Thursday, October 21, 2010

Who says a HPC will just benefit the BTL brigade?

Landlords struggle to raise finance to expand

More than six out of ten landlords are finding it difficult to get finance to expand their portfolios...

Posted by rantnrave @ 02:22 PM (1356 views)
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5 thoughts on “Who says a HPC will just benefit the BTL brigade?

  • sibley's b'stard child says:

    “Nevertheless, the average number of properties in a portfolio ticked up during the period, from 12 in the second quarter to 12.5 in the third. The average investment portfolio had a value of £1.45m, with the average gearing – the level of borrowing as a proportion of value – steady at 37%”

    That’s a lower amount of gearing than I would have expected; or is that as reliable as someone’s ‘salary’ declared on a self-cert morgage application.

    Interesting to see that the average number of properties have increased although perhaps this is simply indicative of the bigger fish swallowing the Johnny-come-latelys…

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  • Only 6 out of 10, thats a shame that 4 in 10 are still liquid..

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  • and of course expanding their portfolios is their raison d’être, once you have feasted on one tenant’s bone marrow.YOU JUST WANT MORE!

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  • 37% average is probably based on recent inexplicable rises in prices…if the market did fall then all this cushion would be wiped out imo

    Gut wrenching to think they have 12.5 properties and almost 1.5 mill in debt on average

    You can see the elephant in the room in the housing market.

    If they bought a 2 bed flat in sunderland for £200,000 in 2006/2007 they will find it unsaleable at those delusional prices

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  • Taffee
    It says level if borrowing 37% which would indicate 63% equity.

    If the average portfolio is £1.45m then there’s roughly £1m equity.

    I don’t actually believe those figures, but that is what they say indicates IMO.

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