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Jason

50% Of Btl Bought Within Last 3 Years

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http://digitalnation.fileburst.com/arla/ar...eview_q1_06.pdf

I'm not sure if the ARLA report was posted on here when it came out, but i've been mulling over it to support my arguments about house prices today at work. Anyway, I was shocked to find 49.8% of landlords have owner their BTL for 2-3 years or less, and thought I would mention it on here!

Anyway, my argument at work went something like it does every time...

house prices always go up... blah blah blah... rent is dead money....

But they were saying I should get a BTL, and as the boss isn't in all week I made them search Rightmove to find an investment property where the rent covered the IO mortgage - they couldn't! Infact, I think they were quite shocked!!!

I even did the calculations showing that they would be better off if they STR - the only thing they would miss is HPI, of which I showed the the ODPM figures of +0.6% YoY for the South East.

The conclusion? I still need to buy so 'I have my own place', and it's ok to invest because 'they'll be in it for the long term'.

Edited by Jason

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The conclusion? I still need to buy so 'I have my own place', and it's ok to invest because 'they'll be in it for the long term'.

They will be in it for the long term. Very much against their will.

Well done, sounds like you're doing a good job against traditional levels of crowd stupidity.

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Jason,

You ever seen the Muppet Show? Seems like you work there!! :lol:

:lol: Yep. I think I do.

I don't blame some of them, it's the only wealth they have. But I strongly object what they kept saying to people like me.. "buy buy buy". People like them won't be hurt in the crash. It's FTBs that they are encouraging that will. All the office people are over 35 (except those in the warehouse).

I think one problem is a chap loves Nu Labor, this government can't do anything wrong in his eyes - right pisses me off that does.

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http://digitalnation.fileburst.com/arla/ar...eview_q1_06.pdf

I'm not sure if the ARLA report was posted on here when it came out, but i've been mulling over it to support my arguments about house prices today at work. Anyway, I was shocked to find 49.8% of landlords have owner their BTL for 2-3 years or less, and thought I would mention it on here!

That is ridiculous! :lol:

The moral of the story? Don't ever rent from a landlord who purchased the property post 2000!

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That is ridiculous! :lol:

The moral of the story? Don't ever rent from a landlord who purchased the property post 2000!

But that's limiting you to less than 29.6% of land lords!

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Guest Charlie The Tramp

But they were saying I should get a BTL, and as the boss isn't in all week I made them search Rightmove to find an investment property where the rent covered the IO mortgage - they couldn't! Infact, I think they were quite shocked!!!

Maybe you should quote them these figures.

January to March 2006 in the County Courts of England and Wales

Landlords Social and Private

Actions Entered 38,240 ( Number of Landlords in trouble )

Suspended Orders 14,820 ( Landlords attempting to come to an agreement with the lender )

Orders Made 9,829 ( Landlords repossessed )

;)

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Do we have figures anywhere on the typical mortgage and period for this time. The period being most effective as the 2% mortgages had a short lifespan and they'll be the ones most effected.

Wollop. Bang Pfizz and other 80's batman kinda screen words.

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That's astounding... 6% of the total housing stock has been bought by BTL in the last 2-3 years?

What happens when that demand ends due to them finally realising the figures don't add up? :huh:

T&T

They're fuc*ed

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Guest Bart of Darkness
But they were saying I should get a BTL, and as the boss isn't in all week I made them search Rightmove to find an investment property where the rent covered the IO mortgage - they couldn't! Infact, I think they were quite shocked!!!

:lol:

Good find there Jason, looks like that's 49.8% of landlords dreading the coming IR rises.

Plus TTRTR of course. :lol:

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http://digitalnation.fileburst.com/arla/ar...eview_q1_06.pdf

I'm not sure if the ARLA report was posted on here when it came out, but i've been mulling over it to support my arguments about house prices today at work. Anyway, I was shocked to find 49.8% of landlords have owner their BTL for 2-3 years or less, and thought I would mention it on here!

Anyway, my argument at work went something like it does every time...

house prices always go up... blah blah blah... rent is dead money....

But they were saying I should get a BTL, and as the boss isn't in all week I made them search Rightmove to find an investment property where the rent covered the IO mortgage - they couldn't! Infact, I think they were quite shocked!!!

I even did the calculations showing that they would be better off if they STR - the only thing they would miss is HPI, of which I showed the the ODPM figures of +0.6% YoY for the South East.

The conclusion? I still need to buy so 'I have my own place', and it's ok to invest because 'they'll be in it for the long term'.

Jason, the stats have always pointed to the fact that the stupids got into BTL just as the clevers were moving on. By the time it captured the Rosie Millard types attention it was too late for most. There has been what 300K extra landlords created in the past 3-4 years?..ouch ;)

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Do we have figures anywhere on the typical mortgage and period for this time. The period being most effective as the 2% mortgages had a short lifespan and they'll be the ones most effected.

