Went Flat Hunting Today

[spoon]

went flat hunting today in Docklands and was struck by the sheer number of properties on the rental market. there are tons and tons of properties lying vacant. most flats are competing with at least five to ten other flats to attract the one buyer.

now it's clear that there are two types of landlords. the landlords who are extremely wealthy and make it their business to snap up huge chunks of most new developments. these landlords have expericence, have managers and marketers working for them. they have no doubt factored in rental voids or are at least better equipped to to deal with them.

then there's the classic buy to let punter. these people are going to get hurt in a big way. they have nowhere to go. i just cant see how these people are going to escape their predicament. either they sell at much lower prices or they aim to get buy through slashing rents. both will lead to lower prices.

throw in the fact that confidence in the docklands market is heavily tied to job security and you have a time bomb. i really really would not want to be a landlord now.

and let's not forget that docklands and many parts of London have already seen some kind of correction in 2004.

the rest of the country had better watch out.

[spoon]

nothing new here i know but today it hit home. there are lots of people sat on an asset that is depreciating and yielding zero income, where the alternative is risk free and hassle free savings interest.

and i havent even begun with the unsold new builds....

[OnlyMe]

It begs the wuerstion - just how much empty proeprty there is around and how much the market has been distorted by speuclators sitting on that empty property as well as buying up new supply.

On a day that it is revealed that 2.3M people have left London it makes you wonder.

As they say it is not until the tide goes out that you realise who is not wearing any trunks.

[ʎqɐqɹǝʞɐɥs]

It begs the wuerstion - just how much empty proeprty there is around and how much the market has been distorted by speuclators sitting on that empty property as well as buying up new supply.

On a day that it is revealed that 2.3M people have left London it makes you wonder.

As they say it is not until the tide goes out that you realise who is not wearing any trunks.

<{POST_SNAPBACK}>

Whats this? Can you elaborate please.

[OnlyMe]

Whats this? Can you elaborate please. 

<{POST_SNAPBACK}>

I think I should spell check before I elaborate.

I suppose it depends whether you believe these numbers as well.

Here's the link:

2.3 million abandon London to move south

http://www.telegraph.co.uk/news/main.jhtml.../06/nlond06.xml

Nearly 2.3 million Londoners have left the capital in the past decade for the suburbs and further south, according to research today.

The city's population fell by nine per cent between 1994 and 2003, according to Halifax Financial Services. The Office of National Statistics (ONS) put London's population at 7.4 million in 2003. ...

[right_freds_dead]

also dont assume these landlords own the assets they are sat on. they are simply tied to it with a huge debt to pay - calculated when the asset was way, way WAY overpriced.

bye then, savings.

id hate to be that fella from the Apprentice who had £3.5m pounds of mortgage liability and ever decreasing tenants. either lose capital or bleed yourself dry for the next 10 years. its a foul situation. i have some sympathies but not much. i dont suppose they had any sympathy for the families they priced out.

[erranta]

went flat hunting today in Docklands and was struck by the sheer number of properties on the rental market. there are tons and tons of properties lying vacant. most flats are competing with at least five to ten other flats to attract the one buyer.

now it's clear that there are two types of landlords. the landlords who are extremely wealthy and make it their business to snap up huge chunks of most new developments. these landlords have expericence, have managers and marketers working for them. they have no doubt factored in rental voids or are at least better equipped to to deal with them.

then there's the classic buy to let punter. these people are going to get hurt in a big way. they have nowhere to go. i just cant see how these people are going to escape their predicament. either they sell at much lower prices or they aim to get buy through slashing rents. both will lead to lower prices.

throw in the fact that confidence in the docklands market is heavily tied to job security and you have a time bomb. i really really would not want to be a landlord now.

and let's not forget that docklands and many parts of London have already seen some kind of correction in 2004.

the rest of the country had better watch out.

<{POST_SNAPBACK}>

Dunno if you saw the GORBACHEV programme the other day?

