Buying a house (and renting)

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BID0
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PostRe: Buying a house (and renting)
by BID0 » Wed Oct 10, 2018 12:24 pm

I can really see myself renting my house out in Essex and then renting a place in the NW and then hopefully living off of the difference in rent :datass:

pjbetman
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PostRe: Buying a house (and renting)
by pjbetman » Wed Oct 10, 2018 12:26 pm

This is an interesting chart showing house prices since 1952.

https://www.google.co.uk/url?sa=t&rct=j ... uaKLk6YytK

It shows houses doubling in price approx. every 10 years roughly.

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PostRe: Buying a house (and renting)
by pjbetman » Wed Oct 10, 2018 12:28 pm

BID0 wrote:I can really see myself renting my house out in Essex and then renting a place in the NW and then hopefully living off of the difference in rent :datass:


Definitely a wise strategy. Although, if you were able to fund a second house in the south, and rent your 1st property out, you'd be seeing the benefits of greater house price increases in both properties.

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Squinty
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PostRe: Buying a house (and renting)
by Squinty » Wed Oct 10, 2018 12:35 pm

Got a tap and power supply put into my back garden.

Fence is still held together by ratchet straps :lol:

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Wed Oct 10, 2018 12:45 pm

pjbetman wrote:This is an interesting chart showing house prices since 1952.

https://www.google.co.uk/url?sa=t&rct=j ... uaKLk6YytK

It shows houses doubling in price approx. every 10 years roughly.


Interesting, do those figures account for inflation? I'm surprised at the suggestion that the rate of growth would be that consistent - in the 90s there was a real slump where prices were either stagnant or dropped in many cases, but fast forward to the early 00's it was not uncommon for a house to increase in price by 20+% in a single year for example!

Basically the housing market is a nightmare for most people, but super easy to take advantage of if you are mega rich - like everything really. :cry:

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BID0
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PostRe: Buying a house (and renting)
by BID0 » Wed Oct 10, 2018 1:00 pm

pjbetman wrote:
BID0 wrote:I can really see myself renting my house out in Essex and then renting a place in the NW and then hopefully living off of the difference in rent :datass:


Definitely a wise strategy. Although, if you were able to fund a second house in the south, and rent your 1st property out, you'd be seeing the benefits of greater house price increases in both properties.

Yeh for sure. That was my original plan, however would require taking out a mortgage and that would mean I'm tied down to my full time job again. I have a hobby that earns me some money so I'd like to do that full time instead of working evenings and weekends. I'm just waiting to see what happens with Brexit before I make a final decision and leave the safety net of my full time work :slol:

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Wed Oct 10, 2018 1:08 pm

I bought my 2 bed flat in 2011 for £87k. It was listed for £100k but we were still in the slump following the recession and I knew the company that owned it was desperate to sell. It was also in a run down area, basically nothing but rough pubs, brothels, take aways and a few gay bars. It is a very convenient location though, literally just minutes away on foot from the main shopping area and 10 minutes at most from the city centre.

Since then the area has gentrified, we have a theatre, independent bakery, renovated pubs and bars and everything just looks nicer.

A few of the flats on the same row as me have been up for sale recently. A one bed went for £150k, a two bed went for £189k and another one bed has just been listed for £150k.

As my mortgage is below £70k now, it looks like I might easily have £100k to put down on a house when we come to move. That’s a lot (a lot!!!) of money to have made in 7 years. Astonishing really

I am not saying the above to brag, but just as an example of how much house prices can increase in a short space of time. I feel dreadful for people just starting out now, £87k was doable for me, £189k would be impossible, especially with the way wages have stalled over the last 10 years.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Wed Oct 10, 2018 1:45 pm

Moggy wrote:I bought my 2 bed flat in 2011 for £87k. It was listed for £100k but we were still in the slump following the recession and I knew the company that owned it was desperate to sell. It was also in a run down area, basically nothing but rough pubs, brothels, take aways and a few gay bars. It is a very convenient location though, literally just minutes away on foot from the main shopping area and 10 minutes at most from the city centre.

Since then the area has gentrified, we have a theatre, independent bakery, renovated pubs and bars and everything just looks nicer.

A few of the flats on the same row as me have been up for sale recently. A one bed went for £150k, a two bed went for £189k and another one bed has just been listed for £150k.

As my mortgage is below £70k now, it looks like I might easily have £100k to put down on a house when we come to move. That’s a lot (a lot!!!) of money to have made in 7 years. Astonishing really

I am not saying the above to brag, but just as an example of how much house prices can increase in a short space of time. I feel dreadful for people just starting out now, £87k was doable for me, £189k would be impossible, especially with the way wages have stalled over the last 10 years.


Impressive, particularly as I believe the tendency is for flats to not gain value quite as readily as houses do (although this does depend on the area - supply and demand and all that).

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Wed Oct 10, 2018 1:58 pm

Jenuall wrote:
Moggy wrote:I bought my 2 bed flat in 2011 for £87k. It was listed for £100k but we were still in the slump following the recession and I knew the company that owned it was desperate to sell. It was also in a run down area, basically nothing but rough pubs, brothels, take aways and a few gay bars. It is a very convenient location though, literally just minutes away on foot from the main shopping area and 10 minutes at most from the city centre.

