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Do You Believe The Histeria Over Btl Fire Sales?

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The news is full of the idea that SINCE the HIPS were scrapped there has been a huge surge in new properties coming on the market. At the same time the reason given is people wishing to escape CGT hikes on BTL or second homes. First, I and others on HPC were pointing out the large increase in homes coming up for sale before the HIPS announcement or even the CGT chnage being in the news. Second, I can't see loads of second homes or BTL coming on around here. They are just people's homes generally and you can tell - price range/location etc. In fact, if anything there are more higher priced homes coming on than for some time. I have also noticed price drops. I think the EA's and interested others want to skew the CGT argument, when in fact the sellers are just reacting to the economy and market conditions, employment prospects as they always do. Perhaps they just think IR's will rise, the market will tank and want to get out.

What about your area folks?

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I reckon quite a few second homes have come on to the market in West Cornwall. Or at least there are now about 6 or 7 properties for sale in Second-homesville whereas previously there was one.

I don't buy the CGT selling up idea. None of these places are up at fire sale prices, anything else would mean they would have absolutely nada chance of exchanging contracts in 3 weeks.

Another point is who is going to buy these holiday / second homes? Locals - not a chance, investors - not likely, so who?

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My local paper this weekend had a BTL 'portfolio' of 14 properties up for sale at £1.6 million bringing in, apparently, £89,500 per annum.

First time I have ever seen an ad like this in my area.

I am down in Kent but the properties are not in Ashford ... yet.

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My local paper this weekend had a BTL 'portfolio' of 14 properties up for sale at £1.6 million bringing in, apparently, £89,500 per annum.

First time I have ever seen an ad like this in my area.

I am down in Kent but the properties are not in Ashford ... yet.

Things will only get interesting when the portfolio generating the same income is for sale for about £800k.

Prices are wrong by about 50%. Probably more when rents compress as they are bound to do.

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My local paper this weekend had a BTL 'portfolio' of 14 properties up for sale at £1.6 million bringing in, apparently, £89,500 per annum.

Bargain (Not!). If the average mortgage is 5% then that leaves a whopping £9,500 a year to cover voids, repairs, insurances etc. The twit is probably losing a shedload at the mo. My heart bleeds.

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I reckon quite a few second homes have come on to the market in West Cornwall. Or at least there are now about 6 or 7 properties for sale in Second-homesville whereas previously there was one.

I don't buy the CGT selling up idea. None of these places are up at fire sale prices, anything else would mean they would have absolutely nada chance of exchanging contracts in 3 weeks.

Another point is who is going to buy these holiday / second homes? Locals - not a chance, investors - not likely, so who?

Greeks?

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surely you dont sell to avoid a tax....low yields mean you are in it for the long term??

or maybe whats happening is that people realinse we are in the poo, and are trying to cash in while people still can get mortgages, picking at the bones left in the desert.

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Bargain (Not!). If the average mortgage is 5% then that leaves a whopping £9,500 a year to cover voids, repairs, insurances etc. The twit is probably losing a shedload at the mo. My heart bleeds.

Not if they purchased them 20 years ago. Having said that it would be a real idiot that bought them now.

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My local paper this weekend had a BTL 'portfolio' of 14 properties up for sale at £1.6 million bringing in, apparently, £89,500 per annum.

First time I have ever seen an ad like this in my area.

I am down in Kent but the properties are not in Ashford ... yet.

Yes, outside Devon (50% holiday home land) and Cornwall (not much less) in my area of sussex I cannot see these BTL sellers in any unusual numbers. The ads you mention can be found from time to time- have seen sale of wholr portfolios and some agents will do this stuff. Worth noting that some holiday home areas such as Padstow have enjoyed a price growth entirely due to holiday homes and celebrity chefism, whwereas before 1995-6 they were very depressed. In a HPC they will go down more than anywhere else - 1989 highest risers fell the most by 1993/4., because their rise was unwarranted by any proper economic reason.

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The news is full of the idea that SINCE the HIPS were scrapped there has been a huge surge in new properties coming on the market. At the same time the reason given is people wishing to escape CGT hikes on BTL or second homes. First, I and others on HPC were pointing out the large increase in homes coming up for sale before the HIPS announcement or even the CGT chnage being in the news. Second, I can't see loads of second homes or BTL coming on around here. They are just people's homes generally and you can tell - price range/location etc. In fact, if anything there are more higher priced homes coming on than for some time. I have also noticed price drops. I think the EA's and interested others want to skew the CGT argument, when in fact the sellers are just reacting to the economy and market conditions, employment prospects as they always do. Perhaps they just think IR's will rise, the market will tank and want to get out.

