Friday, Jul 27, 2007
How can this cr@# be published
LSE: Buy-to-let 'helps out millions'
Dwindling supplies of social housing have helped boost the buy-to-let sector, according to a property expert. "buy-to-let helps fill the housing gap," Mr Terrington remarked. However, the article is right in pointing out the increasing 'non-profit' nature of the BTL. Thanks landlords :))
Posted by confused76 @ 12:30 PM (196 views) Add Comment
8 Comments
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1. sovietuk said...
"Population growth, inward migration and rising student numbers will help to ensure the buy-to-let market remains buoyant"
On the question of immigration, Poles and the like do not like paying high rents because it eats into the money they are sending back home. With wages rising fast in Eastern Europe they will have less incentive to come if the t*at that wrote this article had his way. The fact is ,countrywide, rents will not keep pace with mortgage payments. A very silly article.
2. wage slave said...
It's just another VI talking up the BTL market.
3. Cheekie Charlie said...
Talking about Pole's and other eastern European's, the fact that Germany's opening its doors to more of them next year may reverse this immigration. The fact that Germany is the closest neighbour and benefits from better and cheaper transport links to these country's! Also not to mention house prices haven't risen in real terms since the wall fell down and rent is kept low by law. Also Hospitals and Schools are better. The German economy will be booming years to come when ours will be put well back in its normal place. Vorsprung durch technik!!
4. paul said...
It's actually quite easy to get syndicated news published to the LSE site. Converted Lurker from FirstRung told us that a while ago.
5. confused76 said...
Check this out at the other link posted by Converted:
Moneyweek: "The problem with buying on the 'greater fool' theory, and being too scared to be out of a market because it might keep going up - as has been happening in recent years - is that you end up borrowing money to buy overpriced assets. For example, recent entrants into the buy-to-let market say they don't mind subsidising their tenant's rental payments, because they're "in it for the long-term." They don't mind potential 'short-term' capital falls, because they're "in it for the long-term."
But buy and hold is a very flawed strategy if the asset you're holding isn't actually worth the price you paid for it. And it's worse still if you are holding it using borrowed money. The 'greater fool' theory of buying and selling depends on you finding another, more eager person to sell to for a higher price as quickly as you can.
If you just sit on an overvalued asset, it's only a matter of time before the market realises that it's actually not worth what you paid for it, and marks it down accordingly. Then all you're left with is a huge debt to service, usually at a time when suddenly your job looks less secure, debt servicing costs are rising and creditors are much less sympathetic than when they loaned you the money in the first place."
6. wage slave said...
BTL = Blow The Lot !
7. enuii said...
This reminds me of something I was told about experts many years ago when an old and wise engineer to me that self proclaimed experts were 'drips under pressure', gettit ex-spurts.
Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha HaHa Ha Ha Ha
8. Hm said...
I think this actually makes some very useful points about the social housing sector.
The property market is not a graph that rises and falls in unison, within the market are many sectors.
In many northern towns brownfield sites are being turned into blocks of two bed flats that are valued far higher than 2 bed terraces, Liverpool is one of many examples. These flats have been sold to investors many of whom now realise the yield won't meet the mortgage payments and we are beginning to see them come through the auctions at a far lower price while a further 2000 or so units are coming on the market.these are not for the social housing market.
However the traditional 2 bed terraces are quietly moving up in value, I have seen many that were stuck at 60k last year now in mid 70's. These are still affordable to people earning a local wage say 21k per annum, a couple with a joint salary of 32k can easily afford them and the rents are rising say 4700pa avg still give the investor a good yield if bought a few years ago with an expectantion of further capital growth. Many of these terraces can be let as social housing with the state paying the rent.
I have read a few articles saying that liverpool market as a whole has stalled but this doesn't stack up if you review the land registry of this specific sector.
you may not agree with private landlords making money in this way but if the state is, thankfully, no longer deciding to build very ugly poorly managed state housing well who else will house these people but the private sector?
As for east europeans not wanting to pay high rents well they often share rooms
I think in this particular sector a correction is still a long way off.