Saturday, Mar 15, 2008
Sqeeze on BTL finances (period)
Guardian: Squeeze is on, but deals are still out there
"Life is undoubtedly getting harder for the army of amateur landlords who have turned to bricks and mortar as an alternative to investing in a pension. Falling property prices and a clampdown on mortgage lending have dealt a blow to the buy-to-let market, with some landlords now finding it increasingly difficult to make the numbers add up. But this ill wind is blowing some good their way. The very factors buffeting them are also putting the squeeze on wannabe first-time buyers, forcing many of them to continue renting." This is called "race to the bottom" and I cannot logically understand how a general liquidity squeeze (affecting disposable incone) can benefit landlords
Posted by confused76 @ 01:18 PM (531 views) Add Comment
5 Comments
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1. Wyldman100 said...
Someone needs to put a stop to this argument that because first time buyers can't afford a house then rental demand will increase. I'm a potential first time buyer who rents, prices are too expensive for me so I am going to continue renting the same property I am in. I am not going to rush out and rent more than one property therefor the demand stays the same. Some people will be leaving home for the first time and maybe renting their first house or flat share but is this realy going to push up demand to such an extend that buy-to-let is an attractive investment opportunity?
2. who stole my pension? said...
As the recession bites, people will loose their jobs and thus they will no longer be able to pay the rent. In additon, the FTB's are not daft, they know prices will come down, so for now they will rent until the bottom of the market is found and they feel safe that their job is secure.
3. Axxo said...
The point is that if everyone is sitting out waiting for prices to come down the rental market is swamped with tenants, pushing the rents up, Buy to Let landlords are seeing prices reduce, even enough to balance the books on rental income to mortgage outgoings and professional ABC1 tenants willing to rent and pay top rates!!
4. Titaniccaptain said...
Bear Stearns situation could speed this up alot quicker than expected......dont know how anyone could consider buying a house at this point in time as an investment...if you forget about the finacial logistics of the B.T.L. market then the consumer confidence is going to be the biggest problem....the word on the street in every pub cafe etc. is negative. By the way good to see Merthyr Tydfil having the highest percentage rise in the u.k. per square metre after location location location degraded it. I am not Welsh but lived in Merthyr Tydfil for a few years and there are alot worse places to live infact the people are very friendly and virtualy no knife or gun crime that cant be said for alot of places in the u.k. these days...they love a clean old fasioned scrap though lol
5. geed said...
Titaniccaptain......"I am not Welsh".....Bet you wish you were though......2008 Six Nations Gland Slam Champions!!!!!! Sorry couldn't resist, forgive me wooohoooo!