Jump to content
House Price Crash Forum
Sign in to follow this  
Willy Weasel

Buy To Let Discounts

Recommended Posts

A number of people have made the point that the HPC will start when the BTLs pull out because prices are too high. One thing worth considering is that BTLs buying newbuilds frequently buy off plan for a 15% or higher discount so they are achieving a significant reduction on the price the FTB pays later on. These discounts are particularly restricted to BTLs when bulk purchase is negotiated through a BTL club. Those posters who believe prices will drop 15% or even more are really only factoring in a drop for the rest of us that BTL buyers are already achieving.

Share this post


Link to post
Share on other sites

A number of people have made the point that the HPC will start when the BTLs pull out because prices are too high. One thing worth considering is that BTLs buying newbuilds frequently buy off plan for a 15% or higher discount so they are achieving a significant reduction on the price the FTB pays later on. These discounts are particularly restricted to BTLs when bulk purchase is negotiated through a BTL club. Those posters who believe prices will drop 15% or even more are really only factoring in a drop for the rest of us that BTL buyers are already achieving.

Yeah but isn't it the case that most newbuilds are in the **** end of nowhere and that rental properties are all about location ?

Share this post


Link to post
Share on other sites

A number of people have made the point that the HPC will start when the BTLs pull out because prices are too high. One thing worth considering is that BTLs buying newbuilds frequently buy off plan for a 15% or higher discount so they are achieving a significant reduction on the price the FTB pays later on. These discounts are particularly restricted to BTLs when bulk purchase is negotiated through a BTL club. Those posters who believe prices will drop 15% or even more are really only factoring in a drop for the rest of us that BTL buyers are already achieving.

Not sure I agree. Most 'property investors' don't push for price reductions, they seem to think 10% gains per year are normal so don't care about the price. Getting a 50% overpriced property at 15% off is better than nothing, but still overpaying. I also like to hear of these 'BTL clubs' that buy in bulk in one area - a new property development that is 40% BTL will die quickly in the first recession, and prices will plummet. Look for new build areas with no lights on at night, there's more than you think. These areas will become the squatters paradise and low cost housing of the future - there's a reason some smart housing associations say 'no more than 10% of houses non-owner occupied' in the US.

Anyway, I don't believe the builders are offering that much of a drop - that would end up in the land registry to be used as the comparison pricing, and builders do anything to keep that number from dropping. Throwing in 15% of freebies (upgrades, appliances etc) I can see though.

Share this post


Link to post
Share on other sites

You don't have to buy in bulk to get an 'off plan discount'. Any snake oil imbiber can get 15% on a single apartment, its like falling off a log. Extraordinary generosity by the builder you might suppose, but of course the builder never gives a true discount, he just ups the price on the initial release and the agents pulls the old marketing flim flam for the 'easy marks' sorry investors. <_<

Share this post


Link to post
Share on other sites

One thing worth considering is that BTLs buying newbuilds frequently buy off plan for a 15% or higher discount .

Yeah, and gifted deposits are real as well. C'mon tuffers. How is it that "MASSIVE REDUCTIONS" on furniture etc get included as normal prices when incorporated into CPI - ie nobody believes these are real savings, just the consequence of cheaper wholesale prices, yet when prop devs knock off 15% some actually believe this is a real reduction. It is not. It is merely the starting point. Any negative HPI will go on that figure, NOT the notional value ascribed by th edeveloper. Let's face it, the land regs will show what the prop dev transacted for. How are you gonna get around that?

Share this post


Link to post
Share on other sites

I act for a number of property developers and they like to sell off some of the estate early at a good discount to get the cash flowing in and also so they can advertise '30% sold off plan' and the like. It helps with the marketing to shift a few units early. Later on, when Joe Public is offered the same properties the starting point for them is 15% higher than the starting point for the BTL crew. The point I was really trying to make was that lots of posts talk about affordability and how this affects the bottom of the market from the point of view of the FTB and the BTL buyer. The fact is the BTL buyer tends to find these properties more affordable because the negotiate as a group and get better discounts

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.