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Buy To Let About To Boom Again!

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Picked up the property supplement from the local rag this pm. Big front page article... "Buy to let sector on the brink of a strong revival" says Assetz... and they should know, because they run a bunch of property investment companies <_<

It's a pity I haven't got time to type the whole article in, cos it's a cracker. Especially the bit about how the fact that people won't buy property right now because of market uncertainty is a really good sign... it means you get lots of tenants to choose from. Hmmm. And apparantly the market is 'currently offering' an average return on your investment of 35.4%!

Lots and lots of property to choose from inside the paper as well.. 16 new developments advertised... free carpets, free kitchen appliances, stamp duty paid, legal fees paid, 5% deposit paid, up to £12,000 cashback (no, that's not a typo).

LR figures show prices are falling round our way. :P

R

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I've no figures to support this but my gut feeling is that new BTL property is being built faster than new renters are coming onto the market. Does anyone have any graphs such as this?

In which case rents would be going lower.

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Guest Bart of Darkness
Picked up the property supplement from the local rag this pm. Big front page article... "Buy to let sector on the brink of a strong revival" says Assetz... and they should know, because they run a bunch of property investment companies

Usually, at the bottom of "articles" of this kind, you will find the words "Advertising Feature". My local free rag is full of 'em, posing as real news.

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This is exactly as Bradford and Bingley say. It seems to be whats holding up the market.

Specialist lender Bradford & Bingley sang the praises of the buy-to-let mortgage market as its revealed that pre-tax profits had risen by 6 per cent during the first half of the year despite a "challenging" housing market.

Although this bit makes me laugh

"Mortgage affordability should remain at historically good levels with positive impact from lower interest rates and unemployment remaining low."

B&B have moved heavily into BTL. This must be a worry for shareholders as if this market fails B&B will be in real trouble. It now accounts for 20% of the BTL business.

Surely this then contradicts its staement on mortgage affordability

B&B said that the five successive interest rate rises instituted by the Bank of England before last week's cut had helped to drive up mortgage arrears during the first half of the year.

Arrears of more than three months on residential mortgages rose by 0.23 per cent to 1 per cent against the industry average according to the Council of Mortgage Lenders of a 0.28 per cent rise to 0.91 per cent.

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Picked up the property supplement from the local rag this pm.  Big front page article... "Buy to let sector on the brink of a strong revival" says Assetz... and they should know, because they run a bunch of property investment companies  <_<

It's a pity I haven't got time to type the whole article in, cos it's a cracker.  Especially the bit about how the fact that people won't buy property right now because of market uncertainty is a really good sign... it means you get lots of tenants to choose from. Hmmm.  And apparantly the market is 'currently offering' an average return on your investment of 35.4%!

Lots and lots of property to choose from inside the paper as well.. 16 new developments advertised... free carpets, free kitchen appliances, stamp duty paid, legal fees paid, 5% deposit paid, up to £12,000 cashback (no, that's not a typo).

LR figures show prices are falling round our way.  :P

R

A slow BTL market is good news, a busy BTL market is good news. How do you identify a bad BTL market? Perhaps no such market can exist... Lying scumbags. :angry:

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I've no figures to support this but my gut feeling is that new BTL property is being built faster than new renters are coming onto the market. Does anyone have any graphs such as this?

In which case rents would be going lower.

Absolutely, they are chucking them up faster than you can blink around here - still. Block after block now sitting half empty (or completely empty in one case). In my local High Street 2 petrol stations have been demolished and replaced with shops with posh flats over.

There is another one that was flattened about 4 months ago - hoarding around the site but no activity yet - wonder why? Perhaps they are going to wait for the 100 or so that are on the market to sell before building any more. And, when I say a 100 - these are within half a mile of each other in a not very densely populated area.

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Picked up the property supplement from the local rag this pm.  Big front page article... "Buy to let sector on the brink of a strong revival" says Assetz... and they should know, because they run a bunch of property investment companies  <_<

It's a pity I haven't got time to type the whole article in, cos it's a cracker.  Especially the bit about how the fact that people won't buy property right now because of market uncertainty is a really good sign... it means you get lots of tenants to choose from. Hmmm.  And apparantly the market is 'currently offering' an average return on your investment of 35.4%!

