Jump to content
House Price Crash Forum
loderingo

Still new mugs investing in BTL

Recommended Posts

Despite all the bad headlines, it seems there are still people investing in BTL.

I live in Maidenhead and there is a new town centre development that is just being finished off.  Already there are 3 properties for rent in the development on a local estate agent's website.  In particular this one caught my eye:

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P0908M4916

BTW, the "riverside" is actually a stream that they are turning into a canal basin and the "amphitheatre" - well see for your self in the pictures!

It's worth pointing out that the going rate for 2 bedroom flats in the area is £1200-1250 so the LL is asking for an extra £200 pm for underground parking and being 5 minutes walk closer to the station. Bear in mind the other 2 flats in the development are being rented out for £1300 and £1250.  Either the LL is being greedy or massively overpaid (I'm guessing the latter).  The developers are asking for an eye-watering £680k for some of the flats and 725k for one of the penthouses!

There are 15,  2 bed flats in Maidenhead on just the one EA's website and a couple are offering a week's free rent if someone moves in before Xmas so good luck with getting someone to pay £1450!  I can see someone sitting on a massive loss within a year or 2.

Share this post


Link to post
Share on other sites

Share this post


Link to post
Share on other sites
8 hours ago, loderingo said:

BTW, the "riverside" is actually a stream that they are turning into a canal basin and the "amphitheatre" - well see for your self in the pictures

That's nothing compared to Stone 'enge (2:15 or -0:35)

 

Edited by Arpeggio

Share this post


Link to post
Share on other sites

Canteen discussion this morning on property:

The new guy was talking about his friends in London/SE who are doing really well (one had a Russian tennant who spent £50k of his own money redecorating her £1.6M Kensington flat). I said that prime central London is doing very badly (for those currently in possession) and that I expect it to cause decreases in outlying areas in due course. I mentioned that BTL is looking decidedly dodgy these days for a variety of reasons. At all of my comments he nodded and agreed with me but then said, "Bricks and mortar is the only way to go." ?

Share this post


Link to post
Share on other sites
9 hours ago, loderingo said:

Despite all the bad headlines, it seems there are still people investing in BTL.

I live in Maidenhead and there is a new town centre development that is just being finished off.  Already there are 3 properties for rent in the development on a local estate agent's website.  In particular this one caught my eye:

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P0908M4916

BTW, the "riverside" is actually a stream that they are turning into a canal basin and the "amphitheatre" - well see for your self in the pictures!

It's worth pointing out that the going rate for 2 bedroom flats in the area is £1200-1250 so the LL is asking for an extra £200 pm for underground parking and being 5 minutes walk closer to the station. Bear in mind the other 2 flats in the development are being rented out for £1300 and £1250.  Either the LL is being greedy or massively overpaid (I'm guessing the latter).  The developers are asking for an eye-watering £680k for some of the flats and 725k for one of the penthouses!

There are 15,  2 bed flats in Maidenhead on just the one EA's website and a couple are offering a week's free rent if someone moves in before Xmas so good luck with getting someone to pay £1450!  I can see someone sitting on a massive loss within a year or 2.

Yeah but it has lights in the kitchen cupboard. 

Share this post


Link to post
Share on other sites
11 hours ago, loderingo said:

What caught my eye was the dark crack where the bath meets the tiles in the luxury bathroom.

I'm sure it's a comfy enough, bland, average flat with a cheap finish. But when did we so readily accept this redefinition of the word luxury?

 

Share this post


Link to post
Share on other sites
12 hours ago, loderingo said:

Despite all the bad headlines, it seems there are still people investing in BTL.

I live in Maidenhead and there is a new town centre development that is just being finished off.  Already there are 3 properties for rent in the development on a local estate agent's website.  In particular this one caught my eye:

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P0908M4916

BTW, the "riverside" is actually a stream that they are turning into a canal basin and the "amphitheatre" - well see for your self in the pictures!

It's worth pointing out that the going rate for 2 bedroom flats in the area is £1200-1250 so the LL is asking for an extra £200 pm for underground parking and being 5 minutes walk closer to the station. Bear in mind the other 2 flats in the development are being rented out for £1300 and £1250.  Either the LL is being greedy or massively overpaid (I'm guessing the latter).  The developers are asking for an eye-watering £680k for some of the flats and 725k for one of the penthouses!

