Real Estate Investors Bailing Out?

[nickc]

Real estate investors bailing out?

Report: Speculators could hasten the real estate cool-off by putting properties on the market.

CNN

[Goat]

Exactly, once investors see prices levelling off/going down their sub 5% yeilds no longer make any sense. Result: floods of BTLs selling up with no new investors to take their places & prices bid down until the yields rise back to over 8% (a 30% drop)

[Karen]

These are not investers. Investers buy a house, rent it out. The rent at least covers the cost of the house. Investers are honest business people. (renting & upkeep on a house *IS* work) The couple who own the house we rent, have owned the house for years, they even lived in the house at one point.

In the US we are talking about speculators. IMHO they are slime. They do nothing. They buy a house, own it for 6months, and hope to make 100K for doing nothing. These people have done nothing but make housing unaffordable for famlies. The whole state of Nevada is going to pay for their greed.

[Converted Lurker]

Exactly, once investors see prices levelling off/going down their sub 5% yeilds no longer make any sense. Result: floods of BTLs selling up with no new investors to take their places & prices bid down until the yields rise back to over 8% (a 30% drop)

hmmm...do you reckon its a good time to buy even if yields approach 8% again? For example, 60K houses that return 400 per month? The reason I ask is that having looked at the Merseyside area in particular it`s the only calculation I can see working. However, you`d have to have 20 of the `ickle blighters just to make gross a couple of grand after paying the I/O mortgages and dealing with managing 20 properties...I`m struggling lately to see any chink of light for investors buying anything...the whole market and all it`s internal machinations has ground to a halt IMHO. Even builders buying tiddlers for approx 45, then spending 8 over 2 months are struggling to sell at 60. You`d think at this modest level the potential ftb would think nothing of spending 60ish...strange times

[BuyingBear]

Exactly, once investors see prices levelling off/going down their sub 5% yeilds no longer make any sense. Result: floods of BTLs selling up with no new investors to take their places & prices bid down until the yields rise back to over 8% (a 30% drop)

A lot of these are pure speculators, 25% of all houses sold last year were sold to them, many don't even bother finding tenants because they intend to flip them swiftly.

BTL is a pretence of course, recent 'investors' have no hope or desire of ever making real money from the rental yield, in the US they're more honest aobut these things, flippers are little different from those playing the stock market, without any of the liquidity of course as they're about to find out.