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The Fightback Begins - Buy To Let

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http://property.timesonline.co.uk/article/...1854802,00.html

Buy to let

The fightback begins

Tenants are scrabbling for flats in parts of London as demand revives, says Paula Hawkins
LANDLORDS looking for new investments have forsaken London over the past couple of years. Property prices in the capital have risen too far to offer most investors a decent return: figures from Landlord Mortgages indicate that the average price of a buy-to-let property purchased in London over the past year was £234,000. This helps to explain why, in the year to August 2005, just under 9 per cent of all rental properties purchased were in London, a fall of about 5 per cent on the previous year’s figure. By contrast, about 22 per cent of properties purchased were in the South East, an area that offers similar demand and higher rental yields.

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My BTL's are in central london and doing well, got new tenants within two weeks for one of them and put the rent up :) Being able to walk to work in the city is a big plus for tenants.

I've noticed an awful lot of under offers on findaproperty recently compared to the last three months and in agents windows. No signs of a crash here bears ....

Edited by mercsl

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Guest Alright Jack

I'm sure tempted to get in on this act. The number of whinging wannabe home owners renting on this site (paying very large rents) pays tribute to BTL really.

Reckon I could acquire 3 without too much risk, maybe 4, but 3 would be safe for me.

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My BTL's are in central london and doing well, got new tenants within two weeks for one of them and put the rent up

You don't say whether your rents are below the market level for the area and property type.

I've noticed an awful lot of under offers on findaproperty recently compared to the last three months and in agents windows.

You've noticed that estate agents put fake 'under offer' properties in the window to make punters think business is booming.

The number of whinging wannabe home owners renting on this site (paying very large rents)

LOL. My rent is less than 10% of my monthly take-home pay.

Edited by IPOD

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You don't say whether your rents are below the market level for the area and property type.

You've noticed that estate agents put fake 'under offer' properties in the window to make punters think business is booming.

LOL. My rent is less than 10% of my monthly take-home pay.

The one I just rented is a 650 sqft 2 bedroom flat at £285 a week. It's not a bland new build, a nice conversion with good original features and a decent view. I think its quite competitive rent for the area and not a rip off.

Yup I can see the motivation for agents would putting false 'under offers' on property listed on findaproperty..NOT. Not many people will phone up asking for a viewing if its already under offer.

I check agents windows every day on my way to work in the city and they have not had many under offers till the last 3 months.

There are many landlords who do not buy off plan or new developments, personally I would never touch them for investment properties.

Went to see a new build near work in the city, 265K for 333sqft studio over a noisy street market. Never sell this I thought, most the studios had gone to lawyers for a place during the week !

Edited by mercsl

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I don't think TTRTR and mercs understand the wider market. Yes, there are professional investors like them who chose the right properties that will always have tennants - the problem lies with all the amateurs who have plunged in forcing prices to stupid levels and are not making money on them. It is the proverbial shoeshine boy who will bring the whole thing crashing down.

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You don't say whether your rents are below the market level for the area and property type.

You've noticed that estate agents put fake 'under offer' properties in the window to make punters think business is booming.

LOL. My rent is less than 10% of my monthly take-home pay.

LOL at you!! Either you earn £100k a year or you live in a sh1tehole :lol::lol:

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Guest muttley

I don't think TTRTR and mercs understand the wider market. Yes, there are professional investors like them who chose the right properties that will always have tennants - the problem lies with all the amateurs who have plunged in forcing prices to stupid levels and are not making money on them. It is the proverbial shoeshine boy who will bring the whole thing crashing down.

I think they understand that perfectly.I'm not sure everyone here understands that money can be made from property even in a falling market.

Everyone seems to agree that the Retail Sector is in recession,but I went into town today and,guess what?Some shops were open.

I started a retail business going into a recession and made money year on year.Who's to say that BTL landlords can't?

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I don't think _all_ BTL will lose out,

but when HPI is 20% any fool can make money.

During a fall, those who bought wisely, and can really

make a business of it will.

Those that thought they were on easy

street, relying on capital gains, with no idea how to be a

profitable landlord will lose out.

ABB

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Guest muttley

I don't think _all_ BTL will lose out,

but when HPI is 20% any fool can make money.

During a fall, those who bought wisely, and can really

make a business of it will.

Those that thought they were on easy

street, relying on capital gains, with no idea how to be a

profitable landlord will lose out.

ABB

I read somewhere that to make money from BTL you have to be good with people.To make money from equities you have to be good with numbers.

