mbga9pgf Posted January 22, 2009 Share Posted January 22, 2009 http://www.singingpig.co.uk/forums/thread/702570.aspx http://www.singingpig.co.uk/forums/thread/701659.aspx AntonI agree that there is an opportunity right now, but there are risks too. Where we have our portfolio (30 miles out from Central London), asking prices in the Estate Agents have dropped 35-40% from their peak and that’s in just over 12 months. I think it is quite possible that they will fall significantly further. Why not a peak to trough fall of 60%+? It’s possible that you could buy now at 50% below the peak (which would probably feel like a good deal) and you could end up in negative equity in 18 months time. Not in itself a problem, but how about if interest rates were up at 10-12% and your property is then giving a negative cash flow? It sounds unlikely, but look at where we are now and how things felt in the summer of 2007. Historically, house prices have followed employment and lagged the economy, so they not going up any time soon. We’ll probably start looking again once the lead indicators, like the stock markets and maybe the US economy show some strength. Property is a relatively predictable and slow moving market, so it should be easy to time. Harvey Take that Biaches! Quote Link to comment Share on other sites More sharing options...
Concrete Jungle Posted January 22, 2009 Share Posted January 22, 2009 Part sensible post from a piggie I believe that the real opportunity will arise when the recession has had its pound of flesh and the over leveraged/inexperienced guys have been forced out of the game - therefore leaving lots of stock available to snap up.Currently, I genuinely believe that we are in the eye of the storm with people who bought at high LTV's over the past few years just about surviving the falling prices, and now find themselves in negative or low equity. The only thing keeping these people in the game is the artificially low interest rates; however, if the government does decide to print money as many economists suggest they will have to do, then double figure interest rates are highly likely. Even if the govt don't need to resort to priniting money, interest rates will propbably revert to normal levels (circa 7%) within the next 12 - 18 months. How many investors could seriously cope with £100's of negative cashflow per month? Quote Link to comment Share on other sites More sharing options...
whatever Posted January 22, 2009 Share Posted January 22, 2009 you might like this one... http://www.singingpig.co.uk/forums/thread/619435.aspx I have a portfolio of about 50 properties 15 of them have dropped off fixed rate onto SVR as these rates vary from 8.79 plus , i have come to realise that i may not be able to fund the proprties for much longer at these rates. I have tried to remortgage them but i need a 85% self cert deal i have also contacted a company that buys BMV properties but i would have to raise cash for them to buy them at 30% discount. Most are at 85% ltv just about. Quote Link to comment Share on other sites More sharing options...
Concrete Jungle Posted January 22, 2009 Share Posted January 22, 2009 you might like this one... http://www.singingpig.co.uk/forums/thread/619435.aspx Fan bloody tastic so taxpayers are now being fooked over again to prop up this BtL mong I do manage the properties myself already and have now increased the rents mainly on the dss 4 bed properties to the maximum dss amount which has increased under a recent review. Quote Link to comment Share on other sites More sharing options...
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