FAO Landlords & Property Moguls

[James]

If you like sensationalist (arguably!) journalism, the Daily Mail rarely disappoints either: House prices 'could drop another 55%' and leave Britain bankrupt | Mail Online

 

[GreyWing]

In normal times with a normal pm I'd agree.

However a year before an election and a government that can't leave anything alone, I'd disagree.

They'll print money like it's going out of fashion, the big price to pay will be after the election next year. Quite possibly the preditions will come true then.

 

[Blake]

I agree with the opinion that house prices will fall back to 2002 levels in the next 18 months,there is zero confidence in the market. Sure there are regional anomalies and some anecdotal evidence of isolated price rises, but the smart money says stay out of the market until end 2010. People who buy today are setting themselves up for a 'no brainer' fall, they will be in negative equity even with a decent deposit.
We are on the brink of a massive inflationary spike, this excerpt, taken from Money Morning is a cautionary bit of advice.


House prices have much further to fall

Prospective buyers must realise that interest rates are being held at artificially low levels. What happens to house prices when rates are forced up, as they inevitably will be? What then? What happens to all those who are on the brink now, but just surviving? What happens to those on tracker rates, who haven’t yet felt the crunch because their monthly repayments have fallen so low? What happens to first time buyers and buy-to-let landlords in a high-interest-rate environment?

House prices remain out of kilter with what people earn. No matter what the government does, they will head lower until they reach a level which people can afford, which history has shown to be about three times earnings. And they will probably overshoot this to the downside because of the scale of the preceding boom and the oncoming bust. There is nothing anyone, not tycoon nor politician, can do to stop this inevitable course. All they can do is delay it.

 

[GreyWing]

I see Prince Charles has said the recession is not even a blip of an issue compared to global warming.

Sometimes I just sit and shake my head.

 

[James]

Well, despite the woes of the economic downturn I wouldn't expect to see it wiping all that much life off the face of the planet... Prince Charles would have a point. But noone really listens to Prince Charles do they?

 

[bensd]

still not at the bottom,even though poor old estate agents claimed they have had more enquires,that's because the neighbours are absolutely shocked at the depreciation of there property and rang them to find out how much there's are worth,and a flooded market place with well over a million houses empty,and to top it all the government have now used quantatitive easing or depreciating the pound as it's also known,and still Mr Brown is still there.i remember when the tories were in and some front bench mp got the sack for humping is secretary even though he was divorced,the 3500 spin doctors who regulate the press and media are doing a fine job for Labour because they are teflon coated.

Enquires and sales have picked up this year. All those buyers who sold their houses and moved into rented accommodation in the last couple of years are getting fed up with just renting somewhere, ooriginally their savings interest from their deposit was paying the rent and it is now earning them nothing (as the interest rates have dropped and dropped). Also, a lot of house have come down so much now they are looking like value for money. Don't get me wrong, prices still seem to be coming down, however, the rate at which the are dropping has slowed and the market is definitely a different picture to the one the media portray.

 

[retired_member16]

Judging by my neighbours asking prices my house value has risen 2k in the past 12 months since I bought it. Dont believe everything you read.

If your outstanding mortgage is only £13k, then I would just pay it off and leave it with tenant until the situation improves for you.

 

[retired_member6]

Judging by my neighbours asking prices my house value has risen 2k in the past 12 months since I bought it. Dont believe everything you read.

If your outstanding mortgage is only £13k, then I would just pay it off and leave it with tenant until the situation improves for you.

i'm renting though and rent in uk no longer covers rent here, used to be £340 to 500 euros now its over £450 (the rent income) to 500 euros and I have to pay out to stay here which makes no sense. I've spent over £10000 in rent so far in two years, it's stupid. They say euro will crash in two months, here's hoping.

 

[retired_member32]

Judging by my neighbours asking prices my house value has risen 2k in the past 12 months since I bought it. Dont believe everything you read.

If your outstanding mortgage is only £13k, then I would just pay it off and leave it with tenant until the situation improves for you.

that is another problem,peoples expectations are far too high,people are stubborn and will expect last years prices and sorry it will be a long time before they reach them levels again ,my mate who as just recently been made redundant from an estate agents said it was like banging your head against a brick wall when you tell people to lower there price,he had a women faint in front of him when he told her that there house was worth £85k when they bought it for £115k at the peak,the husband picked my mate up with his tie and chucked him out the front door.

 

[rob]

i'm renting though and rent in uk no longer covers rent here, used to be £340 to 500 euros now its over £450 (the rent income) to 500 euros and I have to pay out to stay here which makes no sense. I've spent over £10000 in rent so far in two years, it's stupid. They say euro will crash in two months, here's hoping.

Come back to the UK and live in it?

 

[retired_member6]

Come back to the UK and live in it?

You have got to be joking. I'll never come back.

 

[retired_member6]

zoopla just emailed me and said 33 court lane sold for £106,500 in January, doesnt say house make up though, any way of finding out please? 2 bed etc?

Property details for 33 Court Lane Birmingham B23 6NS - Zoopla!

 

[Edwin]

Looks like if you register here, you may be able to find out that information...
33, Court Lane, B23 6NS

 

[retired_member6]

Looks like if you register here, you may be able to find out that information...
33, Court Lane, B23 6NS

Thanks says three bed. Not much more info though.

 

[crabfoot]

There's a nasty consideration about Capital Gains Tax which no-one has mentioned - hips only takes the edge off it, but the taxman's knife will still cut. If you don't sink the cash into a new "main residence" inside a financial year, any increased value over your original purchase price is liable.

That 85k low offer is a ratbag. You might find it is from a mate of your estate agent - but proving it is another thing. I would seriously think about changing to one of the estate agents who have a proven track record of selling in the area, if your tenant is genuinely amenable about moving.

Whatever, do not sell before the first week of April is over, so you have a year to think about the issue.

 

[bb99]

I'm not sure CGT is an issue here Crabfoot.

In this case Lee has inherited the house. So for tax purposes he "acquired" the house at its market value as at the date his mum passed away. From what he's said here I think it's worth less now than it was then. Therefore he's not made a capital gain (he's made a loss) and hence there should be no tax to pay.

Of course the issue is complicated by the fact that he's not a UK resident and presumably not a UK tax payer etc etc. But I think the above still applies so there should be no UK tax to pay on the sale.

Usual disclaimer - talk to an accountant, etc etc.

 

[bensd]

Lee, who is your agent? It isn't even on rightmove yet...

 

[retired_member6]

Lee, who is your agent? It isn't even on rightmove yet...

I only did the signed fax midweek, will be checking for updates Tuesday.

 

[rob]

Depending on the level paid most estate agents can see how many views etc the rightmove page has had - so linking it here might make it seem like a hot property to some fat-tied mini driving muppet

 

[retired_member32]

apparently on working lunch the other day they had an estate agent on and they were saying there are loads of estate agents that wouldn't touch rightmove with a barge pole,they are far too expensive to adverise on.

mark