Thursday, July 19, 2007

Landlord, sh*t is about to hit the fan… (2)

Mortgage lenders call for interest rate freeze

... and a prompt call of (in)action to the MPC: "The CML urges the Bank of England to wait before acting again on rates despite record £34.2bn June lending figure. The CML said that much of June’s record was driven by remortgaging rather than new home loans. Only two days ago, the CML said house prices could rise by the smallest amount for more than a decade in 2008. House price growth is running at 10 per cent, but the CML expects this rate to halve by the end of the year." last sentence mean "no real price inflation ahead" caveat landlords!!

Posted by confused76 @ 12:59 PM (671 views)
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19 thoughts on “Landlord, sh*t is about to hit the fan… (2)

  • Shouldn’t they co-ordinate these pitiful appeals with their biggest member the Halifax who today revised their HPI figures upwards!?

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  • planning4acrash says:

    And I just saw on the evening standard that the government is planning to bring in new legislation to stop the proliferation of for sale signs that litter our streets! Talk about pre-emptive action!

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  • fahrenheit451 says:

    Don’t really expect the BoE to take much notice of the CML. Its inflation that will worry them much more, and that is going up … up…. up. Therefore it’s inevitable that another rise is on its way. The only question is how many more 0.25% rises will there be before Xmas and the always hoped for spending spree in the High Street shops.

    I’ll bet on a 6.25% base rate by Xmas,
    and a cool 6.5% asap in the new year.

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  • @TLLA – Good to see you trolling over here..

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  • Landlord,

    You buy your property with wafre thin walls in a ghetto of other properties, at overinflated ‘market price’ less 20%. This is the actual truth and why in some auction post code areas repossessions of BTL new builds are 80%. Is this landlords buying these? I don’t think so. 50% of all repossessions at the moment are BTL’s by the way.

    Wait until IR’s get even higher!!!

    6.5% by xmas and 7.5% by this time next year (possibly , or possibly up to 8%). 2 million borrowers some of which are BTL’rs are also coming out of their 4% BTL mortgages in the next few months. These will go up to 7-8. What do you think your crummy newbuild wil be worth then? .

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  • landlordassociation.

    I don’t think george was referrring to you specifically

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  • george monsoon says:

    very good LLA.

    Pass on my regards to your priced out tennants..

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  • I can assure you all that the setting of interest rates is nothing to do with the UK economy or inflation but is simply to control house prices.

    I also have it on the authority of an “expert” that the government may cut rates to help first time buyers.

    Excuse while my sides split.

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  • sold 2 rent 1 says:

    “The CML said that much of June’s record was driven by remortgaging rather than new home loans. ”

    The cushion of equity is gradually being reduced by MEWing.
    The 60 year debt expansion is nearing its peak.

    Landload A,
    By 2012 all these 2-bed flats that you have bought will be worth 50% less in real terms.
    Ever read Fred Harrison’s book – Boom and Bust, House prices, Banking and the Depression of 2010.

    It takes a brave person to bet against 200-300 years of history.
    There is an HPC every 17-18 years (approx).
    A stocks collapse (secular bear) every 35 years (approx)
    A debt bubble collapse every 70-85 years.

    With the debt bubble almost twice what is was in 1929 we are in for a major depression by 2010.

    You only follow short term indicators and not long term trends – big mistake – huge.

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  • The troubles in the financial system are only just beginning, the step change in interest rates (ref Orwell) for borrowers coming out of their fiixed rate deals is just the first wave of the tsunami. No amount of squealing, kicking and screaming (what we are currently and very predictably witnessing) will prevent the inevitable sharp correction in asset prices. If so many x thousand people are bankrupted, repossessed, have their BTL portfolios destroyed etc then that is what will happen. The unlucky few that have strayed to the egdes will be the victims but unfortunately when the chips are down, the world’s central banks priorities will be to safeguard the value of the currencies. In short TOUGH S*IT, don’t be so greedy next time round.

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  • I have very interesting news to report from the field.

    I’ve just come back from a property auction in London and 7 of the lots for sale where from the same 1 year old house build.

    I’ve just checked in the findaproperty and lo and behold even further units are available for resale.

    You will be interested to hear that even at a 30% discount only 1 of the units at auction sold.

    To me it looks like these where BTL investments that have gone wrong!

