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It's Funny Because Its True -- Daily Mash Merged

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Will the amount of negative equity one is in become the new self-worth indicator?

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Will the amount of negative equity one is in become the new self-worth indicator?

Absolutely.

How are you supposed to look your fellow Londoner in the eye unless you had the Blitz Spirit to buy into the London housing market in Q1 2016?

Buy now, buy everything.

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No - it will be how much money you can boast about agreeing to reduce your broke tenant's rent by.

"The poor dears were struggling so I let them have £50 off their rent for a few months."

More seriously, capital losses always looked like the mostly like mechanism by which this shit bet would unwind. However, Brexit really changes the game. I think BTL mortgage rates are bottomed out. Inflation imported via the weakening pound and economic uncertainty biting on London's ability to spew wages may change the game. We may get pressure on both their cash accounting P&L (so to speak, as tenants ability to service is restrained by CPI exceeding the growth of AWE) and their balance sheet, i.e. capital losses and impacts on LTV when refinancing.

I still stand to my main point since time immemorial - buy-to-let is a bet that everything goes your way forever, and buying into that bet is not an investment, it is queuing up to buy snake oil.

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Will the amount of negative equity one is in become the new self-worth indicator?

Always cracked me up how people were bragging about how much debt they were in.

bloke 1: Bank lent me 400k,

bloke 2: Oh yeah? well bank lent me 500!

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Absolutely.

How are you supposed to look your fellow Londoner in the eye unless you had the Blitz Spirit to buy into the London housing market in Q1 2016?

Buy now, buy everything.

I already pulled all the veg out of my Victory Garden and replaced them with twigs, and I am melting down all my metal and turning it into vases.

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