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House price crash?
Comments
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Gorgeous_George wrote: »A couple of interest rate cuts should make a HPC less likely.
Inflation will rise making properties worth less in real terms even if nominal values remain unchanged.
STRs will push rentals up. Increasing yields will tempt BTLers into the market.
Due to the credit crunch, the future will see less people owning their own homes and the average BTLer owning a larger portfolios.
GG
It's a good argument but you undermine yourself in the final sentence. If people can't borrow to buy, why would their status as a BTLer be any different?
I suspect that yields are indeed going to rise. Initially slowly as buyers are unable to buy due to the credit crunch and then far more quickly as more distressed sellers enter the market due to the same credit crunch (yield = current rent/current market value).0 -
It's a good argument but you undermine yourself in the final sentence. If people can't borrow to buy, why would their status as a BTLer be any different?
I suspect that yields are indeed going to rise. Initially slowly as buyers are unable to buy due to the credit crunch and then far more quickly as more distressed sellers enter the market due to the same credit crunch (yield = current rent/current market value).
My thinking is that the financially astute BTLer will present a better credit risk to the lender and therefore will get a mortgage where an FTBer may not. Low earners/those with less than perfect credit history will not be able to get the credit even if they could afford the repayments.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »My thinking is that the financially astute BTLer will present a better credit risk to the lender and therefore will get a mortgage where an FTBer may not. Low earners/those with less than perfect credit history will not be able to get the credit even if they could afford the repayments.
GG
Unless you regard every pleb that jumped on the BTL bandwagon these past few years as "financially astute", do you believe the numbers will be there to sustain the housing/mortgage market?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
how many of the banks that have been funding BTL have been doing it from the money raised from their savers etc, and how many of the main BTL funders have been doing it from the capital markets which have largely dried up, and will likely never re-open to the same extent as the past 3 years.
so no matter how astute a bank thinks a BTL'er is, it won't matter if they can't raise the money to fund these mortgages on anything like a large scale.It's a health benefit ...0 -
Quote:
Originally Posted by Gorgeous George
My thinking is that the financially astute BTLer will present a better credit risk to the lender and therefore will get a mortgage where an FTBer may not. Low earners/those with less than perfect credit history will not be able to get the credit even if they could afford the repayments.
GGTurnbull2000 wrote: »Unless you regard every pleb that jumped on the BTL bandwagon these past few years as "financially astute", do you believe the numbers will be there to sustain the housing/mortgage market?
GG, diden't say 'every pleb' who has got into BTL, he stated....................
THE financially astute BTLer, and of course his thinking is correct.0 -
Yes, but Turnbull was querying whether the astute percentage was significant...0
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ManAtHome Yes, but Turnbull was querying whether the astute percentage was significant...
I'm sure GG being a professor of economics who does a bit of BTL on the side, will answer TURNBULL'S Question later.0 -
But why would a professor of economics need that much time to respond..?
I'm only an observer of economics in real companies...0 -
But why would a professor of economics need that much time to respond..?
Maybe he's got a LIFE.0 -
dannyboycey wrote: »Vested interest in other words?
just like the OP then?0
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