FTBagain Posted March 20, 2006 Share Posted March 20, 2006 (edited) I was talking to a chap in the office this morning. He is looking to invest some money in property. We have had a couple of chats and he was in general agreement that things were not too good. Anyway, he had a chat with an Independent Financial Advisor (IFA) over the weekend. Apparently this advisor said that the BTL market in Bath was saturated. Many had just got too greedy (something said on here a few times before). It was not the small investor either, but people with 20 - 30 properties that had been out on a spending spree!! Many now have empty properties. The IFA believed that some are likely to go bust this year, which could dump dozens of properties back on the market. Cheered me up no end! Here's my graph that kinda back this up. EDIT: Close the sandwich shop Edited March 20, 2006 by FTBagain Quote Link to comment Share on other sites More sharing options...
music man Posted March 20, 2006 Share Posted March 20, 2006 Ha, ha,ha,ha,ha,ha,ha,ha,ha,ha,ha,ha,ha, Quote Link to comment Share on other sites More sharing options...
New Darker Law Posted March 20, 2006 Share Posted March 20, 2006 lovely jub! NDL Quote Link to comment Share on other sites More sharing options...
Down with the BBC Posted March 20, 2006 Share Posted March 20, 2006 How long til evry1 else finds out that BTL is shite Quote Link to comment Share on other sites More sharing options...
apom Posted March 20, 2006 Share Posted March 20, 2006 I am not a bad person. but the thought of BTL property investors going bust.... Makes me giggle... Quote Link to comment Share on other sites More sharing options...
FTBagain Posted March 20, 2006 Author Share Posted March 20, 2006 The other thing that the IFA said was that if he invested in Bristol he would have to be very careful and my collegue might get lucky, depending on the area he invested. A bit of a gamble to say the least. Basically two English cities are not in good shape housing market wise. I told my collegue he was probably better off waiting, and he sort of agreed. But the gist of the IFA advise was that the housing market is not a good place to put your money. If a few more of these people are saying the same thing........ Quote Link to comment Share on other sites More sharing options...
aclwalker Posted March 20, 2006 Share Posted March 20, 2006 I was talking to a chap in the office this morning. He is looking to invest some money in property. We have had a couple of chats and he was in general agreement that things were not too good. Anyway, he had a chat with an Independent Financial Advisor (IFA) over the weekend. Apparently this advisor said that the BLT market in Bath was saturated. Many had just got too greedy (something said on here a few times before). It was not the small invest either, but people with 20 - 30 properties that had been out on a spending spree!! Many now have empty properties. The IFA believed that some are likely to go bust this year, which could dump dozens of properties back on the market. Cheered me up no end! Here's my graph that kinda back this up. I just found out my favourite lunchtime sandwich shop is closing next week. Quote Link to comment Share on other sites More sharing options...
FTBagain Posted March 20, 2006 Author Share Posted March 20, 2006 I just found out my favourite lunchtime sandwich shop is closing next week. Yum! Yum! Quote Link to comment Share on other sites More sharing options...
A Fool & His Borrowed Money Posted March 20, 2006 Share Posted March 20, 2006 I am not a bad person. but the thought of BTL property investors Clowns going bust.... Makes me giggle... Quote Link to comment Share on other sites More sharing options...
Yandros Posted March 20, 2006 Share Posted March 20, 2006 As someone who was a homeowner in the last crash, I really wonder if the "it's different this time" mantra is true, but in a good way (for us ). Those of us sinking slowly into negative equity (I was that boiled frog) didn't really have any options open to us. I was able to meet my payments easily, but was trapped. Downward price pressure came from single repossessions, and huge reductions on the price of new builds. Today these BTL barons can surely only take so much pain. It'll only take a few rental voids, IR hikes and the whiff of price drops, and we could see whole portfolios being dumped. It's possible that things could actually pan out MUCH faster than the last crash, simply because BTL properties are an investment, rather than a home. Quote Link to comment Share on other sites More sharing options...
eurows Posted March 20, 2006 Share Posted March 20, 2006 I am not a bad person.but the thought of BTL property investors Clowns going bust.... Makes me giggle... Well I am and I laughed so hard that snot came out of my nose Quote Link to comment Share on other sites More sharing options...
FTBagain Posted March 21, 2006 Author Share Posted March 21, 2006 (edited) As someone who was a homeowner in the last crash, I really wonder if the "it's different this time" mantra is true, but in a good way (for us ). Those of us sinking slowly into negative equity (I was that boiled frog) didn't really have any options open to us. I was able to meet my payments easily, but was trapped. Downward price pressure came from single repossessions, and huge reductions on the price of new builds. Today these BTL barons can surely only take so much pain. It'll only take a few rental voids, IR hikes and the whiff of price drops, and we could see whole portfolios being dumped. It's possible that things could actually pan out MUCH faster than the last crash, simply because BTL properties are an investment, rather than a home. If a couple go at the same time then their creditors will hack the prices to get a quick sale. It could well pan out the way you describe, only time will tell. Edited March 21, 2006 by FTBagain Quote Link to comment Share on other sites More sharing options...
