UK house price to crash as global asset prices unravel

[Orzel]

Leasehold here is not ownership.

It is right to use property.

You don't own property or land it sits on.

You can not demolish it, extend it, build on a land if that is specified on a lease.

Depends on lease.

Here it is long term rental paid upfront basically.

You do not own property. But you take responsibility for it.

So it is almost same as polish limited time lease.

Can be transferred and can not be terminated without breach of contract.

 

Polish unlimited time lease is similar in all practical aspects to shared freehold flats here.

You pay rent that supports housing association, maintenance of common parts of property etc. I don't think that housing associations can make a profit that they pay out as dividends. All profits must be spend as in non-profit organisations(I think).

Only difference is that unlimited time lease is right to use indefinitely and housing association remains as owner - so somewhere between our shared freehold flat and leasehold.

But this applies to old leases, pre 2007. They can still be transferred but you can not make a new one.

Now it is same - rental or shared ownership.

[Cyclone]

When you say "here" are you talking about the UK or Poland?

[sgtkate]

Leasehold here nearly always applies to the ground that the building stands on doesn't it? So you still need a mortgage for the actual property but then you must pay ground rent to the ground owner. This is v different to what happens in some cases in Poland and Germany.

[Orzel]

Here in England, specificly in Sheffield.

Yeah, monolithic blocks of ugly flats were built in the 60's, they quickly became sink estates in the sky.

 

Read or watch some documentaries about junkies in places like Poland or Romania. They are being pushed to very fringe of society. Quite often homeless. We keep them in affordable housing and feed them. With our tax money. Building won't matter - houses, flats, tents - wherever you put them there will be sink estate. Even if you house them in Buckingham palace.

Affordable housing in Poland is aimed at working class, ours has less desirable clientèle. If we would have more working class would start to live there.

 

---------- Post added 12-01-2016 at 13:43 ----------

 

Leasehold here nearly always applies to the ground that the building stands on doesn't it? So you still need a mortgage for the actual property but then you must pay ground rent to the ground owner. This is v different to what happens in some cases in Poland and Germany.

 

Leasehold depends on what is written in Lease. May be land or buildings. I saw one for 999 years so they vary. You may have right to do anything or nothing.

You get mortgage to buy right to use it but not own, being same for most practical reasons.

Edited January 12, 2016 by Orzel

[geared]

I believe Germany has a similar system, and has far lower house prices relative to wages than we do. Would you say Germany was an undesirable place to live?

 

Up until very recently they've not had the kind of population growth we have experienced, so less pressure on housing.

 

Will be interesting to see what happens now so many refugee's have entered the country so quickly.

[sgtkate]

Up until very recently they've not had the kind of population growth we have experienced, so less pressure on housing.

 

Will be interesting to see what happens now so many refugee's have entered the country so quickly.

 

Yes possibly there will be changes to their system. It will be interesting to see how the Germans respond and deal with it. Might be some good lessons to learn.

[WiseOwl182]

I believe Germany has a similar system, and has far lower house prices relative to wages than we do. Would you say Germany was an undesirable place to live?

 

Very undesirable in light of the recent "refugee" influx and subsequent consequences.

[Dr Afzal]

If property prices crash, it will be a good opportunity to snap up a few bargains to rent out. As others have already said, there is lots of demand from tenants.

[Penistone999]

Profit over community. Well done, very parasitic of you.

 

Fingers crossed the Uni continues to build student accommodation so people like you are put out of business.

 

So providing accomodation for students makes me and other BTL landlords parasites ?

Edited January 12, 2016 by Penistone999

[ez8004]

I respect your opinion. I think it might it is misguided and I'll explain why.

 

Firstly, as I stated above I also respect and understand the financial decisions of the smaller operators in the sector, the one million+ who have opted to become small time landlords. Many of them in the face of inadequate and poorly performing pensions (for example) will have decided to enter the market. Many of them wouldn't have done so if other pensions and investments had been performing as they could have been expected to.

 

Hmm. A bit of a sweeping generalisation there. I am on a final salary pension scheme so my pension is guaranteed. So getting into letting as a form of investment is not a bad idea at all. You don't have to be in trouble to do it.

 

Well, it seems like the recent tax changes by the government are designed to discourage the smaller operators. And it could be a good thing for them if they decide to exit.

 

That is why you don't have a mortgage on the property being let