Wollop. Bang Pfizz and other 80's batman kinda screen words.

I don't have the figures but I thought the most popular mortgage in the last two to three years was the Interest Only Mortgage, is it possible to get BTL IO mortgages?

If it is, they really are in trouble.

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I just wish to say one thing.

I have been speaking to my IFA about this year's ISA. He has recommended a fund called Jupiter Emerging Opportunities European accumulation fund. (Seek independent advice; past performance is not an indicator of future performance and all that b*llocks). In 2003 when it started, it increased by 11.7%; in 2004 45.2%; in 2005 58.9%, and the year to date figure is 27.9%. (Obviously, the recent crash in the stock market has probably wiped it out)

What sort of a f*cking muppet would invest in residential property????? :blink:

Edited by nimmmm

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Anyway, I was shocked to find 49.8% of landlords have owner their BTL for 2-3 years or less, and thought I would mention it on here! [Jason]

That would be shocking if it was true. However, this report is based on a self-selecting survey of ARLA members. It's unlikely to be representative of the market as a whole -- the vast majority of landlords are not members of ARLA. Those who are, are more likely to be newbie BTLers who feel in need of the support that ARLA offers. I wouldn't assume these figures are an accurate reflection of the market.

The ARLA Review and Index of Returns on Buy to Let Investment is compiled from the results of the quarterly survey of ARLA member letting agents and of investor landlords who subscribe to the ARLA Buy to Let website. This is the largest survey of its kind and is undertaken with the support of the ARLA Panel of Buy to Let Mortgage Lenders.

The data, which covers yields, rents, void periods, types of rental property, regional differences etc is

drawn from 443 letting offices run by ARLA member firms and 310 investor landlords.

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Guest Bart of Darkness

What sort of a f*cking muppet would invest in residential property????? :blink:

Don't worry, TTRTR will be along shortly.

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Very interesting and a good find, but I think your summary title is misleading - the respondents are a self-selecting group who are likely to be recent landlords who are looking for advice and support and are therefore possibly not fully representative of the BTL / Landlord animal as a whole:

Respondents to the ARLA surveys of investor landlords are drawn from over 10,000 newsletter

subscribers attracted by the ARLA Buy to Let website.This makes the ARLA quarterly survey

the widest totally independent survey of investor landlords in the private rented sector.

The survey for the first quarter was carried out during February 2006.

Buy to Let landlords expect to hold their property investments for an average of 17 years.Most

invest either for a mix of income and capital gain (46.3%) or capital gain (43.5%) Only 8%

invested solely for the rental income.

Clear proof that the UK property market is in a bubble then. If the BTL decision is not based on rental income, what is it based on? [iNSERT RENTAL YIELD ARGUMENT AD NAUSEUM!]

A mere 1.1% speculate with buy to let investments of less than two years.

Well over half (61.7%) expect to acquire further investment properties in the next twelve months.

Nine out of ten stated they would not sell their property investments should house prices fall,9%

were unsure and an astonishingly low figure of only 1.4% would sell in a falling market.

Muppets.

JY

Edited by JustYield

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Guest Winners and Losers

That's astounding... 6% of the total housing stock has been bought by BTL in the last 2-3 years?

What happens when that demand ends due to them finally realising the figures don't add up? :huh:

T&T

Chugga, chugga, choo, choo!

Wait until something comes along to make BTL not so attractive (besides poor yields). When they introduced the vendor tax in NSW, BTL went out the window and the market started to fall. By the time they removed the tax, it was too late. No one was interested in investing in property in NSW, they had all taken their money elsewhere. BTL is propping the market up big time in the UK, and anyone who has jumped on the bandwagon recently needs to be very careful if they are looking to offload in the next 5-10 years. It is no longer the cash cow that it once was.

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So now we know what's making the market levitate: BTL. I guess we already suspected that, anyway.

The point is that, this is very volatile investment. Just as money can flood in and out of stocks and shares, so too with BTL.

Psychologically, though, the BTL types who went into it on the advice of Phil, Kirsty and the bloke down the pub may feel inclined to stay in 'for the long term' unless they are forced out. Remember: these folks didn't do the sums to go in, so no reason why they should start now. So, will this force come? :huh:

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Nine out of ten stated they would not sell their property investments should house prices fall,9%

were unsure and an astonishingly low figure of only 1.4% would sell in a falling market.

In late 1989 early 1990's I had several friends who were still very bullish about the market and thought falling prices were just a blip. Three of them took out "bridging loans" around that time. From memory two of them took between twelve and eighteen months to sell their original houses, both losing a great deal of money on falling prices "they had to sell at any price" The third had to sell both his houses and "downsize"

What's happening today? People are either moving and BTLing their original home, or buying at BTL &/or Portfolio. Saying they won't sell their "investment" if prices drop is a bit like saying you won't bother with a lifeboat as the ship sinks. I'm afraid I have no sympathy with these people and will laugh as they're relegated to a life of poverty. :lol:

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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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