Sunday, Nov 30, 2008
BTL: it's a mess out there!!
Times: Profit from the buy-to-let chaos
“The payment profile of buy-to-let lending has worsened more rapidly than the market as a whole. Reasons include falling rents and an over-supply of rental property in some areas,”
Posted by confused76 @ 04:07 PM (1151 views) Add Comment
14 Comments
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1. mark said...
reading the times today, it seems very pro housing, buy buy buy, but in reality it is sell sell sell before you lose loads of money................
2. paul said...
When ISN'T the Times shouting "buy property!"?
The reality is that the Times is extremely dependent on property advertising, so every piece of editorial reflects that view.
Journalistic ethics? Que?
3. tudorian said...
I get so very angry about the constant property ramping in the media and The Times in particular.
I hope the investors in these funds lose their money and this will serve as a warning to any would be speculator to stay the **** out of the property market
4. fjcruiser said...
"Wealthy investors are seeking to profit from the pain in the buy-to-let market...."
Who are these wealthy investors then ? if you are wealthy (mean cash rich not rich on borrowed money), you would not be buying now for sure. Yo d wait till prces crash much further. Another pent up demand vi article.Times has gone down the pan really.
5. uncle tom said...
After the 1929 crash, more money was lost by people calling the bottom too soon than was lost from the initial crash itself.
As the propery market descends, there will be plenty calling the bottom too soon and getting their fingers burned in the process, but don't worry about it - their numbers are too small to make a significant difference.
And yes, you will see journos with a vested interest trying to get everyone (bar themselves..) to buy - their desperation is almost comic..
But again, dont worry, they won't change things.
Remember, the more that call the bottom too soon, the better the pickings when the bottom is finally reached..!
6. plato said...
So these 'wealthy investors' are picking bottoms in the quest for profit! ....... Nothing different here then!
7. gone-to-colombia said...
I don't see there being anything wrong in buying low to make a profit, that's just the system we live in.
What I do question is the timing, it's far too early in the crash for such investment. I suspect that the real deals will be made at discounts of
75% or more.
Buying into one of these funds is like making a bet on future property values, it would be foolish to bet at a moment in time which will be looked back upon as a turning point,
a hinge around which our economic history turned. Anything is possible withing such a revolution.
8. stillthinking said...
Things will kick off next year. This is just the beginning. The UK government plans to borrow 6% of global GDP. Either we will have a massive inflation problem or a stunning loss of house values.
Keep your powder dry.
9. last_days_of_disco said...
@uncle tom
You are spot on. More money is going to be lost with people piling in too soon than has been lost because of the crash.
People will just not believe where this thing is going to settle because they have excuses for why its not really leverage that
has driven house prices. House prices were driven by leverage, plain and simple.
There are going to be loads of ghost towns. I must get some pictures of a wreck of a house close to the centre of Luton. Its only one place, but its emblematic. Gutted, boarded up, then broken into again and gutted completely, windows broken, etc, etc.
10. growler said...
The Times ---> property? Surely not the same Times as part of Sky as part of Murdoch empire, which probably doesn't own much real estate in the UK, USA and Australia...
11. mountain goat said...
"Profit from the buy-to-let chaos" - only way to do this is sit on the side lines and what it unravel in the next 4 years.
12. Charles Turner said...
The property crash is only just starting.
Remember Lehman Bros only went down 10 weeks ago. This is the catalyst that is unwinding all the derivatives worldwide and ceasing up the credit markets.
How long does it take on average to sell a house and complete?.... 10 weeks.
So it hasn't started yet! The real gloom will come about when figures from the main indexes are published end of Feb.
13. amjidk said...
i was planning to jump in and but at the end of 2009. i'm beginning to wander if i should wait a further six months... any advice??
14. gone-to-colombia said...
amjidk - I felt like you that late 2009 would be a good time but now I think it will be too early. Advice right now is difficult to offer, what we are facing is a once in a lifetime event, there is no way of knowing what will happen. My guess is that the price falls will take much, much longer.