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Britain's deflating buy-to-let bubble

135

Comments

  • Taffyscot
    Taffyscot Posts: 896 Forumite
    very interesting. I hope its true taffy
  • Pobby
    Pobby Posts: 5,438 Forumite
    tr3mor wrote: »
    How many people with £200k in the bank would think "I know, I'll go buy a BTL and get 3% return"?

    Well I am fairly close to that position and the idea of getting into btl is very far from my thoughts.

    Yesterday we passed a new build.I bedroom flats from $164k.We live in the west country where wages are pretty grim.For the same amount of money you can buy a 3 bedroom house in a decent area.Talking to someone who is involved in the construction of this development(far from finished) it appears that people are buying``off plan`` for btl.Can`t figure out why they are doing this but seems to me that there are a lot of dumb people out there.
  • tr3mor
    tr3mor Posts: 2,325 Forumite
    Pobby wrote: »
    Talking to someone who is involved in the construction of this development(far from finished) it appears that people are buying``off plan`` for btl.Can`t figure out why they are doing this but seems to me that there are a lot of dumb people out there.

    They might realise their stupidity when they can't find a tenant and have to sell at a loss. ;)
  • Pobby
    Pobby Posts: 5,438 Forumite
    Totally agree.One thought I had this week end was about the media.I wonder how much influence the media has had in ramping up house prices.All the property !!!!!! shows I feel have had a great deal to play in people going out and buying places they can`t afford or places for btl.very clearly,themedia have turned very bearish,almost overnight and are now giving out programs showing the misery of those that have been less than prudent in their property deals.

    I have a gut feeling that this will be quite an influence in the forth coming crash/stagnation.
  • m00m00
    m00m00 Posts: 1,755 Forumite
    Sentiment is everything in markets where economic rationality has been abandoned (house prices, dot com shares, tulips etc). The key driver of sentiment in our society is the media. The issue is whether the media purely drives sentiment or reflects it. The answer I feel is a bit of both.
    It's a health benefit ...
  • Pobby
    Pobby Posts: 5,438 Forumite
    Wonder if Krusty and Phil will have to sell their BTLs.?
  • hearts
    hearts Posts: 1,191 Forumite
    sigh.....I hate to say this cos it's going against the grain but Iv'e bought another 4 BTLs in the last 3 months ;-)
  • guppy
    guppy Posts: 1,084 Forumite
    Part of the Furniture Combo Breaker
    hearts wrote: »
    sigh.....I hate to say this cos it's going against the grain but Iv'e bought another 4 BTLs in the last 3 months ;-)

    Mortgaged or for cash? Not new build flats I hope?
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    Pobby wrote: »
    One thought I had this week end was about the media.I wonder how much influence the media has had in ramping up house prices.
    And there I was thinking you were an "old git"...

    The Meeja definitely did the "turn on a sixpence, strung up like a kipper" thing in the late 80s, early 90s - from "house prices to rise by 30% pa forever" to "negative equity scandal shock horror, everyone else to blame" headlines and documentaries.

    Still, new paradigm this time - personal and government debt can double every 7 or 8 years indefinitely for the next million years or so can't it...?
  • hearts
    hearts Posts: 1,191 Forumite
    guppy wrote: »
    Mortgaged or for cash? Not new build flats I hope?

    Mortgages m8 and no definitey NOT NBs ;-)
This discussion has been closed.
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