to think all this nonsense about house prices being too high is just that - Nonsense!

[RazahFluffy]

DH and I have long been in the property game. We actually met whilst working as Estate Agents back in 1999!

I've seen a lot in my time as an agent - 2008/2009 were a bit of a blip, but overall, there's one thing I've always had faith in, and that's bricks and mortar and that prices always go up. They aren't making more land after all 😁

As well as working in property, we've got a few of our own. We started off as accidental landlords after we got together and kept both our homes to rent out when we decided it was time to move in together and find a place of our own. Over time we've added a few more to the portfolio.

We are lovely landlords. We let our tenants have our houses as their homes, and we like to do little things like send them Christmas hampers, and know their birthdays so we can send a card and usually a Pizza Express voucher.

Anyway, there's a lot of rubbish being written recently about interest rates and the economy affecting the market. Nothing could be further from the truth where we are!

It's still buoyant and the buyers registering at the agency are no different to usual - excited to either 'get on the ladder' or move to their next step towards their eventual forever home😊Vendors are still confident. They agree with us that houses are actually a bit too cheap, all things considered because inflation is quite high.

The one thing I'd have to say is if you can't afford a mortgage at the moment - think about your expectations. You might have thought previously that you could afford a 4 bed, but if you can only get a 3 bed for now is that really so bad? First time buyers especially I feel need to be realistic!

Property always goes up and it's no different now. We're really confident and having seen it all in this game, we really think it's time to believe in the market💪

Tell that to the Japanese.

www.spectator.co.uk/article/don-t-mention-house-prices-to-the-japanese

Property prices in the Land of the Rising Sun have so far fallen by 54 per cent since peaking in 1990. In some parts of Tokyo they have lost nine-tenths of their value. On average, they are back to 1979 levels, nailing the lie that house values always do well over long periods. The horrific house price crash Britain suffered in the early 1990s, with all its misery, negative equity and repossessions, was a brief setback by comparison.

It went down for a good 20 years. I am a home owner btw, and my flat (in London) is on the market. Prices have basically not increased since 2016. I plan to upsize to a 3 bed flat as prices fall as it is easier, but I expect that house prices will continue to fall for the foreseeable future.

They can't fall. The government is bound to step in.

But that's what I mean! I've been there, done that - and bought the bloody T-Shirt when it comes to housing! So I'm just trying to express an opinion that all this rubbish we're hearing is just that - rubbish!

Let me put it simply OP.
You know that t-shirt you bought all those years ago?
You wouldn’t be able to afford it now.
The T-shirt used to cost 3.5 times your wage. Now it costs 18 times your wage.

HTH

What are you going to do when your (fictitious) tenants can’t pay their rent anymore because the economy’s going down the pan, OP? No Pizza Express vouchers for them then, eh?

I suspect this is a “witty” wind up post…… as it runs counter to every bit of evidence coming from articles in the media where estate agents are being interviewed and saying the market is rapidly slowing …..

But it’s definitely written in the style of estate agent. Or a bit perhaps?

My landlord told me last week on Tuesday he was going to sell the property we live in - by Friday, having spoken to a few agents / experts, he changed his mind and is going to re-visit the idea in the New Year. And he’s very keen to sell.

I have been looking at rental properties to try and get ahead of the curve and rents are rocketing which I assume is to do with new mortgages interest rates.

I don’t have any expertise in the area at all, but it does all seem to be going a bit cattywampus at the moment……

You clearly aren't taking much note of the current economic situation if you think the government have the money to bail out large numbers of home owners who have overstretched themselves.

rent will be lower than my mortgage in 2 years time. It is currently the same.

www.thisismoney.co.uk/money/mortgageshome/article-10684303/Rent-cheaper-mortgage-time-14-YEARS.html

Oh come on. You must surely see how this thread has the capacity to upset people.

I think the OP might actually just be a bit thick.

You cannot be for real 🤣

actually that is completely wrong. If rent is based on the mortgage, landlords who own outright would charge much lower rent! How much your mortgage is would be dependent on interest rates as well as your LTV. If you are an overleveraged landlord with the bare minimum 20% LTV, your profit margin would be much thinner than someone who has a very small mortgage.

Rent is based on supply, demand and also local earnings. Historically, rent is 50% of average post tax income in London, and 30% of average post tax income outside London. Landlords can try to raise rents to meet rising costs whether thats EPC upgrades, increased mortgage payments, increased repair costs. But there is a ceiling on that. For now, the employment rate is high so people will stomach high rent to live near economic centres like london. what happens when people lose their jobs? They will be forced to move back home. That was what happened during the pandemic when people got furloughed and rents in z2 london dropped 20% as many Europeans and students returned home.

You sound like Kirsty bloody Alsopp OP. Back in the real world, people are forced to use food banks even though they work. I do t think any of your Pollyanna solutions are helpful right now. And choosing a smaller house instead of a 5 bed detached is not safe advice you imagine it to be.

The more you post OP the more you sound like a shady con artist trying to get people to invest in an illusory get rich quick scheme.

I really don't! Nothing I've posted has been anything other than my opinion based on years of experience in the market 😞

OP, for whatever reason, is trying to talk up the market. She has serious conflict of interest, since she owns multiple properties. Anyone who says property is a sure bet is being very irresponsible. Good luck to her.

AKA the current property market 😂

Kirsty Alsopp has done more for this country than pretty much anyone over the past two decades in terms of preaching the good gospel!

If only we could have someone like her as housing minister - and also, lets replace that bloody Martin 'Doom monger' Lewis with Phil Spencer.

So thanks for the compliment actually.

That's so wrong!

Rent is based on the cost for a landlord!!!!! Otherwise why would we do it?

I don't know any first time buyers buying a 4 bedroom house.

Property here has almost doubled in price in 2 years. We could now longer afford to buy the first home we bought 10 years ago on our salaries today let alone on a starting salary as we were then.

This whole thing at the moment is a storm in a teacup, that's my point! They can always print more money if needed.

Far from being a ‘doom monger’, Martin Lewis actually gives very sound financial advice. Kirsty Allsopp and Phil Spencer, on the other hand, are just salespeople (talented salespeople, yes, I’ll give them that), who want to make as much money as they can out of being an estate agent. I’m 100% on Martin’s side.

‘They can always print more money if needed’…. Even I know that’s absolute baloney, and I have a very basic understanding of economics….

Oh come on! Now I know you can't be serious. Martin Lewis told me to fix my bloody energy bills! Then we got a bailout! I'm livid with the man!

My neighbor who is renting out her flat was barely breaking even before the interest rate rises. She is a higher rate taxpayers. I think she didn't want to sell the flat and hence the only option was to rent it out so at least the mortgage is covered. But there are additional costs on top so she was actually losing money.

My area in London is known for having practically negative yield (which is why it was a good place to buy) and that is the case for many expensive areas in London. The goal i think is long term property appreciation but like any investment, that is not guaranteed and it was viewed as better than sticking your money in a bank account in the past when interest rates were low..but now interest rates are higher, a lot of London landlords are better off sticking their money in an ISA. Less hassle!