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Uk Buy-to-let Market Pushed Onto Critical List

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Acording to The Business News Source ...

Seasoned landlords are offloading their exposure to risky portfolios just as new buy-to-let beginners are jumping into the market in droves. Some say it’s like watching ‘Lambs to the slaughter’ – never has such a phrase summed up the abject state of the ‘buy to let market’ so succinctly.....

See article here at

http://www.invbiznews.com/wordpress/?p=423

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Acording to The Business News Source ...

Seasoned landlords are offloading their exposure to risky portfolios just as new buy-to-let beginners are jumping into the market in droves. Some say it’s like watching ‘Lambs to the slaughter’ – never has such a phrase summed up the abject state of the ‘buy to let market’ so succinctly.....

See article here at

http://www.invbiznews.com/wordpress/?p=423

A sure sign of a market about to collapse. When the postman is buying up property it is time to get out!

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Acording to The Business News Source ...

Seasoned landlords are offloading their exposure to risky portfolios just as new buy-to-let beginners are jumping into the market in droves. Some say it’s like watching ‘Lambs to the slaughter’ – never has such a phrase summed up the abject state of the ‘buy to let market’ so succinctly.....

See article here at

http://www.invbiznews.com/wordpress/?p=423

What is that Business News Source site? Looks like somewhere here knocked it up.

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What is that Business News Source site? Looks like somewhere here knocked it up.

One thing I can't get with you Marina. If you are so bullish on property, why don't you go along to the bank and ask them to land you x amount for a BTL portfolio? According to your crystal ball, you'll be quids in and so will your son in 25 years time. They'll be bound to lend you money won't they? If they don't, it'll show that liquidity is drying up and you'll be a winner either way <_<

This is why I reckon you're a class A wind up. At least TTRTR is putting his money where his bullish mouth is. You have this hobby horse about "protesting" which doesn't ring true at all.

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It will all end in tears and Marina knows it.

Lets get back to basics. If you were a property company with a portfolio of x amount of homes and you had a responcibility to your shareholders you would have started to off load that property which is what they are doing . The uninformed are out of the loop . At the AGM when the CEO stands up and says I am very sorry but we should have sold our portfolio and its now worth 20% less !! I dont think so. He will sell and put the cash into stocks or sit with it at the bank overnight rate.

Another basic for you is that there is a correlation between a rising house market and a falling stock market. Think of the money that came out of the stock market in 2000/01 where did it go ? into property portfolios ) And where is it going now back into the stock market in selective stocks or held in cash.

These are business people they do not go out of business as they are driving it !! Joe public being out of the loop is always chasing it but never wins (very seldom )

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What is that Business News Source site? Looks like somewhere here knocked it up.

Tragically, Marina, its also reported in the FT.com. BTL is for suckers only now:

http://uk.us.biz.yahoo.com/ft/060816/fto08...94284.html?.v=1

UK's high house prices fail to deter buy-to-let landlords

Wednesday August 16, 2:05 pm ET

By Jim Pickard

Many buyers developed an aversion to shares after the crash of 2001, despite the stock market's subsequent bounceback. With house prices having risen so consistently for the past decade, past performance looks hugely attractive.

But some observers are wondering whether the newcomers are joining the party just as the music is about to stop. There are fears that many buy-to-let investors are buying on the back of expected capital growth that may not materialise. Valuations relative to household incomes are now at their highest level in history, sustained primarily by low interest rates.

Some commentators find it hard to see many reasons for price increases outside central London, a market buoyed by foreign investment and City bonuses. Others point out that the yield from residential property - rent as a proportion of the price of the building - is at a record low because prices have risen so high without any great rise in rents.

Mr Ahuja, after buying all over the UK for a decade, now avoids London and the south-east because "the maths just doesn't add up any more". Instead, his most recent purchases have been in remote parts of Scotland.

[/indent]

:( *

________________________

* :D

Edited by Realistbear

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Mr Ahuja, after buying all over the UK for a decade, now avoids London and the south-east because "the maths just doesn't add up any more". Instead, his most recent purchases have been in remote parts of Scotland.

[/indent]

Because of course there are lots of City types there who can pay £500pw rent. :lol::lol::lol:

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http://www.herts-essex-news.co.uk/news/sta...me%20buyers.lpf

However, Alan Howick, partner in Howick & Brooker estate agents in High Street, Old Harlow, has advised house-buyers not to panic.
"There are swings but at the end of the day the overall picture is pretty level," he said. "There's no need to press the alarm bell.
"The market has a way of balancing itself out, of finding its level."
He admitted the situation has not been helped by people buying homes to let but said there was still plenty of choice in the housing market.
"About five or 10 years ago letting agents took up about half-a-page in a local newspaper. Now you have page after page of properties to let.
"However, supply outstrips demand and investors have walked away from it."

Saturated BTL market headed for a drop very very soon. :o *

_______________________

* :D

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Well, here in Sheffield, there is one very successful landlord (bought most of his houses in the 60's) who is offloading about 20 houses a month through auctions.

He has so much equity I'm sure he could ride through any downturn, but why bother when he can sell up pay the cap gains and still buy back much cheaper after the crash.

Good luck to the muppets who buy them..........

