finally, the green eyed monster has shown it's colours.

[shoes]

Even I managed to muster 20K for my first buy. This is all you'd need to satisfy lenders today, which is entirely reasonable on a £100k house, for my example.

What is on the market for 100k today?

If people do not have a deposit to start with that's nothing to do with me or the price that I'm asking.

The required deposit size is expressed as a percentage of the 'value' of the property, it has everything to do with the price you're asking.

Gosh, imagine going into a AUDI garage, I really like that A4 but I can only afford xxx can you lower the price for me?

Imagine owning an Audi garage, pricing the cars at a 10 times the average wage and then still being at a loss as to why no-one is buying any.

You crack me up. If you want something you have to save for it, no amount of moaning will make it any more affordable.

You crack me up. If you want to sell something you'll have to price it at a level a customer can afford. You're not in charge of the market, you don't price it right, it won't sell. As you have found to your cost.

Wrong. My rental charge is almost 200% of the mortgage attached to it.

Are you selling it for the same price you paid?

I would suggest it's buyers that are being unrealistic wanting to live in places they cannot afford.

I do find it fascinating how people expect that it's their right to live somewhere rather than their ability.

Blah blah. Listen, your poxy hole didn't sell. Chase the market down then, I couldn't give a fk. Your loss, my amusement.

[d000hg]

Gosh, imagine going into a AUDI garage, I really like that A4 but I can only afford xxx can you lower the price for me?

No, but they will let you drive it away with small deposit, for a few £hundred a month

[scooterscot]

Isn't not being able to get the finance the same thing as not being able to afford it?

On a £300k one bed in hackney, yes.

Even I managed to muster 20K for my first buy. This is all you'd need to satisfy lenders today, which is entirely reasonable on a £100k house, for my example.

If people do not have a deposit to start with that's nothing to do with me or the price that I'm asking.

Gosh, imagine going into a AUDI garage, I really like that A4 but I can only afford xxx can you lower the price for me?

You crack me up. If you want something you have to save for it, no amount of moaning will make it any more affordable.

There is increased rental demand because at current asking prices (too high) it is cheaper to rent.

Wrong. My rental charge is almost 200% of the mortgage attached to it.

That favours landlords if they want to rent, not if they want to sell at unrealistic prices.

I would suggest it's buyers that are being unrealistic wanting to live in places they cannot afford.

I know you don't care what a stranger on the internet thinks and your mind is made up but I do find it fascinating to see how people rationalize away the unpleasant reality (for them) of the end of the credit binge.

If it was priced right it would have sold.

I do find it fascinating how people expect that it's their right to live somewhere rather than their ability.

[TykeMerc]

To be fair property prices in the UK have been unsustainable for a long time, it was only the availability of massive mortgages with precious little evidence that you can pay that held them up.

Of course with people having borrowed heavily against their homes during the rapidly inflating bubble the repercussions of a price collapse will be wide reaching.

It's a bit of a pity that the culture of house ownership for everyone was spawned during the Thatcher era with almost all the social housing being sold off. There are countries where home ownership is quite rare due to massive asset values, maybe it's time to accept that the UK is heading that way.

[shoes]

I'd say it did not sell because ( a one-bed flat) no one can get the finance.

The marketplace here completely favours landlords, as soon as the to-let sign was up people were knocking on the door.

Isn't not being able to get the finance the same thing as not being able to afford it?

There is increased rental demand because at current asking prices (too high) it is cheaper to rent. That favours landlords if they want to rent, not if they want to sell at unrealistic prices.

I know you don't care what a stranger on the internet thinks and your mind is made up but I do find it fascinating to see how people rationalize away the unpleasant reality (for them) of the end of the credit binge.

If it was priced right it would have sold.

[scooterscot]

Prices have already gone down, thats why it didn't sell. So thats quite important for you I would say.

Not in Glasgow that haven't, if anything they've increased. There has not even been a crash here. It is misguided to compare the silly prices of those in the south with those in the north.

I'd say it did not sell because ( a one-bed flat) no one can get the finance.

The marketplace here completely favours landlords, as soon as the to-let sign was up people were knocking on the door.

[shoes]

Keep the house.

I've just given up trying to sell my place after putting £2.5k down the drain in agency fees. I put the to let sign back up and got someone paying the first 6 months rent up front.

Prices may go up they may go down, it's not important for me.

Prices have already gone down, thats why it didn't sell. So thats quite important for you I would say.

[shaunbhoy]

Can't you just let your current mortgage deal expire and drop off onto the variable rate for now? For most lenders that should not take you above the rate you quoted. That way you will pay no admin cost to effectively tie you to a deal which is not all THAT fantastic. No early redemption clauses either if you subsequently decide to sell. The only risk then is if interest rates start to climb rapidly, but I can't see that happening in the short term. Even if it does, look for a deal then or offload if necessary.

HTH

[NotAllThere]

Merged.

I'd get your memory sorted out before worrying about your mortgage.

[DeludedAussie]

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

Key question is what is the rental yield?

Whats it worth and how much can you rent it out for?

Without this you cannot make a decision

[MarillionFan]

So you have to pile another £10 to £12K into an asset to get a return that just pays of the mortgage interest?

Lots of hassle, what's the point? House prices going to double next year? Gold probably is.

Gold. Rubbish.

Pssss.OP. I have here some magic beans. Shhhhh.

Come closer.

I will give you 6 of these magic beans in return of £200,000.

Shhhhh.

They will pay you back the same 10 times. But don't tell Dom.

[scooterscot]

Keep the house.

I've just given up trying to sell my place after putting £2.5k down the drain in agency fees. I put the to let sign back up and got someone paying the first 6 months rent up front.

Prices may go up they may go down, it's not important for me. If a major correction is adverted then the lesson is not learnt and the pain continues for many many many people who shall just give up on the idea of owning somewhere.

Who do you think will be smiling then when that happens?

PS: Smiling only applies if you can afford 12% mortgage rates! With the amount of borrowing this country is doing I'm thinking that not going to happen anytime soon.

[DimPrawn]

So you have to pile another £10 to £12K into an asset to get a return that just pays of the mortgage interest?

Lots of hassle, what's the point? House prices going to double next year? Gold probably is.