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Royal Institution Of Chartered Surveyors Says....

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GRRRRRRRRRRRR

LONDON (Citywire) - Lack of confidence in traditional pension plans is bolstering the buy-to-let market, with investors choosing to hold onto properties for the long term, says the latest residential lettings survey from the Royal Institution of Chartered Surveyors.

"The strength of the market is demonstrated by the fact there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall," said Jeremy Leaf of RICS.

http://investing.reuters.co.uk/news/newsAr...YTOLET-RICS.xml

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GRRRRRRRRRRRR

LONDON (Citywire) - Lack of confidence in traditional pension plans is bolstering the buy-to-let market, with investors choosing to hold onto properties for the long term, says the latest residential lettings survey from the Royal Institution of Chartered Surveyors.

"The strength of the market is demonstrated by the fact there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall," said Jeremy Leaf of RICS.

http://investing.reuters.co.uk/news/newsAr...YTOLET-RICS.xml

Hi,

Oh dear. Can you see it already? 5-10 years down the line, plastered all over the media, old folk marching on Parliment again on another pensions-investment fraud, just like the last few years, just like the mortgage endownments before that. They will probably be joined by some younger crowds as well when the great 'interest only mortgage frauds' will also unwrap.

Really, you think people in Britain would have got used to being suckered out of their savings by all this but, oh no! You think they would stop and say "hold on a minute, I'm going to look into this a bit deeper. We seem to get some form of new financial-scam-of-mass destruction popping its head around the corner every few years with someone like 'Henk Potts' (humm, you shouldn't pay attention to a tabloid 'monkey', you need to find out what his 'organ-grinder' is really planning) saying "oh, well, the markets turned, who would have ever predicted blah, blah, blah". Usual crap they trot off when it all goes tits up for some poor joe suckers (no offence PG, TTRTR, L_L, etc.,).

You really would think that people would start questioning the latest fever-pitch-financial products and say to themselves "Hold on, these were the same lot a few years ago who took all our pension money" or "Hold on, these were the same lot that said my endownment mortgage would payoff me house and a big wadge of beer tokens on top" or "Hold on, these were the same lot who said my dot.com unit trusts scheme would let me live the high life in a few years time as shares never go down, it's a new economic reality, blah, blah, blah". You would think so, wouldn't you? You would think that someone might think, "Hold on, if everyone is doing it, still, at this late stage of the game, there must be a catch, there must be something they are not telling me. I am going to look into this. I am not going to listen to Henk, he doesn't seem like a proper city whiz-kid anyway blah, blah, blah.".

So, unfortunately, I think we will again be watching newsnight in about 3-5 years when lots of people are saying to Jeremy Pacman and Trev McDonut, "we woz robbed, they said it would give me 300% returns and a nice fat pension and we woz fibbed to! We demand government action for this scandal!!"

Boomer

Edited by boom_and_bust

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Guest Time 2 raise Interest Rates

It seems they've chosen to leave this article out from the National

Landlords Association.

Up to half of all landlords have exerienced the problem of runaway

tenants, according to a new survey.

Research from the National Landlords' Accociation (NLA) shows

nearly 40 per cent have had a tenant abandon a property within

the past year and a fifth has had it happen within the past six months.

NLA chairman David Salusbury commented although regulations are

tighter to prevent discrepancies owners of rented properties should

still be cautious.

He said: "Despite the fact the majority of tenancies end satisfactorily

for both parties, the findings of our survey show all landlords face the

risk of a tenant abandoning a property at some point in time.

I bet you won't hear any mention of this on singing pig, or from your

friendly SIPS advisor. ;)

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Guest muttley

Hi,

Oh dear. Can you see it already? 5-10 years down the line, plastered all over the media, old folk marching on Parliment again on another pensions-investment fraud, just like the last few years, just like the mortgage endownments before that. They will probably be joined by some younger crowds as well when the great 'interest only mortgage frauds' will also unwrap.

Really, you think people in Britain would have got used to being suckered out of their savings by all this but, oh no! You think they would stop and say "hold on a minute, I'm going to look into this a bit deeper. We seem to get some form of new financial-scam-of-mass destruction popping its head around the corner every few years with someone like 'Henk Potts' (humm, you shouldn't pay attention to a tabloid 'monkey', you need to find out what his 'organ-grinder' is really planning) saying "oh, well, the markets turned, who would have ever predicted blah, blah, blah". Usual crap they trot off when it all goes tits up for some poor joe suckers (no offence PG, TTRTR, L_L, etc.,).

You really would think that people would start questioning the latest fever-pitch-financial products and say to themselves "Hold on, these were the same lot a few years ago who took all our pension money" or "Hold on, these were the same lot that said my endownment mortgage would payoff me house and a big wadge of beer tokens on top" or "Hold on, these were the same lot who said my dot.com unit trusts scheme would let me live the high life in a few years time as shares never go down, it's a new economic reality, blah, blah, blah". You would think so, wouldn't you? You would think that someone might think, "Hold on, if everyone is doing it, still, at this late stage of the game, there must be a catch, there must be something they are not telling me. I am going to look into this. I am not going to listen to Henk, he doesn't seem like a proper city whiz-kid anyway blah, blah, blah.".

So, unfortunately, I think we will again be watching newsnight in about 3-5 years when lots of people are saying to Jeremy Pacman and Trev McDonut, "we woz robbed, they said it would give me 300% returns and a nice fat pension and we woz fibbed to! We demand government action for this scandal!!"

