Tuesday, Oct 09, 2007
BTL is set to crash the market
Times: Analysis: Mortgage lending
"The slowdown in the residential markets is one of the reasons behind the continued strength in buy-to-let. Thousands of people cannot afford to buy and many are reluctant to take the plunge now, in case prices fall. Demand for rental property is therefore strong which helps explain why buy-to-let lending is still on the up." Obvious conclusion: brainless BTLetters are subsidizing the tenants. if people CAN afford to pay the rent, but CANNOT afford to buy, it means that renting IS CHEAPER. But "In recent weeks, a number of buy-to-let lenders have tightened their criteria." So, who will prop up the market after the BTL are gone? The BTLs are the "last fool"!!! Ah ahah ahhha ahhahha ahahhah
Posted by confused76 @ 06:07 PM (465 views) Add Comment
3 Comments
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1. alan said...
A couple of people I know are looking to get into BTL. Having told them it's not the time to do it, they have still gone forward.
I guess if you really want to do something, you will - despite stats, common sense and wise advice!
2. Peter_james said...
(replying to confused76: "if people CAN afford to pay the rent, but CANNOT afford to buy, it means that renting IS CHEAPER")
This is only true if everyone who can afford to buy can get a suitable mortgage.
A mortgage is paid off eventually, rent still has to be paid. Also which will go up more, rent or interest rates.
3. sirgoogle said...
If the BTL boom continues the BoE will probably raise base interest rates to 6% by the end of the year
I think that a lot of people are getting cocky about a rate decrease in Nov - as the Fed dropped the US rate and many beleive that we follow the US in every trend. However I think that the Fed will rue their decision as the Dollar is toast. The Pound is very important - if that falls against other currencies then the debt the nation owes to foerign banks will go up - making the problem much worse.