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BBC - RICS say prices down.
Comments
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nollag2006 wrote: »More evidence that interest rates have peaked, and will start to fall back over the next six months.
:T
Add to this the generous tax incentives given to landlords and those passing their homes onto family by Labour yesterday, and we won't see a house price crash for some time to come.
But keep clutching at those straws guys ....
:rotfl:
Somehow I don't think it's us who are clutching at straws!0 -
What a silly thing to say. At what point did I predict a crash?But keep clutching at those straws guys ....
:rotfl:
FYI I bought my flat 18 months ago and a crash could put me into negative equity. However, I believe that houses are overpriced and will have to come back into line, either by stagnation whilst inflation catches up, or some sort of dip.Happy chappy0 -
tomstickland wrote: »http://news.bbc.co.uk/1/hi/business/7037962.stm
Only a few months ago people were being laughed at for suggesting that prices could fall.
The chickens are coming home to roost.0 -
In it for the long term?
why not just sell before they drop and buy back later?
That makes far better business sense no
In most businesses, yes. With housing less so due to the very high costs of buying and selling maybe less so.
Perhaps the best way to view BTL is as a permanent income stream. Buy good cashflow and hold forever.
Of course buying good cashflow is very tough at the moment. But then that's not my problem.0 -
mystic_trev wrote: »As I've already said, you don't need a Catalyst, such as High Interest rates or Unemployment LOOK at what's happened in the US, and their Economy is booming with the DOW recording record highs and a crashing housing market - NO Catalyst there!
I see you've recently entered the BTL Market - You may live to regret that. I have two Investment Properties, one bought in 1996 and another two years later. The first has nearly quadrupled in value and the other trebled. My Yields now work out at just over 2% nett. Anyone entering the market now will get badly burned IMHO - and that from a Property Investor!
I doubt I will regret it.
I am looking at a long term investment, not a short term as it seems you and many others are portraying.
I am extremely confident that I have made a wise investment for my situation.
You say you only get a 2% nett yield, however my two properties are returning a 9.49% and 27.16% nett yields.
I would think that this shows your property choices may not have been the best.
You bought two properties (one in 1996 and another in 1998) and the prices have quadrupled and trebled. Do you foresee a price crash that will wipe out this equity? I very much doubt it.
My two properties have increased in value (by 88% in three years and 27% in 10 months). Do I think that the equity will drop below these increases, the answer is NO
Will I panic sell if there is a price stagnation or small decrease, again the answer is NO.
Sure some BTLers will sell up thinking they can sell at a highest price before any price correction, but I think its a long way from a mass exodus.
It all comes down to Location Location Location.
Where I bought my properties, there is a real shortage of available housing, high employment, many coming to the town on secondments etc meaning there is a high demand for rental properties.
If you have done your homework thoroughly (And I am aware some stretch themselves too far), I doubt anyone will ever regret buying property.
I would like to set you a challange Mystic_Trev.
Please give me an example of one property which has plunged due to a house price crash and if that same property has not recovered and its house price has increased beyond the price it was before the crash. Obviuosly we are talking about houses which are maintained and not left to ruin.
I will not hold my breath waiting for you to find one:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »You say you only get a 2% nett yield, however my two properties are returning a 9.49% and 27.16% nett yields.
<pedantic mode>Yield is measured aganist current value not price paid.</pedantic mode>
Glad you're making money though.0 -
In most businesses, yes. With housing less so due to the very high costs of buying and selling maybe less so.
Perhaps the best way to view BTL is as a permanent income stream. Buy good cashflow and hold forever.
Of course buying good cashflow is very tough at the moment. But then that's not my problem.
Check out derek stobbs, blasting his way into the businessman of the year awards top spot for 'How not to run a business ' :rotfl:
http://news.bbc.co.uk/1/hi/business/7040061.stm0 -
<pedantic mode>Yield is measured aganist current value not price paid.</pedantic mode>
Glad you're making money though.
G,
That is not pedantic, it is a fact, since any other measure would be somewhat meaningless.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Check out derek stobbs, blasting his way into the businessman of the year awards top spot for 'How not to run a business ' :rotfl:
http://news.bbc.co.uk/1/hi/business/7040061.stm
It's funny really. A couple of years ago the focus would have been no how he'd made £xxx,xxx in capital gains.
I found the perfect present for him:
0 -
IveSeenTheLight wrote: »
Please give me an example of one property which has plunged due to a house price crash and if that same property has not recovered and its house price has increased beyond the price it was before the crash. Obviuosly we are talking about houses which are maintained and not left to ruin.
I will not hold my breath waiting for you to find one
Try this for size: http://www.propertysnake.co.uk/0
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