Thursday, Feb 22, 2007
Insights of an active buy to let investor
everyinvestor.co.uk: Why newbuild BTL is heading for disaster
This year could see a record number of new-build flats completed, but most families still prefer houses and the supply of new flats could be well ahead of demand.
In December and January, BTL mortgage lenders and agents were pumping out optimistic comments that were unthinkingly recycled by the press. Now they have gone quiet. No prizes for guessing why.
Posted by dohousescrashinthewoods @ 12:41 PM (164 views) Add Comment
8 Comments
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1. sovietuk said...
"BTL is now a game of chicken in which those who keep their money on the table risk watching their paper profits evaporate."
Ha Ha, excellent.
2. bidin'matime said...
Good article, although few who read this blog will find it news.
3. Paulos said...
The flat I rent was originally £600 per month.
Landlord put it up to £660 last year - we renewed because everything else in our area was £700+.
Coming up for renewal, and an identical flat to ours has just come up for £575...
4. inbreda said...
Bidin - you are right. But I still like the fact that the media attitude is turning. When the mood of property related articles is mainly negative, then we know the peak has been reached.
Gold is on the way up again!
5. maddison said...
Of all the BTL'ers I know most have pretty substantial incomes ( dentists/lawyers etc ) it will take a pretty big correction to make them run for cover!
6. Cheekie Charlie said...
Madddison - Your comments seem defensive and stubborn. The question you should be asking these Dentists/ lawyers is" hands up who wants to lose a sh*t load of money?" They can't be stupid, as long as they sell there stock when the time is right they will be quids in! Unfortunately there are alot of stupid people in the BTL game who, along with the banks, will determin the outcome and lose alot of money and like the last housing crash politicians will be saying "This cannot be allowed to happen again".
7. Nohpc said...
Not all new builds are full of BTL? What about new build developments that are mostly owner occupied and have no vacant properties including the BTLs?
8. dohousescrashinthewoods said...
Can anyone find a newbuild without a clutch of BTLs?
I am not convinced, Nohpc.
Maddison, I earn an above average salary but would not like to be paying more than one mortgage, or pouring savings into a loss-maker which risks depreciating in capital value to boot?