He mentioned zat ze Ruski Billionaires have been "BUYING UP LONDON by the block" for the last few years!!

Now you know who's been buying @ crazy prices! Ruski money - easy come easy go.

Bet the banks are going to 'stitch 'em up' for reneging on their Billion pound loans last decade!!

[quaslk]

went flat hunting today in Docklands and was struck by the sheer number of properties on the rental market. there are tons and tons of properties lying vacant. most flats are competing with at least five to ten other flats to attract the one buyer.

<{POST_SNAPBACK}>

and while all these properties are lying empty more are being built to make up for the housing shortage :angry:

[non-FTBer]

And the beauty of it is that your average johnny-come-lately BTLer seems very reluctant to sell for anything less than they paid.

My last landlord decided he was going to sell when I moved out. He bought the flat for £189K, brand new. He was ripped off. For the same size flat some punters only paid about £165K and had better views and no noise from outside that we had.

When I moved out he decided to try and sell and let at the same time. After a 2 month void he appears to have let it, but he was not able to sell it for £189K despite it being on the market 2 months. I suspect its current market value if he really wants to sell it is probably something like £155K-£165K.

He has really stitched himself up by getting another tenant as it makes the flat unsaleable for another 12 months, by which time he won't be able to sell the flat for peanuts (they are crappy typical new build, no quality, BTLer flats that will disintegrate within 2 years).

[Killer Bunny]

The flat that we moved out of (rental) 2 years ago was moved into by our vertical neighbours one flight upstairs. They were paying £800 pm and we were paying £640 pm.

So, their old landlord decided to put the flat upstairs on the market as he couldn't get a tenant at that ridiculous level. After 18 months of not selling for a ridiculous level ( ) its back on the rental market.

As I said to my ex neighbour this morning as I saw him on the train - the ex landlord is a TOSSER! This is a technical term.

[StrangeTimes]

Some of the "foreign" investors buying property in London are not too concerned whether they make a capital loss. More than happy to re-mortgage them and get whatever rents they can.

I am sure you can work why this is the case!!!!

[theChuz]

It begs the wuerstion - just how much empty proeprty there is around and how much the market has been distorted by speuclators sitting on that empty property as well as buying up new supply.

On a day that it is revealed that 2.3M people have left London it makes you wonder.

As they say it is not until the tide goes out that you realise who is not wearing any trunks.

<{POST_SNAPBACK}>

Unfortunatly there cant be any properties left vacant, we dont have enough properties, its all a matter of supply and demand thats put up prices.

Not enoug supply means higher prices, thats why GB is building so many new houses, hes so smart i wish i was him.

[eric pebble]

It begs the wuerstion - just how much empty proeprty there is around and how much the market has been distorted by speuclators sitting on that empty property as well as buying up new supply.

On a day that it is revealed that 2.3M people have left London it makes you wonder.

As they say it is not until the tide goes out that you realise who is not wearing any trunks.

<{POST_SNAPBACK}>

GREAT quote/line OM: Love it!! And so, so true!!

E Pebble

[Edhutch]

These empty London rabbit hutches are the most vulnerable to a crash as they have high service charges (often £2000+ p.a.), were way over-priced to begin with and there are simply too many of them chasing too few renters. Paddington basin is full of them.

It isn't clear to me, though, how much a crash in these of say 30-40% would affect more family/sharer oriented properties (terrace houses etc) which still seem in demand for renters? Any ideas?

[slater14]

"now it's clear that there are two types of landlords. the landlords who are extremely wealthy and make it their business to snap up huge chunks of most new developments. these landlords have expericence, have managers and marketers working for them. they have no doubt factored in rental voids or are at least better equipped to to deal with them."

As the Bubb says,

There isnt any professional landlords buying into this market - its all BTL'ers.

[picnic]

I like this Tide analogy.

The last time that happened there was a bloody great big wave that came along and wiped a lot of people out.

Now I have every sympathy for the families and individuals affected by that tragedy but little for the people who are caught up in our own.

At least we have had some kind of warning which they didn't