Monday, Mar 29, 2010
Is this a good or bad sign?
Love Money: Buy-to-let investors are drowning in debt
Increasing numbers of landlords are deep in the red, and that’s a disaster for all of us.
Posted by mr g @ 12:55 PM (1612 views) Add Comment
11 Comments
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1. smugdog said...
MrG, why is it a disaster for all of us?
2. magnifico said...
A good tenant is worth his/her weight in gold to a landlord even more so if thet're struggling.
If a good number default, apart for a short-term difficultied for the renters, it will create a situation in which the chances of owning a property increase.
3. mr g said...
@Smugdog "why is it a disaster for all of us?"
I couldn't possibly comment, it's the author's viewpoint, not mine, if you read the article.
4. righttoleech said...
author is scared.....he doth protest too much, he is keen to ensure we know he is not BTL LL...probably mewed up to the eyeballs. How dare he beg for baleouts of BTL landlords. Despicable VI desperation, all the self pride of a benefits fraudster.
5. mark wadsworth said...
There is a most excellent/stupendously wasteful* system for bailing out BTL landlords - what they need is for the tenant to lose his job, and hey presto, the rent is henceforth covered by Housing Benefit. So if you're working and struggling to pay rent, you'll get kicked out, unless you can get your bennies sorted before the landlord chucks you out, in which case you are both laughing. At the taxpayer and the mugs who actually go to work and pay rent.
* Delete according to taste
6. Sugarflux said...
The article itself is absolute tosh suggesting that landlords in trouble should receive a bailout. Let nature take it's course. If landlords are in trouble that is of their own doing borrowing more than they can afford and taking a risk. Landlords who are not in trouble and have not taken so much risk will thrive whilst the buy-to-let market will be cleared of business-incompetent risk-takers. Evolution at it's finest. However, the comments at the bottom of this article are well worth a read :0)
7. down wave said...
If the tenants of BTL landords joined in on the current mood of industrial action
by going on a rent strike or took rent go-slow payment action, it should help to
reduce house prices.
8. uncle tom said...
Printing money (QE) begets inflation (eventually..) begets higher interest rates begets lower house prices begets bankrupt BTLers..
..it's only a matter of time..!
9. timmy t said...
The article is just utter garbage. He says there's a property shortage which would mean supply < demand therefore rents go up therefore landlord sorted. What he should say is there's a shortage of property at a price people are willing to pay, so landlords can't let their properties at the price they need to in order to cover their costs. Does he want us to feel sorry for these get-rich-quick property empire wannabies who didn't know what they were doing and bought at stupidly inflated prices and are now going the toilet... Well I don't. Let them burn I say. I'm just sorry our corrupt government loaded my kids/grandchildren/great-grandchildren up with so much debt trying to keep the scheme going for so long.
10. cyril said...
the basis of the article is a 'survey' by iva.com - a company which specialises in personal bankruptcies. They probably just asked round the office if anyone had come across a BTL landlord was struggling with his debts.
11. landofconfusion said...
"They probably just asked round the office if anyone had come across a BTL landlord was struggling with his debts."
And they found the article's author.