[Bootsox]

The Blackburn apartment below is advertised on Rightmove for £490 PCM and at an original purchase price of £109.880 (say £111k with costs), after actual rent achieved, voids and service charges, is maybe generating a return of about 4-5%. So, if it was a cash purchase, a fairly modest return. If it was bought on a BTL mortgage however, the returns could be wafer thin (if not at a loss).

All the properties in this development seemed to be sold off in 2008. I suspect that many were actually sold as an "off plan commitment" in 2006/2007 (at the height of Brown's lending madness) as a pension investment, capital gains, yadi yada, etc.

...........unfortunately, these properties are now re-selling at an appreciable loss, see flat 17 below.

Reminds me of Leeds, the whole situation is like a ticking bomb but yet is rarely mentioned in the MSM.

I also feel that whole, new build, BTL racket seemed to appeal to young aspirational types (who are going to get scalped early on in their working lives but may be able to recover) and middle class, middle income sorts (who just saw it as a way of boosting their pension provisions and could never imagine that it might lead to ruination).

link

2008-05-22 9, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold, New Build add details...
£109,880 N/A

2008-03-13 17, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold, New Build add details...
£106,400

2011-11-25 17, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold add details...
£65,000

This post has been edited by Bootsox: 26 February 2012 - 11:49 AM

[long time lurking]

The whole of the leveraged BTL sector is a ticking time bomb ,the yields are virtually non existent now with interest rates at a 300 year low ,at some point they are going to go up then the SHTF but the sad thing about it,is the wealth transfer from the pension pots that have sought a return from BTL ( because the banks was paying sweet FA )will be a done deal IMO

This post has been edited by long time lurking: 26 February 2012 - 01:40 PM

[Bootsox]

Bootsox, on 26 February 2012 - 11:47 AM, said:

The Blackburn apartment below is advertised on Rightmove for £490 PCM and at an original purchase price of £109.880 (say £111k with costs), after actual rent achieved, voids and service charges, is maybe generating a return of about 4-5%. So, if it was a cash purchase, a fairly modest return. If it was bought on a BTL mortgage however, the returns could be wafer thin (if not at a loss).

All the properties in this development seemed to be sold off in 2008. I suspect that many were actually sold as an "off plan commitment" in 2006/2007 (at the height of Brown's lending madness) as a pension investment, capital gains, yadi yada, etc.

...........unfortunately, these properties are now re-selling at an appreciable loss, see flat 17 below.

Reminds me of Leeds, the whole situation is like a ticking bomb but yet is rarely mentioned in the MSM.

I also feel that whole, new build, BTL racket seemed to appeal to young aspirational types (who are going to get scalped early on in their working lives but may be able to recover) and middle class, middle income sorts (who just saw it as a way of boosting their pension provisions and could never imagine that it might lead to ruination).

link

2008-05-22 9, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold, New Build add details...
£109,880 N/A

2008-03-13 17, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold, New Build add details...
£106,400

2011-11-25 17, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold add details...
£65,000

No. 17 sold again:

2012-03-23 17, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
Flat, Leasehold add details...
£58,000

[Bootsox]

Losses continue:

2010-03-26 71, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
£62,000

2013-02-01 71, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
£57,500


2009-06-26 48, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
£80,000

2013-02-19 48, Hollin Bank Court Bolton Road, Blackburn, Blackburn With Darwen, BB2 4GY
£65,000

linky

This post has been edited by Bootsox: 05 May 2013 - 05:17 PM