Jump to content
House Price Crash Forum
Jimmy_James

Why Landlords Are Hurting The Housing Market

Recommended Posts

Most youngest today spend every penny they earn on flash cars, holidays, designer clothes and anything else they can throw their money at. Many of them earn money for 6 months then feel that they have to go half way across the world and spend it.

Maybe his only contact with youngsters is reading about celebrities in Heat magazine.

when my kids where younger any money gifted was put away in high interest accounts

I wonder why they don't do that now?

Share this post


Link to post
Share on other sites

IMHO we/they should stop worrying. It's not sustainable and landlords are not going to find much sympathy when their over-leveraged assets go bust, unlike over-extended 'owners', and consequently they will get little help from the government.

The banks are playing a nasty game IMHO. They want to suck some cash and assets out of the BTL market, let it crash, and then sell lower priced BTL repos to FTBs, etc. Nice way to get some recapitalisation.

Share this post


Link to post
Share on other sites

IMHO we/they should stop worrying. It's not sustainable and landlords are not going to find much sympathy when their over-leveraged assets go bust, unlike over-extended 'owners', and consequently they will get little help from the government.

The banks are playing a nasty game IMHO. They want to suck some cash and assets out of the BTL market, let it crash, and then sell lower priced BTL repos to FTBs, etc. Nice way to get some recapitalisation.

they're getting recapitalisation out of anyone who will volunteer unfortunately - savers, home owners, and of course BTLrs

Share this post


Link to post
Share on other sites
For affordable house price campaign groups liked PricedOut, the fear is that without the introduction of regulation, the recent resurgence in buy-to-let could rapidly snowball into another bubble.

As intended I would imagine.

And if that happens then, well, fk it: I'm jumping in. It turns out it's true: you really can't go wrong with bricks and mortar. Your children's future taxes guarantee it.

Share this post


Link to post
Share on other sites

 

The BTLers the ones playing the nasty game.  

Free will, own choices, in a supply and affordability big squeeze.

Seen houses fall to BTLers time after time (at prices people in regional forum unable/unwilling to pay for same house) and return to market as rentals.

Quote

Campaign group PricedOut argues that the buy-to-let sector was at the forefront of the housing bubble as it took advantage of the excess credit available primarily through risky interest-only mortgages.

The number of outstanding buy-to-let mortgages increased ten-fold from 2000 to reach over one million by 2007. By this time buy-to-let accounted for over 29% of total house purchase mortgages, up from just 4.3% in 2000.

 This surge – along with the speculative mindset held by several credit-boom investors, expecting prices to rise – in a market with a fairly fixed housing stock can almost certainly be considered a significant factor in residential house price rises.

Now they've doubled down into it, last few years, £200 Billion fresh BTL borrowing since 2010, on something like 2 million homes.

Section 24.

All the equity in the BTLs + their own homes to sell, to make whole on their debts.   Let's see if buyers comply with 'what it is worth' as more of them begin coming out looking/needing to sell.

 

Share this post


Link to post
Share on other sites
8 hours ago, Digsby said:

That's one hell of a bump. Where do you drag these threads up from?

I presume he has some kind of freaky photographic memory or otherwise has every comment on HPC on some kind of giant scrap book. 

Share this post


Link to post
Share on other sites
On 19/05/2011 at 10:29 AM, tomandlu said:

It's not sustainable and landlords are not going to find much sympathy when their over-leveraged assets go bust

I know my landlord is over-leveraged. He has 5 properties around Cambridge, and he literally let out an audible whimper when I mentioned the possibility of interest rates going up.

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 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.