X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property Prices

    Where next for house prices?

    Over the last four years we have seen house price inflation - at least in the South East - and prices are at unsustainable levels so where are house prices likely to be in 1 - 5  years time in relation to their current levels?

    0
    0

    House price rises are not what the Govt want

    I think the SE will follow what has happened in the NE ironically

    It will fall in value (How Much I don't know ) then stagnation

    Home owners will not move BTL will not happen ,and second home purchase will be a thing of the past

    Mortgages will be harder to get and Rents will not rise a great deal

    The model I have outlined is what has happened out side the SE   so I can see the SE in catch up

    the only glimmer I see is we will have low interest rates for decades


    0
    1

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I believe we are in for a period of deflation caused by

    • Aging population demographics in the West/Developed countries
    • massive debt burdens
    • Brexit and Euro looking riskier by the day because of imminent debt defaults by countries such as Italy
    • China has a real estate bubble ready to burst
    • Trump will be in charge soon

    On a local level we have

    • S24
    • Increased SDLT
    • Loss of wear and tear allowance
    • Benefit Cap
    • Housing Benefit frozen for 4 years
    • Increased regulation/legislation to PRS

    Stash your cash ready pick up bargains in the coming months and years.

    0
    0

    Rooms In Cardiff info@highyield.property | Guaranteed RentLow Cost Management £50/month |Pay As You Go HMO Management | Cardiff Letting Agents & Property Managers | Delivering Double Digit Net Property Returns

    Rent Smart Wales Agent Licence Number: LR-37010-29907

    The Property Ombudsman: E1405 

    ICO: #ZA276375

    We operate Client Money Protection

    Im with you well said

    there will be opportunity when Highly Leveraged Landlords are taxed to death


    0
    0

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Interesting article on this topic today.

    Excerpt:

    In 2016, 20pc of Londoners buying somewhere other than the capital bought a home in the Midlands or the North, up from 12pc in 2014. Johnny Morris, head of research at Hamptons International said: “A move out of London has generally had more to do with changing priorities as people get older and start forming families than the housing market.

    When they move out of the capital, London buyers typically pay an average of 18pc more than local buyers for a property, pushing prices up and  moving the ripple effect further away from the centre.

    Mr Morris added: “It is likely 2016 will be a peak for London leavers. While overall the year saw growth in Londoners buying outside of the capital, in recent months the pace has been slowing. A slower housing market in 2017 will likely mean that we see less Londoners buying outside of the capital than in 2016.”

    Full/source story 

    See also - 17 U.K. property market predictions for 2017

    0
    0

    I don't think any one knows the real outcome of the UK

    We have such a lot going on

    It would have been difficult to predict with out BRTEX now its impossible to really say where this is going to end

    Most property news is bad news low interest rates are the only good thing at present

    But  Tax, regulation ,tighter mortgages, and BRTEX its not going to be good news for any Homeowner or Landlord



     

    0
    1

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Could not agree more.

    This is the current picture of the situation. We have just got to sit tight. Wait and see what happens.

    0
    0

    The CEBR says about 40K growth in the next 5 years on the average UK house price of 194K ( approx 20% rise )

    Regions will vary  naturally

    https://www.telegraph.co.uk/business/2016...te-eu-tre/

    I`m using  the anticipated 20% rise as a working figure for my own portfolio.

    If its half of that at 10%  I am still happy.

    If its half as much again though at 30%  I am very  happy

    1
    0

    Jonathan Clarke. http://www.buytoletmk.com

    What is their past record on predictions? Just wondered why you'd work to their forecasts, also how it would effect you if the reality was zero, or -10% etc etc?

    0
    1

    Their predictions are sometimes right and sometimes wrong. Along with the other house price forecasters  its only really a stab in the dark. No one really knows. I use it as a working figure to tap into my calculator to give me  reassurance and a comfort blanket more than anything else to demonstrate that high leverage magnifies any gains. I don`t as such physically work to their forecast as part of my investment strategy

     High leverage means the  converse of course is true  if prices  dip in one year then the losses are magnified ( on paper)  But overall on average 5% growth pa is in the right ballpark . My model at the outset treated capital growth as the  icing on the cake and simply enabled  more rapid expansion through equity release  when growth  occurred .

    If there was negative growth it presented more buying opportunities.   My model relied on high yields   which enabled cash flow to be saved towards next deposit  . In reality if growth is zero or minus 10% in one or two years the effect on me is minimal. As long as the long term growth over a 20 - 40 yr period is positive which  indications shows that historically  it has been and therefore is likely it will continue to be then that`s fine by me.   

    3
    1

    Jonathan Clarke. http://www.buytoletmk.com

    Thanks! Wouldn't you prefer house prices to drop then if yield is your model (and so lucrative). A drop would facilitate more properties and so even more yield?

    0
    0