Tuesday, Feb 13, 2007
Will there be a flood of properties for sale in N.Ireland?
Firstrung: Buy to let 'frenzy' has caused the boom in house prices in N.Ireland
The buy-to-let boom in Northern Ireland may have 'peaked', according to a recent report. The rapid growth of the private rented sector is the focus of a new study led by University of Ulster. This study begins to suggest that those hooked on the lure of easy profits (due to capital growth) may find themselves marooned and out of their depth as increasing evidence gathers that many recent purchases, by buy to let investors, lie empty as owners anticipated a quick profit by 'flipping' their purchase.
Posted by converted lurker @ 10:03 AM (132 views) Add Comment
1 Comment
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1. headmelter said...
"There is a fear that these changes could lead to landlords with housing benefit tenants exiting the sector or letting to non-housing benefit tenants," Mr Gray said. "This scenario may have serious consequences for the Northern Ireland Housing Executive, as these tenants would be forced to seek accommodation in the social sector.
These tennants have been forced into the private sector due to a reduced number of housing executive properties and there appears to be no plans to increase these.
"It is important not to exaggerate this risk as the majority of landlords also indicated that they would not sell-up even if they were making a loss, and rely on capital appreciation to consolidate their investment."
A question I would like to ask these Einstiens is, who is going to purchase these properties at their currently inflated prices and when the innevitable downturn happens and there is a glut of properties on the market and the probability of negative equity will they still be determined to hold on to their ' investment'.