Was that one of yours,DrB ?

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Guest Charlie The Tramp
credit levels are being withdrawn or lowered by factors and debt insurers as they also see the payment cycles increasing.

I saw the same thing in the last recession with three of my customers. Just a little flexibility with their credit and they would probably had pulled through. The banks got very fidgety and moved in for their money like vultures. All three went to the wall and a 150 people lost their jobs.

In difficult times your friendly Bank Manager becomes a Mr Hyde.

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what a load of crap, talking about a recovery and in the same article pricing a 1 bed flat at 650K that rents for 450 a week. lets get realistic.

whatever way you look at it, £1.1 trillion of debt has to be paid back by the UKconsumer/BTL in a climate that is reporting highest record of bankruptcies since records began. oil is sky high, unemployment is rising month on month and rates are rising globally. your bonkers to believe there is any BTL recovery, its absolute tosh.

here are 6 similarities with the 70s and why inflation and the biggest credit bubble in history is going to rip the sh*t out of anyone in its way.

1. OIL PRICES ARE SOARING

2. WE’VE HIT THE TOP OF THE HOUSING BUBBLE

3. COMMODITY PRICES ARE IN OVERDRIVE

4. CONSUMER CREDIT IS OUT OF CONTROL

5. GOLD IS IN A SUSTAINED BULL MARKET

6. ASIAN MANUFACTURING IS STEALING JOBS

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Guest muttley

whatever way you look at it, £1.1 trillion of debt has to be paid back by the UKconsumer/BTL

Does it though?

I would have said that the £1.1 trillion debt has to be serviced by the UK consumer/BTL.It was never zero.

I also disagree with your soaring inflation scenario.I think deflation is more likely.(Also very bad for anyone in debt)

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London estate agents are hopeful. Jim Ward, head of research at the agent Savills, says: “Key indicators such as asking prices and surveyor sentiment are more buoyant in London and the South East than anywhere else.” He points out that in any house-price cycle the prime markets tend to lead the mainstream, and London leads the rest of the country. “There is anecdotal evidence that we are seeing higher activity and rising prices in prime Central London,” he says.

Rising capital values will not be enough to tempt investors back into the market. But coupled with booming tenant demand, parts of London start to look very attractive. Cotton cites the case of Cluttons’ letting office in Docklands, which he says is “crying out” for one-bedroom flats priced at up to £300 a week. The office normally has about 15 to 20 one-bed flats to let. At present they have only four, Cotton says. Competition between applicants is fierce, with as many as 15 potential tenants fighting it out over individual properties. As a result, landlords have seen void periods — when a property lacks tenants — fall to an average of just one week. This is critical, because lower voids mean higher yields, and it is higher yields that London landlords have missed over the past few years. Figures from Paragon Mortgages, the specialist buy-to-let mortgage broker, indicated that average rental yields in London are just 5.8 per cent — the lowest of any region in the UK.

Given the narrow margins with which London landlords have to operate, picking the right area is crucial. The East End looks attractive for a number of reasons. Prices here are lower than in many areas of the capital, and proximity to the City is key. “The lack of one-bed flats is partly driven by demand from graduates starting work in the City,” says Cotton. Recruitment by investment banks and accountancy firms plummeted during 2001 and 2002, because of the poorly performing stock market, but the recovery of the past two years has meant that graduate recruitment has risen once again.

Strong demand is coupled with a relatively weak supply of properties. “The lack of one-bed flats is mainly due to existing stock failing to come back on to the market,” says Cotton. “Tenants are getting a better deal by renewing at a 3 per cent increase than looking elsewhere.” He adds that there is relatively little new stock coming on to the market because of the reluctance of investors to pay London prices.

There is evidence that strong demand, combined with the short supply of flats, is beginning to push rental incomes higher. Figures from Paragon Mortgages show that rents across London rose by 6.7 per cent in August, taking the average rent to £16,850 — the highest average annual rental figure yet recorded in the buy-to-let index. In the year to August, Paragon says that average rental income rose by more than 18 per cent.

A final draw to the East End is the 2012 Olympics. This should, over the longer term, mean that property values in this part of London appreciate faster than elsewhere because of infrastructure and transport improvements. House-price statistics from other cities that have hosted the Olympics, including Athens and Sydney, show that prices in the immediate area of the Olympic village do grow at a faster rate than elsewhere. However, investors should be aware that in the medium term tenants may be put off by the noise and disruption caused by building works as the developments take shape.