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We went over to Australia for a few years and looked at renting out our UK property and buying an additional one to rent as well - but decided against it, sold and stuck the money from the sale (eventually) into (good - fortunately) investments. When we got over to Oz the market had all but collapsed with prices in Melbourne dropping 26% and Sydney 16% over two years - it was still cheaper to rent.

On our return to the UK last year we saw a similar pattern evolving here. The press (oops was that the Express) going on about some chap who bought four houses a month and now has 150 houses and quit his job and doesn't need to work anymore. Doesn't need to work !! I'm sorry but anyone with a portfolio of 150 houses must be up to their eyeballs in work, or at least running it as a business - same thing!!

We're waiting for a lull in the market, deciding were we want to live (we've had the luxury of trying a few diiferent areas in London by renting for short periods , even though we originally lived in one area for 10 years) and then we'll buy - but certainly NOT as an investment, certainly NOT for our pension - we'll leave that to the 'clever' people - you know, the ones who raided their credit cards to buy dot com stocks jsut before the bubble burst - you remember the same people telling you that "you just don't get it - it's different this time ..".

Check out some earlier articles in the same source about where its all going and who will get hurt .

http://www.invbiznews.com/wordpress/?p=417

and

http://www.invbiznews.com/wordpress/?p=419

It will all end in tears and Marina knows it.

Lets get back to basics. If you were a property company with a portfolio of x amount of homes and you had a responcibility to your shareholders you would have started to off load that property which is what they are doing . The uninformed are out of the loop . At the AGM when the CEO stands up and says I am very sorry but we should have sold our portfolio and its now worth 20% less !! I dont think so. He will sell and put the cash into stocks or sit with it at the bank overnight rate.

Another basic for you is that there is a correlation between a rising house market and a falling stock market. Think of the money that came out of the stock market in 2000/01 where did it go ? into property portfolios ) And where is it going now back into the stock market in selective stocks or held in cash.

These are business people they do not go out of business as they are driving it !! Joe public being out of the loop is always chasing it but never wins (very seldom )

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A BTL landlord who has 4 houses right next door to my brother, about 6 months ago he put them all up for sale,

2 of them had tenants that have now gone. None have sold so far. But then again that could have something to do with my brother frightening prospective buyers off, as payback over the dickhead tenants the landlord used to get in.

Moral of this tale, never upset my brother.

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A BTL landlord who has 4 houses right next door to my brother, about 6 months ago he put them all up for sale,

2 of them had tenants that have now gone. None have sold so far. But then again that could have something to do with my brother frightening prospective buyers off, as payback over the dickhead tenants the landlord used to get in.

Moral of this tale, never upset my brother.

Ha ha ha - That's cheered me up Fudge. Cheers :lol:

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Ha ha ha - That's cheered me up Fudge. Cheers :lol:

He has put a toilet in the garden and put a sign up.

Not For Sale.

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http://www.herts-essex-news.co.uk/news/sta...me%20buyers.lpf

"About five or 10 years ago letting agents took up about half-a-page in a local newspaper. Now you have page after page of properties to let.

"However, supply outstrips demand and investors have walked away from it."

[/indent]

Saturated BTL market headed for a drop very very soon. :o *

_______________________

* :D

Got to agree with that. My local rag now has a seperate properties to let section. It really has reached epic proportions.

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Have to say I agree.

"as the amateurs rush in, just as the pro’s are getting out, there could be trouble stored up as the ‘domino’ effect of the buy-to-let market collapsing will accelerate any down turn in the normal market."

Not just the dodgy grammar but the language used. Seems that anyone can be considered a credible pundit if he/she toes the bears' line. :rolleyes:

Edited by tenroom

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Have to say I agree.

"as the amateurs rush in, just as the pro’s are getting out, there could be trouble stored up as the ‘domino’ effect of the buy-to-let market collapsing will accelerate any down turn in the normal market."

Not just the dodgy grammar but the language used. Seems that anyone can be considered a credible pundit if he/she toes the bears' line. :rolleyes:

Yeah its the typical "yawn" stuff these bears love to go on about. Forget the facts and lets imagine every BTL person is a moron. Every BTL person I have spoken to claims to be in it for the long term, in fact quite a few mentioned that a slow decline in prices would be a good thing because more and more bears would be STR as well as fewer FTB and that would push up the rental market. I dont see them rushing madly to ditch their portfolios on the first sign of house price deflation.

Remember also that BTL accounts for around 7% of the market. If we were talking 30% then I may start listening.

Got to agree with that. My local rag now has a seperate properties to let section. It really has reached epic proportions.

So if people aren't buying and now you say people aren't renting either then could a bear please tell me what they think people are actually doing.

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I will give you a clue . At the last crash in the 90s BTLs accounted for 2% of the housing stock with it now 8% are you now saying that this is a small increase !!

Everyone that buys an asset like a home will say they are in for the long term . People that but stocks say I am in for the long term until there is a drop and suddenly they become speculators . We are not all experienced Warren Buffets !! A great % of these people are not experienced at this business and not as informed as the bankers / property consultants are. When a tip is given for a share in a newspaper its normally too late for joe public.

I sold my property and have cash in bank at 5% , I am not prepared to die in the stamped when it happens!!

Edited by faloos

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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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