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Prediction On When We Will Exceed 3,000 Lets On Citylets


what_the
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Too right. If I had been interested in this stuff years ago - I would have possibly dived in for some short term risky gains myself. :ph34r:

It amazes me how many of them don't see to have a clue what they are doing.

With what other business plan was it so easy to get hundreds of thousands off the bank ? With zero knowledge of what you were doing. Mental.

I think the party is over now, never too return, but it must have been one hell of a party while it lasted, pity i missed it, bummer. :(

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I Have researched this method of investment before, what they do is re mortgage there house, and release around 100k, they then get 75% BTL Mortgages, and buy say as an example 5 flats at 80k each, using the 100 to finance there deposit.

They then rent them out for 500 pounds each a month, giving them an income of 2500 per month.If they bagged a decent 3 year fixed rate at 3%, that would be costing them on 60k of borrowing around 150 per month, so the return is 350 per month times 5 = 1750 per month return.

My mate did this around 2003, he sold up in 2007, and moved to Spain, it seems we are almost at 2003 prices going by the auction guide prices.

So you can see why there is the interest in investing again, at the right price, in the right area, at the right mortgage rate, if you get it right you can make a wad,

No, you will not be able to do it going forward, 2007 was the cut off point. Without a sea of cheap credit there is no price appreciation, so you will sweat hard in void periods, and without a sea of cheap credit the "froth" companies (too many to mention, but basically anything that is pleasant enough but you don`t need) have to close or pay off staff, reducing the pool of people with a wage who would rent from you? Anybody thinking BTL now needs medical help.

Edited by dances with sheeple
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No, you will not be able to do it going forward, 2007 was the cut off point. Without a sea of cheap credit there is no price appreciation, so you will sweat hard in void periods, and without a sea of cheap credit the "froth" companies (too many to mention, but basically anything that is pleasant enough but you don`t need) have to close or pay off staff, reducing the pool of people with a wage who would rent from you? Anybody thinking BTL now needs medical help.

You can see a vicous cycle appearing now, thousands of people loose there jobs, end up on council housing list, house repossesed, sold at auction for buttons, snapped up by these cash buyers, who rent them out via the Council/private landlord initiatives, poor geezer who lost job and house, ends up back in it with rent paid for by the council, clever cash rich investor makes a wad.

The worse it gets the better these vultures get , and make more and more money for doing nothing, netting a tidy 10% plus yeald.

Whilst us prudent savers get next to no interest in the bank, its all wrong :angry:

Edited by thecrutchster
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