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Realistbear

Novice B T Lers Face Trouble Ahead As Property Market Turns

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Bear week anyone?

http://www.thisismoney.co.uk/mortgages/art...e_id=8&ct=5

Landlords' repayment woes

James Coney, Daily Mail
24 August 2006
NOVICE landlords could find themselves overstretched, with rental income failing to cover mortgage repayments if interest rates rise again.
Spurred on by continued house price growth, many inexperienced landlords have flooded into the buy-to-let market in the past 12 months, often taking out mortgages with only a 10% deposit.
In many cases the rent they are receiving only just covers the monthly mortgage repayments.
But with the Bank of England having put up base rate these landlords could find themselves overstretched and having to dig into their own savings to meet the repayments if rates go up again.
How much you can borrow for a rental property will be worked out in a different way to how much you can borrow for your main home. Most lenders look at what you can expect in rent from the property rather than just simply how much you earn.
Traditionally, lenders have looked for the rental income to be 30% more than the monthly mortgage interest charge.

And its probably too late to sell all those BTLs now without a substantial loss. Especially if they are anywhere near the Manchester area! :lol:

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You CAN sell a BTL, you just need to price it right.

The last of my little empire went out the door last week at 'only' 3x what I paid for it a while back. If I'd tried to get top dollar for it, I'd still be sitting on it.

Better to let one of these johnny-come-lately amatuers assume the position than little old moi, even if it means 'not getting what its worth' (a misnomer, indeed - its 'worth' only what some other fool will pay for it).

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You CAN sell a BTL, you just need to price it right.

The last of my little empire went out the door last week at 'only' 3x what I paid for it a while back. If I'd tried to get top dollar for it, I'd still be sitting on it.

Better to let one of these johnny-come-lately amatuers assume the position than little old moi, even if it means 'not getting what its worth' (a misnomer, indeed - its 'worth' only what some other fool will pay for it).

What I don't understand about you PG is why you hang around posting on sites like this - if I'd made anything like the kind of money you claim to have made there are so many other things that I would be doing.

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You CAN sell a BTL, you just need to price it right.

The last of my little empire went out the door last week at 'only' 3x what I paid for it a while back. If I'd tried to get top dollar for it, I'd still be sitting on it.

Better to let one of these johnny-come-lately amatuers assume the position than little old moi, even if it means 'not getting what its worth' (a misnomer, indeed - its 'worth' only what some other fool will pay for it).

so you're a bear now??...........How much do you think the market is overvalued?

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so you're a bear now??...........How much do you think the market is overvalued?

between 30 and 45 percent.

I cant see how wage inflation can do it - there's never been a 'soft landing', and I dont think that's about to change.

The Land Registry will be YOY negative by 2007 (prob Q2 or 3) is my best guess.

PS - why am I posting here? I find myself with rather a lot of free time all of a sudden.

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so you're a bear now??...........How much do you think the market is overvalued?

You do know that PropertyGuru you ar refering to is not the same ["the worlds stupidest man"] PropertyGuru who used to post here - he now posts on the "other" global site

He's also turned bear - has called the peak as summer 2006, and predictsLand Registry YoY figures to go negative in 2007

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You do know that PropertyGuru you ar refering to is not the same ["the worlds stupidest man"] PropertyGuru who used to post here - he now posts on the "other" global site

He's also turned bear - has called the peak as summer 2006, and predictsLand Registry YoY figures to go negative in 2007

Well I for one don't really care if he's a bull turned bear, or that he's posting on other sites. Just hope he's right.

Hey PG, how long you been in the BTL game anyhow?

RealistBear, it IS a great bear week! I remember a few other weeks like this in the past two years. Hope this is the real thing, my patience is wearing thin.

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between 30 and 45 percent.

I cant see how wage inflation can do it - there's never been a 'soft landing', and I dont think that's about to change.

The Land Registry will be YOY negative by 2007 (prob Q2 or 3) is my best guess.

PS - why am I posting here? I find myself with rather a lot of free time all of a sudden.

I'd like to think you really are the original PG from the Singing Pig site who came in here to wind us all up by i suspect youre an impostor...........

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I'd like to think you really are the original PG from the Singing Pig site who came in here to wind us all up by i suspect youre an impostor...........

you can 'suspect' whatever you like, chummy. That's your priviledge.

I'm fully in cash now, and looking forward to a huge bear market. It will be a great time to be a cash buyer in few years - they will be biting your arm off. Just like last time (when I bought the bulk of my BTLs).

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you can 'suspect' whatever you like, chummy. That's your priviledge.

I'm fully in cash now, and looking forward to a huge bear market. It will be a great time to be a cash buyer in few years - they will be biting your arm off. Just like last time (when I bought the bulk of my BTLs).

