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Sunday Times Ramp Btl

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http://www.timesonline.co.uk/newspaper/0,,...2058126,00.html

Last August’s interest-rate cut helped to boost confidence and attracted people back to the buy-to-let market. Figures from the Council of Mortgage Lenders show that a record 130,400 buy-to-let mortgages were advanced in the second half of last year — 39% more than in the first six months of 2005.

And other surveys suggest that the housing market as a whole is picking up. The latest figures from Rightmove, a property website, show that house prices have increased by 2.7% this month. The National Association of Estate Agents has reported a huge increase in demand from buyers, but said that there was a shortage of supply

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IN August people were dreaming of a huge tax free bonus in the form of SIPPS. That one died a well deserved death.

There was NO pick up in January--transactions fell to their lowest level in 5 months:

http://investing.reuters.co.uk/news/newsAr...IN-PROPERTY.xml

The VIs are spinning like mad right now in an attempt to revive the dying market.

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Portman building society has recently stopped advancing buy-to-let loans on new-builds. Matthew Wyles at Portman said: “We think there is an oversupply of new-build flats in city centres.

“Astute, established investors tend not to buy new-build homes because they don’t know who else is buying them.”

The last thing you want is to buy a flat in a new block where half the other flats are owned by other landlords, because oversupply will affect the amount of rent you can get. The other danger is that, if you struggle to find a tenant and decide to sell, you might not get back what you paid for the property.

Some good advice there then!

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Revival in buy to let market as yields rise

Will no doubt be re-assuring to CLNB DPSL (dinner-party-set-landladies).

1) You bought that lovely CLNB for £200K

2) Your mthly rent is £700.

3) Your gross yield is therefore £8400 or and eye-watering 4.2%.

Yes you too can simply and easily add 0.5% to your annual yield figures, bringing it up to an almost break-even figure of 4.7%.............here's a piece of free accounting tuition from your friendly BTLOptingOut:

1) Realise that your property is "worth" £20K less than what you paid.

2) Your mthly rent is still £700.

3) But hey your yield has ballooned to 4.7%

Did they not teach you that on the Inside Track?

Next week's lesson, how to take your yield up from 4.7% to 5.5% in two minutes....known by those in the know as a financial adjustment or more commonly as a write-off.

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Two blocks round here - for sale signs down - EA gone home - builder gone home etc. (one of them ages ago - over a year - the other one EA gone for 3 months now).

But - according to the Land Registry - half of the flats on one of the blocks have never sold (finished nearly 2 years ago now) and, in the other block (finished a year ago - EAs finally took signs down 3 months ago) - less than half have ever sold.

Wonder who owns the ones that never sold - presumably the developer still. In the first block they seem to be all occupied so presume the devloper is renting out. In the second block - half of them still have no lights on at night.

2 other blocks recently - allegedly - all sold. Waiting for next LR update to check if this is true.

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Revival in buy to let market as yields rise

Kinda reminds me of that time I went to an IA seminar.

IA Evangilist: When is a good time to invest in property?

Various attendees: 1995, '96, '00 etc etc etc.

IA Evangilist: You are all right, it's always a great time to invest in property.

IA Evangilist: You see, when property is rising you get the benefit of capital appreciation...

IA Evangilist: when it's flat/steady you are paying off the mortagages....

IA Evangilist: when it's dipping you are getting increased yields and picking up the bargins.

You can't beat the guy for positive thinking.

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Did the word "asking" Rightmove, a property website, show that house prices have increased by 2.7% this month get missed out between house and prices ??

The average press-release-enslaved-journalist often fails to distingiuish bewteen asking prices and actual sold prices, especially when quoting Rightmove. Just shows they have not grasped the material they are reporting on.

Edited by Baz63

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Kinda reminds me of that time I went to an IA seminar.

IA Evangilist: When is a good time to invest in property?

Various attendees: 1995, '96, '00 etc etc etc.

IA Evangilist: You are all right, it's always a great time to invest in property.

IA Evangilist: You see, when property is rising you get the benefit of capital appreciation...

IA Evangilist: when it's flat/steady you are paying off the mortagages....

IA Evangilist: when it's dipping you are getting increased yields and picking up the bargins.

You can't beat the guy for positive thinking.

More like being Aloof

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  • 302 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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