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Advice For A Friend

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The advice of FTB';s on this site is of no help to my friend. Their veiws are largely biased because they cannot afford to buy themselves, my friend can.

The market cannot exist without FTB's..

they need to make up a proportion of the makrket as people shuffle of the other end.

BTL landlords.. thye can plug the gap..

Look at the prices for rent in the area against an 85% mortgage for the current price of the property.

In devon BTL properties make several hundred pounds of loss a month before capital against the loan, agent fees or innsurance is taken out..

If your friend believes this is sustainable then carry on.

Also ahve your friend look at the impact the current personal debt burden has on the economy. Reduced spending in the high street is showing reported signs of recession.

Your friend might be able to afford the extra cost of todays mortgage, but can the economy?

Can your friend maintain repayments if interest rates climb to the long term average of 6%?

Does your friend now see an oversupply of propeties in their area, this has happened in Devon.. New builds remaining unsold.. This will push prices down.

Does your friend see prices dropping in their area?

There is good evidence that this was a specualtive market buffered from the Economy by increased personal debt spending into the high street.. Now this is being reported to have dropped of.. The impact on the economy has been revealed.

If your friend thinks current prices are sustainable then go for it.

If your friend has a big enough deposit to gamble and protect them from negative equity then go for it.


Perhaps waiting may be prudent.

Many on this site have enough to buy.

Many are worried that negative equity and any increase interest rates makes it too risky a route to take

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  • 302 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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