What about your area folks?

You can't always tell. How are you supposed to tell it's a BTL or second home by asking price range/location?

On a few occasions I've been surprised to learn a house is a BTL when I'd expected the area to be very much normal owner occupied family homes. A 4-bed semi-detached BTL on my parents' road went up for sale last week. It was only about a year ago I discovered it was a BTL, and there are two more on the next road. They are asking £10K more than a house has sold at before on the road and the house looks very rundown.

Even without CGT changes or interest rates hikes, more of the happy smiling property seminar BTL investor types are coming under pressure.

I am increasingly being contacted in private by people who are struggling with mortgage repayments, and they want my advice.

http://propertytribe...page=2#comments

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I have heard of a few coming on the market in the past week in Mumbles - sellers want to complete before the budget. All quite wealthy people, or outwardly wealthy people, but there you go.

House I am viewing this week has the owner driving down from Cambridge.

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Big homes are generally owned by baby boomers now cashing out.

Many such big homes in my part of the world are knackered and needs a shedload of cash spent on them... yet they still ask ludicrous asking prices... Also, I don't think many want huge homes nowadays - you would need a big family and, frankly, the cost of heating them, etc, is a cash-drain.

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Many such big homes in my part of the world are knackered and needs a shedload of cash spent on them... yet they still ask ludicrous asking prices... Also, I don't think many want huge homes nowadays - you would need a big family and, frankly, the cost of heating them, etc, is a cash-drain.

Agreed, which is why I was quite happy to see the Energy part of the HIPS retained.

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Agreed, which is why I was quite happy to see the Energy part of the HIPS retained.

I am renting a small modern house - 10 yrs old - and it is tiny but the heating costs in winter are eye-watering and I try not to put the heating on that much so the idea of a big home is out of the question nowadays.

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House I am viewing this week has the owner driving down from Cambridge.

Isn't the EA showing it to you? In this day of mobile phones, they can contact the owner with any offers in seconds. Seems a daft journey just to show a prospective buyer round.

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Isn't the EA showing it to you? In this day of mobile phones, they can contact the owner with any offers in seconds. Seems a daft journey just to show a prospective buyer round.

Yes, rather bizarre I know but there you go. Maybe some EAs in Swansea are too posh to talk to buyers?

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First, I and others on HPC were pointing out the large increase in homes coming up for sale before the HIPS announcement...

But did they actually have HIPs? I would expect many if not most vendors would have anticipated the end of HIPs (it was both Conservative and LibDem manifesto policy).

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The news is full of the idea that SINCE the HIPS were scrapped there has been a huge surge in new properties coming on the market. At the same time the reason given is people wishing to escape CGT hikes on BTL or second homes. First, I and others on HPC were pointing out the large increase in homes coming up for sale before the HIPS announcement or even the CGT chnage being in the news. Second, I can't see loads of second homes or BTL coming on around here. They are just people's homes generally and you can tell - price range/location etc. In fact, if anything there are more higher priced homes coming on than for some time. I have also noticed price drops. I think the EA's and interested others want to skew the CGT argument, when in fact the sellers are just reacting to the economy and market conditions, employment prospects as they always do. Perhaps they just think IR's will rise, the market will tank and want to get out.

What about your area folks?

I have seen absolutly no effect of hips or cgt as yet. The rate of stock Increase has been roughly the same since end April. If any thing last week saw stock increasing slightly slower than the last few

It's probably the EAs using this an excuse for the surge in properties coming on to the Market. That way they can explain away a few price falls using it. As with the snowgate scandal.

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Isn't the EA showing it to you? In this day of mobile phones, they can contact the owner with any offers in seconds. Seems a daft journey just to show a prospective buyer round.

I viewed one where she drove back from Wales to show me the house. She told me she didn't live there much and I didn't actually need telling as it was clear she wasn't living there else the massive leak off the conservatory guttering would have driven her mad and she's have got it fixed.

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  • 150 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% +
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      • Even
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      • up 5%



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