Wednesday, Apr 25, 2007
ARLA funded report tells BTLs not to panic
Independent: Why buy-to-let landlords shouldn't panic - yet
Forecasters are now predicting squally weather for buy-to-let investors, pointing to rising interest rates, the highest cost of living for a decade, and even a possible property crash on the horizon.
Posted by uncle chris @ 10:46 PM (167 views) Add Comment
4 Comments
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1. Surfgatinho said...
I was reading away, thinking, 'Hmm, this article sucks!' and 'yeah right, all those new BTLers have got huge "cushions of equity"', and then as with so many of these articles it just started quoting Paragon this Paragon that! In short, not worth the paper it's virtually written on. The proof of the pudding will be Ireland over the next 6-12 months. Then we'll see if landlords hold their nerves!
2. confused76 said...
Even rising interest rates are not all bad for investors, he points out: "The silver lining is that, as interest rates rise, this discourages tenants from buying their own place."
Hello!!! Wake up and smell the coffee!!! When interest rates go up asset prices go down accordingly...
"Davidson believes that a slow-down, or even a modest correction in the market, would actually be beneficial by making the market more stable and predictable"
But if ARLA was saying until last month "forget the yield, BTL is all about capital appreciation"
Let s face it, there will be a BTL stampede to get out of cr@**y investments
3. taffee said...
Professor ball predicts a slowing of growth and would be surprised to see prices fall.
sure....despite all booms being followed by bust in history.
What's the betting he owns a few buy-to-lets!
4. Alsftl1973 said...
I realise its an evil capitalist society we live in but with everybody citing the lack of supply as a contributing factor to obscene house pricing why hasn't this labour ( socialist?!?? ) government outlawed btl as an unethical investment?! Or is there an economic reason to destroy the livelihood of keyworkers - you know, those types who try and keep us healthy and educate us - oh, sorry just answered my own question - they don't contribute to the false sense of worth this government has created. Silly me!