Friday, September 2, 2011

Interesting underlying trend

Why are landlords selling?

amazing they 'don't know why landlords are selling'...could be they are getting out of a property bubble....this boom has gone on so long people have become delusional imo

Posted by taffee @ 10:00 AM (1421 views)
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5 thoughts on “Interesting underlying trend

  • They’re selling for the same reason I’m not buying.

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  • No anticipated capital appreciation – end of story.

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  • thought this comment was very apt.
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    It’s all very simple, a lot of these landlords over geared and were financed on short term interest only deals with the Banks. These 3-5 year deals have expired, and despite rents increasing these landlords are still too overgeared to be able to repay their IO loand over a reasonable investment period (say 20 years) therefore the Banks have told them to sell up.
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    downward spiral comes to mind.

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  • interest rates have been at an all time low for 2 years. And potential tenants are struggling to make ends meet. Anyone with a brain will realise that this position can only have one good, but improbable, outcome for BTL and that is rampant inflation over the lifetime of their mortgage. Far more likely is an increase in interest rates…..

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  • and that is rampant inflation over the lifetime of their mortgage. Far more likely is an increase in interest rates…..

    I have to say as a fellow HPC’er, don’t count on that. Really, don’t. The path of least resistance and most favourable for the many is the former, not the latter. Be mindful of that when making long term decisions – inflation has always won out historically.

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