Boomer

Some very good points,Boomer.

The general public believe banks are "providing a service".They are not.They are selling a product.If they promote one mortgage over another,it is because they believe a- You will be more willing to buy their product than another banks or b- They will make more profit from you.

It is surprising how many people go to their bank and take whatever advice they are offered.These same people would not dream of walking into a car show room and saying "Which car do you think I should buy?" to the salesman.

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GRRRRRRRRRRRR

LONDON (Citywire) - Lack of confidence in traditional pension plans is bolstering the buy-to-let market, with investors choosing to hold onto properties for the long term, says the latest residential lettings survey from the Royal Institution of Chartered Surveyors.

"The strength of the market is demonstrated by the fact there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall," said Jeremy Leaf of RICS.

http://investing.reuters.co.uk/news/newsAr...YTOLET-RICS.xml

Really can't work out why the spin on this is that it's being done because people don't want to do pensions. You can't make a pension contribution at the age of 30 for example of more than 20k anyway so where is the similarity? This is apples and pears stuff.

Lorna Bourke - a truly awful financial journalist for many years. Kept backing Equitable Life when every IFA in the country was telling her the "no commission" story was bo**ocks and that the bonuses were unsustainable. Big fan of Zeroes too - because as Investment Trusts they didn't pay commission.

This woman cost a lot of people a lot of money and was totally immune to any comeback - if I did what she had done I would be in jail.

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Hi TTRTR,

Actually, I would like to apologise for mentioning your name in the 'suckers' category, it is not a nice way really to address people. I don't think your policy is half bad on buying period property in central locations (although I would be REALLY cautious about adding for the next year at least. But hey, if you can root out something others have not noticed, good on you.. It is possible to make returns even at the height of a bubble but that is not 95% of the population doing something else every day 9-5 in another field).

I really do feel convinced those without a game plan, jumping in recklessly in the past couple of years, particulalry now, will not just be burned but positively cremated. If I was anymore convinced of it I would pass out.

Anyway, you coming to the next pub meet?

Boomer

Edited by boom_and_bust

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I'm pasting a bit out of that report which shows why my personal (uninformed) opinion about BTL is that it is worth going back into. My view has always been that if the sales market is weak - the rental market will be strong & vice versa.

QUOTE FROM REPORT

In the South East, tenant demand rose at the fastest pace in the survey's history with activity gaining momentum. The rise in demand was particularly evident for flats. New instructions rose at their fastest pace in 18 months, rising across the board for both houses and flats.

Overall, rents have shown a steady upward trend since bottoming in mid 2003 as tenant demand conditions have improved while growth in new instructions has slowed sharply. Expectations for rents among surveyors picked up in the third quarter of 2005, showing the first improvement in confidence in a year.

The average UK rent was 753 pounds per calendar month in July 2005. Rent for a one bedroom flat was 569 pounds a month. Excluding London, the average rent was 547 pounds a month with the highest average rents being paid in London and the South East at 1,699 pounds and 759 pounds respectively.

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GRRRRRRRRRRRR

LONDON (Citywire) - Lack of confidence in traditional pension plans is bolstering the buy-to-let market, with investors choosing to hold onto properties for the long term, says the latest residential lettings survey from the Royal Institution of Chartered Surveyors.

"The strength of the market is demonstrated by the fact there has been no significant investor exodus in the past year despite shrinking returns as house price rises stall," said Jeremy Leaf of RICS.

http://investing.reuters.co.uk/news/newsAr...YTOLET-RICS.xml

The low numbers exiting the BTL market may have something to do with an inability to sell BTL properties.

The other possibility, which points to a continuing HPC, is that fewer people are buying and more are renting instead. In my area rentals are in short supply due to STRs, divorce/break up of "partnerships", and influx of Polish dentists etc.

Seems that BTL'ers will do well in the crash as people exit the buying marketplace. FTBs will want to rent after giving up on buying or staying with parents. THus, this news is more positive than GRRRRRRRRRR

Edited by Realistbear

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The low numbers exiting the BTL market may have something to do with an inability to sell BTL properties.

The other possibility, which points to a continuing HPC, is that fewer people are buying and more are renting instead. In my area rentals are in short supply due to STRs, divorce/break up of "partnerships", and influx of Polish dentists etc.

Seems that BTL'ers will do well in the crash as people exit the buying marketplace. FTBs will want to rent after giving up on buying or staying with parents. THus, this news is more positive than GRRRRRRRRRR

I don't believe this will be sustained for very long. We are clearly at that stage where people won't lower their asking price because 'the market is flat, not falling.' But once the HPI goes negative sentiement will change. The reality is prices are on the way down. it's just that most people can't see it or don't want to believe it. My niche area has been Bolton detached houses; last quarter these were down 3% on the quarter, now they are down 5% (and 8% on the year -- BBC/Land Registry pages). It is definitely happening -- but unfortunately most of the public need that kick up the **** to see this.

As soon as we get to that crunch point and people recognise they must sell for less house purchases will pick up (but only a little as many people will be waiting for the bottom) and so the pressure to rent will diminish.

It is at this point, as the rental market weakens, that BTLers will start to suffer. Then they will have to fund their additional financial adventures alone, and may well have to sell because of cashflow problems.

I can see the fun starting already; I'm just waiting for the snowball to get big enough...

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  • 301 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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