House price inflation by £1000 per week ?

[Shake me up Judy]

According to a local estate agent. But nobody's saying who's buying up all these properties faster than the developers can build them. It's invisible demand apparently.

Mostly overseas buyers of course from South Africa, Hong Kong, etc; but nobody in Government or the media wants to tell us. (Big money being made so don't rock the boat).

[SleepyJoe]

Even Ashford has recognised the island has a housing crisis

Whether he'll do anything about it when he joins the 'new' government remains to be seen

[Anyone]

Not gov issue really , market forces unless you want a communist state to sort it. 

[finlo]

7 minutes ago, Anyone said:

Not gov issue really , market forces unless you want a communist state to sort it. 

The whole BTL thing needs stamping on if we're going to give our young a fighting chance of their own home.

And I don't mean by giving said BTL landlords upwards of 1K a month of dead money.

[Ramseyboi]

House prices are not going up by a grand a week.

Market forces drive house prices, not government.

Good luck to any government who bring in steps to slow the house market and leave loads of people in negative equity.

If you want to buy a house then work harder and spend less on phones, sky and nights out.  Once you are on the ladder it’s all good.

Dont forget that interest rates are currently as low as they have ever been, so house prices aren’t really the only thing to consider when looking at affordability 

[Non-Believer]

This news has come from a member of the  the "market forces" though, a local estate agent. Why would they fabricate something like this? Given that the average house price on the Island has recently also been reported as being +£50k more than the UK anyway this is an obstacle to FTBs that's not going to go away anytime soon.

[english zloty]

Possibly because they get a commission on every sale or relet they make. Panicking folk into action is beneficial to them. Likewise panicking government into letting developers throw up muse boxes wherever they want. Sad fact is the BTL market is what's bringing developers forward as it's risk free to them

[Mr Helmut Fromage]

There is a lot of misunderstanding regarding BTL as Facebook and some on here think it is a "Get rich quick scheme" it isn't.

I have seen one recently - 2 Bed in Governors Hill sold at £249,950 and subsequently advertised for rent at £900 per month.

Full years income of £10800.00 - Gross Yield 4.32% - now take out taxes £2160.00 Rates approx £1000.00 put 1 months rent as a repair budget / Gas serving etc of £900.00 then your Net Yield is 2.69% - however in your first year your going to have Legal fees, letting fees and period of time when the property is empty - so will be in a neutral position for 12 months (negative if prices dip.)

This assumes that the new owner has bought for cash with no debt - fag packet Mortgage calculations used to be £5.00 per month for every £1000 borrowed - If you had a mortgage on this property of £100,000 (40% Loan to Value) repaying £500.00 per month your overall Net return would be approx £62.00 on a monthly basis.

Is there any room for capital growth in the asset ?

UK residential property benchmarks at approx 5.00% - 6.00% gross yield to make it viable - so the rent would need to be £1200 per month for a 2 bedroom Governors HIll house.

Which begs the question - Are Landlords undercharging rents based on the current sales prices ? If I had £250,000 burning a hole in my pocket BTL would not be the way to go. 

 

[The Duck of Atholl]

I’ve seen lots of not thought through suggestions on this. From banning of corporate ownership, banning of BTL and even capping of market value.

Perhaps we need to get past the idea that renting is such a bad thing. In some countries it is the norm, they aren’t obsessed with home ownership.

[Bombay Bad Boy]

1 hour ago, Mr Helmut Fromage said:

Rates approx £1000.00 

I've been in the position of renter and rentee. In all cases, the tenant pays rates/council tax.

11 hours ago, Ramseyboi said:

If you want to buy a house then work harder and spend less on phones, sky and nights out.  Once you are on the ladder it’s all good.

If you're on a fixed salary, then contracted hours 40, actual hours worked >100 , still get paid the same. How does 'working harder' give you more income?

[Ramseyboi]

9 minutes ago, Bombay Bad Boy said:

I've been in the position of renter and rentee. In all cases, the tenant pays rates/council tax.

If you're on a fixed salary, then contracted hours 40, actual hours worked >100 , still get paid the same. How does 'working harder' give you more income?

When I rented privately rates were included.

Working harder typically leads to chances for promotion or to apply for better jobs, therefore you get paid more.

I currently earn less than I used to.  This is a lifestyle choice to reduce hours and stress.  If I needed or wanted more income I would either work harder at what I do now or find a higher paid job and accept the extra impact on my family life and possibly mental health. 
 

Years ago I worked my arse off and was earning three times the average wage at the time by 25 and significantly more than that by 35.  

These days I prefer a more laid back life.

[James Blonde]

26 minutes ago, Ramseyboi said:

When I rented privately rates were included.

Working harder typically leads to chances for promotion or to apply for better jobs, therefore you get paid more.

I currently earn less than I used to.  This is a lifestyle choice to reduce hours and stress.  If I needed or wanted more income I would either work harder at what I do now or find a higher paid job and accept the extra impact on my family life and possibly mental health. 
 

Years ago I worked my arse off and was earning three times the average wage at the time by 25 and significantly more than that by 35.  

These days I prefer a more laid back life.

You're right. There's a lot to be said for having a decent work / life balance. Too often people feel there is no option to rebalance it. 

[mad_manx]

51 minutes ago, Bombay Bad Boy said:

I've been in the position of renter and rentee. In all cases, the tenant pays rates/council tax.

If you're on a fixed salary, then contracted hours 40, actual hours worked >100 , still get paid the same. How does 'working harder' give you more income?

I have rented several over the years and except in 1 case the landlord paid the rates.

(Different from the UK where the council tax is always paid by the tenant)

It was usual practice in the IOM  for rates to be included in the rent quoted but these days I've seen many ads where the rates are paid by tenant. 

[AcousticallyChallenged]

12 hours ago, Ramseyboi said:

House prices are not going up by a grand a week.

Market forces drive house prices, not government.

Good luck to any government who bring in steps to slow the house market and leave loads of people in negative equity.

If you want to buy a house then work harder and spend less on phones, sky and nights out.  Once you are on the ladder it’s all good.

Dont forget that interest rates are currently as low as they have ever been, so house prices aren’t really the only thing to consider when looking at affordability 

That's ludicrous when you actually look at the disparity between income and house prices. A phone contract is not going to be the make or break.

The graph below doesn't take a rocket scientist to work out that housing has skyrocketed proportionately to earnings.

[AcousticallyChallenged]

2 hours ago, The Duck of Atholl said:

I’ve seen lots of not thought through suggestions on this. From banning of corporate ownership, banning of BTL and even capping of market value.

Perhaps we need to get past the idea that renting is such a bad thing. In some countries it is the norm, they aren’t obsessed with home ownership.

In countries where renting is the norm, renter's rights are significantly better in the face of bad landlords.