Bruce Banner Posted June 7, 2011 Share Posted June 7, 2011 A mix of debt and equity is used in many financial transactions, whats so different about BTL? To my mind sour grapes from those who have not had the guts to do it Surely if it's such a sure thing it takes no guts at all. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 7, 2011 Share Posted June 7, 2011 A mix of debt and equity is used in many financial transactions, whats so different about BTL? To my mind sour grapes from those who have not had the guts to do it 100% debt is not a good mix, unless you expect capital gains. The BTL is NOT A financial transaction and more than lending money to deal on the stock exchange was nothing but a ponzi scam to maintain asset values... It is a mix of the financial transaction ( purchase) and a business (trying to gain an income). It is a business unique to the realm where ordinary buyers are excluded from the same tax breaks for the same product in the same channel as the "investment". It is therefore doomed to fail en mass as once a saturation point in renters is met, there can be no increase in rents at that point and the subsequent fallout in capital values will trash your investment. Many BTL "investors" are finding this out already....many many more will find out soon also. Where are the Wilsons now they want to "cash out"? Quote Link to comment Share on other sites More sharing options...
silver surfer Posted June 7, 2011 Share Posted June 7, 2011 A mix of debt and equity is used in many financial transactions, whats so different about BTL? To my mind sour grapes from those who have not had the guts to do it BTL's not working out too well for this landlord, sounds like he's regretting following his "animal instincts" http://www.landlordzone.co.uk/forums/showthread.php?4173-BTL-landlord-fed-up-and-losing-money-should-I-sell Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 7, 2011 Share Posted June 7, 2011 Every BTL investor is different in how much leverage they are willing to take on and can obtain but in your mind all leverage BTL is excessive. no I do not think this but in your mind reality seems to be a bit like Rocky and Bulwinkle. heh ho. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 7, 2011 Share Posted June 7, 2011 (edited) Folks can look at this detailed graph from the article to decide for themselves I guess ...dividend yield on stocks has been declining rapidly since the early 1990s ...and right through the long BOOM period ... http://4.bp.blogspot...eld+History.jpg so what? do you actually know the differewnce between dividend and profit, one is reinvested internally, the other optionally? the long term ex-inflation growth+dividend return has remained pretty consistent over that time, not a big deal http://en.wikipedia.org/wiki/Correlation_does_not_imply_causation Edited June 7, 2011 by Si1 Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 7, 2011 Share Posted June 7, 2011 BTL's not working out too well for this landlord, sounds like he's regretting following his "animal instincts" http://www.landlordz...y-should-I-sell I like the opinion that houses go up 7% p.a. in a normal market - try between 0 and 1% above inflation in the long run matey going off UK and international data, eg Schillers' data-series! Quote Link to comment Share on other sites More sharing options...
FIGGY Posted June 7, 2011 Share Posted June 7, 2011 (edited) Yep, these guys are top of their game 4%, they may as well cash out and stick it in a saving account. Edited June 7, 2011 by FIGGY Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted June 7, 2011 Share Posted June 7, 2011 BTL is good investment so long as you get some capital growth, and buying now means your horizon for growth is probably at least 5-7 years. My concerns with BTL would be 1) its fundamentally anti-social as I'm denying someone to opportunity to buy the property to live in at a reasonable price 2) its anti-capitalistic as I am bidding up a limited resource and 3) the next generation of priced out voters may insist the government of the day penalise second homes and personal property investment. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 7, 2011 Share Posted June 7, 2011 Yep, these guys are top of their game 4%, they may as well cash out and stick it in a saving account. the article was from 2006. Wonder what happened. Quote Link to comment Share on other sites More sharing options...
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