Walter Kidd Posted March 14, 2008 Share Posted March 14, 2008 I do love these threads. People who bought a house years ago with zero intention of making any 'profit'. Suddenly 10 years later they have made loads of 'profit'. So they then proceed to state that you should carry on investing in property it is all good !! As I have said anyone who buys a house in the next couple of years on anything near a 100% mortgage will be making zero profit. In fact they will probably be making a serious loss. This is the problem with this country. Everyone used to buy houses TO LIVE IN. Now they buy houses FOR PROFIT. It really is quite sad. In a few years no-one will be talking about buying property for 'profit'. It will be seen as a certain way to throw away money. Until it all kicks off again in 5-10 years when people forget how bad it got. Boom, bust, boom, bust - as predictable as night following day. Can I ask a question Walter ? Out of interest what have you done with your 93% profit ? Stuck it into another house per chance? If so when exactly do you plan on using this other than having it 'on paper' ? Not having a go at you I just hear all these people taling about 'profits'. And yet at the same time very few of them ever spend it. In fact I reckon many people who have made loads of 'profit' struggle with day to day living. They are kept going however with the knowledge of what their house is 'worth'. As Melbourne Jambo pointed out earlier - It is a modern form of slavery. Slavery to debt. Complete hell IMO. I took 43% of it and placed it in a trust fund for my son and I placed about 40% as equity on a house just along the road. The rest I have invested in shares and ISA's. My mortgage payments are less for more. If you see what I mean. Can I ask a question now? Are you a homeowner? Link to comment Share on other sites More sharing options...
I P Knightley Posted March 14, 2008 Share Posted March 14, 2008 That is exactly what you should do. As I have pointed out for a one bed flat in Gorgie the current difference is about 4-5k per year (Depending on rate, deposit, term etc..) I am pretty certain a flat in Gorgie will not cost anymore this time next year to buy. Given that - buying now when you could save an extra ~5k by renting and waiting appears madness. Unless of course you think prices always go up. Sadly half this population do. Brainwashing on a massive scale. People are about to get snapped out of it very quickly though !! CC - can you explain how renting (where the money evaporates to the landlord) can work out to be better than buying, where some of the money evaporates in interest and the rest goes into bricks & mortar which has some residual value? Not trying to be smart at all, it's just that my head is remarkably wooly today. I know there are other costs such as stamp duty to consider when doing the rent v buy decision but I've never seen the logic in renting when you have the ability to buy. (Assuming that you're looking for a place to live and not thinking of it as a short-term speculation). I got on the property ladder about 17 years ago when there was speculation about a property crash and a load of greeting about negative equity. One move and 17 years later and our equity stake has increased by a factor of about 40. That's an annual compound rate of over 60%. Can't think of any other mainstream investment that could give that kind of return, even allowing for the cost of interest incurred over those years. Link to comment Share on other sites More sharing options...
N User Posted March 14, 2008 Author Share Posted March 14, 2008 anyway.. I'm buying a house. To live in I know the market isn't the best right now but have to buy anyway. Anybody reccomend any solicitors in Edinburgh or are there any to stay away from? Link to comment Share on other sites More sharing options...
Sherlock Posted March 14, 2008 Share Posted March 14, 2008 anyway.. I'm buying a house. To live in I know the market isn't the best right now but have to buy anyway. Anybody reccomend any solicitors in Edinburgh or are there any to stay away from? John Lints down in enemy territory. Edit: That's a recommendation, not one to stay away from. Link to comment Share on other sites More sharing options...
Coco Posted March 14, 2008 Share Posted March 14, 2008 CC - can you explain how renting (where the money evaporates to the landlord) can work out to be better than buying, where some of the money evaporates in interest and the rest goes into bricks & mortar which has some residual value? Not trying to be smart at all, it's just that my head is remarkably wooly today. I know there are other costs such as stamp duty to consider when doing the rent v buy decision but I've never seen the logic in renting when you have the ability to buy. (Assuming that you're looking for a place to live and not thinking of it as a short-term speculation). I got on the property ladder about 17 years ago when there was speculation about a property crash and a load of greeting about negative equity. One move and 17 years later and our equity stake has increased by a factor of about 40. That's an annual compound rate of over 60%. Can't think of any other mainstream investment that could give that kind of return, even allowing for the cost of interest incurred over those years. House prices in Japan are roughly 70-90% lower than in 1991 ... Link to comment Share on other sites More sharing options...
coppercrutch Posted March 14, 2008 Share Posted March 14, 2008 House prices in Japan are roughly 70-90% lower than in 1991 ... Don't tell them this sort of thing !! And to the above posters I am not having a go at yourselves and I am not a homeowner. I just will not be forced into buying an overpriced pile of bricks just because 'It is the thing to do'. If you have bought a house to live in and are happy with that good for you. I am just saying be wary of stories you tell to people about profit, these things can go up and down. I should know I have shares in gold !! And as for the renting question I have detailed that numerous timed before. If a property is steady in value or falling in value you are far better renting. Your rent will be hugely cheaper enabling you to save more for a deposit. Also the value of the thing you want to buy will be decreasing at teh same time. You can use interest to your advantage(Savings) rather than against you(Mortgage). It is not difficult to work out why this can be a good idea. People have just been brainwashed into thinking prices can only go up. As Coco says tell that to people in Japan..... Link to comment Share on other sites More sharing options...
