spencer88
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Registered: 6th Oct 08
Location: cornwall
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quote:
Originally posted by DaveyLC
quote:
Originally posted by John
What if you could afford to ride it out for a few years but don't want to be stuck until then. Which is irrelevant anyway, if your house has decreased in value, there's a very good chance that the place you are moving to will also have decreased.
Some of this stuff you aren't even thinking about eve a wee bit.
Give me one good reason to be out of pocket £18k, just one! 
Even if you HAD to move (not because of money), the smart thing to do would be to let your current property and buy a new one.
And EVEN if you had to move because of a growing family again, the smart move would be to let your current property and rent a larger one.
So come on.. ONE good reason.. please? Humour me.
[Edited on 18-10-2013 by DaveyLC]
ONE good reason?
Maybe he cannot let the property due to not having a buy-to-let mortgage.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by spencer88
Maybe he cannot let the property due to not having a buy-to-let mortgage.
Because flipping it is impossible yeah and that would be such a stooopid thing to do..
Jesus wept..
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John
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Registered: 30th Jun 03
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What if I don't want to let it 
What if, even with the 18k equity loss, I've still got money in the house for a deposit on a new one. Where am I getting this from when I've let my old house?
You should step back from the keyboard for a few weeks and get a grip on reality.
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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I'm selling as I want a bigger house, and I've got money set aside to pay off the negative equity.
Where have I said that money is tight? I pay for a holiday and a few other bits every year on credit cards because I can either:
a) spend a few grand from my savings, and hence not gain any interest on it.
or
b) Buy the holiday on a credit card, pay 0% on it and keep the few £k in my bank to collect interest on/have for a rainy day/etc.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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You've still not given me a GOOD reason to lose £18k.. "Not giving a fuck" is not a good reason.
I cant even believe there is any debate to be had to be honest.. Losing £18k is bad, you should do anything you can to not be losing £18k..
[Edited on 18-10-2013 by DaveyLC]
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John
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Registered: 30th Jun 03
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Are you stupid or just a troll?
Are you missing the fact that if you have lost money, the house you are moving to probably has too?
Lose 18k on your, save 30k on the next one? Can you work that out with a calculator?
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by DaveyLC
You've still not given me a GOOD reason to lose £18k.. "Not giving a fuck" is not a good reason.
I cant even believe there is any debate to be had to be honest.. Losing £18k is bad, you should do anything you can to not be losing £18k..
[Edited on 18-10-2013 by DaveyLC]
Right, I can't lease because of the leashold on the property. I could probably fight it, but I really can't be arsed.
Second, I could stay where I am and "ride it out", but where I am doesn't have external space for me to enjoy any of my hobbies, we're running out of internal space and it's having a negative impact on our standard of living.
With that in mind, we've decided between us that an improvement of our homelife is worth £18k. I can afford it, so why not spend it?
On the flipside, we were half casually looking at a house which is currently listed at £50k cheaper than it was at around the time I bought my property - so putting that into context, if I was to buy that... we'd have a net £30k gain.
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Jamie Walby
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Registered: 15th Nov 04
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30 thousand good reasons to lose £18k IMO
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by John
Are you stupid or just a troll?
Are you missing the fact that if you have lost money, the house you are moving to probably has too?
Lose 18k on your, save 30k on the next one? Can you work that out with a calculator?
You
The money isn't lost until the house is sold...
He even says he's got savings for the deposit on the next one.
So if there's no equity in the current house, you're not losing any money by keeping it.. still with me here?... but you're out of pocket £18k by selling it.. is the class still paying attention?....
So you go to your mortgage provider you flip it to buy to let and as a double bonus negotiate to change to interest only..
Then you go and buy your new property.
Is it REALLY that hard to comprehend?
So the options are
a) Sell and LOSE £18k..
b) Let, retain an asset, turn a profit and gain some retirement security.
quote:
Originally posted by John
Are you stupid or just a troll?
Neither just pointing out how obscenely stupid you are good sir.
