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Done my bit for what its worth.

Hey you always get one, don't you?!

As a Buy-to Let investor that started in 1997 and now has a portfolio of more than 100 properties, I thought your readers might be interested in my comments:

The housing market is now clearly split in two and the rise in prices is of interest to both groups for different reasons. Price rises for home owners in the main simply creates a comfort factor. If the home owner is not buying or selling, it makes little difference unless they do something with the increase in equity ie a drawdown and then do something life changing with the newfound funds (assuming affordability of the increased loan). This could be an extension to their existing home, a holiday home abroad or perhaps a new car. Some like me use that increased equity to fund their first buy to let.

The second group are the private investors (buy to let). It is no wonder that buy to let has become so popular. For my part I got fed up with investing in the stock market paying fees to professionals to produce no return. High returns in the stockmarket are through a limited number of succesful funds and in my experience, you are lucky to be the investor that had invested in one of these to realise the quoted gain.

The buy to let market is fun. You are involved in the whole process of choosing the area in which to buy, how much to invest, what type of property, even down to the type of tenant. This type of investment is totally underpinned by house price rises. Those of us in it for the long term, view the index to see how long the market is taking to produce the equity that can lead to the creation of deposits for the next purchase. The faster property prices increase, the quicker we can drawdown funds on the equity gain and buy the next investment.

The only loser I see as a result is the first time buyer. However, we should remember there are many good mortgage deals out in the market they can access and we cannot. The types of property that appeals to the first time investor is not generally the one that is ideal to landlords. I believe the future for first time buyers is in joint equity 50/50. This enables them to enter the market and take advantage of any equity gains, whilst giving some protection against market falls.

My view is that the market is affected by many forces, including:

1 Interest rates

2 Loan to value

3 Affordability

4 Land costs

5 Governments policy on new planning consent

6 New tax on planning gain as a result of new consent

7 Building material costs (rising)

8 Legislation controlling the employment of construction staff

9 Overall supply

10 Demand. This includes the fact that more and more homes are in single occupancy.

House prices over recent decades are known to have increased 100% every 6.8 years. 5% growth per annum in the current market is a safe bet. Do not read too much into one months or three months figures.

Keep telling yourself that! :lol:

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Done my bit for what its worth.

Hey you always get one, don't you?!

Keep telling yourself that! :lol:

So, do I take advice from one man who's bought 100 properties in the last few years, or from 100 wannabe property owners who blame the BBC or VIs or Gordon Brown or Kirstie Allsopp etc for their failure?

Go figure.

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So, do I take advice from one man who's bought 100 properties in the last few years, or from 100 wannabe property owners who blame the BBC or VIs or Gordon Brown or Kirstie Allsopp etc for their failure?

Go figure.

Please, please, please follow your instinct on this one. :lol:

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So, do I take advice from one man who's bought 100 properties in the last few years, or from 100 wannabe property owners who blame the BBC or VIs or Gordon Brown or Kirstie Allsopp etc for their failure?

Go figure.

He has amassed his empire on a particular time, lets see how much of an expert he is when the times get that bit leaner. Every business has its cycle, his might become the problem child before too long.

Oh and get a proper job!

Ha ha! :lol:

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Done my bit for what its worth.

Hey you always get one, don't you?!

Keep telling yourself that! :lol:

they need to pay more attention..

house price inflation only averages 6.8% if you throw in recent increases..

The average home is 4 times the average salary over the long term..

I have had the 6.8% rubbish thrown at me before..

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I like the last line the best:

House prices go up 100% every 6.8 years.

Well, how has anybody ever afforded a house in the past then?

My parents first house bought in 1988 should now be worth £200,000 now, but strangely is only now worth £85,000.

Maths gone wrong, mate do your GCSE's again. F-

Edited by No Muggy Bear

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As a Buy-to Let investor that started in 1997 and now has a portfolio of more than 100 properties, I thought your readers might be interested in my comments:

100 properties would make him one of the biggest home owners. Anyone smell ********?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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