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I thought BTL was supposed to be a winner? Everyone told me so and prices always go up and interest rates are low innit. LOL at starting a BTL portfolio before you even have a home for yourself!!!

How many more out there like this.

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>Now, I can afford to pay the difference out of my salary each month, but I am literally flushing money down the drain, as they are interest only mortgages.

And the BTL crowd say rent is dead money :lol:

They wanted their tenants to fund their lifestyle and took a gamble, looks like its the other way round.

VMR.

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>Now, I can afford to pay the difference out of my salary each month, but I am literally flushing money down the drain, as they are interest only mortgages.

And the BTL crowd say rent is dead money :lol:

They wanted their tenants to fund their lifestyle and took a gamble, looks like its the other way round.

VMR.

Don't laugh though, we're all going to be bailing them out. Both landlord and tenant.

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"If you can source the finance, maybe you should buy a 3rd BTL, at a lower price.

Then a 4th and maybe 5th.

Like people do with shares. Sort of keep averaging down, so they can break even when prices rise a little.

One day you might buy a house for an actual home."

Classic post (not sure if it was intentionally sarcastic, as the OP suspected)...

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Hi all,

I have two houses that I rent out - both in negative equity.

1) House 1 bought three years ago for £125.000 - now valued at 95k. Mortgage 1 - £113,000, interest only.

2House 2 bought two years ago for £138,000 - now valued at 95k. Mortage on this one £124k, interest only.

I pay about £250 each month to cover rent shortfall, because of agency fees. With insurance, sorting out problems boilers etc, never ending problems that I have to pay out for - I really am at my wits end.

I NEED to get rid of them - I can't shift them, and I don't have enough savings to make up the shortfall,

Now, I can afford to pay the difference out of my salary each month, but I am literally flushing money down the drain, as they are interest only mortgages.

I want to save up for my own place, I know I made a massive mistake buying them at the wrong time, but I just can't face years of paying interest on them 'hoping and waiting' for them to go up in value.

Is bankruptcy an optipon - I read this thread - http://forums.moneysavingexpert.com/...html?t=1916803

Or would it be wrong to declare bankruptcy because in fact I can afford them 'just' out of my salary, although things are very tight each month and I have some other things, I need to prioritise and save for.

Any advice - silvercar, or poster who seem to have knowledge of things like this.

Let us not forget, it will be meltdown for us Tenants too. Many LLs are getting Repo'd so we could be out sleeping under a bridge soon. Its a viscous circle .

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Guest pioneer31

I was only reading that thread myself this morning....... ooops.

Anyway, what say we all keep the 'bad news threads' alive in MSE. Just post any old drivel to keep them on page 1....and start some!

The more people who are scared away/saved from their own financial suicide (ie buying now) the better.

Nobody I know is aware of this website. In fact a couple I know want to buy soon because they dont want to 'miss the boat' as prices rise.

I'm going to have to sit and watch them willingly walk straight into negative equity.

By the way where is the logic in the "miss the boat" argument? If you miss the boat, then so will every subsequent generation as prices rise and increasingly price out every last person in the UK?

Edited by pioneer31

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Why would you get a BTL before even securing your own property is beyond me.

And look at those drops, very tasty. Of course goes against the 'no big drops round ere' brigade.

I suppose if you have the cash, and have a property in mind it might make sense if you relocated a lot for business, and were never based in the same place for more than a few years. Make sure though, that you're not at the peak of the biggest asset bubbles in history, with an interest only mortgage.

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I pay about £250 each month to cover rent shortfall, because of agency fees. With insurance, sorting out problems boilers etc, never ending problems that I have to pay out for - I really am at my wits end.

Well I thought all BTL's were "in it for the pension..?"

So a £250 p/m contribution towards a pension seems very reasonable to me.

There weren't expecting the tenants to pay all their pension contributions were they?

Of course they will never end up actually owning their tenanted properties. Seems to me to be some immutable economic law operating somewhere. There is no such thing as a free pension.

Also bankruptcy isn't an option. If she really is a "financegirl", she wouldn't be allowed near that industry again.

Edited by HostPaul TAFKA Rover2000

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Its a viscous circle .

Is 'literally' flushing money down the drain a 'viscous' (sic) circle, I wonder?

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Interesting to see the comments over at MSE.

Used to be that MSE was all touchy-feely group hugs, while HPC was "Froth! Spittle! Bring back the death penalty for BTLers!".

But several (most) of the responses so far on MSE are pretty nasty.

The tide is turning?

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I pay about £250 each month to cover rent shortfall, because of agency fees. With insurance, sorting out problems boilers etc, never ending problems that I have to pay out for - I really am at my wits end.

Well I thought all BTL's were "in it for the pension..?"

So a £250 p/m contribution towards a pension seems very reasonable to me.

There weren't expecting the tenants to pay all their pension contributions were they?

Of course they will never end up actually owning their tenanted properties. Seems to me to be some immutable economic law operating somewhere. There is no such thing as a free pension.

The immutable economic law is that fools and their money are easily parted...

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what I wanna know is - why doesn't she just increase the rent and make the tennants pay the shortfall?

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what I wanna know is - why doesn't she just increase the rent and make the tennants pay the shortfall?

The market is flooded with properties, duh, they will just go to a cheaper property.

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what I wanna know is - why doesn't she just increase the rent and make the tennants pay the shortfall?

You have to be more subtle or the tenants leave for a cheaper property. This is perhaps why the likes of the Wilson's end up in the County Court suing tenants for broken toilet lid's, or you get a four figure bill for "carpet cleaning."

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Guest pioneer31
what I wanna know is - why doesn't she just increase the rent and make the tennants pay the shortfall?

Lol, that used to be the standard BTL'ers answer on HPC - if times get hard, up the rent

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I'm disappointed that our much-missed Hamish hasn't rushed to her aid.

Advice seemed to be his forte

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You have to be more subtle or the tenants leave for a cheaper property. This is perhaps why the likes of the Wilson's end up in the County Court suing tenants for broken toilet lid's, or you get a four figure bill for "carpet cleaning."

[dry irony] nah - what about the national property shortage [/dry irony]

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what I wanna know is - why doesn't she just increase the rent and make the tennants pay the shortfall?

Yeah, that is all she needs, a nice long void period that will really help.

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It's the fact she has two that makes it a really heartwarming story. If it was just one and an accidental landlord I would have some sympathy.

Two is deliberate I'm afraid.

Keep paying the shortfall.

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Its a viscous circle .

No, this is a viscous circle

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But OP, classic stuff. Paying a shortfall on not one but 2 interest only mortgages. Where's Renter Bob these days with his "rent subsidisers!" insult :lol: Always reminded me oh Richard Grant "Scrubbers!"

We should all get on there and advise her to keep working to pay it off. If she goes any other route, we'll be paying for it.

But realistically can anyone in her position survive the coming IR rises? No chance.

Edited by athom

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