Pier pressure

THE Butlers Wharf warehouse conversion, above, in Shad Thames, London SE1, has apartments for rent and for sale. A one-bedroom flat on the second floor overlooking the Thames is for let by Cluttons for £450 per week.

However, if you feel like investing in a flat in this building you will need to have a fairly big budget: a one-bedroom flat with a river view on the third floor is for sale for £620,000, also through Cluttons. The building has a lift and a 24-hour concierge service. The flats are above a variety of bars and restaurants, and are within easy reach of the City.

Cluttons: 020-7407 3669, www.cluttons.com

Sibliminal advertising at it's best.

Now, I'm off to buy a flat in the Butlers Wharf warehouse conversion from Cluttons with a Paragon mortgage.

When did journalism and advertising officially merge in this country?

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what is not reported anywhere in the media is there are thousands of companies whos funding/credit levels are being withdrawn or lowered by factors and debt insurers as they also see the payment cycles increasing.

I saw the same thing in the last recession with three of my customers.

Rang a bell with me too Charlie.

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Sibliminal advertising at it's best.

Now, I'm off to buy a flat in the Butlers Wharf warehouse conversion from Cluttons with a Paragon mortgage.

When did journalism and advertising officially merge in this country?

I presume when journalists became BTL landlords.

Why this obsession with the micro economy that is the City of London?

A 333 sq.ft. flat for 265k?

A 15' x 22' room for 265k?

So what if lawyers can afford them as London pied a terres? What effect does this have on the bigger picture? Does it prove anything? I'm only half an hour from London but a 333 sq.ft flat here would be half that price.

It's like saying that because shirt sales in Jermyn Street are holding up, that Burtons will do okay as well.

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I'm sure tempted to get in on this act. The number of whinging wannabe home owners renting on this site (paying very large rents) pays tribute to BTL really.

Reckon I could acquire 3 without too much risk, maybe 4, but 3 would be safe for me.

Look, if you had one shot, or one opportunity.

To seize everything you ever wanted-One moment Would you capture it or just let it slip?

Yo,

His palms are sweaty, knees weak, arms are heavy

There's vomit on his sweater already, mom's spaghetti.

He's nervous, but on the surface he looks calm and ready To drop bombs,

but he keeps on forgetting What he wrote down,

the whole crowd goes so loud He opens his mouth,

but the words won't come out He's chokin, how everybody's chokin now.

The clock's run out, time's up over, bloah!

Snap back to reality, Oh there goes gravity Oh, there goes Rabbit,

he choked He's so mad, but he won't give up that easy No, he won't have it ,

he knows his whole back city's ropes It don't matter,

he's dope He knows that, but he's broke.

He's so stacked that he knows When he goes back to his mobile home,

that's when it's Back to the lab again yo

This whole rap city He better go capture this moment and hope it don't pass him

You better lose yourself in the MEW, the moment You own it, you better never let it go You only get one shot, do not miss your chance to blow This opportunity comes once in a lifetime yo, You better lose yourself in the music, the moment You own it, you better never let it go You only get one shot, do not miss your chance to blow This opportunity comes once in a lifetime you better,

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Guest muttley

Mutlley,

Your:

"I think they understand that perfectly.I'm not sure everyone here understands that money can be made from property even in a falling market."

In a GENTLY drifting-downwards market (like 2005), sure.

But in a SHARPLY SLIDING one (like 2006?), How? can you give an example please?

STR?

Seriously though,your definition of a sharply sliding market is 1% falls month on month.So providing a property developer can flip the property quickly there are still profits to be made.

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May I have your attention please?

May I have your attention please?

Will the real TTRTR please stand up?

I repeat, will the real TTRTR please stand up?

We're gonna have a troll problem here..

Y'all act like you never seen a STR before

Jaws all on the laminated floor like Tony, like Gordon just burst in the door

and started whoopin his ass worse than before

first they were elected, throwin their weight about 'we wont let HPI happen!' (Ahh!)

It's the return of the... "Ah, wait, no way, you're kidding,

he didn't just say what I think he did, did he?"

And Dr. Dre said... 'DON’T BUY NOW you idiots!'

Dr. Dre's in debt, he's locked hiself my basement! (Ha-ha!)

Chinese lesbians love bush {*vocal turntable:chigga chigga chigga*}

"TTRTR, I'm sick of him Look at him, walkin around grabbin his you-know-what

Flippin the you-know-whose property," "Yeah, but he's so cute though!"

