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Buy-to-let: Investors Selling Up As Rate Rises Hit Home

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http://money.independent.co.uk/property/mo...icle2607315.ece

Buy-To-Let: Investors selling up as rate rises hit home

Published: 03 June 2007

Four Bank of England base rate rises in nine months, combined with falling rental returns, have prompted a rise in the number of investors selling buy-to-let properties, it emerged last week.

Figures from the Royal Institution of Chartered Surveyors (Rics) revealed that between January and March this year the percentage of landlords offloading properties had jumped by more than a percentage point to 5.2 per cent - its highest level in two years.

"Rising borrowing costs and a subsequent drop in yields have contributed to a worrying time for landlords," said Jeremy Leaf, the Rics spokesman.

But a robust economy and housing market should, he added, ensure "a soft landing for many".

The article confirms the fact that "The rats leave the sinking ship first" but I guess it already is too late for too many. However good to see that it is different this time and we'll have a soft landing instead of crash :lol:

Soft landing of 300% HPI? what a wishful thinking!

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http://money.independent.co.uk/property/mo...icle2607315.ece

The article confirms the fact that "The rats leave the sinking ship first" but I guess it already is too late for too many. However good to see that it is different this time and we'll have a soft landing instead of crash :lol:

Soft landing of 300% HPI? what a wishful thinking!

Multiple property owenership is also why I think it will be different this time. You make every sacrifice to hold onto your home, but you flog an investment off if you think it's going to fall. Could BTLs actually be turning the property market into a real market with crashes instead of slowdowns?

I'm shifting my investments around as I can't see the economies of the major HPC victims (primarily us!) doing anything other than going into recession. The land of the rising sun here I come.

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Who do they hope to offload these houses onto at these over inflated prices?

Dear oh dear, they haven't thought this through at all, have they.

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Multiple property owenership is also why I think it will be different this time. You make every sacrifice to hold onto your home, but you flog an investment off if you think it's going to fall.

Yeah that's what a professional investor would do but in today's market greedy amateurs usually wait too long or get forced to sell up before repossession.

Remember Sayara from BBC debt diary? this is what she said on 26th May 06 read here

I considered selling my buy-to-let properties, but they are mortgaged up to the hilt and doing the sums I found I would lose money rather than make it.

and this is what happened on 3rd August 06 read here

I have decided to put my buy-to-let property on the market. I realise now after several months of trying to negotiate with my creditors, and with the birth of my child due, I need to take drastic action.

I had hoped that the property would be my pension but it looks like I will be back to square one.

This is why it is different this time there are too many muppets speculating on property market without a "Plan B". BTL is a business as any many will learn what happens next when the business goes bust.

I'm shifting my investments around as I can't see the economies of the major HPC victims (primarily us!) doing anything other than going into recession. The land of the rising sun here I come

As you are shifting your investment around try Spanish property market and the sun always rises over there :P

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There's certainly seems to be a rush to the exits by landlords in my area (and a few owner occupiers).

About 90% of flats for sale are free of onward chain (not counting new builds that are new to the market), as are about 15-20% of houses for sale. These include several large terraced houses circa £300K that look to me like they're currently owner occupied.

I'd say that the number of properties for sale has nearly doubled in 6 weeks.

I reckon it's going to be difficult for anyone who's not chain free to sell without a significant price reduction unless their property stands out in some way.

Edited by bugged bunny

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There's certainly seems to be a rush to the exits by landlords in my area (and a few owner occupiers).

About 90% of flats for sale are free of onward chain (not counting new builds that are new to the market), as are about 15-20% of houses for sale. These include several large terraced houses circa £300K that look to me like they're currently owner occupied.

I'd say that the number of properties for sale has nearly doubled in 6 weeks.

I reckon it's going to be difficult for anyone who's not chain free to sell without a significant price reduction unless their property stands out in some way.

well wife come free with house lol :lol:

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