Wednesday, May 30, 2007
Looking for the exits
Yahoo News: Landlords look to sell as rates rises
Blinded by greed, these folk are now looking for the exit. I say let them take the loses rather than a legit home buyer...
Posted by mattpascoe @ 09:21 AM (40 views) Add Comment
20 Comments
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1. Realist said...
"While tenant demand remained robust, rental growth failed to keep pace with property price inflation causing gross yields to fall their fastest rate in three years"
Which kind of blows the theory of massive excess demand out of the water....
I guess the rest are in it for the long term though.....(in spite of the fact that the underwater yields suggest the long term price trend is down rather than up)
2. Davros said...
Looks like we are at this stage of the bubble :
Stage Six - Insider profit taking
Everyone wants to believe in a new brighter future but a bubble takes that desire and turns it upside
down. A bubble demands that everyone believes in a brighter future, and so long as this euphoria
continues, the bubble is sustained.However, as madness takes hold of the outsiders, the insiders
remember the old world. They lose their faith and start to panic. They understand their market, and
they know that it has all gone too far. Insiders start to cash out. Typically, the insiders try to sneak
away unnoticed, and sometimes they get away with it. Other times, the outsiders see them as they
leave. Whether the outsiders see them leave or not, insider profit taking signals the beginning of
the end.
3. royston said...
Question: What do you think is going to be worth £200,000 or more in 1 year from now?
a) a property worth £200,000 now
or
b) £200,000 cash in a bank account.
Enough said!
4. dohousescrashinthewoods said...
hear hear!
5. David20040_0 said...
5% of landlords selling is nothing, this means nothing.
6. Observer said...
are these people inside the bubble are called entrepreneurs??????..........
7. cyril said...
neither - that's the problem
8. Mark Wadsworth said...
Damn and blast. I panicked and sold my rental properties between 2002 and 2005, I wish I'd waited another year or two. Ah well. Still made a tidy sum at somebody else's expense!
9. Pinetree said...
A good friend of mine has just bought a BTL "investment". Even with a 25% deposit the current rent only just covers his interest payments. Rents are the most accurate measure of demand and supply for property consumption.
My property investing friends have always asked why I pay someone elses mortgage. I probably won't be so rude as to ask why they're paying someone elses rent......but I'd like to.
10. george monsoon said...
excellent,
Lets get all those BTL properties back on the housing market and flood the blighter into collapsing.!!
11. mrmickey said...
Just had a flyer from the West Bromwich Building Society where I keep my dosh offering to pay me £200 if I can sign up a family member or friend to one of their BTL morgages. They obviously don't think BTL investment is dead.
12. Wage Slave said...
MrMickey,
But they're obviously trying to sell their BTL product a bit more.
13. bidin'matime said...
Mr Mickey - maybe time to get your 'dosh' out and move it somewhere a little less keen to lend it to fools...
14. confused76 said...
David
sorry i repost a comment of mine below. but you see, the "fundamentals" are turning against BTL. as I said many times, BTL supply is inelastic while the demand is elastic... so guess who is in a more vulnerable position... the BTLer with that huge mill stone around his/her neck
-------------------------
From the Telegraph. look at the second part of the statement by RICS. Rents may increase now, but is it sustainable?? Rental demand will suffer (i.e. you will not see people sleeping on sidewalks, but relocating to cheaper areas, perhaps more distant from their work)
http://www.telegraph.co.uk/money/main.jhtml;jsessionid=HTMMMFUKYD3GBQFIQMFSFFWAVCBQ0IV0?xml=/money/2007/05/30/cnlets30.xml
"We are seeing significant rent increases across the country which will allow landlords to claw back a lot of this extra expense," he said.
"That can't do anything but slow down buy-to-let growth as time goes on. Buy-to-let lending has exploded since 1998, but it really has been slowing down recently. The easy money has already been made. People made an absolute killing at the start, but now the sums don't add up so well."
Easy money been made.... not really... just the few that have cashed out... asset money is not real money until you sell
15. David20040_0 said...
Confused76, I want house prices to crash like crazy. I just don't this will be it. 5% really isn't all that much and I have a horrible feeling the BoE won't raise rates again. Seriously who is this Blanchflower bloke, is he nuts? Or does he own loads of properties?
16. mrmickey said...
bidin this has crossed my mind several times, I think they might already have a bad debt problem, mind you most banks will be having a bad debt problem soon.
17. george monsoon said...
And here is where they are selling them.....
check this link for all the reduced property in your area.. Just enter your postcode
http://www.propertysnake.co.uk
18. rocket robbie said...
I agree with David. 5% is nothing to get excited about. My dad has three flats which he brought between 2 - 5 years ago. I keep telling him i think he should sell at least one in case there is a crash but he aint intrested. He excepts that there might be a crash but thinks in the long term the flats will be worth more than they are know. He also uses the argument that in 2009 there will be a new fast rail link from Dover - London which will push up prices, which i have to except is a fair point. I guess as long as BTL's think along these lines then there will be no flocking to EA to sell there properties. Can anyone help with some advice on what i can say to try and change his mind.
19. confused76 said...
robbie,
the easy money has already been made, and your dad has done well buying. no need to change his mind now, but if he wants to buy more flats try to persuade him that it is riskier now
20. royston said...
I disagree with David. 5% is a lot! How much of the housing stock do you think turns over in any given year? It's a very small percentage - think about it the context of your own street - what % of houses/flats on your street changed hands in the last year? 5% of landlords has plenty of price moving power!