There are 15,  2 bed flats in Maidenhead on just the one EA's website and a couple are offering a week's free rent if someone moves in before Xmas so good luck with getting someone to pay £1450!  I can see someone sitting on a massive loss within a year or 2.

When they closed the factory down in my home town in the mid 80s that employed 2300 people it needed £750k a year subsidy while it re-tooled,but the government let it shut instead.Thats just the cost of bailing out the bank for lending on one of those flats.One flat.Who pays that on the hope they can rent at a profit and there is no capital loss?.Its insane.

Share this post


Link to post
Share on other sites
7 hours ago, Diver Dan said:

Canteen discussion this morning on property:

The new guy was talking about his friends in London/SE who are doing really well (one had a Russian tennant who spent £50k of his own money redecorating her £1.6M Kensington flat). I said that prime central London is doing very badly (for those currently in possession) and that I expect it to cause decreases in outlying areas in due course. I mentioned that BTL is looking decidedly dodgy these days for a variety of reasons. At all of my comments he nodded and agreed with me but then said, "Bricks and mortar is the only way to go." ?

I remember showing a guy in Northampton houseprices.io about a year ago.  I showed him a particular postcode that was suffering house price falls (near where he lived).  I didn't give a shit.  He was always going on about "bricks and mortar is the only way to go" so I thought I'd show him that's not always the case.  He looked at the list of house prices, 90% showing falls.  He made a comment about the 10% that had made slight gains and he said "some good gains there".  It's just denial - these people are so deeply invested into property (by dint that prices are so high) they have to believe prices will always go up. 

Share this post


Link to post
Share on other sites

You only have to look on the MSE forums to see at least a couple of new threads started every day by people wanting to gef into BTL/LTB.... almost without exception they they have no knowledge at all of the current and future changes to tax and borrowing criteria, never mind all the other legislation and legal responsibilities that come with being landlord.

Share this post


Link to post
Share on other sites

OP makes a very important observation. New BTL purchases still running at 6k per month. That's over 70k units per year. Sounds huge, and this is during a 'crisis' period. Lots of BTL experts around here, is this what we expected?

The entire bubble might just be a product of BTL greed considering the volumes. 

 

Edited by AvoidDebt

Share this post


Link to post
Share on other sites

The effect of tax changes will start to kick in summer 2017. the media will be full of it. 

Its just too juicy not to print stories of impending doom for the feckless. We are soo far into a hoisng price crisis, that the sob stories will have zero traction on the general public. 

for now the last of the mugs will still buy yes. 

at least we will see the HPI fanatics get burnt. should discourage and prevent the worst bubble heads pumping prices for a few years.

the next phase for the government is to increase FTB fire power, or we will have a huge crash coming. 

Share this post


Link to post
Share on other sites
20 hours ago, loderingo said:

Despite all the bad headlines, it seems there are still people investing in BTL.

I live in Maidenhead and there is a new town centre development that is just being finished off.  Already there are 3 properties for rent in the development on a local estate agent's website.  In particular this one caught my eye:

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P0908M4916

BTW, the "riverside" is actually a stream that they are turning into a canal basin and the "amphitheatre" - well see for your self in the pictures!

It's worth pointing out that the going rate for 2 bedroom flats in the area is £1200-1250 so the LL is asking for an extra £200 pm for underground parking and being 5 minutes walk closer to the station. Bear in mind the other 2 flats in the development are being rented out for £1300 and £1250.  Either the LL is being greedy or massively overpaid (I'm guessing the latter).  The developers are asking for an eye-watering £680k for some of the flats and 725k for one of the penthouses!

There are 15,  2 bed flats in Maidenhead on just the one EA's website and a couple are offering a week's free rent if someone moves in before Xmas so good luck with getting someone to pay £1450!  I can see someone sitting on a massive loss within a year or 2.

That's great, but unless the development was started a few weeks ago you don't know when these units were sold. 

True people are still investing in property, and probably always will, but not in nearly the volume required to keep the whole shebang where it is now.

Share this post


Link to post
Share on other sites
11 hours ago, 999house said:

Yeah but it has lights in the kitchen cupboard. 

I like the flat. Probably worth £200k but because it's new build and has that Farrow and Ball 'Edwardian Stone' paint it is well worth an extra £450k. (And those kitchen lights in the cupboard of course)  

£650k for a new build box. I assume it okay because the average wage is Maidstone will be £180k. People are so stupid. 

Pop ?

