Friday, Oct 12, 2007
Tonight 7pm: BBC2
BBC2: Buy to Debt
Fri 12 Oct, 19:00 - 19:30 30 mins
Buy to Debt?
The buy-to-let boom has transformed the property market and turned plenty of fledgling property tycoons into millionaires. But with confidence in the mortgage business shaken by the Northern Rock crisis and rising interest rates is the boom finally over? Reporter Libby Potter traces the rise of this £100 billion industry and tracks down investors The Money Programme has filmed in the past to discover whether their buy-to-let dreams have turned into a buy-to-debt nightmare. [S]
Posted by doomwatch @ 01:01 PM (1020 views) Add Comment
10 Comments
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1. crash bandicoot said...
These folks are more property collectors than property investors.
2. sold out said...
I Have watched this program and i have to say these BTL people,they are just horrible evil people.They have created this huge propery bubble and our goverment has just allowed it to happen.It really is absolutely sickening to see these people with there huge portfolios of properties driving round in there bentleys whilst good decent honent young people who have studied to become doctors,nurses,engineers,teachers have no chance of buying a place.And still the goverment continues to give these people tax breaks ( the recent reduction on CGT from 24% to 18%).I just hope that this tax change is gonna really going to backfire on bottler brown and is going to accelerate the sell off by BTL crowd in April.In 6 months time after a further 7 months of slowly falling prices the sudden rush for the exit by BTL investors could be the final nail in the cofffin for property.God i hope so.Also lets not forget that the last HPC in 89 was triggered by the changes to Miras in Aug 88.
I am sorry but i will not have a single shred of sympathy for any of these BTL spiv parasites who are going to be going bankrupt soon.And the same goes for all the rest of there associates and partners in crime,estate agents,morgage advisors,financial advisors,property developer/builders,property porn show hosts you can all go to HELL. aaaaaarrrggghhhh i am so angry.
3. Techieman said...
I watched it and i feel kind of sorry for everyone involved. Even the guy with the Bentley - where did he get that suit! I hope he womn the bet . Even with "£8m" you cant buy class!! It sounds to me like they were even justifying what they were doing by being "white knights" to rescue people from the repo man " a win win" what a complete moron that guy was. I really didnt understand the guy that was from somewhere up north he was saying "buy premium bonds" rather than invest in BTLyet here he was with negative cash flow (which seemed to be getting more negative) and which he wasnt offsetting against his appreciation (i.e. he wasnt liquidating).
It was sad to see the young mortgage broker (talk about putting your eggs in one basket) who went bankrupt - he seemed level headed (well maybe before he was full of it and the bankruptcy brought him down to earth). The idiot that got my goat was the asian guy with glasses "this wasnt what we wanted" - Really? Of course not!! What you wanted was to buy some property make someone else pay for it and cash in. Did he say "its only appreciated 10%"? Perhaps they understand now that there is risk in property but i just think they will blame everyone else. Clever when they go up and someone else's fault (building societies, uncle sam, government etc) when they go down.
What i liked is that the 'mindless' tenants no longer seem so 'mindless'. Unlike sold out i doubt if Mr Bently will go bankrupt - it basically depends when you bought - if you are lowly geared from existing equity (and the yeild covers you), then since the yeild will go up) i doubt there will be a catastrophe. If on the other hand you bought most of the property recently (last 2 years) or have re-invested equity to become more highly geared (aka greedy) which is what the graph seemed to show (either new punters or reinvestment) then we really are talking house of cards from which none of the BTYLrs are safe. I dont mind people trying to take advantage of a situation that they recognise in 1996 - 2000 but if those people cant wake up and smell the coffee and get out when they should (i.e. near the top - assuming most people on this site are right) then they have only themselves to blame. But will they?
These people really are amateurs they dont know any history perhaps most of them think Charles Mackay used to play for Tottenham!!
4. Randomkevlar said...
O Come now Sold out, did you not free a a slight pr:ck of sadness towards the young bankrupt man who has no friends left because he went bankrupt owing them as he put it 'large sums of money'. At least inbetween sniggering and mouthing greedy bar steward at your TV
5. Randomkevlar said...
oh and by the way the fact you can not use the word pr:ck in the correct english language sense is very annoying and frankly a sad reflection on the state of the blah blah blah blah
6. down wave said...
Just another spin by the BBC. It took them some weeks maybee months to make that program.These guys on there are so helpful, so well meaning, so Very Nice & Loving but they are at covert hostile level of consciousness. They are actually engineering their own down fall and the property crash. Just like the man and that I can't remember his name that covertly sold short and engineered the 1929 stock market crash in New York. The last 8 years are equivelent to the complacent roaring twenties and the Great Gatsby bond scandle. Same meat, just different gravy. Go check propertysnake it is now up to 86,000 discounted properties reduced in price some as much as 45%. 'Sold Out' Please don't get angry, it will put up you blood pressure and increase cortizone release in your stomach, stay calm and have a drink. Good Luck and Good Night.
7. Baudot said...
New Labour are not just allowing BTL to fuel the house price bubble, they are positively encouraging it. The existing generous tax allowances for BTL are recently further subsidised by more than halving Capital Gains Tax from 40% to 18%. With repeated raids on private pension funds, introduced almost immediatley Brown moved into No11, an increasing number of people have been cajoled into investing in property for a less insecure retirement.
With a poor showing in the recent polls NuLab want to keep the votes of the property owning generally older generation made wealthy by this bubble. There is little concern for the priced out younger generation since youngsters tend not to bother voting. Expect more tax incentives attemting to keep this sorry bubble inflated to follow in 2008.
8. Pendulum said...
Most of the interviewed were suffering and admitted that further gains in BTL were unrealistic, and anyone getting on this bandwagon now would be likely bankrupt shortly after. Sure we will see a downfall - it's the only way the big players can make decent money, by engineering booms and busts - with the foreknowledge of when to buy and sell. Just like stocks (my previous company engineered several share tumbles via misinformation, etc), except we've been brainwashed by property hysteria, and now it's time to hit the reset button cos the real players can't squeeze any more blood out of us. And so it starts over.
9. Janos Abel said...
Don't forget the real winners, the banks, laughing all they way to their cash box. A new lending market was handed to them on a plate by the government changing the laws about sitting teneants.
The bank never loose come rain or shine. When they do get into trouble, the government comes to the rescue.
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