Monday, March 29, 2010

Is this a good or bad sign?

Buy-to-let investors are drowning in debt

Increasing numbers of landlords are deep in the red, and that’s a disaster for all of us.

Posted by mr g @ 12:55 PM (2119 views)
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11 thoughts on “Is this a good or bad sign?

  • MrG, why is it a disaster for all of us?

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  • A good tenant is worth his/her weight in gold to a landlord even more so if thet’re struggling.
    If a good number default, apart for a short-term difficultied for the renters, it will create a situation in which the chances of owning a property increase.

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  • @Smugdog “why is it a disaster for all of us?”

    I couldn’t possibly comment, it’s the author’s viewpoint, not mine, if you read the article.

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  • righttoleech says:

    author is scared…..he doth protest too much, he is keen to ensure we know he is not BTL LL…probably mewed up to the eyeballs. How dare he beg for baleouts of BTL landlords. Despicable VI desperation, all the self pride of a benefits fraudster.

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  • mark wadsworth says:

    There is a most excellent/stupendously wasteful* system for bailing out BTL landlords – what they need is for the tenant to lose his job, and hey presto, the rent is henceforth covered by Housing Benefit. So if you’re working and struggling to pay rent, you’ll get kicked out, unless you can get your bennies sorted before the landlord chucks you out, in which case you are both laughing. At the taxpayer and the mugs who actually go to work and pay rent.

    * Delete according to taste

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  • The article itself is absolute tosh suggesting that landlords in trouble should receive a bailout. Let nature take it’s course. If landlords are in trouble that is of their own doing borrowing more than they can afford and taking a risk. Landlords who are not in trouble and have not taken so much risk will thrive whilst the buy-to-let market will be cleared of business-incompetent risk-takers. Evolution at it’s finest. However, the comments at the bottom of this article are well worth a read :0)

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  • If the tenants of BTL landords joined in on the current mood of industrial action
    by going on a rent strike or took rent go-slow payment action, it should help to
    reduce house prices.

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  • Printing money (QE) begets inflation (eventually..) begets higher interest rates begets lower house prices begets bankrupt BTLers..

    ..it’s only a matter of time..!

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  • The article is just utter garbage. He says there’s a property shortage which would mean supply < demand therefore rents go up therefore landlord sorted. What he should say is there's a shortage of property at a price people are willing to pay, so landlords can't let their properties at the price they need to in order to cover their costs. Does he want us to feel sorry for these get-rich-quick property empire wannabies who didn't know what they were doing and bought at stupidly inflated prices and are now going the toilet... Well I don't. Let them burn I say. I'm just sorry our corrupt government loaded my kids/grandchildren/great-grandchildren up with so much debt trying to keep the scheme going for so long.

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  • the basis of the article is a ‘survey’ by iva.com – a company which specialises in personal bankruptcies. They probably just asked round the office if anyone had come across a BTL landlord was struggling with his debts.

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  • landofconfusion says:

    “They probably just asked round the office if anyone had come across a BTL landlord was struggling with his debts.”

    And they found the article’s author.

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