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What Is Going On?

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Considering BTL tax changes, and interest rate rise warnings, everyone's going gaga for property again.

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Explanations?

Rate rises are a sham, nobody's fooled.

BTL clowns are selling to naive OOs at bubble prices.

An explosion of silver landlords thanks to 'pensions liberation'.

£240,000 interest-free loans courtesy the latest HtB extension.

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Explanations?

Rate rises are a sham, nobody's fooled.

BTL clowns are selling to naive OOs at bubble prices.

An explosion of silver landlords thanks to 'pensions liberation'.

£240,000 interest-free loans courtesy the latest HtB extension.

Pension fund withdrawals very worrying

"120,969 who cashed in a pension fund between July and September last year took the whole lot out" "The majority of these taking out cash - 88% - had savings of under £30,000, which would have bought them a relatively small income."

Cash in the pension, the £30,000 becomes a 10% deposit, borrow the £270,000, buy BTL -> untold future riches. Then doubles all round.

Wealth warning: This is not financial advice. LOL.

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im see much more coming to market in devon + cornwall. And some obvious BTL's flogging with tenants in situ, guess they dont want to wait 6 months for the tenants to move to get better monies.

also seen a few properties which have been sat for a year or two suddenly sell, so some BTL are buying before april.

the market should be stone dead by summer. couple with a new recession and boom HPC!

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The last real price correction was more than twenty years ago. May as well be a folk memory.

Another year older, another year's worth of people finally snap under the pressure of renting in this country and make the only other choice open to them.

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I just bought 24month's worth of popcorn when I heard the ramping on tv and radio. The last fool's are still being herded like cats. ?

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Cash in the pension, the £30,000 becomes a 10% deposit, borrow the £270,000, buy BTL -> untold future riches. Then doubles all round.

Wealth warning: This is not financial advice. LOL.

It's almost ten years since anybody got a 90% LTV BTL mortgage. I'd put the odds of a material impact on effective demand for property arising from the April 2015 pension changes is essentially zero. Anyone with the assets and separate income needed to do it already had the pension freedoms before the changes. Anyone with a crappy little pension pot and bugger all else was unable to play before (because of the pension rules) and is unable to play now (because of the tighter BTL underwriting standards the banks have implemented). Good piece here on the question, (h/t Neverwhere for the source).

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It's almost ten years since anybody got a 90% LTV BTL mortgage. I'd put the odds of a material impact on effective demand for property arising from the April 2015 pension changes is essentially zero. Anyone with the assets and separate income needed to do it already had the pension freedoms before the changes. Anyone with a crappy little pension pot and bugger all else was unable to play before (because of the pension rules) and is unable to play now (because of the tighter BTL underwriting standards the banks have implemented). Good piece here on the question, (h/t Neverwhere for the source).

I did type that with my tongue firmly in my cheek but thanks for putting me right. I must admit that the T&C's for a BTL mortgage are probably the last thing on my mind right now. ie absolutely zero interest.

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The prospect of negative interest rates terrifies me. Just how much misallocation of capital do they want?

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People are scared that if they dont act now then it will become too costly for them to get on the property ladder or into the BTL market down the line. That is my theory anyway.

They're too closed minded. There are what, another 195 countries of the world (if you include Taiwan) to choose from if this one doesn't give you what you need. The vast majority of them with lower cost housing than here.

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Same houses for sale as last year in my patch (nr2).

It works like this everything is a stupid price but when something nice comes on the market there is a good chance someone will blink and that raises the average.

People are so greedy also there is a Jessop road semi just listed this week bought for 280 and an extension crammed in on the side..... now 420,000 and will no doubt stick around. The sad thing is 350 and someone may buy it.

Gems like this surely the vendor must understand the recently sold prices are down the side.

http://www.rightmove.co.uk/property-for-sale/property-38640495.html

REDUCED FOR QUICK SALE - £420,000 (BTL early mover?)

  • 26 Jun 2015 36 Phillipa Flowerday Plain, NR2 £395,000
  • 11 Jun 2015 16 Phillipa Flowerday Plain, NR2 £365,000
  • 23 Jan 2015 2 Phillipa Flowerday Plain, NR2 £348,000

It feels really primed for a fall around here despite being tipped to go up by 8% just imagine how many golden triangle terraces are BTL investors... hundreds I bet even the single unit ones.

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Same houses for sale as last year in my patch (nr2).

It works like this everything is a stupid price but when something nice comes on the market there is a good chance someone will blink and that raises the average.

People are so greedy also there is a Jessop road semi just listed this week bought for 280 and an extension crammed in on the side..... now 420,000 and will no doubt stick around. The sad thing is 350 and someone may buy it.

Gems like this surely the vendor must understand the recently sold prices are down the side.

http://www.rightmove.co.uk/property-for-sale/property-38640495.html

REDUCED FOR QUICK SALE - £420,000 (BTL early mover?)

  • 26 Jun 2015 36 Phillipa Flowerday Plain, NR2 £395,000
  • 11 Jun 2015 16 Phillipa Flowerday Plain, NR2 £365,000
  • 23 Jan 2015 2 Phillipa Flowerday Plain, NR2 £348,000

It feels really primed for a fall around here despite being tipped to go up by 8% just imagine how many golden triangle terraces are BTL investors... hundreds I bet even the single unit ones.

What's another £25-£72k of debt between friends. You don't think the next punter is going to pay it off do you?

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I did type that with my tongue firmly in my cheek but thanks for putting me right. I must admit that the T&C's for a BTL mortgage are probably the last thing on my mind right now. ie absolutely zero interest.

I think a BTL mortgage interest rate of zero is the about only thing that can save the BTL 'business model'.

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