Saturday, June 28, 2008
Easy or hard, there’s no profit to be made
No more easy profit in the BTL market
Something odd is happening in the buy-to-let market. House prices are falling but landlords are prospering. The mere suggestion that landlords are suffering was enough to prompt a public relations offensive cleverly claiming that the real victims are would-be first-time buyers who are being squeezed by surging rent rises — all of which is music to the ears of buy-to-let investors. Letting agencies are apparently crying crocodile tears at queues of homeless couples begging to rent and being gazumped into even higher rents by landlords overwhelmed by demand. But costs are rising, and it may take only a couple of bad tenants or a long vacant period to turn profit into loss. Above all, it is vital to avoid selling if at all possible in the next few years
Posted by little professor @ 09:22 PM (902 views)
4 thoughts on “Easy or hard, there’s no profit to be made”
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Stevie Dee says:
People forget that landlorrds have costs too.. a lot of people can move home.. and with excess supply, i think the outcome is obvious. Otherwise you will read a lot more about houses being trashed.
quiet guy says:
A nice article.
“The Paragon figures, though, are based on a survey of only 200 landlords”
I supposed there are about a million buy to lets properties in the UK yet Paragon only surveyed 200 landlords? Very fishy!
enuii says:
The article is a classic contradiction.
Contradictions occur at both the top and bottom of cyclical processes and events, looks like landlords are therefore at the top of theirs.
uncle tom says:
OK, ignore this one – classic example of a journalist writing about something he doesn’t understand..