Jump to content
House Price Crash Forum
Sign in to follow this  
Converted Lurker

I Realise Its Not Big And Its Not Clever

Recommended Posts

I read it with the glee and anticipation not experienced since I waited for the Whizzer and Chips to drop through my letter box every Saturday 32 years ago. She really is incredibly `effin stupid. She`s that stupid you`d swear she was invented.

Very readable, she somehow manages to epitomise my image of the BTL landlord who entered the market over the past 2-3 years, too late, too highly geared with no business sense whatsoever. They imagined that because Banks were willing to lend them up to a mil that somehow made them "clever".

It took me 24 hours to get accepted for a "10 to let" programme 18 months ago. Ten properties, 1 mil loan, 100k deposit. It took me precisely 24 minutes to decline. If it`s that easy, there has to be a catch.

http://www.timesonline.co.uk/article/0,,2098-1791353,00.html

Share this post


Link to post
Share on other sites
I read it with the glee and anticipation not experienced since I waited for the Whizzer and Chips to drop through my letter box every Saturday 32 years ago. She really is incredibly `effin stupid. She`s that stupid you`d swear she was invented.

Very readable, she somehow manages to epitomise my image of the BTL landlord who entered the market over the past 2-3 years, too late, too highly geared with no business sense whatsoever. They imagined that because Banks were willing to lend them up to a mil that somehow made them "clever".

It took me 24 hours to get accepted for a "10 to let" programme 18 months ago. Ten properties, 1 mil loan, 100k deposit. It took me precisely 24 minutes to decline. If it`s that easy, there has to be a catch.

http://www.timesonline.co.uk/article/0,,2098-1791353,00.html

I loved this bit: "Of course, if prices do go down, a comforting thought is that rents are likely to go up."

Can't quite do the math there - prices collapse, but rents just somehow magically go up! (which they certainly aren't around these parts.)

Maybe they interviewed TTrTR for that quote?

Nomadd

Share this post


Link to post
Share on other sites
I loved this bit: "Of course, if prices do go down, a comforting thought is that rents are likely to go up."

Can't quite do the math there - prices collapse, but rents just somehow magically go up! (which they certainly aren't around these parts.)

Maybe they interviewed TTrTR for that quote?

Nomadd

Quite. Suddenly all those empty flats that aren't renting at 800pcm will now not be renting at 900 pcm. How comforting.

Sounds reminiscent of the asking price increases on right move when the houses never sold!

Share this post


Link to post
Share on other sites

very silly, childish woman.

though i enjoyed the read. gives a good insight into who is behind this and why they expect me to cover their pensions for them ? total amatuers who dont have a clue. they just come out with silly little lists like this.

not sure how we came to this, but im glad its ending.

this should be a great scandal in a few years as thousands of idiots like these lose their shirts.

Share this post


Link to post
Share on other sites

I presume its gonna be all down to sheer number of rental stock that there is available now due to people over-subscribing into the lie that is buy to let.In the past there just has just not been the numbers of lets available that there are now in this saturated market.I suppose in theory and with the amount of lettable property we have had in the past that rents have probably risen in a recession. There is just too damn much buy to let stock now and that will no doubt inhibit rent rises.

Share this post


Link to post
Share on other sites
I presume its gonna be all down to sheer number of rental stock that there is available now due to people over-subscribing into the lie that is buy to let.In the past there just has just not been the numbers of lets available that there are now in this saturated market.I suppose in theory and with the amount of lettable property we have had in the past that rents have probably risen in a recession. There is just too damn much buy to let stock now and that will no doubt inhibit rent rises.

indeedy, but to add to this,if there's a recession, people have less money, so are more likely to flat-share with others than live on own etc, and thereby reduce overall demand for property (taking the total demand for property to be renters plus owners). If people are forced to economise then they won't be able to fork out £800/month for a city centre apartment, and negative pressure could happen as a result.

Share this post


Link to post
Share on other sites
I presume its gonna be all down to sheer number of rental stock that there is available now due to people over-subscribing into the lie that is buy to let.In the past there just has just not been the numbers of lets available that there are now in this saturated market.I suppose in theory and with the amount of lettable property we have had in the past that rents have probably risen in a recession. There is just too damn much buy to let stock now and that will no doubt inhibit rent rises.

The increase in rental property in amazing.

When I wanted to rent a flat about five years ago I had to take the day off work and get the local paper as soon as it was published. Typically all the 1 bed flats would be let by 3pm.

If I visit rightmove today I can choose from over a hundred one bed properties in my area. They even cost the same as they did then, but are of far better quality.

Share this post


Link to post
Share on other sites
Can't quite do the math there - prices collapse, but rents just somehow magically go up! (which they certainly aren't around these parts.)

Lol, and the mortgage magically reduces to go with it? :lol:

What a whacked out way of calculating the yield, it's like saying "I had shares that halved in price but the yield doubled", err, yeah if you were buying from scratch!!

Share this post


Link to post
Share on other sites
"Of course, if prices do go down, a comforting thought is that rents are likely to go up."

Err, if houses become cheaper, which means renters can become owners, remind me what this implies will happen to rents.......? :rolleyes:

Share this post


Link to post
Share on other sites
The increase in rental property in amazing.

When I wanted to rent a flat about five years ago I had to take the day off work and get the local paper as soon as it was published. Typically all the 1 bed flats would be let by 3pm.

If I visit rightmove today I can choose from over a hundred one bed properties in my area. They even cost the same as they did then, but are of far better quality.

I don't necessarily disagree. However, not all those props are necessarily available.

It's quite obvious to me why rents should go down: if rents magically stayed up, then people would buy these newly-cheap properties for the fantastic yields they offer and sure-fire rental they would make as people clamour to rent. Also, if there's less money around, there's less money being spent on rent.

If rents do go massively above buying cost, then it's simple: I'll buy.

The quality of rental property has risen massively in the last few years tho.

Share this post


Link to post
Share on other sites
There is a Property Myth, that when property prices fall, people shift over to renting instead. And so as Property FALLS in value, rents maginally rise.

In fact this has happened in the past. But there is no guarantee it will happen in the future.

Quite. Things are so different now from the past, when there was an absence of the current overstretched BTL mortgages and Landlords were much more in it for the long term.

All the indications are that, if anything, rents are coming down as fast as HP's. There is going to be a huge surplus of unsold or repossesssed BTL properties. I can't see how this could possibly give upward pressure on rents. There might be an increase in renters in the future but the increased availability of unsold BTL homes may well cover that.

Furthermore, ex-owners or those repossessed are not necessarily going to rent. Many of them will live with family or in-laws or friends.

VP

Share this post


Link to post
Share on other sites

Can't see how rents will go up. If you lose your job whilst renting I imagine many would move in with a generous family member or friend to ride out the hard times.

This takes demand out of the rental market. If many job losses are on the way, rents won't hold up.

frugalista

Share this post


Link to post
Share on other sites
Can't see how rents will go up. If you lose your job whilst renting I imagine many would move in with a generous family member or friend to ride out the hard times.

This takes demand out of the rental market. If many job losses are on the way, rents won't hold up.

I think she actually means yields, crucial difference there, say the house was worth £150k and rented for £800pcm and the same house is now worth £100k yet still rents for £800 pcm then the yield has magically increased... assuming you've paid the latter price, which she hasn't so her yields are no better and she has lost all that capital.

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.

Guest
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.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • 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.