Thursday, March 8, 2007

Buy to let players are…(cough)…in it for the ‘long term’

Buy to let landlords prepared to ride out the storms

Despite interest rates rising drastically over the last six months and rental yields evaporating, record levels of established landlords are apparently looking to expand their 'portfolio' as they remain committed to buy to let as a 'long term investment'...

Posted by converted lurker @ 12:56 AM (458 views)
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6 thoughts on “Buy to let players are…(cough)…in it for the ‘long term’

  • More like, buy to let players are coffin-it for the ‘long term’.

    Verb: coffin-it

    Meaning: To add risky BTL properties to one’s investment portfolio.

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  • Carrying out a survey of whether buy to let is a sound investment at the Homebuyer Show is like carrying out a survey as to whether drinking to excess is a good idea in your local boozer at closing time.

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  • I reckon most probably are in it for the long-term. Virtually all BTL landlord I know are in it for the long-term.
    Whatever their reason if they have to start subsidising their tenants by greater amounts to cover their mortgage costs whilst forking out more for their own mortgages then cracks will appear. There is no scope for rent increases. Ironic really that property prices have increased rapidly over the last 5 years but rents have most probably not even risen with inflation. Smell like a recipe for disaster and a bad business investment too.

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  • dohousescrashinthewoods says:

    Definitely – trouble starts when BTL landlords suddenly no longer have the “choice”. They may “choose” to expand today, but there will be no “choice” about it if they are facing bonkruptcy.

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  • Landlords are viewing BTL through rose tinted glasses. In the best case, If measures of affordability stay as stretched as they are, they can only expect house prices to rise in line with earnings. What sort of investment for the long term is that? You’d be better off putting your money in a savings account.

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  • Hunthunthunt says:

    I confer, rents in London have remained stagnant and in some instances are falling. When I moved to London 4 years ago I was looking to rent in the inner east (Bethnal Green, Spitlefields, Whitechapel) area. I could not find anything reasonable for my budget of 260pw and ended up living in Clapham.

    I have just moved in to an apartment in Spitlefields for 230pw. When looking for a place a few months ago, I saw the exact same apartments with the same agent for the exact same price. Taking inflation in to account – rental prices have dropped substantially.

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