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Prospect Of A 2% Gain In 2006 Reviving B T L Market

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http://www.ifaonline.co.uk/public/showPage.html?page=316381

Landlords plan further investment as market confidence grows

Thursday 16th February 2006: 08:00

By Matthew West

The latest survey from the Mortgage Trust claims 30% of landlords, almost double the number 18 months ago, state they are currently buying more property.
In fact, over the next year landlords expect to expand their portfolios by approximately 14%, which equates to an average of one property per landlord, says The Mortgage Trust.
This voracious appetite for investment growth is set against a backdrop of positive expectations for house prices, 83% of respondents
predict they will rise by
2%
or more over the coming year.
Meanwhile, rental returns remain
stable
, with yearly rents currently standing at an average of 5.8% of portfolio value.

Well HPCers' looks like we are being defeated by the sheer power of market forces. How can anyone resist a massive 2% return on investment, especially now that rents have stagnated. :lol:

Or, are these "statistics" being rolled out to counter the flood of not-so-good-for-property news this week? Rising unempoloyment will make it difficult to sustain rents where they are let alone keep them "stagnant/stable." With the debt mountain continuing to rise the prospects for an IR cut seem dismal which suggests that HPI is now part of the economic cycle that is behind us.

IMHO this article would be worthy of Baghdad Bob. :P

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Guest Guy_Montag

http://www.ifaonline.co.uk/public/showPage.html?page=316381

Landlords plan further investment as market confidence grows

Thursday 16th February 2006: 08:00

By Matthew West

The latest survey from the Mortgage Trust claims 30% of landlords, almost double the number 18 months ago, state they are currently buying more property.
In fact, over the next year landlords expect to expand their portfolios by approximately 14%, which equates to an average of one property per landlord, says The Mortgage Trust.
This voracious appetite for investment growth is set against a backdrop of positive expectations for house prices, 83% of respondents
predict they will rise by
2%
or more over the coming year.
Meanwhile, rental returns remain
stable
, with yearly rents currently standing at an average of 5.8% of portfolio value.

Well HPCers' looks like we are being defeated by the sheer power of market forces. How can anyone resist a massive 2% return on investment, especially now that rents have stagnated. :lol:

Or, are these "statistics" being rolled out to counter the flood of not-so-good-for-property news this week? Rising unempoloyment will make it difficult to sustain rents where they are let alone keep them "stagnant/stable." With the debt mountain continuing to rise the prospects for an IR cut seem dismal which suggests that HPI is now part of the economic cycle that is behind us.

IMHO this article would be worthy of Baghdad Bob. :P

I'm not sure what your problem is with this article, it is a report on the results of a survey of landlords. To be a landlord you have to have faith in the housing market. So it's hardly surprising that they are positive about hp growth.

How can anyone resist a 2% return on investment? Well it seems that 53% of respondants can, and those that can't: well maybe they expect a greater than 2% return. I'm sure there are many that expect house prices to take off again & shoot up. (Just watch any episode of the various property ladder type shows.)

Remember they are not reporting hard facts, they are reporting people's opinions.

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Don’t forget most of them will be in it for the long run – it’s not their money it’s the banks – how can they lose. Step 1 borrow as much as you can – step 2 get some tenants to pay your mortgage – step 3 hope that house prices go up – step 4 sell house in 25 years time for lot’s of cash and retire happy with no hard work or massive investment of own money

Who cares about a HPC as it’s not there money – just go bankrupt and start again!

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" 83% of respondents predict they will rise by 2% or more over the coming year"

WOW.

They are investing based on the expectations of such poor returns? I am amazed.

There is truly a BLINDNESS TO RISK, since the Risk/reward on such invetsments right now

is VERY POOR.

These suckers believe that there is virtually NO RISK of capital losses.

They are setting themselves up for hige disappointment IMO

Rather than labelling all LLs suckers, look at the figures again. 83% of respondents predict 2% or more. 30% are looking to add. I'll be a pound to a bucket of ferrets that the 30% looking to add predicted a rather more than 2% rise: I'd guess that in the questionnaire there was a "10% or more" category to tick and that these guys were in there.

Edited by aussieboy

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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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