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arrgee1991

£1,250 Billion In Buy To Let Vs. £1,600 Billion In Pensions

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Now everyone has bought into property for investment it looks like it is ripe for a collapse. It is mad that for small yields and the possibility of a crash, this much money is in one asset class. For some it may be their only pension. The article also mentions most BTL is interest only. And no plans to pay CGT. Plus few know what their yield is. Mugs.

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10864340/1250bn-and-rising-how-buy-to-let-isovertaking-pensions.html

Andrew Merricks of Skerritts Chartered Financial Planners said: In 2006 and 2007 everyone was buying property and talking about it and then it went completely silent after the credit crunch. Now it is back on the agenda. But I believe this housing recovery is a false dawn.

If there is an asset class that is sensitive to an increase in interest rates, along with bonds, it is property, he said. Residential property is a very expensive way to get not a lot of yield. It costs a great deal to own and the risks are hugely underestimated.

Paul Taylor of chartered planners McCarthy Taylor said: The view we give clients has remained consistent. Property is a useful part of a portfolio but it is illiquid and expensive to maintain, buy and sell. It shouldnt be a major part of a portfolio and over time we expect shares to do better.

Edited by arrgee1991

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The trend is causing concern among policymakers and commentators, not least because many landlords are said to be failing to plan or prepare for setbacks such as interest rate increases and tax liabilities.

Renters are going to be the ones who feel it first as the landlords struggle to maintain 'their' properties and/or try and put the rent up.

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Renters are going to be the ones who feel it first as the landlords struggle to maintain 'their' properties and/or try and put the rent up.

Housing benefit to the rescue of the 'free market' again.

Rentiers : Too feckless to fail

Edited by aSecureTenant

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1% fall= 12 billion written off.

and thats just BTL.

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Renters are going to be the ones who feel it first as the landlords struggle to maintain 'their' properties and/or try and put the rent up.

Maybe all your worriers have been buying at stupid high prices, on the same concerns. Sounded like you've been eager to pull the trigger and buy.

There may be some transitional pressures put on tenants, with rents and notice served, but ultimately I think the investors and owners have more to worry about.

We phoned up about viewing a house and were told "well the owner can squeeze you in at 11:00 but she wants an answer by 12:00 as it's VERY busy today".

We said "no thanks - we're not going to rush into making an offer like that". Later that day the house was 'sale agreed' on their website.

A month later the house was back on Rightmnove. We considered looking around, but have basically resigned ourselves to waiting for the HPC. Anyway it was sale agreed about a week later.

Well, what do you know - last week the house was back on Rightmove. Still not going to look round it though.

In total in our area there's been at least four houses we've seen where that's happened. The estate agent creates a buzz, has an open day, house goes for asking price or more, then it seems to fall through a few weeks later. They seem to eventually sell though.

Maybe you'll get your chance if and when this one falls through.

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What a fantastic target for Mr Taxman....

Didn't Mr Brown raid the pension pots all those years ago essentially forcing other pension alternatives such as BTL?

An article like that surely just highlights that BTL is a sitting duck for future tax grabs?

(Here's hoping anyway)

BF

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Highly misleading article headline / premis

Most of the BTLers are leveraged. The pension investments in bonds / equities aren't.

So the 'net' savings aren't in any way comparable.

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Renters are going to be the ones who feel it first as the landlords struggle to maintain 'their' properties and/or try and put the rent up.

In the end the renters will force down the rents.....this will come with building, and supplying more affordable rents.....the state and employers can no longer afford to pay the rents the rentiers are asking.....one is enough, two and you are a sitting duck. ;)

....look at the retail section offering cheap loans to their employees....they would rather do that then pay them more.....if you work for the company there is a very good chance you will repay what is owed, taken off your wages before you get it......next they will be providing accomodation.

Edited by winkie

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In the end the renters will force down the rents.....this will come with building, and supplying more affordable rents.....the state and employers can no longer afford to pay the rents the rentiers are asking.....one is enough, two and you are a sitting duck. ;)

But many a third world nation has rents taking up most of the local workers wages ... and that is the LIBLABCON intentions judging by their actions.

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Highly misleading article headline / premis

Most of the BTLers are leveraged. The pension investments in bonds / equities aren't.

So the 'net' savings aren't in any way comparable.

I thought it was odd that Dyson had failed to include this rather crucial fact. I'm sure that if during the tech stock boom the banks had made personal loans available to retail investors so that they could buy shares on margin then the Pets.com IPO could have been confidently pitched at a higher price than was actually the fact.

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But many a third world nation has rents taking up most of the local workers wages ... and that is the LIBLABCON intentions judging by their actions.

They also have favelas, which probably isn't... Imagine the nimby backlash!

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In the end the renters will force down the rents.....this will come with building, and supplying more affordable rents.....the state and employers can no longer afford to pay the rents the rentiers are asking.....one is enough, two and you are a sitting duck. ;)

....look at the retail section offering cheap loans to their employees....they would rather do that then pay them more.....if you work for the company there is a very good chance you will repay what is owed, taken off your wages before you get it......next they will be providing accomodation.

Vendor financing.

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