Saturday, Jun 06, 2015

Buy to let makes no financial sense

Telegraph: Buy to let returns to plunge

'That return, which would be the lowest in at least four years, would be before mortgages, maintenance and tax are factored in, all of which could push landlords’ investments into the red'.......yet btl is booming...more evidence of a speculative
Bubble...bit like dotcom boom

Posted by taffee @ 08:08 AM (4944 views)
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1. iguana said...

So "capital growth will be negative", have the Telegraph employed the blue sky economists that Cambourne use for their declarations of economic and jobs growth???

Saturday, June 6, 2015 05:35PM Report Comment

2. clockslinger said...

"The firm declined to explain its methodology" ...Right...
And "the general trend it depicted was of sharply slowing property price growth turning into actual falls in value".... Right.

So, if you bought now as a BTL landlord you'd still make money unless the price of property fell. Which is just how likely, do we think? FFS.
What is more, for those who bought BTL a few years ago (particularly if not on an interest only mortage) exactly what kind of falls would we have to be looking at not to still have made a very good bet on your chice of investment, I wonder.

Sunday, June 7, 2015 07:42PM Report Comment

3. khards said...

I find it interesting that rental indexes stopped being published by major players (government, rightmove etc.) about the same time a couple of years back. the only ones that exist are LSL ect. which factor in asset rises into the yield calculation. No need to explain why this methodology is plain wrong.

Sunday, June 7, 2015 10:00PM Report Comment

4. reticent said...

@3 I wondered why there were never any articles about rental indices anymore.

Monday, June 8, 2015 07:18AM Report Comment

5. clockslinger said...

Telegraph 10th June (Dan Hyde) "House prices could rise by a quarter in the next five years, a report predicts today after finding the number of homes for sale has fallen to its lowest level since records began in 1978."
But there will be negative capital growth in BTL, yeah?

Saturday, June 13, 2015 10:32AM Report Comment

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