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John
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Registered: 30th Jun 03
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You actually don't have a clue Davey so, I'm out.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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quote:
Originally posted by John
You actually don't have a clue Davey so, I'm out.
Please point out the flaw in my argument?
Also feel free to endow us with photos of your personal mansion and fleet of brand new cars because you're clearly so damn good with money!
[Edited on 18-10-2013 by DaveyLC]
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spencer88
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Registered: 6th Oct 08
Location: cornwall
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quote:
Originally posted by DaveyLC
quote:
Originally posted by John
You actually don't have a clue Davey so, I'm out.
Please point out the flaw in my argument?
Also feel free to endow us with photos of your personal mansion and fleet of brand new cars because you're clearly so damn good with money!
[Edited on 18-10-2013 by DaveyLC]
Most buy to let mortgages require a certain loan to value, maybe he does not meet that 
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
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I've said why I can't let.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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What's the issue with the leasehold? Some stupid terms?
Do you have any close family who are looking for somewhere to live, that's always good option ...
You do realise you don't NEED a BTL mortgage either you simply need the mortgage providers permission, that's enough to get land-lords insurance.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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....Oh and before you give up its worth approaching some agents, they have more clout than us mere mortals
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John
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Registered: 30th Jun 03
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quote:
Originally posted by DaveyLC
quote:
Originally posted by John
You actually don't have a clue Davey so, I'm out.
Please point out the flaw in my argument?
Also feel free to endow us with photos of your personal mansion and fleet of brand new cars because you're clearly so damn good with money!
[Edited on 18-10-2013 by DaveyLC]
One of these, not quite a mansion but get's me by for now. Next new car isn't until next year so sorry, can't get a picture of that.
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by DaveyLC
What's the issue with the leasehold? Some stupid terms?
Pretty much. The estate was built with some local council backing to help FTBs, so part of the agreement was that they don't get let out.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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That is a total shitter! I'd doubt its enforceable though..
However you can still let to direct family the rules are very different  but that's obviously assuming you have a relative who wants to live there and is looking for somewhere
Or thought about approaching the local housing authority? I'll bet there is some loop hole that allows them to be let by the council/authority?
[Edited on 18-10-2013 by DaveyLC]
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Balling
Premium Member
Registered: 7th Apr 04
Location: Denmark
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This is a very weird thread.
Am I reading it right that you're never supposed to sell your property when the market is down, but in stead keep it for the infinite amount of people looking to rent a new home?
Over a period of, say, 5 years - how much are you allowed to spend on maintenance and how many months is the property allowed to stay unoccupied, before your loss is equal to or greater than the loss you'd take from selling outright?
Looking past the fact that you might struggle to find a tenant, what if you simply don't have the time/energy/skills to manage letting out the property?
What if, as John has pointed out, you need to free up money for a deposit to buy a new home?
Here's my biggest question.
Why do people ever sell property when you could easily just keep it for free and let somebody else pay of the mortgage?
Seems very curious to me that houses are ever up for sale.
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DaveyLC
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Registered: 8th Oct 08
Location: Berkshire
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If manage to lose £18k down a vacant let, you are clearly doing something wrong
I don't know what the averages are where you live but around here on your average 2bed place that returns £900-1100/month you'd have to leave it empty for a damn long time! 
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John
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Registered: 30th Jun 03
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Who pays the mortgage while it's vacant and you've spent every penny you have buying the new house, because you couldn't take any equity from the old one?
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James
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Registered: 1st Jun 02
Location: Surrey
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quote:
Originally posted by Balling
What if, as John has pointed out, you need to free up money for a deposit to buy a new home?
I might be missing something here but how is selling a house with £18k negative equity going to free up any money?
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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I didn't say the house had £18k negative equity, I said that the house value had lost £18k. There's quite an important difference.
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John
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Registered: 30th Jun 03
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Davey hasn't worried about actual figures anyway so not that important a difference for him.
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James
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Registered: 1st Jun 02
Location: Surrey
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OK but you still said it has negative equity, obviously it will depend on how much NE it is, but the fact it has any negative equity at all means that selling it isn't going to free up any money like Balling suggested.
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