Jump to content
House Price Crash Forum
Sign in to follow this  
StuB

Why It’s Too Late To Jump On The Buy-to-let Bandwagon

Recommended Posts

Superb article; the only quibble I have is the title.

"Too Late to Jump on the BTL Bandwagon"?

This implies prices will keep rising, yields keep falling etc. Which I do not believe.

It would be just as accurate to say it is too early to jump on the BTL bandwagon - something I might consider if prices fall to give a 10% yield again.

Share this post


Link to post
Share on other sites
Like public transport for lemmings?

Just a quick thought...how many people on the board would, when the Great Crash 2 is over and forgotten about, and bulls are on the march, would go into BTL in a rising market? Just interested given the sentiment most people give the board, and the knowledge they all purport to have.

Share this post


Link to post
Share on other sites
Just a quick thought...how many people on the board would, when the Great Crash 2 is over and forgotten about, and bulls are on the march, would go into BTL in a rising market? Just interested given the sentiment most people give the board, and the knowledge they all purport to have.

Read my thread from the federal reserve in my signiture.

Rising market... The boomers are retiring and getting grey..#

no one is having enough kids..

Who wants the properties.

Edited by apom

Share this post


Link to post
Share on other sites

these figures just don't add up:

"The typical mortgage soaks up 17% of the home buyers annual earnings. At the peak of the last housing crash it was closer to 27%. We are clearly not yet at the end of the line for affordability, but we can certainly see where the buffers are. "

Could it be that the 17% is actually calculated on fictional salaries the fake payslip story?

Are we through the buffers but the fudged figures just don't show it?

Share this post


Link to post
Share on other sites
these figures just don't add up:

"The typical mortgage soaks up 17% of the home buyers annual earnings. At the peak of the last housing crash it was closer to 27%. We are clearly not yet at the end of the line for affordability, but we can certainly see where the buffers are. "

Could it be that the 17% is actually calculated on fictional salaries the fake payslip story?

Are we through the buffers but the fudged figures just don't show it?

Yeah but last time people had only borrowed 3 times their salary this time its more....much more in a lot of cases.

Add to that credit cards and Norton finance loans and cars on tick which is at 1.3 trillion quid, all means the figures do add up.

Share this post


Link to post
Share on other sites
How many people on the board would... go into BTL in a rising market?

I would consider investing in BTL in a cheaper market for one reason alone: Income yield.

I earn well and have currently have a lot of cash since STRing but I am a naturally pessimistic bear, who seeks a low-risk financial life above all. I have a temperamental distrust of the stock market, because of all the doomsday economic scenarios I can think up so easily. BTL-ing for income seems a comparatively secure investment, being less affected by inflation than cash and less affected by deflation or recession than stocks.

Because I have no appetite for speculating on capital gains, it would make little difference to me whether the market seemed to be rising or falling.

But if after a crash I could get 10% gross yield (not historically unheard of according to the link at the top of this thread) then I would be interested.

Anyway, I'd be interested to see if the rest of you think that my concept of risk is all awry.

Share this post


Link to post
Share on other sites
Just a quick thought...how many people on the board would, when the Great Crash 2 is over and forgotten about, and bulls are on the march, would go into BTL in a rising market? Just interested given the sentiment most people give the board, and the knowledge they all purport to have.

Now that really depends on whether there are better performing asset-classes at the time.Don't for one minute think that once the towel is thrown by current BTL we'll all jump in and hoover up everything.This is not true.

once property has collapsed in it's totality,it tends to have 3 or 4 years of doing NOTHING(adjust this for inflation and you still lose money),before resuming an upward trajectory...this means there will STILL be better opportunities elsewhere.

if you buy then as a place to live,fine....you'll have a comfortable existence.....if you buy as an investment in said period,you're in for a long wait.

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.

  • 351 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.