Since then the area has gentrified, we have a theatre, independent bakery, renovated pubs and bars and everything just looks nicer.

A few of the flats on the same row as me have been up for sale recently. A one bed went for £150k, a two bed went for £189k and another one bed has just been listed for £150k.

As my mortgage is below £70k now, it looks like I might easily have £100k to put down on a house when we come to move. That’s a lot (a lot!!!) of money to have made in 7 years. Astonishing really

I am not saying the above to brag, but just as an example of how much house prices can increase in a short space of time. I feel dreadful for people just starting out now, £87k was doable for me, £189k would be impossible, especially with the way wages have stalled over the last 10 years.


Impressive, particularly as I believe the tendency is for flats to not gain value quite as readily as houses do (although this does depend on the area - supply and demand and all that).


Bristol has seen a massive rise in house prices over the last 10 years. In the area I am living in they are building lots of new flats, all going on the market for £250k+ and that’s just for tiny one beds flats, making my spacious 2 bed look good value at £180k-£190k. ;)

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Dual
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PostRe: Buying a house (and renting)
by Dual » Wed Oct 10, 2018 3:12 pm

What's left on the leasehold Moggy

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Wed Oct 10, 2018 3:23 pm

Dual wrote:What's left on the leasehold Moggy


It was 125 years when I bought it so 118 or 117 years.

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Hime
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PostRe: Buying a house (and renting)
by Hime » Wed Oct 10, 2018 5:17 pm

My girlfriend at time and I got our first house for £223k with a £12k deposit and combined income of about £37k with HTB. That's not a huge deposit or earnings in a very expensive area so it is possible.

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PostRe: Buying a house (and renting)
by OrangeRKN » Wed Oct 10, 2018 5:39 pm

223k won't get you much here

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Hime
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PostRe: Buying a house (and renting)
by Hime » Wed Oct 10, 2018 5:41 pm

OrangeRKN wrote:223k won't get you much here

That was 10 years ago.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Wed Oct 10, 2018 5:47 pm

Hime wrote:
OrangeRKN wrote:223k won't get you much here

That was 10 years ago.


Hime wrote:My girlfriend at time and I got our first house for £223k with a £12k deposit and combined income of about £37k with HTB. That's not a huge deposit or earnings in a very expensive area so it is possible.


So not possible anymore then.

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Hime
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PostRe: Buying a house (and renting)
by Hime » Wed Oct 10, 2018 6:04 pm

Moggy wrote:
Hime wrote:
OrangeRKN wrote:223k won't get you much here

That was 10 years ago.


Hime wrote:My girlfriend at time and I got our first house for £223k with a £12k deposit and combined income of about £37k with HTB. That's not a huge deposit or earnings in a very expensive area so it is possible.


So not possible anymore then.

HTB is a thing and there are houses still available for £223K so it definitely is.

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BID0
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PostRe: Buying a house (and renting)
by BID0 » Wed Oct 10, 2018 7:00 pm

Help to buy is discontinued now I think

It came in just after I bought my first house (I bought mine a year or two before the crash) and I never understood how H2B could be helpful, but I guess it depends which part of the country you are in. Like you could only put away £250 a month right? And house prices here were going up at about £1,000 a month so you were actually falling behind by saving money

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Lagamorph
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PostRe: Buying a house (and renting)
by Lagamorph » Wed Oct 10, 2018 7:09 pm

What H2B/HTB are people talking about here?

The government Help to Buy is still going and didn't start until 2013.

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pjbetman
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PostRe: Buying a house (and renting)
by pjbetman » Wed Oct 10, 2018 7:29 pm

Jenuall wrote:
pjbetman wrote:This is an interesting chart showing house prices since 1952.

https://www.google.co.uk/url?sa=t&rct=j ... uaKLk6YytK

It shows houses doubling in price approx. every 10 years roughly.


Interesting, do those figures account for inflation? I'm surprised at the suggestion that the rate of growth would be that consistent - in the 90s there was a real slump where prices were either stagnant or dropped in many cases, but fast forward to the early 00's it was not uncommon for a house to increase in price by 20+% in a single year for example!

Basically the housing market is a nightmare for most people, but super easy to take advantage of if you are mega rich - like everything really. :cry:


I didn't mean that the growth was doubling EVERY 10 years, I meant it was doubling ON AVERAGE every 10 years. The 70's were ridiculous for house price increases - 30% per year was common.

It does take into account inflation, but only that it takes real figures for the data. £1891 in 1952 is now worth £216k. If £1891 was inflated until now, I wonder how much that would be?

pjbetman
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PostRe: Buying a house (and renting)
by pjbetman » Wed Oct 10, 2018 7:31 pm

BID0 wrote:Help to buy is discontinued now I think

It came in just after I bought my first house (I bought mine a year or two before the crash) and I never understood how H2B could be helpful, but I guess it depends which part of the country you are in. Like you could only put away £250 a month right? And house prices here were going up at about £1,000 a month so you were actually falling behind by saving money


Load of shite that ISA scheme really, it helps but nowhere near enough.


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