repossessions rise to 27,000

click here

Intresting point

  Admiral Allstar 11:30 08 Feb 2008

Ah, but lets look at the whole picture. 27,000 is not really that high as a percentage of all mortgages according to click here

seems that sensationalism is alive and kicking (not by [email protected] i hasten to add).

  Cymro. 11:44 08 Feb 2008

Why is it that we British are so obsessed with buying our own homes anyway?

Is it as much of a bargain as we would think?. By the time you add up the total cost to include all the interest to be paid plus all the other costs of owning your own home is it really all that much cheaper than renting? I wonder how you would account for all the extra stress of buying a house.

Do people in other European countries go in for owning their own homes as much as we the Brits. do? I seem to remember reading somewhere that they don`t.

  jtt 12:33 08 Feb 2008

Financially, it depends when you buy a house. If you bought it 10 or 15 years ago, you're laughing. Today, not so.

There is some stress involved in renting too - the landlord might give you notice.

  robgf 13:42 08 Feb 2008

Once you have payed off your mortgage, you live rent free forever. And that makes an enormous difference to your lifestyle.

Me: purchased my own home, worked hard and paid off the mortgage in 12 years. Now pay nothing.

My brother: Council house, paid rent all the time I paid for my house.... still paying rent.

The actual house worth of the house is irrelevant, unless you intend to sell it and live in a cave.

  Cymro. 10:48 09 Feb 2008

Me: purchased my own home, worked hard and paid off the mortgage in 12 years. Now pay nothing.
You did very well there, robgf but we all know of many people who struggle for 30 years to pay off their mortgage and drop dead soon afterwards.

My brother: Council house, paid rent all the time I paid for my house.... still paying rent.
I wonder if at the end of it all your brothers life was any less happy than yours?

The actual house worth of the house is irrelevant, unless you intend to sell it and live in a cave.
A very good point robgf and something that a lot of people don`t take in to account.

  Forum Editor 11:26 09 Feb 2008

that the number of repossessions rises as lenders become less concerned about checking on borrowers' ability to maintain payments.

  anskyber 11:45 09 Feb 2008

Unfortunately there is little published evidence on the buy to let repossessions but there is strong anecdotal evidence from auction house who deal with repossessions that buy to let features significantly.

I think buy to let represents some 8% of the total mortgage market but the auction houses are saying they can represent some 50% of the repossessed properties. In simple terms some investors have over estimated their return in a declining (generally) rented sector.

  robgf 12:26 09 Feb 2008

"In simple terms some investors have over estimated their return in a declining (generally) rented sector".

I would say your correct, I think that people under estimate the maintenance costs involved.
Two of my friends rented out flats, but both had problems with bad tenants not paying the rent and deliberately damaging the property.
Both have since sold their properties, as they decided it was too much hassle, for a small return.
The last straw came for one, when the tenants did a moonlight flit and completely stripped the flat of everything, including the fitted kitchen!

In November I earnt some extra money, helping a lady 4 doors away clean, redecorate and repair the bungalow she lets. It was disgusting inside (very smelly, from dog mess, yuk!) and the last tenants had smashed a hole through the bedroom wall (right through, you could see outside).
They didn't pay the rent and she had a lot of trouble getting them out.

Letting is a far more risky buisness than people realise.

  tillybaby 12:52 09 Feb 2008

The comment what Anskyber has made about letting being a far more risky buisness than people realise,

I am the owner of a few properties, one is let to a pensioner who is brilliant, she claims council housing benefit which is paid directly to me so although it's only £320 per month at least it's regular,

The other properties I'm not so lucky with and only this morning I've visited one who hasn't paid me a penny in rent since August 07 but again I do receive housing benefit of £300 per month, this tenant is constantly demanding things which really does annoy me, not only that but I do also have quite a bit of tax taken off me at the end of the year so it's not all profit that people might think and there is always the risk of letting a property to someone who does damage the building and block drains etc.

Now, why do I bother?

  Cymro. 13:28 09 Feb 2008

"Now, why do I bother?"
Possibly because you thought that you were going to make a hansom profit.
So you tell us why you bother?

This thread is now locked and can not be replied to.

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