Actually you're wrong to believe that houses will be good to invest in at any time in the next 25 years. In any case I calculate that you're paying over £70k tax on your income. Smart you are but not brilliant. Also, you must have shelled out £1m in CGT.

If not how come?

However, fair play to you. You're a winner. The trick now is to optimise what you have and make it work for you in the future. No, not residential property.

All the best

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you can 'suspect' whatever you like, chummy. That's your priviledge.

I'm fully in cash now, and looking forward to a huge bear market. It will be a great time to be a cash buyer in few years - they will be biting your arm off. Just like last time (when I bought the bulk of my BTLs).

It's clearly "CrashisUnderWay".

PG is meant to be an old bloke - the lingo just doesn't fit.

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Well I for one don't really care if he's a bull turned bear, or that he's posting on other sites. Just hope he's right.

Hey PG, how long you been in the BTL game anyhow?

RealistBear, it IS a great bear week! I remember a few other weeks like this in the past two years. Hope this is the real thing, my patience is wearing thin.

PG posts on the other forum. And he made a post saying that the 'PG' on this site is a fake...

EDIT:

Note when this 'PG' joined: Joined: 21-August 06

Edited by Charles_Darke

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you can 'suspect' whatever you like, chummy. That's your priviledge.

I'm fully in cash now, and looking forward to a huge bear market. It will be a great time to be a cash buyer in few years - they will be biting your arm off. Just like last time (when I bought the bulk of my BTLs).

I'm dying to know when to buy into the falling market!........but I'm far less convinced there'll be a crash than i was when i joined this site 2 years ago........Perhaps I'm the last bear turning into a bull!......so the market will now crash!

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I'm dying to know when to buy into the falling market!........but I'm far less convinced there'll be a crash than i was when i joined this site 2 years ago........Perhaps I'm the last bear turning into a bull!......so the market will now crash!

Just like the rain that comes when you wash the car.

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This PropertyGuru is an imposter.

The betting is that it is someone who used to post on HPC as Crash Is Under Way - a rather obnoxious fellow who insulted all and added nothing to the debate. He was banend from here. He moved to another more wordly place and then left abruptly a few days ago - round about when this bogus PropertyGuru popped up here.

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In many cases the rent they are receiving only just covers the monthly mortgage repayments.

This makes me laugh I bet hardly any of them get close to covering the mortgage...

We know someone who has a one bed flat in Aberdeen that they rent out cos they can't afford to buy anywhere around here.

The place was bought in '95, for 30K roughly, it's right next to the uni. Rents it out for about 300 quid. After agency fee and mortgage she's lucky to be left with 30 quid a month and I'm not taking extra expenses into account.

Now this was bought in '95, today they reckon you could sell it for 70-80K today. So how the hell could anyone ever cover their mortgages with that sort of return.

The same place here in Edinburgh would rent for 450 a month, probably cost you 90-100K if you were lucky.

The numbers don't add up and this is Scotland for goodness sake... what must it be like down south.

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This makes me laugh I bet hardly any of them get close to covering the mortgage...

We know someone who has a one bed flat in Aberdeen that they rent out cos they can't afford to buy anywhere around here.

The place was bought in '95, for 30K roughly, it's right next to the uni. Rents it out for about 300 quid. After agency fee and mortgage she's lucky to be left with 30 quid a month and I'm not taking extra expenses into account.

Now this was bought in '95, today they reckon you could sell it for 70-80K today. So how the hell could anyone ever cover their mortgages with that sort of return.

The same place here in Edinburgh would rent for 450 a month, probably cost you 90-100K if you were lucky.

The numbers don't add up and this is Scotland for goodness sake... what must it be like down south.

£30k mortgage = Approx £125/month. £300 - £125 = £175 to cover "extra expenses" ?

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£30k mortgage = Approx £125/month. £300 - £125 = £175 to cover "extra expenses" ?

125 a month... more like 200 where do you get 125 from... not everyone takes out interest only mortgages you know.

40 quid to the agents and then the usual expenses... broken this broken that. New windows, new bathroom suite. We've heard _all_ about it.

Anyway more to the point if you bought it now... 80K for the place monthly repayment - 521.51 at 6%... see how that works out eh.

Edited by HousePriceLottery

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You CAN sell a BTL, you just need to price it right.

The last of my little empire went out the door last week at 'only' 3x what I paid for it a while back. If I'd tried to get top dollar for it, I'd still be sitting on it.

Better to let one of these johnny-come-lately amatuers assume the position than little old moi, even if it means 'not getting what its worth' (a misnomer, indeed - its 'worth' only what some other fool will pay for it).

I couldn't be a little cheeky and kindly ask have you got some change er £150000 for a home for the rest of my life...lol :D

Well done to you!

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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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