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Exit Strategies

Started by Property Guru, April 01, 2008, 09:10:26 AM

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Property Guru

It looks very likely that the "gig is up" concerning house prices. Mortgage availability, lack of new entrants to keep BTL afloat, sentiment turning, the works.

So, for those of us with multiple properties, what's the exit strategy? How do we get out with our gains before they disappear?

hopson

How is the gig up? where do you own - Gaza strip?? I dont understand, if you have multiple properties why would you want a mortgage, it is well documented that demand is greater than supply of property, sit tight bailing out now would be madness. I can throw a load of postive property market news onto the forum (and will) to counter the HPC type people

Badger

The 60 year gig maybe coming to an end, but property will always be the way to go.  Take the rough with the smooth my man,


Oh welcome by the way

Property Guru

We've had five months of property price falls according to Nationwide. I can't see any point in taking the "rough" with the smooth, when the rough could be a sizeable decrease in my equity. By all sane measures that I'm aware of, property is vastly overvalued. Credit availability is plummeting. Why on earth would I want to stay in this market?

Badger

According, being the word,
Has it really started to be a problem for you yet in money terms, i havnt felt any pinch and dont think i will.  If a property came up tomorrow and i thought it to be a sound investment i would buy it, as with everything money its always going to be a gamble, and as you have said you are not of this type.
I like to put my foot out of the bed a feel around for my slipper in the dark, i dont do this when its freezing cold but when its comfortable to do so.

Property Guru

It's not a problem in money terms. But I believe that I've made my property "wad" and feel it best to leave. I did sell one house before the credit crunch, two more outstanding, with tenants. I bought them eight and six years ago, so can afford to miss out on the absolute top of the bubble and still make a profit. My own exit strategy is to price to undercut the opposition, and get out. Uncertainty is not a friend of mine.

greybob

Only the rats leave a sinking ship.

Remember...there's no rewards sailing in smooth waters, its sailing through the rough that really matters.

Property Guru

Quote from: greybob on April 01, 2008, 03:26:06 PM
Only the rats leave a sinking ship.

Remember...there's no rewards sailing in smooth waters, its sailing through the rough that really matters.

I think that as far as investment is concerned, knowing when to leave a market that no longer represents good value is a characteristic of a prudent investor, not a "rat".

As for rewards, the rewards of an investment are found when the market's going up, and unless you can "short" the market, not when it's going down.

propertyfag

I'm not looking to "get out"

By all means "get out" if you're in it for the short term. But if you're like me, and have multiple repayment mortgages going, and are looking to taste the fruit in 10-15years, sit tight...


vwilson

Quote from: Property Guru on April 01, 2008, 09:10:26 AM
It looks very likely that the "gig is up" concerning house prices. Mortgage availability, lack of new entrants to keep BTL afloat, sentiment turning, the works.

So, for those of us with multiple properties, what's the exit strategy? How do we get out with our gains before they disappear?

I think you've missed your chance. "If you wanted to get to where you're going, you wouldn't start from here".

If you sell now, or over the next 8-12 months, you'll minimize your gain. You've missed the peak and now everyone is panicking, so if you try and sell you'll get carried down with them. Hold is your best option. Besides, rental demand will increase because nobody can afford anywhere to live. You may be able to increase your rents to offset any mortgage interest rate problems.


V

propertyfag

I def agree with that, V. The best time to exist would have been 6 months ago. It's probably not worth selling up even if you wanted to right now!