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Quotes From Btl'ers At The Moment

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None of the btl people I know are even concerned about all the new changes.

"Tax offsetting changes don't affect me" when they actually do

"Stamp duty changes are fine, I've got lots of equity from my 3 btl. They will only affect new people who won't be able start in btl"

"Flat I bought for 125 last year is now worth 150, will be worth 175 next year"

"If interest rates ever go up and I don't make profit every month, I'll just sell it"

All quite one dimensional views, no clue about the wider impact.

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All quite one dimensional views, no clue about the wider impact.

The real risk in BTL is the movement of prices. As BTLers often re-mortgage and use the equity extracted as seed corn for further purchases, they often don't reduce the LTV in the portfolio over time as prices rise.

Since 2009 BTLers investing in London and the South East have seen massive HPI, but in swathes of the country there has been little significant HPI. For some investors even a 10% in prices will result in a capital loss.

With all this speculative money, we will see a sharp correction at some point, at that point mug BTL investors will finally understand that leverage works both ways, and they'll also finally understand that what they are using to finance their position are essentially commercial mortgages which behave very differently in a price correction when compared to how a regulated mortgage extended to an owner-occupier behaves.

Margin calls from their lenders will the crystallise the BTLers capital loss, (unless they can stump up the money to restore the LTV). BTL is foam on the runway for the banks.

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"Stamp duty changes are fine, I've got lots of equity from my 3 btl. They will only affect new people who won't be able start in btl"

BTLer failing to take the next steps in the logic there. 'I've got lots of equity because prices rose after I bought. Prices rose after I bought because new BTLers came into the market and bid prices up further. New BTLers won't be able to enter the market at these prices any more. Therefore prices will fall and so will my equity.'

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BTLer failing to take the next steps in the logic there. 'I've got lots of equity because prices rose after I bought. Prices rose after I bought because new BTLers came into the market and bid prices up further. New BTLers won't be able to enter the market at these prices any more. Therefore prices will fall and so will my equity.'

He probably thinks a big property company will buy it at premium price when the little guy is no longer buying, after all property is a sure fire one way bet?

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you seem to know a lot of buy to let people.

are you an estate agent?

:lol:

thankfully I only know 1, who said recently, "went to see a place for a HMO but the prices are crazy and it's all going to crash now."

that was a real change of view from him too.

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At an open regulation review of PRS recently with around 200 BTL'ers and agents. Only one was vocal about clause 24. The main attention was on HB and how they don't get enough of it, HMO classification and the ridiculous of it, the eviction process not being fair to landlords and the lack of respect that landlords get. It was made obvious that there is no real appetite for longer tenancies. Landlords, regardless of public statements, are happy with 6 month agreements. They are not amused at being 'over regulated'.

Respect, the lack of, was mentioned frequently. Sadly little was shown in the descriptions and manner that tenants were described in.

I do know quite a few landlords, (in NI 82% of the landlords that are known to be landlords are of the accidental type) but I was struck by how many were 60+ and by how many of them owned large portfolios (over 15). More struck, however, that only one seemed to realise that BTL was a done deal.

Edited by little fish

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Just back from visiting relatives in London, on their street there is a 3 bed semi HMO containing 14 people, including at least one primary scholl aged child. Utter squalor, and despite my relation spending quite a bit of time attempting to get the situation resolved with the local authority (the LA is considered one of the best in the country for PRS regulation), nothing substantial has been done over a period of approximately 6 years.

Reckon this slumlord is coining it in properly, and it appears there is no reason to believe that anything will be done. Seems like the worst outcome the LL will face is a ban, forcing the crystalisation of a monstrous HPI gain. Disgusting.

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Seems like the worst outcome the LL will face is a ban, forcing the crystalisation of a monstrous HPI gain. Disgusting.

Or he'll just put the wife's name down on the form.

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None of the btl people I know are even concerned about all the new changes.

"If interest rates ever go up and I don't make profit every month, I'll just sell it"

Aren't they worried if that happens then prices will crash and they could lose money? (A good thing for renters but not for landlords).

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