Lets Crash the Housing Market..First Time Buyers.

In message , curiosity writes

What are the measures???

You persist in being somewhat obtuse by not explaining the measures. I am beginning to think that you just like a long protracted argument

I am renting out a place worth (I think) about 375k for 1725pcm. knock off the letting expenses and that's a yield of 4.5%, which is very close to the mortgage rate on it.

Currently expecting to let a second place for around 1300pcm. I think it's worth about 275k, so again, 4.5%.

Both are in west London and in both cases I ignore maintenance costs; the reason is that the incoming rent funds the outgoing rent on the place we live in. Essentially we are funding rental of a 4-bed house out of the rental income from two 2-bed flats. If we bought rather than rented the 4-bed house we'd be paying maintenance costs too so I don't see them as genuinely incremental cost.

My other half doesn't earn and collects the income, so this minimises the tax bill to roughly zero.

At some point I need to ask the group for pointers / experiences about how best to manage these...I wonder if I need a limited company or something so that net rents from one place can be offset against net costs at the other.

Unless you treat your own home very different from normal people, the guys you're renting too ain't caring for the place as you would, so you can expect the maintenance costs to be higher as people treat it as it's not their own, and they're only going to be there until you kick them out.

Jim.

"curiosity" wrote

Nah - it's not *essential* to own a house. That is a "luxury" too. Just look at other countries - where "owner-occupying" is much less prevalent than here...

Exactly.

But why not start a web site 'ferraripricecrash.com, and start advertising it here. Also, if a ferrari dealer ever has a sale, he could post that as evidence of a price crash. The acid test of course is, "did you sell your ferrari and are you currently driving a Ford Mondeo? " (note, both conditions have to apply :-)

You *are* Lenin! Your comission will also be deciding what counts as a luxury I see.

Definitely not! I've always been a keen advocate of the mixed economy. Of course 'essential' has to be taken loosely when talking about 'survival'. I've owned, rented and owned again. For me owning is better and gives a sense of place and vital privacy.

Well thats your decision, but you appear to be wanting to decide it for others as well..didnt you just write that owning was an essential? If not, what was your comment supposed to mean?

..which apparition are you talking about?

Good lord! Scholars could expound for eternity on what was meant and you'd still not get it. Now run along to rec.pedants and give me a break!

You mean.. a bit like Stamp Duty

This would not be the same France that is currently in the grip of a BTL fueled property boom I suppose?

I live in France half of the year. So, no, that would be another France.

Who's this "we" paleface?

FoFP

I don't think they're immune. Look up "Mississippi Bubble".

FoFP

present company excepted.

Wrong. The price is set by the marginal sellers and buyers. If there are no sellers and buyers, there is no price.

FoFP

That's the first rational thing you've posted in this thread.

FoFP

I think it's the one who told Rockefeller to buy shares in 1929.

He's sold up and is in sheltered housing now.

For my money though, all these TV shows about property are the Shoeshine Boy of our times. When they vanish, the Fat Lady will be clearing her throat.

FoFP

Rather like the Prime Minister touting shares in the South Seas Company.

It's quite astonishing just how often politicians unerring instincts cause them to jump on the bandwagon precisely when the wheels are about to come off.

FoFP