Jump to content
House Price Crash Forum
Sign in to follow this  
Guest unregistered

Landlords & Repossessions

Recommended Posts

Guest consa

This is just one anecdotal regarding repossessed amateur LL property

and while reading some of the other topics it has struck me what these LL must be thinking now.

"Bloody hell this is a nightmare"

I personally had a customer come to see me a week or two ago, he has a terrace house and wants to convert it to two flats,(at the moment it is sat empty with a "to let" sign outside) the place is a sh#thole, I overpriced the job for him :lol: , he said "I have to get something done quickly as I can't afford it much longer"


Share this post

Link to post
Share on other sites

A lot of BTL players were stupidly quite happy to see their..ahem...portfolio (Christ I hate that word) remain empty for periods of time as they saw increases of 22% + p.a. Now some of them are realising that the game is up. There is no way if you`ve bought into BTL recently, and most have in the past two years (the boom has co-incided with the peak of Mewing, Dec 2003), that you can possibly make the numbers crunch. 150K property 15% deposit, 135K IO mortgage at normal btl rates the figure will always be higher than the rent. This is roughly the standard BTL finance model.

Certainly in my neck of the woods a 150K property would only get £550 per month rent max. Roughly a loss of £200 per month. If you own five you`re having to find £1000 a month to fund the gap. If you mewed your own home for the 80K needed to fund the purchase of typically 5 two bedder terraces or flats, then you`ve lost your equitable value also. This is the achilles heel of the whole pyramid scheme, as the market is chased down a lot of small BTL players will not even have the cash to keep up the payments as they watch their last two years profits crumble.

Then there is the amount of choice, when we moved back up North, 10 years ago, we had the choice of I reckon 5 or 6 decent rental properties in an area from Hoylake to Chester. In our local paper alone this Wednesday there must have been 300+. Increased choice, most of them obviously empty for long periods of time, renters must be really kicking the local landlords in the nuts over prices.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.