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Realistbear

Btl Holiday Home Owners Face Losses As Market Fades

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http://portal.telegraph.co.uk/money/main.j...2/ixperson.html

The holiday home letdown

(Filed: 22/03/2006)

If you thought letting out your second home was a licence to print money, you are mistaken, warns Jenny Knight. Too many beds are chasing too few guests
The holiday homes market is in danger of becoming oversupplied, with too many beds chasing too few guests as more and more of Britain's 230,000 second home owners try to meet rising costs by letting out their property to paying guests.
While inflation rose by 4.6 per cent over the past three years, the cost of running a house has gone up by 14 per cent, according to Halifax. Second home owners are much worse hit because in many areas they now have to pay 90 per cent of the full council tax rate, compared with a maximum of only 50 per cent two years ago.
"
Many people are now entering the holiday lettings market, disillusioned with standard buy-to-let which for the past couple of years in many areas has yielded less than putting your money in a building society,
"

As IR around the world rise, BTLers should try to sell for what they can and invest elsewhere. The upside is that more homes will come on the market in areas that became overpriced for locals.

Edited by Realistbear

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http://portal.telegraph.co.uk/money/main.j...2/ixperson.html

The holiday home letdown

(Filed: 22/03/2006)

If you thought letting out your second home was a licence to print money, you are mistaken, warns Jenny Knight. Too many beds are chasing too few guests
The holiday homes market is in danger of becoming oversupplied, with too many beds chasing too few guests as more and more of Britain's 230,000 second home owners try to meet rising costs by letting out their property to paying guests.
While inflation rose by 4.6 per cent over the past three years, the cost of running a house has gone up by 14 per cent, according to Halifax. Second home owners are much worse hit because in many areas they now have to pay 90 per cent of the full council tax rate, compared with a maximum of only 50 per cent two years ago.

As IR around the world rise, BTLers should try to sell for what they can and invest elsewhere. The upside is that more homes will come on the market in areas that became overpriced for locals.

:lol::lol::lol::lol:

Don't be disheartened folks, we're gonna be picking ourselves up some bargains

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All together now - Ahhh

I still see lots of programs on tv about people buying flats in far flung countries for UK people to stay in while travelling. Perhaps the BTL money will chase its' own tail all around the world.

What's next? BTL for zoo cages?

Billy Shears

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It's all based on debt, so the banks and govt's can own people.

Oh dear, when will it all stop - maybe if our house prices averaged 10 million then we could buy the world through MEW.

Everyone would be our tennants and it would be O.K. if the rest of the world didn't mind of couse.

Edited by music man

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"... disillusioned with standard buy-to-let which for the past couple of years in many areas has yielded less than putting your money in a building society,"

If only they printed that on the front page of the papers we'd be sorted!

How long till we hear Rosie has bought a holiday home BTL? Or does the one in Paris count? ;)

Edited by DoubleBubbleTrouble

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I wonder if TTRTR is trying to unload his properties. Professional investors know when the top of the market has been reached and sell. If TTRTR is a pro he probably would have sold last year when the market showed the first signs of stalling. What pro, in their right mind, would be hanging on this long when returns are better in a BS account? A sign to get out if there ever was one?

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There was a mixed performance from the housebuilding sector yesterday after a leading broker drew attention to recent share sales by industry insiders.
Unimpressed by the numerous bid stories doing the rounds at the moment, several of the sector's biggest names have been offloading stock in the past week, according to Man Securities.
Last Thursday, Tony Pidgley, the boss of Berkeley Group and the man who correctly forecast the last housing market crash, sold 1m shares at £11.65. Before that Peter Johnson, the outgoing chief executive of
George Wimpey, offloaded 180,000, alongside two other board directors who sold 95,000. If that were not enough, then seven directors at FTSE 100 housebuilder Persimmon also disposed of stock last week, although the company claims this was to cover tax liabilities arising from the vesting of share options.
As such, Man thinks it might be time to "short" the housebuilding stocks, which have been among the market's best performers in the past year. Heeding that advice, shares in Crest Nicholson fell 20.5p to 550p, while Persimmon eased 21p to £13.90 and Berkeley shed 16p to close at £11.47. However, George Wimpey mysteriously bucked the trend, rising 13p to 578p
.

Great story--says it all doesn't it! Remember the Foxton's boss dumped a load of shares a few week ago--must have known that his methodologies would eventually come under scrutiny! He got his money and may be already on his jet to sunier climes?

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Mind you at least losses on qualifying furnished holiday lettings can be offset against your other income - as long as making a profit was reasonably likely.

Edited by Bedsprings

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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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