Thursday, Sep 20, 2007
Press tries to prop up the BTL market
Tgraph: Buy to let outside London has potential
read just for a laugther. they mention decent yields and low capital if you buy e.g. in Swansea. Why not money on trees and flying pigs too?
Posted by confused76 @ 02:43 PM (852 views) Add Comment
16 Comments
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1. Thirdwave said...
The article talks about 'young professionals' moving to Swansea..TO DO WHAT??????
2. Realist said...
My sides are aching. The yields on those flats in swansea would be chronic.prices are high and rents are very low as few people have well paid jobs in that area.another well researched article.
3. Davros said...
That is desperate.
4. Drewster said...
I'm laughing at the mention of Liverpool in the article. The city's economy hasn't properly recovered since containerised shipping decimated the dock-hands' jobs. The city centre skyline is covered with cranes as developers build thousands of new flats, but some 35% are lying empty. Old office blocks are being converted into apartments because there are no companies to occupy the offices but plenty of investors willing to snap up shiny new flats.
For more on how 35% of Liverpool's flats are empty, see this article from the Liverpool Daily Post in April 2007:
http://icliverpool.icnetwork.co.uk/0100news/0100regionalnews/tm_headline=35--of-city-centre-flats-are-empty&method=full&objectid=18953338&siteid=50061-name_page.html
5. Robert Mugabe said...
Well they would be welcome in my country.
Gordon Brown, Mervyn King and I have discussed this at some length. Once we have bankrupted our countries then we are going to sell them to our creditors.
6. alan said...
How kind of the newspaper to provide all the sellers details and phone contacts. In the old days these articles had "advertisment" on the top of the page.
I know there is demand for waterfront flats in Docklands, But I didn't think many people would want all those one bed flats in Ipswich. There are quite a lot going cheap in Colchester too, after reposession.
7. Quiet Guy said...
"as their confidence grows, investors are beginning to purchase properties they have never seen, in areas they have never even visited."
Insane. Absolutely insane. The developers and estate agents will be sharpening their shears for BTLers dumb enough to buy property in an area they know nothing about.
8. Melanie said...
I'd rather put my money in Northern Rock!
9. Rob said...
if banks are to blame for the mess we're in then the general public and the media should rank still higher in the list of responsibility. the general public for being so stupid and the media for allowing someone ( who claims to be a journalist, but is clearly just out of school) to be led by the nose by people like Holden - who gets a name check 6 times.
So if a property costs 350k and you take a loan of 75% and get rental of 1500pm, please tell me how that works? after agents costs the income is less than 16k and that assumes no repairs! that would cover about 60% LTV - and that's before inflation takes off. There should be a professional qualification for Personal Finance journalists - and if I see the name Boulger quoted any more times by gullible journalists, I shall cry!
10. harold said...
"The article talks about 'young professionals' moving to Swansea..TO DO WHAT??????"
Errr, DVLA?
11. crash bandicoot said...
It comes to somehing if you need to take advice from Assetz. Apparantly you will struggle to get more than 5-6% Gross yield. I'm with Melanie put your money in Northern Rock, at least they won't ask for a 25% down payment.
Another thing, is there anwhere in the south east that hasn't been over-hyped in the last five years? I would imagine the fact that studio flats are "only" £100k in Hastings pretty much means that nobody wants to live there. Is that a good basis for buying a rental property?
12. planning4acrash said...
Next we'll here about young professionals seeking 200k penthouses in Penzance, taking advantage of long distance trains direct to central london and the benefits of tele-commuting from the comfort of one's arm chair/beach/surf-club.
13. Value said...
Still can't stop laughing...
"You can still buy a studio flat in Worthing for under £100,000"...in no way is this overpriced compared to the average local income.
Missed the boat in 2000? No worries. You too can build an "investment" portfolio, made up of the cheapest properties, in the cheapest towns, in the expectation that they too will overcome their severe economic problems and will appreciate in value for the next ten years on a par with the past ten. You will of course have no problem letting these highly desirable properties out and will make huge profits.
Swansea?! Ipswich?! Clearly my lack of optimism and far sightedness is the reason I am not as rich as these unnamed "investors".
14. Freewheelin Franklin said...
Have a look at Liz Hodgkinson's website http://www.lizhodgkinson.com/
She writes books about property, sex and sex changes. It's a good combination.
Now Liz, what happens to your book sales if people stop selling houses? I think people stop buying them and you stop earning royalties. I hope that doesn't influence your journalism and prompt you to write pieces about how buy to let opportunities still exist in the armpits of Britain.
15. The Baldman said...
Crash Bandicoot: I would not pay more than 20k for a flat in Hastings!
16. tyrellcorporation said...
It is bonkers isn't it. I blame these stupid 'Escape to the Country' programmes - or as I like to put it, 'Committing Countrycide'. I live down in Exeter in Devon and basically all my work comes from London, Bristrol, etc. Luckily I can do most of it over the internet but as far as business down here is concerned, forget it. 45% of Exeter's working population is employed by the State! The rest is a mix of Yummy Mum's from Islington, bleary-eyed stigs drinking Frosty Jacks on street corners and the largest contigent - retired people.
People moving down here with thoughts of commuting to London are deluded as transport in this country is non-existent or extortionate. The fastest train to London is a couple of hours but will cost £150 return! The coach takes almost 5 hours!!!
Another ruse is to pursuade people to have a flat in London and a country retreat - great if you like spending Friday and Sunday evenings in a traffic jam! Totally insane if you ask me.