coppercrutch Posted March 14, 2008 Share Posted March 14, 2008 anyway.. I'm buying a house. To live in I know the market isn't the best right now but have to buy anyway. Anybody reccomend any solicitors in Edinburgh or are there any to stay away from? Ok Kenif if you insist. I have a little treat for you below. Don't say I am not good to you. Note that the details can be a little inaccurate on occasion apparantly. Especially the new builds becasue of the 'mushy' nature of their advertising !! But a lot are genuine reductions. The power you will gain is KNOWING that these people have dropped their prices and are desperate for a sale. If you se something you like go have a look, then offer something derisory. You may just get lucky. http://www.propertysnake.co.uk/site/location/3004/1 PS. When I first started looking at this about 9 months ago there were about 2 pages for Edinburgh. Now there are 13, and all the listings from rightmove have been removed due to a legal battle I think. That means there are many many more out there with genuine reductions. Would be nice to have them included too !! Link to comment Share on other sites More sharing options...
Brian Whittaker's Tache Posted March 14, 2008 Share Posted March 14, 2008 Ok Kenif if you insist. I have a little treat for you below. Don't say I am not good to you. Note that the details can be a little inaccurate on occasion apparantly. Especially the new builds becasue of the 'mushy' nature of their advertising !! But a lot are genuine reductions. The power you will gain is KNOWING that these people have dropped their prices and are desperate for a sale. If you se something you like go have a look, then offer something derisory. You may just get lucky. http://www.propertysnake.co.uk/site/location/3004/1 PS. When I first started looking at this about 9 months ago there were about 2 pages for Edinburgh. Now there are 13, and all the listings from rightmove have been removed due to a legal battle I think. That means there are many many more out there with genuine reductions. Would be nice to have them included too !! Interesting site that, I'll be sharing Also interesting to see that 95% of what's on there is new build Anybody buying new build in the town just now wants their heid felt Link to comment Share on other sites More sharing options...
flecktimus Posted March 14, 2008 Share Posted March 14, 2008 Interesting site that, I'll be sharing Also interesting to see that 95% of what's on there is new build Anybody buying new build in the town just now wants their heid felt New build flats are the big problem all over the uk. This is the area BTL investors are going to get there fingers burnt.Just bought a 1 bedroom flat for ?67000 it cost ?69000 3 years ago New Link to comment Share on other sites More sharing options...
LizzyHearts2 Posted March 14, 2008 Share Posted March 14, 2008 The problem with folk who have BTL's is that they don't just have one or two....they have sumwhere in the region of ten to twenty!!! It's these greedy so and so's that r stopiing folk like me from getting on the property ladder...they r one of the reasons why property prices are so high!...amongst other reasons..... Link to comment Share on other sites More sharing options...
IronJambo Posted March 15, 2008 Share Posted March 15, 2008 my girlfriend had already agreed to buy our place just as we met and it took a year for it to be completed. we moved in to it in november and part of me wishes she'd never bought as negative equity preys on my mind. that said, prices seem to still be going up where we are. an identical flat in the same development is selling for around 15% more now. can only assume its down to location. i'm not naive enough to think that prices won't crash where i am but i do doubt it will happen. that doesn't stop me worrying that we could be stuck here for years even if we wanted to move on though, and thats the main reason i'd advise anyone to think long and hard before buying right now Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 At the end of the day if prices crash so fecking what. I have a house I like paying the mortgage I expected. I might have a neighbour paying less but such is life. I bought my house to live in as I liked it, and I still do. And yes I know I didn't really buy it and owe a fortune to the bank etc but that is also part of life. A house next door to me is up for rent just now at ?25 less than my mortgage. So the choice is save ?25 to rent, or spend it and help yourself as opposed to someone else. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 At the end of the day if prices crash so fecking what. I have a house I like paying the mortgage I expected. I might have a neighbour paying less but such is life. I bought my house to live in as I liked it, and I still do. And yes I know I didn't really buy it and owe a fortune to the bank etc but that is also part of life. A house next door to me is up for rent just now at ?25 less than my mortgage. So the choice is save ?25 to rent, or spend it and help yourself as opposed to someone else. ..... is it a house ... or a flat? Just kidding! Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 ..... is it a house ... or a flat? Just kidding! A house. On one floor, so kind of flat. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 A house. On one floor, so kind of flat. .... so ..... yes ...... a flat ... unless its a bunglelow ......... P.S - I am just pulling your leg! Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 .... so ..... yes ...... a flat P.S - I am just pulling your leg! I have a flat as well. You can't be too safe these days. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 I have a flat as well. You can't be too safe these days. Two flats!!!! Go you! Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 Two flats!!!! Go you! Quick editing there. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 Quick editing there. You are F5 frantic. Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 You are F5 frantic. I don't have F5. I leave that to PC users. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 I don't have F5. I leave that to PC users. Woop Woop! Boring MAC user alert with 2 flats Woop Woop! Link to comment Share on other sites More sharing options...
Tazio Posted March 15, 2008 Share Posted March 15, 2008 Woop Woop! Boring MAC user alert with 2 flats Woop Woop! I'm smug on a variety of levels. Link to comment Share on other sites More sharing options...
neobis Posted March 15, 2008 Share Posted March 15, 2008 I'm smug on a variety of levels. Oh dear .......... Can I be smugger (I don't mean to offend, but I think I can be) Lets change topic, F1 has started up again ... who will qualify in pole for Oz F1? P.S - This is an edit so you may have refreshed before I typed the above last sentence. Link to comment Share on other sites More sharing options...
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