non-FTBer Posted March 21, 2006 Share Posted March 21, 2006 Depends how long the investors can hold out. I suspect it'll unwind in reverse.... a last in first out scenario. Generally the last BTLs into the market will have the lowest yields (if any after costs), and are the most susceptible to price falls and other losses. But these are the same people who bought right at the top of a historically high market (Stupid people), and their stupidity may enable them to hold on and stem the losses for a little longer than any sane person would. Stupid people don't like capitalising losses... that would make them look stupid When it does unwind I expect it'll be a small trickle for a month or two followed by a big bang as they all try and run for the exits. Quote Link to comment Share on other sites More sharing options...
SCUMBAG Posted March 21, 2006 Share Posted March 21, 2006 I was talking to a chap in the office this morning. He is looking to invest some money in property. We have had a couple of chats and he was in general agreement that things were not too good. Anyway, he had a chat with an Independent Financial Advisor (IFA) over the weekend. Apparently this advisor said that the BTL market in Bath was saturated. Many had just got too greedy (something said on here a few times before). It was not the small investor either, but people with 20 - 30 properties that had been out on a spending spree!! Many now have empty properties. The IFA believed that some are likely to go bust this year, which could dump dozens of properties back on the market. Cheered me up no end! Here's my graph that kinda back this up. EDIT: Close the sandwich shop I lived in Bath and moved to Chippenham because I could rent a nicer property for the same money and be closer to work hence save money on petrol. I really miss Bath though. I saw my financial advisor a few weeks ago too. He said that it was not a good time to buy. He said that if something could make a lot of money then it could loose a lot of money too be it stocks and shares or a house. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 21, 2006 Share Posted March 21, 2006 the graph seems to show there has been a DOUBLING of rental property within the last 3 months in bath. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted March 21, 2006 Share Posted March 21, 2006 I lived in Bath and moved to Chippenham because I could rent a nicer property for the same money and be closer to work hence save money on petrol. I really miss Bath though. I saw my financial advisor a few weeks ago too. He said that it was not a good time to buy. He said that if something could make a lot of money then it could loose a lot of money too be it stocks and shares or a house. Chippenham is a dive to go out in though, BUT you do have good rail links to Bath (next stop) and Swindon (Old town is good). Chippenham is cheaper than Bath and Swindon though. How long you been in Chipp? You are lucky to have a decent FA. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 21, 2006 Share Posted March 21, 2006 i dont think that old line. "good rail links to the city" really works anymore. so what if you can get to the city and earn 60k. it wont do you any good in bath. the games up. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted March 21, 2006 Share Posted March 21, 2006 i dont think that old line. "good rail links to the city" really works anymore. so what if you can get to the city and earn 60k. it wont do you any good in bath. the games up. I was meaning for a good night out on the pi$$ Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 21, 2006 Share Posted March 21, 2006 id rather be tucked into one of those country pubs in small somerset towns for the night. i wish, only that kind of life quality is now beyond a whole professional lifes work. Quote Link to comment Share on other sites More sharing options...
SCUMBAG Posted March 21, 2006 Share Posted March 21, 2006 (edited) Chippenham is a dive to go out in though, BUT you do have good rail links to Bath (next stop) and Swindon (Old town is good). Chippenham is cheaper than Bath and Swindon though. How long you been in Chipp? You are lucky to have a decent FA. I know. That was a big reason for me moving and why I got myself a place close to the train station. Last train back is at eleven though. A taxi from Moles club to Chippenham at 2 in the morning is £25 but you have to pre book. Although I haven't been out in Bath since I moved a month ago. I also go to the gym in Chippenham. Seems like I was spending all my money driving to and from Chippenham just for the privilege of being able to go out for a good night on the lash once in a blue moon. Of course if you fancy a pint in Bath discussing the fall of the housing market and hence civilisation as we know it that could all change? Followed by a cheeky cocktail in the Rat and Parrot! By that time the way ahead should be clear. The FSA happens to be my mate’s dad. They live in Cardiff. I wouldn’t have entertained the idea of getting one if I didn’t know he was 110% trustworthy. He gets very upset about these ‘cowboys’ that give bad advice for their own personal gain. We are also both guitarists. An appointment with him takes forever because every time he touches his keyboard to go to a fund’s web page or something he invariably ends up going to a site that shows you how to play rockabilly on a Gretch. Last time I went to see him about moving my saving account I was with him for 4 hours! One other thing just occured to me. My mate lived in Bath in the last housing boom. It was a BTL. He came home one day and his locks had been changed and all his stuff repossesed. His BTL landlord hadn't been paying the mortgage and had buried his head in the sand. He ended up commuting to work from his parents' place in Ringwood for a couple weeks. It sounded like a complete nightmare! Edited March 21, 2006 by SCUMBAG Quote Link to comment Share on other sites More sharing options...
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