Share this post


Link to post
Share on other sites

The phrase "never underestimate the capacity for human stupidity" springs to mind here for a few reasons. 

Share this post


Link to post
Share on other sites

UPDATE

One month on and unsurprisingly the place £200 above local market price is still on the market with the LL having a void.  The place at market value has gone.

I was shocked to find there is now an even bigger mug.

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P3427B5318

I don't know if this person is greedy or stupid (I'm assuming the latter).  £500 above market value and £400 above another 2 bed flat in the same development.  I like the fact the estate agent has put the floor plan so you can how small and pokey the kitchen/dining/lounge is. I suppose it does come with some ugly furniture though...

I would love to know who bought this place as I would tell them they might as well made a great pile of £20 notes and burnt it!

The local rag said an office building that is being converted into flats is nearly finished (70 flats). There's a massive glut of flats coming on the market right now in a medium sized town.  I think the LL is in for a big loss.

Northern Welsh - these flats must have been sold in the last 3 months as they are not on Net House Prices and as the development is not even finished yet.

Share this post


Link to post
Share on other sites

Ive pointed out on other threads that the only point of the Thames valley is work.

As the companies move away, and offices are converted to flats then what is the point of the Thames valley?

No jobs the nobody going to live there. The M4 corridor willturn into a huge council estate.

Share this post


Link to post
Share on other sites

My brother just sold his sh1tty 3 bed semi in Maidenhead for 475k having bought it for 260k in 2009. He's now gone balls deep on an £800k 4 bed new build. His mortgage now is bigger than when he bought his first house.

 

Apparently when Crossrail arrives prices are going to go bananas. 

 

Jesus wept.

Share this post


Link to post
Share on other sites
2 hours ago, loderingo said:

UPDATE

One month on and unsurprisingly the place £200 above local market price is still on the market with the LL having a void.  The place at market value has gone.

I was shocked to find there is now an even bigger mug.

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P3427B5318

I don't know if this person is greedy or stupid (I'm assuming the latter).  £500 above market value and £400 above another 2 bed flat in the same development.  I like the fact the estate agent has put the floor plan so you can how small and pokey the kitchen/dining/lounge is. I suppose it does come with some ugly furniture though...

I would love to know who bought this place as I would tell them they might as well made a great pile of £20 notes and burnt it!

The local rag said an office building that is being converted into flats is nearly finished (70 flats). There's a massive glut of flats coming on the market right now in a medium sized town.  I think the LL is in for a big loss.

Northern Welsh - these flats must have been sold in the last 3 months as they are not on Net House Prices and as the development is not even finished yet.

The underground car park is almost certainly the flood water storage area necessary to get planning at that location.  Just thought I'd mention it.

Share this post


Link to post
Share on other sites
11 hours ago, loderingo said:

UPDATE

One month on and unsurprisingly the place £200 above local market price is still on the market with the LL having a void.  The place at market value has gone.

I was shocked to find there is now an even bigger mug.

https://www.rogerplatt.co.uk/houses-to-rent/property-details?r=P3427B5318

I don't know if this person is greedy or stupid (I'm assuming the latter).  £500 above market value and £400 above another 2 bed flat in the same development.  I like the fact the estate agent has put the floor plan so you can how small and pokey the kitchen/dining/lounge is. I suppose it does come with some ugly furniture though...

I would love to know who bought this place as I would tell them they might as well made a great pile of £20 notes and burnt it!

The local rag said an office building that is being converted into flats is nearly finished (70 flats). There's a massive glut of flats coming on the market right now in a medium sized town.  I think the LL is in for a big loss.

Northern Welsh - these flats must have been sold in the last 3 months as they are not on Net House Prices and as the development is not even finished yet.

There's barely enough room to swing a cat - it's depressing. The cost is staggering.

While I don't know the local market, it is not far off of London prices. It must have cost £450k and be only 650 Sq feet or so. Negative equity beckons. 

Share this post


Link to post
Share on other sites

A lot of the current advertising for btl products is geared towards novices. Im thinking of an advert recently posted in the aberdeen thread showing a 'mumsy' type standing on a ladder inspecting her painting handiwork 'im getting into btl' it says 'best thing ive done in ages.'

Banks probably seeing interest drying up in the 'professional' market (as most of the 'professionals' know the game is up, at least til they undersatnd better where the market is going) and now pushing for mugs to keep their sales numbers up. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   91 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.