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The Middle-class 'property Tycoons' Now Burned By Buy-to-let

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Tomorrow: "There's never been a worse time to buy."

Then the day after that: "There is a lack of demand."

Then the day after that: "Property only ever goes down."

Then the day after that: "Interest rates are high."

Then the day after that: "The fundamentals are weak."

etc.

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ATomorrow: "There's never been a worse time to buy."

B Then the day after that: "There is a lack of demand."

C Then the day after that: "Property only ever goes down."

DThen the day after that: "Interest rates are high."

E Then the day after that: "The fundamentals are weak."

etc.

iam going to go with C bob.

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Some choice quotes:

"Alan Ward, of the Residential Landlords Association (RLA), adds, sardonically: "Some buyers would have been better off investing in Northern Rock.""

"If you're charging £700 a month rent for a flat in town, that's not going to cover your £8,500 mortgage each year. There's no capital gain and no income."

:o

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Some choice quotes:

"Alan Ward, of the Residential Landlords Association (RLA), adds, sardonically: "Some buyers would have been better off investing in Northern Rock.""

"If you're charging £700 a month rent for a flat in town, that's not going to cover your £8,500 mortgage each year. There's no capital gain and no income."

:o

..and £700 a month rent for a "flat in town" might soon be seen as slightly optimistic

:huh:

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In fact, for the first time, the number of UK mortgages on buy-to-let properties has just risen above the one million mark. Ten years ago, there were only 29,000.

its clear to see exacty whats happened to ftbs properties.

before then, england was such a relaxing, enjoyable place to be.

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This article got me thinking (yeah I know, a daily mail article did that?!?!?!?)...

Does anyone think we'll ever see the day where new build blocks of flats may ever got knocked down in a post boom era?

My wondering is based on the idea that probably a lot of these flats are highly surplus to need as they were essentially built FOR investors who went t*ts up 'cos no-one would rent them nevermind buy them. Also, I'd "like" to see a lot of this crap knocked down and proper "houses" built which I then might want to buy.

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This article got me thinking (yeah I know, a daily mail article did that?!?!?!?)...

Does anyone think we'll ever see the day where new build blocks of flats may ever got knocked down in a post boom era?

My wondering is based on the idea that probably a lot of these flats are highly surplus to need as they were essentially built FOR investors who went t*ts up 'cos no-one would rent them nevermind buy them. Also, I'd "like" to see a lot of this crap knocked down and proper "houses" built which I then might want to buy.

I agree. They were built for speculators and now thats drying up they are trying to offload to Housing Associations. However HA's are not immune to the credit crunch and from what I can gather many of these developments don't meet their minumum requirements, in terms of energy efficiency etc..

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The trouble is that many of these people invested from their armchairs, without due diligence. I have spoken to a lot of people who have bought properties in city centres without ever having seen it.

They have not seen the properties they bought but no doubt they will soon see the repossession orders :lol:

Edited by It is different this time

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meow - I think it is a certainty that unfinished building projects will litter the town centres, along with derelict "executive apartment" blocks. I was in Bangkok a couple of years ago and saw all the high-rise tower blocks there. Something looked a bit wrong though... it wasn't until I noticed that there were no cranes or builders that I asked a few questions and soon found out that they were all half-finished, abandoned projects that ran out of money in the late 90's. Here's a website with more details: http://www.geocities.com/topsyturvy_6051/unco03.html

Very, very sad. And I think we will go the same way. :(

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Typical are Dean Jones, 33, a sales executive, and his wife, Amanda, who invested in their first buy-to-let property in Leeds in November 2006.

The mortgage loan rate was then 4.79 per cent. They have since bought two more houses at 5.69 per cent. But already the loans were becoming unaffordable.

"The lending criteria and high fees have made it difficult to refinance," says Mr Jones.

^ Damn I used to work with this guy, it's sad to see he got sucked into the madness too, it's people like him who got on the bandwagon late who will most likely end up bankrupted..

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meow - I think it is a certainty that unfinished building projects will litter the town centres, along with derelict "executive apartment" blocks. I was in Bangkok a couple of years ago and saw all the high-rise tower blocks there. Something looked a bit wrong though... it wasn't until I noticed that there were no cranes or builders that I asked a few questions and soon found out that they were all half-finished, abandoned projects that ran out of money in the late 90's. Here's a website with more details: http://www.geocities.com/topsyturvy_6051/unco03.html

Very, very sad. And I think we will go the same way. :(

I got the train from Paddington to Swindon on Monday. Adjacent to the rail line / Westway I noticed one after another, half completed office / apartment complexes where all work had appeared to have ceased.

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This article got me thinking (yeah I know, a daily mail article did that?!?!?!?)...

Does anyone think we'll ever see the day where new build blocks of flats may ever got knocked down in a post boom era?

My wondering is based on the idea that probably a lot of these flats are highly surplus to need as they were essentially built FOR investors who went t*ts up 'cos no-one would rent them nevermind buy them. Also, I'd "like" to see a lot of this crap knocked down and proper "houses" built which I then might want to buy.

Those blocks that are really in city centers (i.e. 5 min walk to work/shops) may well be ok, after a cycle of reposession/realistic pricing.