    Jim

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  • LLA, as a successful property speculator (sorry, investor), you must be a very wealthy individual. Which is nice. What I don’t understand is why you are wasting your time with a bunch of loosers who can’t even afford a home of their own? I mean, surely you should be lying beside a pool somewhere sipping pinacoladas. You have absolutely no need to argue here, because (as you imply in your posts) property is a one-way bet and in ten years’ time each of your one-bed flats that you bought off plan will be worth a cool million. So leave this bunch of sad individuals to discuss their ‘fundamentals’ when you know better…

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  • Disillusioned says:

    I’m sure LA’s not at all worried. Oh no! If he was, he’d be keeping his eye on websites prophesising the imminent crash of the market… oh… he is?… hmmm

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  • tyrellcorporation says:

    LA aren’t you tempted, even slightly, to sell up and retire – risk free!?!

    I mean do you honestly believe that the boom will roll on ad infinitum? We get the PR from you (which is admirable) but, I guess you’re not stupid so why not just sell and go and do a proper job or buy a yacht and sip Pimms til you snuff it?

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  • LLA. — And (I REPEAT AGAIN) I buy my property off plan at 20% discount!!! —

    It is regrettable that some bloggers have lowered the credibility of this site by responding to your postings with offensive comments. We have witnessed a slanging match over the last few days which, IMHO has done the site a disservice. You won’t get any rude comments from me therefore.

    However, I would like to take you up on your statement above which mirrors the sentiment I encounter on a daily basis. The assumption that you are getting 20% off is quite a risky one as it is my experience developers generally sell their property for the best price they can get. Any discounts, incentives, cashbacks, guaranteed rentals, stamp duty paid, mortgage paid for 12 months, free extras etc should all be viewed with suspicion.

    Sure, you may get a few punters paying the silly asking price, but I have witnessed it time and time again where the speculators have created their own market on an off plan development. You may have seen my blog the other day where I referred to a block of flats in my area. The majority of units were bought off plan by speculators at a ‘discount’ . Now that the building is complete, the developer still hasn’t managed to sell them all, and the asking price has now reduced by 10% (although the developer has accepted lower offers). I am aware of several other similar examples on other developments in this part of North Wales.

    You may, of course, be confident that you ‘know your market’, but when I see estate agents and financial advisers (who should know better) speculating on these developments and catching a cold, it underlines the fact that the ‘true’ value is very difficult to assess in this crazy hyped up market.

    I have stashed my hard earned money into alternative investments, probably because I am ‘risk averse’, but we pays our money and we takes our choice.

    Good luck to you.

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  • Cstanhope707 says:

    LLA

    I do not care just don’t expect the TaxPayer to bail you out if it all goes South. Rember you invested in Property, You Made the Decision you are NOT a victim, rember that and I have no hassles….

    My issue is with those who buy in to this game who know all too well they will struggle to cover the mortgage and insurance then come crying to the Government that they were all victims and need to be helped…….

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  • I like this bit ‘much of June’s record was driven by remortgaging rather than new home loans’ which sounds to me like skint folks remortgaging ASAP at a fixed before interest rates go up and the value of their houses goes down to pay off other debt. Anyone checked out the new car sales figures lately to confirm that the money is not being spent on tin.

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  • Lifes2short4shit says:

    WOW I can’t believe the idiots on this site cheering at interest rate rises.

    Interest rates go up when times are bad and bad times mean job loses.
    House prices may crash but when they do I hope those cheering the loudest are the first to loose their jobs because that’s what WILL happen.

    When you then have to take a job at minimum wage you will then find you can’t afford a place even after a crash of even the most epic proportions (which isn’t going to happen more like a 30% drop).

    I for 1 will laugh my ass off at you sad gits when it happens.

    The something for nothing mentality in this country obviously isn’t just among the youngsters it is bread in them from many of the older bitter and twisted generation.

    Get out there and work your butts off just like the Polish do and you will be able to afford somewhere without wishing for shit to happen.

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  • Ihopeitgoeswithabang says:

    tyrellcorporation :
    ..LA…. Pimms LOL!
    Probably because he doesnt want to take a hit on tax on the short term gains he has made.
    The promise of less tax to pay over time and potentially bigger profits when a 1 bed flat costs £500k means that he cannot bring himself to sell.
    Hopefully GB will get rid of the tax break – after all its only a tax on profit so who cares anyway!???
    Then prices will fall and they will.
    Then I will of course feel very badly for BTL landlords who ‘claim’ to be saving us all from having nowhere to live….

    CML – Council of Mortgage Lies
    Whatever they want to tell anyone to sell a mortgage – they will. Nice. Sod the rest of the economy or long term issues. Just get those monthly figures in!!!! or I wont get my bonus attitude!

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