Tuesday, Jun 16, 2009
Plea to bail out the BTL army....
LoveMoney.com: Buy-to-let landlords deserve our help
An interesting article proposing that BTL investors deserve sympathy and a bail out too....
Posted by frank mason @ 09:11 AM (498 views) Add Comment
5 Comments
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1. japanese uncle said...
Next, we will see the League of Dog-Race Investors Requesting Government Bail-Out, or the Association of the Market Participants Losing Millions in Royal Ascot.
2. techieman said...
"Too often we overlook the fact that a strong rental sector is essential. Home-ownership is not a right, nor is it right for everyone."
true
"And while the social rental sector does a good job, I think it is vitally important to have an equally strong private rented sector, to help take the pressure off the state."
True
" The private rented sector has also been a great success in improving the standards of rental properties." Arguable
yes i have always consistently said here that if you have no plans for a reasobnably sized public sector then yes it needs to be supplemented by the private sector. I have no problems with that nor BTL making a REASONABLE return. But when they over-gear themselves and try to extort money from tennants (aided and abbeted by floors created by HB) then enough is enough.
The medium itself isnt the problem - its how its been financed, thats created an ever increasing bubble, which is no longer (in yeild terms) self financing. Time for a cull.
The properties themselves can be taken over by the lender who then arranges for another company (or their offshoot) to collect the rents until the AST ends. At that time (or before) they can just sell the property. So i see no need for a bailout. The pro landlords should have either been out or have stopped gearing some while ago. These weak landlords can hardly create a "strong private rental sector" - otherwise they would know what they are doing.
3. Loneranger said...
'Landlords on the whole do a great and invaluable job, and our property market needs them - there are currently more than one million buy-to-let mortgages in place.'
What the author fails to mention is the reason why there is a need for a private rented sector, this is because first time buyers were priced out by this greedy bunch and have no alternative but to rent!
Typical media fodder justifying the greed that has risen and spread like a plague thoughout our once community based nation. Shame on the author..........
4. mander said...
Unnecessary competition to FTBs. The activity does not create jobs and does not help the country compete globally. Not a moral thing to take the savings of a family and give a loan to a BTL who will let back the property to maybe same family. We have seen this in feudalism happening a lot.
Investment should be allowed only by building new property and not by buying up the existing housing stock.
5. denzil said...
Perhaps we should bail out every other numpty who doesn't understand the risk of certain investment types. BTL was flashing "BEWARE, BEWARE, BEWARE" in pink neon but many fools blinded by the thought of riches still rushed inn.