Wednesday, Jan 28, 2009
BTL latest - amateurs versus professionals
FT: Fifteen per cent of amateur landlords making a loss
While 100 per cent of professional landlords have managed to make a profit despite the credit crunch, 15 per cent of amateur landlords have made a loss.
According to new research by Business Development Research Consultants (BDRC), there is significant polarisation in fortunes between 'amateur' private landlords (those who own four properties or less) and 'professional' private landlords (those with more than 20 properties).In total, 7 per cent of private landlords questioned had been involved in some repossession activity by a lender in Q4 2008. A further 4 per cent had missed at least one mortgage payment in 2008.
Posted by jack c @ 11:16 AM (552 views) Add Comment
5 Comments
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1. drewster said...
It's early days yet in this recession. Unemployment has only just begun to tick up, and many are still going through the redundancy process and spending their redundancy payments and their savings (or running up credit card debt). As employment begins to bite, all landlords will feel the heat.
Based on the professional landlords I've met, I reckon they just told barefaced lies to the researchers.
2. wdbeast said...
I think you will find that if capital depreciation is taken into account, they have all made a whacking great loss!
3. will said...
wdbeast - my sentiments exactly.
4. timmy t said...
What drivel. So if you own 4 or less you are amateur, and if you own more than 20 you are professional. By definition you must be one or the other, so what are you if you own between 5 and 20?
And yes wdbeast - completely agree also. Even the banks are making money on their P&L's - but you include those lovely write-downs and the picture aint so pretty!
5. plato said...
All the 'amateurs' will lose money as their properties reach the bottom.