Yeah, I probably got a couple of DIY’s screws up in my head loose

But no worse, than what's goin on in your landlords' bedrooms

Sometimes, I wanna get on TV and just let loose, but can't

but it's cool for Kirsty Allsop to ‘big up’ the housing market!!!

"My bum is on your lips, my bum is on your lips"

And if I'm lucky, you might just give it a little kiss

And that's the message that we deliver to first time buyers

And expect them not to know what price they should be paying

Of course they gonna know what price to pay!

By the time they hit forty, anyway!

They got the deposit saved don't they?

"We ain't nothing but renters.." Well, some of us sold-to-renters

who cut other people open like Estate agents {*SLURP*}

But if we can buy at the right price

then there's no reason that a man and another man can't elope

{*EWWW!*} But if you feel like I feel, I got the antidote 'girls love home buyers'

Women wave your pantyhose, sing the chorus and it goes

Chorus: Eminem (repeat 2X)

I'm still renting, yes I'm still waiting

All you other renters are just getting irritated

So won't the real TTRTR please shut up,

please shut up, please shut up?

[Eminem]

Tony Blair don't gotta cuss in his raps to sell his opinions;

well I do, so £uck him and £uck you too!

You think I give a damn about a Germany?

Half of you critics can't even stomach me, let alone stand me

"But burnt, what if you buy, wouldn't it be weird?"

Why? So you guys could just flame me and blame me for not waiting?

So you can, sit me here next to Brain clamp?

Shit, Property Guru, better switch me chairs

so I can sit next to Charlie the tramp and Dead Fred

and hear 'em argue over who libertine gave head to first

You little bitch, put me on off topic

"Yeah, he's cute, but I think he's a moderator hee-hee!"

I should download the attachment

and show the whole world how you crashed HPC {*AHHH!*}

I'm sick of you little girl and boy groups, all you do is annoy me

so I have been sent here to destroy you {*bzzzt*}

And there's a million of us just like me who rent like me

who cuss like me; who just don't give a £uck like me

who dress like me; walk, talk and act like me

and just might be buying soon, but not me!

Chorus

[Eminem]

I'm like a head trip to listen to, cause I'm only givin you

things you joke about with your friends inside your living room

The only difference is I got the balls to say it

in front of y'all and I don't gotta be false or sugarcoated at all

I just get on the forum and spit it

and whether you like to admit it {*ERR*} I just shit it

better than ninety percent of you Estate agents out can

Then you wonder how can FTB's eat up these debts like valiums

It's funny; cause at the rate I'm goin when I'm forty-two

I'll be the only person on the forum with a home flirting

Pinchin nurses asses when I'm jackin off with SIPPs

And I wont be working but this whole bag of HIPs isn't working

And every single person is a TTRTR lurkin

He could be workin at Burger King, spittin on your onion rings

{*HACH*} Or in the parkin lot, circling

Screaming "I don't give a £uck!"

with his windows down and his system up

So, will the real TTRTR please shut up!

And put one of those fingers on each hand up?

And be proud to be outta your mind and outta control

and one more time, loud as you can, how does it go?

Chorus 2X

[Eminem]

Ha ha

Guess there's a TTRTR in all of us

£uck it, let's all sell up

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Sibliminal advertising at it's best.

Now, I'm off to buy a flat in the Butlers Wharf warehouse conversion from Cluttons with a Paragon mortgage.

When did journalism and advertising officially merge in this country?

docklands is shocking. South Quay Plaza being a fine example. I think there were 5 seperate estate agents in there. One closed in the summer. The other four are almost always empty. All the new developments going up still empty. The main problem with Docklands is that the (relatively small) number of people who work there that can afford the properties would rather spend the same money to get somewhere nice in Barnes/Fulham etc... and I can't say I blame them!

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I don't think _all_ BTL will lose out,

but when HPI is 20% any fool can make money.

During a fall, those who bought wisely, and can really

make a business of it will.

Those that thought they were on easy

street, relying on capital gains, with no idea how to be a

profitable landlord will lose out.

ABB

Our apartment complex has just been sold to an investor who is activly trying to offload the 400 units to the renting tenants, Yesterday I asked how much they wanted for our 1 bed 987sqft unit and was told $220,000.

Our rent is $950 and a competative 30yr repayment for 100% loan I worked out to be about $1350 + ground rent + car parking spaces.

As there are so many rentals to chose from down here why would I want to buy when it costs 35% more? +/- ground rent etc.

It's all gone completely mad and I want no part of it, by the looks of it no one else does as the carpark is getting less crowded every week.

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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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