Saturday, July 18, 2009

Lambs to slaughter

Property investors return to buy to let

Blonde bint Lisa Knights, 36, a presenter at Setanta Sports, was laid off when the company went titsup last month. Her husband Nick, 41, has also resigned his job as director of water polo for the London Olympics (?). With two children and no job between them they need their assets to provide income, so are diving in to buy to let. Nick and Lisa are not fussy about the type of property - period or modern, houses or flats. Instead, it is all about price. Lisa says: 'If the price is right, the type of property or tenant doesn't matter.' The Humes have been scouting properties for months, attending auctions and researching the market online. Interest from similar buyers is on the rise, Lisa believes.

Posted by little professor @ 10:09 PM (1516 views)
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8 thoughts on “Lambs to slaughter

  • As property prices decline, rents will gradually decline as well. The price of the financing a mortgage and repairs will not decline however. Perhaps this couple have bought with cash and can wait until the next boom, if it happens in their lifetime. If I had enough enough cash to buy a half decent property, I’d be looking at emigrating.

    ‘If the price is right, the type of property or tenant doesn’t matter.’

    I think finding good tenants is one of the most important aspects of BTL. The difference between a good tenant and a bad one can be enormous (speaking as a tenant who has observed some interesting things in shared properties over the years.)

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  • I want to know which bank would lend BTL mortgage to a jobless couple, with a child, deep in debt and no experience in BTL.

    I then will walk into the bank’s vault, take the money and walk out. I am sure they won’t stop me. They must be that retarded.

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  • An Bearin Bui says:

    Unless they have a serious pile of cash (i.e. 250k+) how can they afford to buy 2 properties in the next year? Without jobs, they’re not eligible for a mortgage anymore (although would have probably got one from Northern Wreck a couple of years ago) and it’s very high risk to put all their cash in one type of asset. Surely they’d be better off diversifying into stocks, bonds, gold and possibly 1 small flat instead of piling into BTL?

    No accounting for the financial innumeracy / idiocy of some folks..

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  • gone-to-colombia says:

    Morons

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  • I would hardly call these b———– lambs.

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  • The worship of unearned riches…

    The UK and its fetish with property investment never seizes to amaze me…

    The bank who lent to these idiots will no doubt be, or end up being, another bank my taxes prop up…

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  • Any other business ideas? If too many are becoming BTL I am affraid we are heading to an economic disaster. No one should buy already built property for other purpose than living in that house. Investment is welcome but for building new and better property.

    And interest on debt to be made undeductible so some tax gets collected in this lifetime.

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  • new user 2007 says:

    I think the point is that they do not need a mortgage. I assume as one ex-presenter and one ex-over-paid executive they can indeed afford a couple of properties from savings and redundancies.

    My query would be on their assumption that a 10% yield is gauranteed if one includes 1) the opportunity cost of said savings (they can surely get at least 4% in a savings account if they are happy to lock up their money for 5 years (they clearly are if they are willing to buy a BTL)) 2) void periods (particularly as there has been a surge in rental properties 3) general running costs and 4) capital losses (these would not happen in any of the banks, as I do not think any will now go nabkrupt…but even then they can put the said 300k in 6 different acounts to take advatnage of depositor protection) and 5) time involved (they are both saying they will be looking for work again).

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