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FedupTeddiBear

I Think They've Missed Something….

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Article from yesterday’s Metro:

Friday, August 12, 2005

Trendy young like to rent

Twentysomethings prefer to rent homes in fashionable areas than buy in cheap, uncool parts of town, research revealed yesterday. And that is having an impact on the number of first-time buyers, the study concludes. Just one in four properties was a first time buyer last year – down from 50 per cent ten years ago. Almost two-thirds of under-30’s said renting allowed them to live in trendier places, while 16 per cent claimed renting gave them “flexibility”. Mortgage lender GMAC-RFC, which commissioned the survey, said: “We wanted to understand why buyers are not entering the market.” 

Note the last sentence.

Any thoughts?

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Article from yesterday’s Metro:

Note the last sentence.

Any thoughts?

twas in the Telegraph also : Young renters shun the property ladder

I guess you are suggesting that the reason FTBs aren't buying is all too obvious (prices). Worryingly for property bulls, this FTB feeling of helplessness in the face of unaffordability is being replaced by a new (self-preserving) logic that states renting is better than buying.

Of course property bulls will not see the significance in this, no more than they are willing to accept how much the market has been propelled by the welter of property progs telling young people life is not worth living without home ownership and trips to B&Q.

The fact is life has always been about more than that, especially for the young. It's just for a few crazy years people forget this cos their eyes were blinded by £ signs.

Now that attitudes are changing, price falls will not be enough to encourage the young back into the market in the numbers bulls need to support their theories of unbroken, eternal, y-on-y price rises. For the young, sentiment has turned.

Edited by Sledgehead

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I guess you are suggesting that the reason FTBs aren't buying is all too obvious (prices). Worryingly for property bulls, this FTB feeling of helplessness in the face of unaffordability is being replaced by a new (self-preserving) logic that states renting is better than buying.

Of course property bulls will not see the significance in this, no more than they are willing to accept how much the market has been propelled by the welter of property progs telling young people life is not worth living without home ownership and trips to B&Q.

The fact is life has always been about more than that, especially for the young. It's just for a few crazy years people forget this cos their eyes were blinded by £ signs.

Now that attitudes are changing, price falls will not be enough to encourage the young back into the market in the numbers bulls need to support their theories of unbroken, eternal,  y-on-y price rises. For the young, sentiment has turned.

Yes I think we see the significance. People will be loyal tenants for many years because they have given up the ambition to buy.

And I guess you know what I'd like to say about what that means for rents........ :)

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Hands up who believes these figures from mortgage lenders and other assorted nobodies who wish halt the bubble deflating?

If things are so good, why has Coutrywide closed a load of branches and issued 2 profit warnings? Around my area of S.London estate agents are going bust.

Falling interest rates are the sign of an ecnomy in trouble, and it won't kick start any sort of revival in the housing market or high street.

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Yes I think we see the significance. People will be loyal tenants for many years because they have given up the ambition to buy.

And I guess you know what I'd like to say about what that means for rents........ :)

I wish I could have some of what you are on TTRTR! I could have sat on my 4.5% yielding stocks as markets crashed , chanting chav-like, "Am I bothered?"

Instead I had to bite the bullet and sell. Still, I've been sat in those same stocks @ 8% for thr past three years, so non-osterich behaviour has its advantages.

There is an alternative scenario to the rosy one you forsee.

The rental stock has exploded with the BTL boom, and reduced FTBs mean only one thing: more supply of rental properties. Furthermore, as long as sellers refuse to drop their prices, some may be willing to let: even more supply.

It is obvious that rental YIELDS will rise as property falls (again lack of FTBs) but real rents rising is another thing.

Your best bet for improved returns is rate cuts, but these are a double edged sword. They imply a weak economy, a weak jobs market and poor wage settlements. If you had a monopoly you could, in theory, screw your tenants for more rent than they could afford. Sadly for you, the BTL boom has created an army of green LLs desperate to be property investors at all costs. As we know that extends to making up the shortfall between mortgage and rental income.

With this army of idiots around, each of them desperat eto rent at any cost, raising rent smight not be as easy as you think.

A full blooded crash is what is needed to wipe out these sorts, that or a rental price-war. Either way, as a geared investor, you must be worried.

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  • 301 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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