Thursday, Nov 08, 2007
Sanity returns to the credit market ....
Firstrung: Buy to Let investment a 'dead duck' unless you have a 65K deposit - RICS
The buy-to-let market is now so inaccessible to the average investor that only the wealthy can afford to be become landlords, says an RICS report published today. Barriers to entering the buy-to-let market, driven by interest rates and levels of rental cover ratios for mortgages; have made investment an unattractive proposition for vast swathes of the population. In the current climate, would-be-investors need to lay down a deposit of £65,600 (30 percent of a property's value) for the average UK house in order to get a foothold on the buy-to-let ladder. This compares dramatically with the £10,100 (only eight percent of a property's value) required in Q1 2002 - a deterioration of over 500 percent in 5 years.
Posted by uncle chris @ 07:35 PM (531 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. harold said...
And even if you had 65K, why on earth would you want to loose it by buying a BTL 'investment'?
2. confused76 said...
Please, play in the following order:
http://www.geocities.com/hollywood/cinema/3313/laugh.wav
http://www.geocities.com/hollywood/cinema/3313/laugh.wav
http://www.geocities.com/hollywood/cinema/3313/laugh.wav
http://www.geocities.com/hollywood/cinema/3313/laugh.wav
http://www.geocities.com/hollywood/cinema/3313/laugh.wav
3. Stevie Dee said...
My landlord is a charetered surveyor, I told when I moved in that house prices would fall, sure enough she is now selling up, I hope my depsoit remains safe. TNot even under the government bond scheme.
4. planning4acrash said...
Its one of those moments where you would sound like a total a$se if you said "I told you so!" But, heck, why not?! Mwahhaaahahaah!!!
5. crash bandicoot said...
Just to remind myself how stupid some folks can be I have been watching property ladder tonight. Sarah Beeney asked the couple why they wanted to be property developers. After a pause for thought the best they could come up with was "because everyone else is doing it".