Control Freak

Dave, Thanks for the info on Gearing. With respect to a falling market (scenario 1), that is my point exactly - I would effectively be in negative equity, BUT, if the yield on the 'initial' investment was sufficient then this would not matter - I think of it as a bank account where the money 'in the account (equity)' can go up or down (at the banks discretion, say), but the gross yield (not % yield on the equity present) will stay the same. As long as I do not need to release the equity there should be no problem. With scenario 2, it would not matter either - it is the gross yield that I would be interested in. The bonus would be that the equity would not decrease. It is the case of purchasing multiple BTL's on the back of the initial investment(s) that is of interest to me. This is where scenario 2 comes in to play....... Timing..... BBB (or any other LL's out there), am I (sort of) correct with my musings, or way off beam?? CF

Dave, I agree that if I buy in a falling market then bailing out will be a tough option, which is why I asked the question of a 'critical' point/conditions when it is worthwhile to buy (hence no need to bail). People speak about 'Gearing' on this site. What is this?? From my (very) limited unterstanding of this I give two scenarios: 1. Buy in a falling market (30% deposit, say). Would this mean that I would not be able to use the equity (as the price will have fallen!) in this first house to purchase another 2. Buy at the Bottom/Near Bottom. Would this mean that I would be use the equity in this first house as a basis of purchasing another Is this how it works?? I dunno Give us a clue!! By the way, anyone know why my picture does not show up?? CF

Hi, Assuming that in the near/distant future I wish to BTL, then what are the criteria that have/need/recommend to be met for a good investment (I recognize that this need not include HPI)?? I cannot afford to do this (and wouldn't) at present, but say prices are dropping (I know some Bulls say they may not, but humour me ), then, at what point does it become a worthwhile investment? Is there a critical point (and what is it??) at which it turns from a bad investment to a good one (a strong enough cushion on the yield% to cushion against IR rises, etc)?? Is it worthwhile holding out for the bottom/near bottoming out of the housing market (humour me again on this that there will be a bottoming out) before investing (thereby maximising yield)?? Of course I will do extensive research into this nearer the time, but in the meantime your thoughts would be appreciated. CF

Hi, Could someone please post the full article - I do not have access to the web page (probably as I am located outside the UK). The free registration does not work for overseas access - I know, I have tried Thanks. CF

"GBP down then USD down. USD may go up short term because of up cycle in IRs...... move all savings out of GBP" Hmm, but do not move them into USD!! - as this will follow the GBP fall??

I was speaking to an EA over here in the US, and he was of the opinion that the house prices would drop 20% (on average) over the next 2-3 years. I am considering staying over here long term, and hence want to buy, but looks like I would be wise to rent for another year first . I hate renting!!! Any thoughts on where the dollar is likely to be heading in the next year or so - I have some capital in GBP, and was wondering when the best time would be to convert it to US$. The high house prices over here cannot be attributed to low supply.

1) Market view (Bull or Bear): Bear 2) Market postion (Prospective FTB, Owner Occupier, STR, BTL, etc): Possibly a Prospective FTB, but may stay in the US (job dependant) 3) Area of Country (South East, London, Wales, etc): The land of the free 4) Occupation and Employer (leave employer blank if confidencial) Control Engineer 5) Highest Level of Education (GCSE, Degree, PhD, etc) Masters Degree 6) Age (or age group): Late 30's

1. 40K 2. 10K 10. 55K