Thursday, Sep 27, 2007
Christmas time for the buy to letters
MoneyFacts: Credit crunch biting buy-to-let
“The outlook may not be all doom and gloom for the buy-to-let landlord, although borrowing costs are rising, yields are beginning to fall and the potential to gain from capital appreciation is declining. If the residential mortgage market sees increasing arrears, repossessions and first-time buyers continuing to be priced out of the market, the demand for rented properties will undoubtedly increase.” ... sorry, why it is not ALL doom and gloom?
Posted by confused76 @ 05:14 PM (466 views) Add Comment
4 Comments
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1. inbreda said...
It is a rather pathetic attempt at spin.
Any time now they will start saying "pleeeeaaaassseee" in a whiney voice
2. paul said...
The coin can't be showing heads and tails!
There's no way that buy to let will increase by the exactly same amount as demand for buying goes down - that's ridiculous. People look to save money by renting - and in doing so, put the estate agents out of business as a by-product. And this is just choicest rubbish:
"If the residential mortgage market sees increasing arrears, repossessions and first-time buyers continuing to be priced out of the market, the demand for rented properties will undoubtedly increase"
But if that happens, sales will fall and prices will drop like lead weights, adding pressure on buy to let landlords to throw the towel in and creating more sensible buying opportunities for priced out FTBs, therefore reducing demand .... for rented property ...... i smell bulIshit
3. inbreda said...
Quite. FTBs by definition haven't previously bought which means they have presumably been renting. So if a FTB cannot afford to buy (i.e. cannot afford to actually become a FTB!!!) then they will go from rented accomodation to rented accomodation. i.e. zero additional demand.
It is reports so blatantly rubbish such as this that absolutely convinces me that house prices will crash.
You can have all the intellectual argument you want, but it is not until you realise that the market is being propped up with nothing more than idiots who buy this kind of guff that you realise that it is bound to end in spectacularly messy fashion.
4. Richard said...
What do people do when they cant sell their property? Yep u guessed it they will remortgage to buy elsewhere and let their properties = massive oversupply of rental property. As the cost of living increases, - my generation - people in their 20s and 30s will move out of rented (or repossessed) accommodation and back to the bank of mom and dad.
Any increase in BTL yields will be short lived ........ so yes it is all doom and gloom for the BTL investor.