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Cheap debt was the only thing landlords had left – now we’re losing that!


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HOLA441

Interesting article from the Telegraph:

https://www.telegraph.co.uk/property/buy-to-let/low-interest-rates-thing-landlords-had-left-now-losing/

But apparently they can raise rents:

Quote

Landlords have warned of rising rents and a shortage of lets if mortgage rates rise as predictedlater this year. 

Record-low interest rates has served as the last line of defence, that has masked punishing and costly tax and regulatory changes faced by landlords. However, investors now face the biggest surge in mortgage costs since the property market collapse in 2008 as central bankers rein in inflation.

Peter How, a landlord with around 40 properties in Yorkshire, said cheap mortgages had given landlords "margin to balance the books" and warned a rise in borrowing costs would mean "big trouble". "The only thing we have working in our favour right now is low interest rates.

"A big rise in rents will be the only way for those landlords only just breaking even to carry on. Either that or landlords will sell up and there will be even fewer rental properties on the market, which will also push up rents," said Mr How. 

 

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HOLA444

“Either that or landlords will sell up and there will be even fewer rental properties on the market, which will also push up rents,"

😂😂😂😂

Why does no one ever ask these idiots who make that statement …

…. “who will they sell to?”

and then watch the confusion spread across their face. 

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HOLA445

And yet some are getting into or adding more BTL.

While walking past an overpriced new build development of flats yesterday, a firm of specialist BTL furniture suppliers were busy unloading two vans.

(SW London)

 

Someone obviously not reading the Telegraph! (Or any sensible info source either)

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HOLA446

I think this crying poverty is systemic across the whole of the UK now. Energy companies couldn’t possible have any reserves to manage a rise in prices, furlough for employers and employees, universal credits reduced and poor landlords costs rising.

There will be some real hardships going on but the truly needy will get lost amongst the cries because everyone seems want money from the government. Some need it to survive, others who shout just as much want it to maintain margins and excesses they have enjoyed. The tricky bit is trying to find the difference. 

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HOLA447
32 minutes ago, Frugal Git said:

“who will they sell to?”

I have actually. They normally just point out that their tenants could not afford to buy them (at the price they want). At some point the penny will drop...

Edited by oatbake
Removed irrelevant quotey bits...
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30 minutes ago, Pop321 said:

I think this crying poverty is systemic across the whole of the UK now. Energy companies couldn’t possible have any reserves to manage a rise in prices, furlough for employers and employees, universal credits reduced and poor landlords costs rising.

There will be some real hardships going on but the truly needy will get lost amongst the cries because everyone seems want money from the government. Some need it to survive, others who shout just as much want it to maintain margins and excesses they have enjoyed. The tricky bit is trying to find the difference. 

“I have a problem, it is the Government's job to cope with it!” or “I have a problem, I will go and get a grant to cope with it!” “I am homeless, the Government must house me!” and so they are casting their problems on society and who is society? There is no such thing! There are individual men and women and there are families and no government can do anything except through people and people look to themselves first."

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HOLA4411
1 hour ago, Frugal Git said:

“Either that or landlords will sell up and there will be even fewer rental properties on the market, which will also push up rents,"

😂😂😂😂

Why does no one ever ask these idiots who make that statement …

…. “who will they sell to?”

and then watch the confusion spread across their face. 

But, but, but prices never fall I hear them say as they stumble over their words while coming to the realisation that the unthinkable has happened and their shitty collection of BTL shitboxes is worth less than they owe.

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HOLA4414
56 minutes ago, TheCountOfNowhere said:

Where's @thewig

MIA for six and a bit years!

Edited by Mikhail Liebenstein
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HOLA4418

Millions of man hours watching HUTH has rotted away these poor peoples' minds.

I might snap up one of their investments at 80% of cost later next year or the year after. I'll start at 85% maybe if I need to repaint it.

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HOLA4419
19 minutes ago, Huggy said:

Millions of man hours watching HUTH has rotted away these poor peoples' minds.

I might snap up one of their investments at 80% of cost later next year or the year after. I'll start at 85% maybe if I need to repaint it.

80% sounds like an offer these ‘we buy any home’ companies offer.

You need to wait until they too have disappeared and you can offer 60%. 😆😉 

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HOLA4420
28 minutes ago, Pop321 said:

80% sounds like an offer these ‘we buy any home’ companies offer.

You need to wait until they too have disappeared and you can offer 60%. 😆😉 

Oops, I misspoke. I meant to say 80% off the cost.

A 20% or even 40% discount isn't even enough to call it a correction, let alone a crash sadly :(

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HOLA4421
11 minutes ago, Huggy said:

Oops, I misspoke. I meant to say 80% off the cost.

A 20% or even 40% discount isn't even enough to call it a correction, let alone a crash sadly :(

😉. That makes more sense.

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HOLA4422
14 hours ago, Frugal Git said:

“Either that or landlords will sell up and there will be even fewer rental properties on the market, which will also push up rents,"

😂😂😂😂

Why does no one ever ask these idiots who make that statement …

…. “who will they sell to?”

and then watch the confusion spread across their face. 

Probably a FTB or another BTL LL. 

Cheap housing needing refurbishing (which rentals usually are) are in demand.

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HOLA4423
16 hours ago, Pop321 said:

There will be some real hardships going on but the truly needy will get lost amongst the cries because everyone seems want money from the government.

Pop 100% agree.  

There is a newiwh phenomenon whereby for many people if their life is not perfect they thin k the govt ie taxpayer has to make it all perfect for them. 

It is the entitled mentality.

It is never their responsibility to think what they can do for themselves.

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