Lots and lots of property to choose from inside the paper as well.. 16 new developments advertised... free carpets, free kitchen appliances, stamp duty paid, legal fees paid, 5% deposit paid, up to £12,000 cashback (no, that's not a typo).

LR figures show prices are falling round our way.  :P

R

So let me see if I understand. All you HPC doom and gloom luvvers reckon that FTB's are priced out of the market. Presumably you also think that these people will need somewhere to live? So if not housowners then where do they live? Tents? or perhaps rent one of the thousand of empty council houses :lol: . Face up to it HPC junkies, you are the best thing that ever happened to BTL :P

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Face up to it HPC junkies, you are the best thing that ever happened to BTL :P

Yes. And we are its worse nightmare. BTL is now subsidising us with its negative yields, and once house prices have dropped far enough we will buy, and there'll be no one to rent to ;)

Double whammy!

Never mind BTLers' paper profits will still be useful, They can wipe their @rses on them. :lol:

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Yes. And we are its worse nightmare. BTL is now subsidising us with its negative yields, and once house prices have dropped far enough we will buy, and there'll be no one to rent to  ;)

Double whammy!

Never mind BTLers' paper profits will still be useful, They can wipe their @rses on them.  :lol:

Negative yields !! with interest rates heading back to 3.5% and rising house prices next year - you're having a larf . Tell you wot, I'll lend you a tenner towards a deposit (after I've used it as suggested of course).

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Negative yields !!  with interest rates heading back to 3.5% and rising house prices next year - you're having a larf . Tell you wot, I'll lend you a tenner towards a deposit (after I've used it as suggested of course).

You need to keep your tenner, maths lessons are expensive these days!

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Negative yields !!  with interest rates heading back to 3.5% and rising house prices next year - you're having a larf . Tell you wot, I'll lend you a tenner towards a deposit (after I've used it as suggested of course).

Rising house prices when is that? Your crystal ball needs a polish... :)

S.

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My local property rag runs that story about once a month.

They spend most weeks pretending there is nothing wrong with the market and then, once a month, admit the recent downturn is now at an end as investors return to the market 'in droves' apparently.

Nice phrase 'in droves' - something that is done to sheep.

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Interestingly enough, the bloke who runs Assetz (such a pathetic name - desperate attempt to make BTL "trendy") is mentioned on the thread about how to invest £100k in thisismoney. And yes he does look like an overfed porker.

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So let me see if I understand. All you HPC doom and gloom luvvers reckon that FTB's are priced out of the market. Presumably you also think that these people will need somewhere to live? So if not housowners then where do they live? Tents? or perhaps rent one of the thousand of empty council houses :lol: . Face up to it HPC junkies, you are the best thing that ever happened to BTL :P

Of course FTB's need somewhere to live. The point is - are there enough of them to occupy all of these new flats? The evidence suggests there is now oversupply. How many BTL landlords do you think are going to sit on an empty property praying for capital gain at this stage? It's over.

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Guest tenant super

My local property paper had a picture of Santa at one of the local estate agents last Christmas, I'll be surprised if there were not more truth in that story!

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Negative yields !!  with interest rates heading back to 3.5% and rising house prices next year - you're having a larf . Tell you wot, I'll lend you a tenner towards a deposit (after I've used it as suggested of course).

Interest rates heading back to 3.5%? Says who? What POSSIBLE evidence have you for that? Interest rates could be set to bobble back and forth between 4.5 and 4.75%.

There is no law of nature that says they are going back to 3.5%. And if they do, it could be because the wheels will have come off the economy, not because the BoE decides it is time to make property even more unaffordable.

And "rising house prices next year"? Errmmmm. No.

Edited by Levy process

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I bet my sausage that interest rates are not going back to 3.5% without a serious global recession. If that happens you can kiss goodbye to any BTL gains you TTRTR or anyone else has made. You will be applying for bankruptcy rather like the two BTL'ers I knew in the last housing boom.

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Guest Bart of Darkness
Negative yields !! with interest rates heading back to 3.5% and rising house prices next year

Unfortunately for you, Gordon Brown, TTRTR and Krusty, there's a wider world out there which can't be ignored. Geographically the UK is an island but that cuts no ice in the world of finance.

And since when has a boom been followed by another boom?

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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