Saturday, December 2, 2006

Go for BTL

Long-term buy-to-let 'in good health'

The Royal Institution of Chartered Surveyors said recently that the climate of rising interest rates has "painted the buy-to-let market as a less favourable investment". Nevertheless, the organisation did claim that investors had a "high level of confidence" in the long term buy-to-let market because of the low levels of selling activity.Nigel Terrington, CEO of Paragon mortgage lenders, said: "We have seen steady activity on the part of property investors, who are growing their portfolios in response to additional demand from foreign migrants, young professionals, families and students." He added that despite the rate rises this has been good news for the buy-to-let market: "With this solid demand, rental yields have remained steady over the past six months at six per cent despite house price increases." He does not expect interest rates to rise any further.

Posted by little professor @ 08:09 AM (2955 views)
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5 thoughts on “Go for BTL

  • He doesn’t expect rates to rise further? Shame many currency speculators do, hence the rise in sterling of late… wonder who’s going to be right?

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  • “He does not expect interest rates to rise any further”.Really,based on what? Economic analysis or his spin machine.

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  • You have to ask yourself, under what circumstances would you expect them to say anything else?

    Same goes for next years price predictions. The only time either a mortgage lender or a property website would predict a fall is if it’d already happened. Pointless.

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  • He does not expect interest rates to rise any further

    Then he is wrong (and representative of the BTL market as a whole in that regard) ‘baked in’ inflation doesn’t just go away over night, and no matter how high they push stirling, rates will still HAVE TO rise, or the BOE will be shown up (for what it is) They cannot, and will not, allow this to happen (in my opinion!)

    No way will they risk an inquisition into the central bank ‘independance’ of the ‘new world order’. Many already feel that the BOE seems to work more for the interests of the USA, than that of the UK, and, so it seems to turn out, do all the other Nations ‘independant’ banks too.

    I think the BOE is ‘independant’ in about the same way as the IMF is ‘independant’.

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  • Ticktock you may be correct if for one point. We are not “baked” in inflation as you put it. CPI which the measure used upon which to change interest rates is only 2.5% . This is very respectable. Out here in new zealand inflation is approx 5% per annum and their rates are at 7.75% at the moment and they have a stagnant economy. Still no signs of a house price crash out here either which adds to my belief it won’t happen in the UK.

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