Thursday, Mar 20, 2008
... and the role of BTL in accelerating the crash is clear
Mail: The middle-class 'property tycoons' now burned by buy-to-let
What a disaster! I a way I feel sorry for those who have put lifetime savings into property. The nasty side of "leverage" in a down market is going to erode the gains of the past few years very quickly. It ll end up in tears! They will soon realized they are subsidizing tenants and have lined the pockets of bank managers.
Posted by confused76 @ 09:43 AM (1103 views) Add Comment
26 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. hpwatcher said...
I don't give a damn about any of these people. They are the vampires - these and the 2nd home brigade - that have helped created this whole mess.....and price really worthy & essential buyers i.e. firemen, nurses etc completely out of the market.
I hope they fry.
2. Landedgentry said...
Lovely news, music to my ears, so glad I avoided the whole BTL thing, almost got suckered into it a few years ago with all the "small island" BS VI propaganda.
Time to sit back and enjoy the "fools go bankrupt show!. You Mugs!!!!!! MWHHAHAHAHAHHAH AHAHA HAHA AHA AHAHAHA HAH AH AHA (sorry confused I couldn't help it)
Any BTL fool thats reading this, your games up, don't even think of comming on hear telling us all that were missing out, there are a lot of people on here that now have more than a possibility of owning a property (perhaps yours). I could have easily afforded some even at the astronomical prices asked last year, but chose to wait. Thank god I did.
Going to love the next few years !
3. wage slave said...
This is the most damning BTL article I have seen so far in the mainsteam press. It could have been written by one of us, that's how bearish it is.
But I don't remember any BTLers sheding any tears for the millions who they priced out of buying a home while speculationg on their 'portfolios', so I'm with hpwatcher - no mercy.
4. quiet guy said...
Wow. Which is more bearish: the Mail article or the readers comments? This article is a good indicator of where the herd will go next.
5. Jackas said...
There is not a single reason to feel sorry for these people.
Greed, ignorance and folly. A devastating combination that will have devastating consequences.
6. jack c said...
"the total outstanding UK buy-to-let debt is some £122billion - that is the equivalent of the Gross National Product of South Africa - the figure is astounding.
People might now get the message - a major correction is inevitable
7. Papabear said...
But... but... but... the immigrants, the divorcees, the sound economic fundamentals, supply/demand... Stuartz Lawz wishful thinking... surely those will keep prices going up forever and ever amen!
8. Chilli said...
As horrible as it is for them, they have arrived at this point by a combination of greed and stupidity.
Greed is not such a terrible sin, but stupidity... They deserve to fry!
Caveat emptor - after all.
9. Renting2 said...
Don't forget, estate agents and mortgage providers made money on the way up and, because the houses will be sold via estate agents and probably bought using mortgages/finance, they will make money on the way down too. Debt collectors and bailiffs will then sweep up the difference.
10. Hopeless Ftb said...
vampires! exactly!!!
even worse!
they now complain that everyone is talking the market down so the prices will drop for lack of confidence. well, when everyone talked the market up and i got priced out no one was complaining, were they?
now even my bulliest friends concede there is a chance of a correction, and prices will not certainly go up in the coming years. Till last summer they were convinced it would never go down, always up 20% a year...
11. Island Of Sanity said...
Excellent summary of the situation - the fact that this comes from someone like Daily Mail which a lot of middle England reads means its fully impact will be felt widely.
Anyone seen any comments on the London apartment B2L market - lot of development happening on the riverside here as well
12. cyril said...
anyone remember Glorious Sunshine? What happened to him? (it was a him wasn't it).
13. Mr Smith said...
surely if these flat are selling for half price now is a good time to buy one.
if you buy one at 100000 and then offer rent at 500 per month, you can cover your costs and not get voids becuase you are under cutting the rents of other BTL's. still I suppose the thing is maybe in 6 months you'll pick one up for 70k. At some point though it will make financial sense to buy some of these distressed BTL repos. the question is when.
14. daft boy said...
The BTL brigade are a cancer on our communities. Let them all burn nice and slowly causing maximum pain as an example to others in the future. Please do not show any pity for these parasites.
15. titaniccaptain said...
They will be lucky if it goes down 20% this year alone....I think that it could go down alot further and quicker than we dare mention on here. Confidence in the market/The tighter lending by banks (whilst they still exist) will really knock the S##t out of the house prices.....People say house prices drop by 10% when they are 50% overvalued...house prices are not going to drop from their real value they will drop to their real value
16. hpwatcher said...
they now complain that everyone is talking the market down so the prices will drop for lack of confidence
We will all doubtless end up in prison.......
17. titaniccaptain said...
I think I will rent out half of my cell for 2 packs of ciggies a week....in two months its got be worth 3 packs....
18. Uncle Fargas said...
I do think though, that there does need to be some regulation - to save the terminally stupid from themselves and sharks like Inside Track etc.
19. mark wadsworth said...
You can laugh all you like at the BTLers who are still in it, but I'm guessing the professional vampires (i.e. me) banked their winnings a couple of years ago and sold up.
20. sold out said...
On the subject of BTL's my feeling is that you cannot really catagorise all these people together and brand them scum etc,although some most defineatly are.There are some BTL's who have lost there pensions thanks to gordon brown (mr stability) and have then been poorly advised and invested in property at the wrong time and thats a shame.Hopefully Regulation of the property investment industry will be forthcoming soon and Estate agents etc will be forced to comply to financial guidlines similar to other industries and hopefully companies like Inside track will be made illegal.
21. Hurry_up_and_crash said...
It seems at the moment prices are being priced by estate agents slightly lower than they have been, but they are just not selling as noboby wants these properties or if they do cannot get financing for them. I think the situation will stay in limbo for a short while until something budges. That something will be repossession as current landlord's funds for subsidising on there mortages drys up altogether. Basically auction / repossession prices will set the general market price very soon.
It is human nature to try to better oneself and the BTL crew choose to do this through buying housing in the believe it would give good returns. It clearly hasn't worked for them and that's that. There is no need for all this 'burn in hell' nonsense going on.
People have taken a gamble with their money and savings and have lost. Let that be there punishment - not all this crack-pot fire and brimstone rubbish. It doesn't give the house price crash course any credit at all.
22. titaniccaptain said...
Hurry_up_and_crash
Well Said
23. sold out said...
i agree all this "burn in hell" nonsence is daft and is a bit nasty and vindictive, however there are some in the BTL brigade who deserve all they get in particular people that are "flipping" properties(Rosie Millard and her ilk).There are many small investors out there who have just been badly advised and we should feel sorry for them along with any ftb's who have bought in the last 3 years,simply because they where gullable enough to believe the VI spin. BTL's are not the only speculators in the property market,surely STR's are as well.
24. Fools said...
21. Hurry_up_and_crash said...
very well said
Some of the other posters on this link need to have a serious word with themselves!!!
25. Unplugged said...
We all have little choice but to gamble within a system designed by someone else. Some have no idea they are gambling. Those who understand the system come out on top along with those who got lucky. Everyone else loses out. Survival of the fittest.
26. paolo88888 said...
Mr Smith,
You have provided the only forward thinking reply! the question is when ... Suppose the rent is £600/month or £7200/year. Deduct some for maintenance, ground rent, service charges, letting agent fees, voids, administration, leaving say £5000. Perpetual investment grade bonds of major banks now yield over 8%. There is risk of default, but BTL has risk of things like really bad tenants. So arguably they have a similar risk profile. If £5000 is 8%, the flat must be bought for £62500. Bit of a way to go yet then!