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Buy To Let Up 49% In Last Six Months Of 2005

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Artical in the blog,

http://www.thisismoney.co.uk/mortgages/buy...page_id=56&ct=5

What I am seeing in Bath is bearing this out. The number of properties for Rent in Bath has gone from a low of 44 properties just as the students arrived for the new year, to 146 now. The rise has been remarkably steady over the last few months.

Point is they are all empty! How long the LL's can survive is open to question!

Is this the last roll of the dice??

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Guest Guy_Montag

For goodness sake, how many times do we have to tell people like you, what they lose on rent & voids will be more than compensated for by what the capital gains on the place when they come to sell. :rolleyes:

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Guest boredwaiting

Artical in the blog,

http://www.thisismoney.co.uk/mortgages/buy...page_id=56&ct=5

What I am seeing in Bath is bearing this out. The number of properties for Rent in Bath has gone from a low of 44 properties just as the students arrived for the new year, to 146 now. The rise has been remarkably steady over the last few months.

Point is they are all empty! How long the LL's can survive is open to question!

Is this the last roll of the dice??

Bath is my local area - i have been observing houses selling like there is no tomorrow. I look forward to seeing the land registry data to see if it's true. but the house market seems to be moving along just fine there. However a couple of houses around my way have had "to let" signs up for quite a while.... Which backs up what the blog says.

:angry:

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For goodness sake, how many times do we have to tell people like you, what they lose on rent & voids will be more than compensated for by what the capital gains on the place when they come to sell. :rolleyes:

For goodness sake, how many times do we have to tell people like you to read the post properly!!! :rolleyes:

To state my point again, in simplified form "How long can the LL's survive?" :huh:

boredwaiting,

I suspect we will see whole portfolios hitting the market towards the end of the year, especially if student numbers continue their fall as a result of the top up fees.

Still it is a long boring wait. :)

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Sinead a "a freelance chartered accountant" ah I see the lovely Sinead is a temp, probably with a limited co setup, and has no pension even though she's turned 30.

The solution? Aha setup a property company on the back of her contracting earnings, to give her a pension pot plus income.

Not in itself a bad idea, if she'd had in in 2001.

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So.

If you are an FTB with small deposit which will be wiped out when prices tank, banks aren't interested.

If you currently have equity in the form of your existing house (or guarantor parental house), esp. with little or no mortgage left, the banks are falling over themselves to lend you money. You take all the risk. If it goes neg, you keep paying the mortgage, or the bank will now own more than one house, whereas before they owned one.

Ripper!

btp

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It just goes to show - to the extent that it is true (2 bed new builds unsold and unoccupied all over the place near me in Berkshire) that there is an almost endless supply of fools. Talk about late in!

This is good news for my lot. I reckon in a few years time when my children are in the market, prices will be half what they are now. The longer this goes on the more definite a CRASH is, as opposed to a gradual correction.

One little calamity is all that is needed now in the financial markets. Bit of credit tightening and it is all over.

If you are weakening, do NOT buy now.

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Artical in the blog,

http://www.thisismoney.co.uk/mortgages/buy...page_id=56&ct=5

What I am seeing in Bath is bearing this out. The number of properties for Rent in Bath has gone from a low of 44 properties just as the students arrived for the new year, to 146 now. The rise has been remarkably steady over the last few months.

Point is they are all empty! How long the LL's can survive is open to question!

Is this the last roll of the dice??

The thing is with rented accomodation is that we do need an endless supply..

you see there are a large number of people living in an alien dimension using a warp driven flux capacitor device to beam into the uk each day..

They are fed up and want a place to live..

Everyone already has a place to live..

But keep building more.. :)

a lot are living with their parents for longer too.. but they will only move out when they can afford to..

demand is dropping.. lol

Edited by apom

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The thing is with rented accomodation is that we do need an endless supply..

you see there are a large number of people living in an alien dimension using a warp driven flux capacitor device to beam into the uk each day..

SO that's the big secret that Inside Track know, and we all don't! ;)

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So it looks a bit like the market was heading for a crash until the 'Johny come lately' BTLrs got the horn over SIPPS and jumped in with both feet. Would it also be safe to assume that many / most decided to see the purchase through when SIPPS got reversed because they couldnt afford to loose their deposits ? This would explain the suckers rally that seems to have now come to an end. So what now to hold the market up ? No FTBs, BTL numbers should start slipping as soon they realise that as an investement it sucks. The only way is down into the Abyss.

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It just goes to show - to the extent that it is true (2 bed new builds unsold and unoccupied all over the place near me in Berkshire) that there is an almost endless supply of fools. Talk about late in!