Those blocks that are in dodgy areas 15+ minutes walk away may well end up going into a cycle of vacancy/squatting/more vacancy and reposession/no sane person would pay to live there/demolition.

They have not seen the properties they bought but no doubt they will soon see the repossession orders

And you can be sure that many people who got into BTL realised that the lenders could pursue them for any losses. It's not like the US where they just get the flat reposessed, the baliffs will be knocking at their home..

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I agree. They were built for speculators and now thats drying up they are trying to offload to Housing Associations. However HA's are not immune to the credit crunch and from what I can gather many of these developments don't meet their minumum requirements, in terms of energy efficiency etc..

Interesting. I always had a vague suspicion that the BTL end-game would be that the local councils would buy up the new-build luxury executive BTL flats cheaply and use them as replacements for all the council housing that's vanished into the private market. However, if the standard of building isn't even good enough for that to happen then things could be worse than I expected. Instead of the BTL enthusiasts getting some of their cash back from the council, they might find themselves left with an uninhabitable flat that no-one wants to buy, but which nonetheless has a big mortgage attached to it. Nasty,

Edit: My other theory was that BTL blocks might end up as modern-day debtors' prisons. That's probably a bit over the top, but I still haven't lost hope.

Edited by Scunnered

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Interesting. I always had a vague suspicion that the BTL end-game would be that the local councils would buy up the new-build luxury executive BTL flats cheaply and use them as replacements for all the council housing that's vanished into the private market. However, if the standard of building isn't even good enough for that to happen then things could be worse than I expected. Instead of the BTL enthusiasts getting some of their cash back from the council, they might find themselves left with an uninhabitable flat that no-one wants to buy, but which nonetheless has a big mortgage attached to it. Nasty,

Thats right. the BTL investors and their financiers will be burn't. The city centre flats need to go through a cycle of repossession. Thats started to happen now.

The public sector mayl then get involved with these developments indirectly via private landlords and housing benefit. There is a potentially a big opportunity brewing here but its a few years away and you'll need cash.

Though I think there is still going to be an issue with massive oversupply. In many towns and Cities, the Councils have been demolishing their high rises.

Bad news for those that bought into these places to actually live in, and for the "lifestyle." Might as well hand in the keys today.

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"Alan Ward, of the Residential Landlords Association (RLA), adds, sardonically: "Some buyers would have been better off investing in Northern Rock.""

So true. Few people borrow to buy shares, so few end up in negative equity.

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My other theory was that BTL blocks might end up as modern-day debtors' prisons. That's probably a bit over the top, but I still haven't lost hope.

How about retirement flats?

After all, most of the mugs who bought them were just looking for a little security in their old age... ;)

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Interesting. I always had a vague suspicion that the BTL end-game would be that the local councils would buy up the new-build luxury executive BTL flats cheaply and use them as replacements for all the council housing that's vanished into the private market. However, if the standard of building isn't even good enough for that to happen then things could be worse than I expected. Instead of the BTL enthusiasts getting some of their cash back from the council, they might find themselves left with an uninhabitable flat that no-one wants to buy, but which nonetheless has a big mortgage attached to it. Nasty,

Edit: My other theory was that BTL blocks might end up as modern-day debtors' prisons. That's probably a bit over the top, but I still haven't lost hope.

These newly built blocks must have complied with current building regs. or else they wouldn't have got approval.

When you say "the standard of building isn't even good enough....." what do you mean? If you, I or anyone else builds a new house or block of flats there are standards for room and flat size, sound insulation etc that have to be met. I can't see how council's requirements for their own tenants are higher than for anyone else.

If the problem is that many of these "city centre apartments" are only 1 or 2 bed - if a social landlord bought lots of them in the same block - they could surely just knock two together to create more family-sized units.

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Yep, this HPC is going to bring down a lot of the middle classes who thought they were immune. My missus said to me last night (after I said I expect we'll be able to buy a house that's on sale now for £1m for £400k in a few years) that she couldn't see how middle class people would lose their homes - they earn loads of money and all drive big expensive cars so must be well off (bless her - she's been very patient and put up with not moving despite the house being a squeeze now we have kids). One response was the finance sector collapse would lead to redundancies in the south east and loss of homes anyway; the other was that a lot of middle class people had invested in BTL and used MEW to buy more properties, without realising that if the music stops they not only will lose the BTLs but also their own homes. The net loss of a middle class repossession will be way, way more than anyone else -these people have been taking out half a million pound mortgages for god's sake - It's not gonna be pretty.

Edited by mikthe20

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In fact, for the first time, the number of UK mortgages on buy-to-let properties has just risen above the one million mark. Ten years ago, there were only 29,000.

its clear to see exacty whats happened to ftbs properties.

before then, england was such a relaxing, enjoyable place to be.

Yup -- it's well and truly been f*cked over -- thanks to the Moneylenders - who LOBBIED hard for the BTL Mortgages to be kosher.... and they then proceeded to pump up the biggest bubble/pyramid selling scam ever known.....

F*CK'EM -- I hope they fry in hell...... Sorry -- but they deserve to suffer the consequences -- In the old days they were called SPIVS.....

Edited by eric pebble

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  • 293 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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