Saturday, March 28, 2009
Buy to let deal son upswing – but at what price?
Interesting article. Suggest serious investors are buying up to 150 1/2 bedroom new build flats at a time for up to 50% discount off 2007 prices. However,although this may feed through to official figures in terms of units sold it won't have any effect on the Nationwide and Halifax price indexes as these block purchase won't be paid with mortgage loans. Therefore in reality all three major indices are now under-reporting the drop in house prices, because the third, the Land Registry doesn't record repossessions. However, this may just have the effect of dragging out the reported falls over a number more years,, because if you are unlucky enough to have purchased a flat in 2007 in a block where they are selling for 50% discount no surveyor is going to value up when you come to sell.