This is good news for my lot. I reckon in a few years time when my children are in the market, prices will be half what they are now. The longer this goes on the more definite a CRASH is, as opposed to a gradual correction.

One little calamity is all that is needed now in the financial markets. Bit of credit tightening and it is all over.

If you are weakening, do NOT buy now.

All over the UK 2 bed new build flats are on the market for as much as a nice 3 bed semi with gardens and will lose 40-50% of their value even if the market for conventional homes stays level.....They're often built in grim areas where you wouldn't want to leave your car..........

The epi-centre of this daft craze is central Manchester and the area near the Royal Armouries in Leeds...

where thousands are still going up on one of those industrial wastelands that surround most of our city centres.....I've seen this throughout England but Leeds and Manchester take the biscuit......

Of course there are urban young professionals in these places who like the ''edginess'' of city living but all the ones I know live in in proper houses in the established trendy places with proper amenities a mile or two from the city centres...eg Chorlton/Didsbury in Manchester or Weetwood/Chapel Allerton/Roundhay in Leeds.........and even here the prices are no more than the inner city new build.

Edited by Michael

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Got a viewing arranged for tomorrow lunchtime.

Cost £137,000 (November 2004)

Rentals £525 per month, £6,300 per annum

Yield 4.6%

Monthly payment on 25 year mortgage @5.5% = £851.00

If I get the place (which I know I want already) I will try hard not to thank the landlord for subsidising my lifestyle for another year.

Sorry but you've got to laugh. :D

Edit: Only thing that worries me is what happens when these muppets work out what's going on.

Edited by Young Goat

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Got a viewing arranged for tomorrow lunchtime.

Cost £137,000 (November 2004)

Rentals £525 per month, £6,300 per annum

Yield 4.6%

Monthly payment on 25 year mortgage @5.5% = £851.00

If I get the place (which I know I want already) I will try hard not to thank the landlord for subsidising my lifestyle for another year.

Sorry but you've got to laugh. :D

Edit: Only thing that worries me is what happens when these muppets work out what's going on.

You offering what? The full 525??? ;)

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All over the UK 2 bed new build flats are on the market for as much as a nice 3 bed semi with gardens and will lose 40-50% of their value even if the market for conventional homes stays level.....They're often built in grim areas where you wouldn't want to leave your car..........

The epi-centre of this daft craze is central Manchester and the area near the Royal Armouries in Leeds...

where thousands are still going up on one of those industrial wastelands that surround most of our city centres.....I've seen this throughout England but Leeds and Manchester take the biscuit......

Of course there are urban young professionals in these places who like the ''edginess'' of city living but all the ones I know live in in proper houses in the established trendy places with proper amenities a mile or two from the city centres...eg Chorlton/Didsbury in Manchester or Weetwood/Chapel Allerton/Roundhay in Leeds.........and even here the prices are no more than the inner city new build.

Yeah but you can't pop out for a cold Budvar down Canal Street if you are living on the Barlow Moor Road or down the Hacienda for that matter (oh no, the Hacienda has been turned into luxury flats :o ).

Edited by Scooter

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Edit: Only thing that worries me is what happens when these muppets work out what's going on.

By the time they work what's going on, you'll have your own home and the crash will be over.

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You offering what? The full 525??? ;)

Truth be told I'd go above that if need be (the place is almost next door to my current address & I know that this ones in better condition), of course the agents don't need to know that! :D

Might post a link once I know if I'm getting it or not.

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Truth be told I'd go above that if need be (the place is almost next door to my current address & I know that this ones in better condition), of course the agents don't need to know that! :D

Might post a link once I know if I'm getting it or not.

Wouldn't do that. Someone on here might rental-gazump you for next year!

Edited by megaflop

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So... FTB's have virtually dried up...

But!

If you're willing to get into millions of debt and build a property portfolio then everythings fine...

OMG - the end is nigh

- Pye

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Lenders have to lend money to earn large profits.

They are lending vast sums of money to BTLers who get tax breaks and can arrange it so the worst thing is they will be bankrupt for a year if it goes wrong, with large gains if they can benefit from inflation.

The credit market has now polarised, so that the mortgage rates you get offered as an ordinary buyer are higher than the rate that a BTLer has to pay back, as first time buyers are more risky - they have to save for a deposit (unlike a BTLer who has effortless equity) and can cover any voids or hiccips from other income streams.

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Brainclamp,

What tax breaks? If anything homeowners are in the better tax position.

Your right however, FTB's are a poor risk at the moment, partly why the banks seem to be so keen on BTL.

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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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