Tradefair & Financials
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Printing money reduces inflation- the reverse melly trade.
Printing money reduces inflation- the reverse melly trade.
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This was a difficult 1 and time consuming so left it till I had a bit of time on my hand.
Here's the deal I struck: bought property for 57500. Legal fees etc etc pushed my purchase up too 60k. Wooden floor, paint job, few beds, washing machine, tilling kitchen etc etc meant 3k more so end purchase meant I paid 63k for it as opposed to 57500. On top of this I was lucky as I got the best mortgage possible on the Market through Halifax and avoided paying 1.5k on mortgage set up fee etc. Now property is on rent here's the deal: Get £400 a month, 200 goes to mortgage say £50 to tax which leaves me with £150 a month, say 1800 a year yeh. Tenants contract, Is for 12 months. So if my tenant leaves in 12 months and the place is like I gave it to him then I would make 1800 max in a year. Likelyhood is there will be at least 1k expences so in reality iv made abt £800sh on a 63k investment yeh. Now let's say I'm lucky and in 2 years i'm gona sell it for 100k. This is wat I'm gona make: bought property for 57500 sold for 100k I make 42500. Seems good dnt it but here's the reality. 42500 tax it and iv made say 30k. 30k take away expences (5500 up until now) selling up solicester fee about 600-800 and doing up the place pushes expences up to say 8k. Estate agents fee of 4% means 4k. Add another say 3 k for summit or another. So I buy at 57500 and sell at 100k and geza I make 15k. Sh1t man that's a skank. Iv paid 57500 and I need to sell this property within 2 years and to break even I must sell at 72k. That's me making f00k all by selling around the 75k mark. Not good is it. That's the reality of it all |
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As Melly would say:
Buy low and sell high.  |
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This is the first property iv ever bought. All this talk of property ladder just made me invest.
Is it me who is just f00ked or are other people on the same boat. I'm taking about guys who wana buy to let not buy to live. |
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Sadly, I think there are many people in your boat carlos. Lots of people buy shares when the shoe shine boy tells em. It doesn't mean that they are a good investment at that time.
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I realy thought it was a safe option. My god how wrong I was
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The point is that anybody who tells you definitively one way or another doesn't know. There are too many variables. What happens if Melly is right and everything goes pop? You have a house as opposed to a big pile of paper or paper debt and you could be laughing. All anybody can do is their best.
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That's right. Iv bought a property in June. The money I
paid for it was the same as wat som1 would have paid for it say december 2001sh. The same property was going for between 120k and 130k in 2007 and 08. I Feel for people who have bought properties between 2002 and 2011. |
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I feel for you carlos - a bit like you I waited and kept waiting and kept waiting until I could hold out no longer. I put down 40% deposit thinking it's no good anymore in ISAs or anywhere else.
What I don't understand about today's market ( outside London ) is why anyone with a job would be paying 400/month to rent, when they should surely buy, but they do ( choose to rent i mean ). |
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Seemed like a good investment 4 months ago but I realy and truly regret it.
I feel bad for u too. Should never have listened to family and friends. I have never worked for the last 5 years, now I have 250 a week job and still no money. Worst thing is iv not realy lost a big bet for the last 2 months. Worst still is if I never brought this sh1ty house I would not be in this position and would have taken at least 1500 on weekend and another 5 k on olympics. Would have betted on the bets iv mentioned on the other thread. I still have but put peanuts on it. I mean winning ain't everything but losing ain't sh1t |
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Many reasons Bongo. Some people can't afford the deposits. Some people can't get the mortgage. Following on from that for some people the disparity between their wage and the prices being asked is too great. Some people want the flexibility and portability that renting provides. Some people think, "well yes I could afford it now but what if interest rates go back to their longer term averages?". Some people think that if interest rates do that then a further fall in house prices is inevitable and don't want the stress of negative equity. Some people think houses aren't a good investment in the short term and some people think that the housing market was in a tremendous bubble period for so long that now the love affair has ended there is need to rush.
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And some people like me just got lucky. Napoleon knew the value of luck. Fat lot of good it did him in the end.
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Can't even remortgage untill December 2012. U have to wait for at least 6 months after purchase to remortage
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