Monday, September 24, 2007

BTL market unravelling fast!

Unconvinced that all is well

Budding property investors are in for a rude awakening. Paragonhas increased its rates, while the Mortgage Trust has launched a buy-to-let fixed mortgage that charges a huge 5 per cent fee and levies early redemption penalties for four years after the fixed-rate period ends. One broker called it a "truly appalling produc". House prices dipped in August for the first time in two years, and confidence in the price outlook dropped to its lowest level since June 2005.

Posted by confused76 @ 03:17 PM (1007 views)
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4 thoughts on “BTL market unravelling fast!

  • tyrellcorporation says:

    ‘Sadly, it hasn’t quite turned out that way. One Vista flat, which was bought for £250,000 in 2005, was put up for auction with a reserve price of £175,000. It got no takers.’

    ‘It gets worse: no one was interested when the price was slashed to £150,000 and it remains unsold. At the same auction, a flat in a Nottingham development – bought for £139,000 less than two years ago – failed to fetch half that, with the highest bid some £3,000 shy of the £70,000 reserve. I could go on, but you get the gist.’

    If only more of the media were prepared to reveal these stats…

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  • Outside of London flats (especially off plan) must surely rank as the worst property buy available and may well turn into the lepers of UK property.

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  • Quite right tyrellcorp. There’s no pretending these stats aren’t explosive: every bit as punchy and emotive as the “House Prices To Triple in Next Six Months” nonsense the Express is so fond of plastering all over its front page. This inconsistency reveals the motivations of the journalists concerned for what they are – appalling, biased, cheerleading driven by vested interests.

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  • tyrellcorporation says:

    I have always reckoned that these flats were sold as investment ‘tokens’ more akin to a pension product than for somewhere to live. Sadly millions of the bloody things have been built over the last few years. Hopefully they can be easily knocked through so that two ‘studio’ apartments can be joined to create a half decent sized flat. The ones I’ve seen built in Exeter give the same impression of Gandalf wandering around Bilbo Baggins’s house!

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