Tuesday, April 3, 2007

Catch a falling knife

Buy to let - a death by a thousand cuts

BTL investors will cause a stampede as they exit the market if average house prices begin to fall and interest rates increase. However, other than cash rich investors wanting to bag bargains from distressed sellers, selling quickly may not be that simple or straightforward. Having rode the wave of increasing house prices BTL investors may suddenly find just how detatched from reality prices have become, prices that they have indirectly caused to swell by their activity, activity that many may begin to regret if they discover they're holding investments that begin to turn sour rather than reaping short term rewards.

Posted by converted lurker @ 04:42 PM (496 views)
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3 thoughts on “Catch a falling knife

  • Mr Plumbase says:

    Few people will be aware of this kind of stuff, the mainstream media will not want to spook anyone, well not just yet.

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  • The Capitalist says:

    Spot on. It’s human nature to be impatient for reward and also to follow the herd…BTLs are no differant. Let landlords revert to type – Rigsby types…and put your money in to actual wealth creation (shares). Spread your risk and reap the rewards over the long term. The stockmarket outperforms property over the long term! Buy mining stocks, food, technology (yes I know dot com blah blah – but it aint going away).

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  • japanese uncle says:

    It seems the long-awaited HPC is on its way after all. From now the HPC should focus on how to stablize the property market at low price level, rather than expecting a surge yet again. This will lead to stabilized society in which key workers and lower middle class people can live in reasonabe comfort. Enlightenment is the key so that we will not fall a prey to those predatory skunks who feed on the misery of the millions. People like Sayara Beg should address to the wider audience, to let them know of the futility of buy-to-let enterprise, let alone the danger of ill-planned house purchase, including financial overstretching. (In reality she will probably do it again when the pain is gone, though.)

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