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I Am A Btl Landlord And I Want A Huge Crash


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prices will come down if rates rise but affordability will not so you will not have more buyers.

Depends how much they come down. As anyone knows its always better to buy low even with higher interest rates

than to buy high with lower rates.

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good luck with it. Just remember in 33 years, when you are STILL subsidizing your 'tennants' and the 'value' of your 'portfolio' is STILL less than the outstanding loans, there were many people who TOLD YOU SO.

What makes you think I'm subsidizing any of my tennants? Simply I'm not

Although the value of my portfolio is less than the amount of loan currently on it.

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Err no, look at the posts again and you'll see people clearly stating that RENTS are cheaper than mortgages. The supply of RENTAL accommodation has indeed kept prices down, if not decreased it. I think people on this site who think house prices can rise forever non-stop seem to forget that supply and demand works in the rental sector, not just in home ownership sector.

I agree with you. Once many landlords go bust people living in there properties will need to find some where quick. Thats where I come in with my slightly increased rent :)

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When the crash comes I know the paper value of my portfolio will go down, But the paper value only matters when I decide to sell something. I don't plan on selling anything for the next 33 years.

When the crash comes and other BTL landlords are repoed there tanents will need somewhere else to live. This should hopefully mean fewer and smaller void periods. Plus if there is less competition in the letting market I can push up my rents. Something that is difficult to do with the current Let market because of the competition from other Landlords.

Something many people on this website seem to forget is that BTL has actually decreased rents. Once the competition has gone I think we will be left with one or two land lords holding much larger property portfolios in certain areas. These landlords will then be able to dictate rents for that area.

Then once I think the market has hit bottom I should be able to come in and greatly increase the size of my property portfolio at a rock bottom price.

Can anyone see any problems with my plan?

Yes because BTL landlords with half a brain sold out last year and now have plenty of cash to outbid you !

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Yes because BTL landlords with half a brain sold out last year and now have plenty of cash to outbid you !

Not in my area I know most of the big land lords are getting ready to do the same. We all seem to be waiting for the crash!! I just hope one of them doesn't move to early

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What makes you think I'm subsidizing any of my tennants? Simply I'm not

Although the value of my portfolio is less than the amount of loan currently on it.

Sorry, I don't understand. The value of your portfolio is less than the loan secured on it? How is this possible, and if it is true, how are your rents covering your costs?

I agree with the main points of your post. The difficulty is when interest rates are high and defaults/repos are common, the banks won't lend money to anyone. I remember when RBS would only let landlords purchase a maximum of 2 BTLs, at 3% over base rate...I don't remeber many people hoovering up during the early nineties when HPs were at a low. Nobody wanted to look at property, the banks wouldn't lend as they feared further price drops, and those among the public who could get loans had the same worries.

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unless you have a large amount of savings (which is a only a tiny minority of the UK ? they are all on this site).

This is one of my fave HPC doctrines. The whole of the UK is insanely in debt. Yet not FTBs, oh no they have big piles of cash stashed away! Funny isnt it. Thanks for posting nohpc I agree with many of your points in this thread. As you point out, any pro investing argument is discounted as "rubbish" whether this is the case or not. Im not pro HPI, but I am pro reality and realise that simply saying that something is not true on this site wont actually make it so.

And my other fave is the ol' these things area always cyclical doctrine. Well if you belive that then there must be another bigger boom on the way, so even if you buy at the top now, just sell at the next top. You'll be fine. Infact my pop did just that and ended up with a couple a 100k in the bank - damn his stupidity! Sure he could have made more, then couldnt we all if we could predict the future...

You cannot get any positive responses. Did you logon onto this site thinking it was called letsrampuphouseprices.co.uk?

I think the guy is just dealing in reality. I dont see why holding a counter view to the established HPC doctrines instantly means one is trying to "ramp prices". Sometimes being a member of this site seems to mean you have to believe every bearish bit of news whether it holds any truth or no. Surely you cant agree that that is healthy?

You seem to like oxymorons: There may be a crash but their most likely won't. Which is it?

If I "roll a die", I might "get a six", but most likely I wont. Geeeesh - its not rocket science!

And I agree with the point, Im not foolish enough to say a crash is impossible, and I have planned my own finances to account for such a situation. But I dont see it happening in the near future. Thankfully I'll be fine either way, and good luck to anyone who bets on a crash, you may well come out better than I. But if the massive drops dont show up...

Edited by Orbital
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What makes you think I'm subsidizing any of my tennants? Simply I'm not

Although the value of my portfolio is less than the amount of loan currently on it.

You sound like the amateur btl'er that the bears keep talking about. I didnt' know they really existed.

Have you tried to impress all your peers and bought yourself a nice sports car....or two? Otherwise how can you not have significant equity given that hp's have risen shedloads in London.

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I am not an expert on Buy to let investments, but it seems that if you have to subsidise any investment just to break even, then it is NOT worth the contract and a poor investment. Looking 33 years into the future for a pay off on your portfolio seems risky.

It would seem a more prudent plan, to sell your entire portfolio as others have claimed they have and realise the cash. Put that cash into a high interest savings account for the next 33 years and you will achieve a much higher return by far.

Interest rates have risen lately and by all accounts will increase further only increasing any potential interest to be compounded on your initial investment.

Rich people dont buy property, they inherit. They also make huge sums of money from compound interest on their huge savings. It may prove to be a much more prudent step.

Good luck either way.

Edited by iluminati
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