Saturday, August 25, 2007

Buy To Let Fever Continues as more Punters Plough Funds In

Rate rises fail to halt UK buy-to-let rush

So called Investors are continuing to plough money into the buy-to-let market, despite fears that rising interest rates have made the sector completely unsustainable to new entrants.

Posted by enuii @ 02:14 PM (827 views)
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5 thoughts on “Buy To Let Fever Continues as more Punters Plough Funds In

  • Lambs to the slaughter, flat prices are falling FAST and convincingly, but they wouldn’t need to know that would they!!

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  • Nutters.

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  • planning4acrash says:

    This may, MAY be a muppet rally, where a small group of really bullish people wonder why they are being thrown so much cash, (because nobody else will touch it). Poor, silly people! Why borrow at 6% to get a yield of 4% and risk to boot. Daft as F*&k.

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  • I have heard it about the shares but I think its true about property as well.
    When the man on the street gets a tip in the pub that prices of shares/property will rise its time to sell not to buy.
    The big players will sell and leave. The floor will slip beneath them before they realise.
    PS. If you read the article, he person says that he has gone down from 15 to 10 properties. He is selling up as he can’t make the ends meet. Financially speaking, he is most probably failing to make money on more than 5 properties, He has sold 5 to cover up the losses of others as well.

    Think of it this way, If you have one house and the interest rates goes up by 1.25% and if you have 100,000 mortgage. you pay 1250 extra per annum but if you have 5 such properties you pay a minimum of 5 * 1250 = 6250 extra. Now think if you have empty period…. You are so badly stuffed.

    Remember BTL mortgages are more expensive than normal mortgages. Would be interesting to see what happens to these when they come for renewal this autumn. To add some more figures 1,000,000 mortgages come for renewal within a year and 607,000 this autumn. Lets see how much of this is SUB PRIME..

    Ohay… yummmm

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  • Ihopeitgoeswithabang says:

    “Recent volatile movements in the stock market may, if anything, encourage even more people into the apparent security of the property market”

    So that would be jumping from the fryingpan into the fire.

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