Tuesday, April 3, 2007

Is BTL a good investment?

Buy to let in good shape but red tape is determined to spoil the party

"...a series of incursions into the 'fairy-tale' environment most newbie landlords have existed in for the last 3-4 years - property went up in value on a daily basis, rents were increased ad-hoc, you paid off the mortgage and set yourself a target to be wealthy beyond 'your wildest dreams' before normal retirement age. This rarified atmosphere is quickly being polluted by so much red tape, such as multiple occupancy regulations, that you could forgive recent BTL players for simply giving it up"

Posted by confused76 @ 01:38 PM (476 views)
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11 thoughts on “Is BTL a good investment?

  • The phrase ‘in it for the long term’ makes me laugh. With affordability stretched, at best we’re going to see growth in line with earnings. Realistically, we’ll have a crash. Now if those who are ‘in it for the long term’ are advocating holding onto assets while prices are falling, hoping that they’ll be worth more in 10 years time, rather than selling at the top of the market, then they’re they shouldn’t call themselves investors at all…

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  • Interesting to see that a website like this carries a story which distances itself for fly-by-night Buy-to-Letters.

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  • converted lurker says:

    Yes it is “interesting” Royston, particularly as they simply nicked it from editor’s blog on the Firstrung site =;¬)

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  • Landlord Expert says:

    Guys, it seems you are all incredibly ignorant – I am editor of the website that ‘simply nicked’ this news story from firstrung as converted lurker kindly pointed out. It seems the dumb are leading the dumb here.

    FYI – We publish news relating from the world of buy to let – we use news from all respected sources including the brilliant and well used Firstrung website. Please understand that our news covers the whole spectrum of this market from many hundreds of news feeds.

    Just thought i’d clear that up as it seems a hate campaign was building in a confusingly aggresive manner – do you guys feel the need to comment on everything and anything in forums up and down the country? What kind of people do that? Opinionated and sour opinionists it seems.

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  • Could somebody explain what that rant was all about???

    dumb are leading the dumb, hate campaign, confusingly aggressive, sour opinionists…

    Looking at the posts, I can’t see anything of the sort.

    The phrase confusingly aggressive seems somewhat hypocritical.

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  • Landlord Expert…I think Royston was actual surprised your site posted an article that has something negative to say about (at least some aspects of) buy to let, given that yours is a landlord site. We’re not used to sites being balanced; they’re usually all heavily biased in favour of their point of view (maybe even housepricecrash??*) and will distort every fact or piece of news to fit, or just ignore the bits that they can’t “spin” altogether. So I think you were actually getting a compliment there.

    To be fair to you, also, the “we at firstrung” comment is left in the article and firstrung is named as the source at the bottom of the page. Having said that, firstrung themselves will usually make it very clear, at the start of any article, who it is that has produced the quote/press release/statement being reported, usually in the title, which I think is something you should consider doing in future to avoid any confusion.

    I’m sure we’re all sorry you felt so put out, but I don’t think two postings, one giving you a compliment and one with a smiley face at the end, quite constitutes a hate campaign, does it? Hope you’ve calmed down a bit now.

    *but then there are plenty of people who post to housepricecrash that don’t believe one will happen, so there is some balance.

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  • Incidentally Landlord Expert, have you checked out the title of this site, ‘Housepricecrash’? It’s a forum for people to discuss that very subject. There a plenty enough sites dedicated to talking up the housing market, so I suggest you check out those, rather than try to vet the posts on here and insult the posters.

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  • Landlord Expert says:

    Guys, it seems I may have hit a nerve….

    I’m sorry if I took it the wrong way but felt I should explain my standpoint.

    Davros – you are right, this is a forum and I should expect nothing less. You seem educated in this field and I mean no harm with my comments but to simply defend my position. Incidentally, you guys seem worried about houseprices as you are on this website of course. Let me tell you (if you hold any respect for my opinions on the matter) that house prices will not be declining for the foreseeable future and should not be a daily topic of worry for you. If anything, it will have it’s effect on a monthly basis rather than a daily one.

    I know this because I am a landlord of a considerable portfolio and many many years. This of course does not make me an expert or a difinitive voice but I do work for an association of landlords some 15,000 strong and feel my predictions on such matters are founded.

    Best regards,
    Landlord Expert

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  • You’re right, people are focused far too much on daily headlines, however there are an awful lot of housing ‘news’ headlines published daily to comment on.

    I agree with you, that for the foreseeable future houseprices won’t see major declines, however give it 18 months and I’d be more than surprised if houseprices arn’t lower than they are today. In these market conditions, I’d be very interested to see how your member react.

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  • Landlord Expert says:

    Davros – I think your prediction may be unfortnuately accurate. I don’t think house prices can keep pushing the ceiling up further, especially as earnings have not increased on the same steep curve.

    I think The Landlord Association members will have to make some challenging decisions. What do you think you will do as an investor over the next 12 months? Addiitonal investments or sell-off or hold? If hold, how long for?

    Look forward to your feedback.

    Regards

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  • If anyone has made decent money over recent years, people should cash it in and put it in a safe haven. It’s all very well holding on in the hope of a bit more, but you can get 6% in a savings account these days. The stock markets look set for a fall and it’s no good trying to get out at the same time as everyone else.

    That’s my take on it anyway. Only time will tell.

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