Should I Buy to Let at these prices????

blackice_2

If you have the money, why do you need a mortgage? Property prices don't really matter to most people who have borrowed to let - they're in debt for the long run.  :)

I have the money for the deposit and to kit the house out... I didn't say I had cash to buy a propery outright or this wouldn't be an issue

blackice_2

Thanks for all the feeback, I read all the links... seems 20% will be the most houses go down... this is when I will buy... 2 years from now would do nicely ;D

GDB2222

Thanks for all the feeback, I read all the links... seems 20% will be the most houses go down... this is when I will buy... 2 years from now would do nicely  ;D

And in two years from now, when prices have dropped 20%, will you not then be expecting a further 20% drop? ;D

John_M_Business

... or when prices haven't dropped after all, and the market is looking stronger again... what will you then do?

It seems to me that there is a load of guesswork going on. As I stated in another thread, if I had listened to the pessimists five years ago and NOT bought, I would have now looked more than a little stupid.

dougk_2

And if the house prices are 20% lower will the BTL market be as strong???

There are so many uncertanties and factors that effect housing prices.

Most of the information the media provides is hype and distorted figures. Yes house prices have slowed in some areas, dropped in others over the past 3 or 4 months but over the year they are still 10% up on average.

House prices may drop but they will rise again as will rental income as will wages..... If interest rates fall then more people will buy as they can afford more.

People should just go on what they think they should do. Many of the experts incorrectly predict things - you go back three years and people said house prices would crash then...they didn't.

My opnion is with people selling "thinking" prices will crash means the demand for rental property increases.

deemy2004

And if the house prices are 20% lower will the BTL market be as strong???

There are  so many uncertanties and factors that effect housing prices.

Most of the information the media provides is hype and distorted figures. Yes house prices have slowed in some areas, dropped in others over the past 3 or 4 months but over the year they are still 10% up on average.

House prices may drop but they will rise again as will rental income as will wages.....  If interest rates fall then more people will buy as they can afford more.

People should just go on what they think they should do. Many of the experts incorrectly predict things - you go back three years and people said house prices would crash then...they didn't.

My opnion is with people selling "thinking"  prices will crash means the demand for rental property increases.

The problem is this that the above scenerio is based on the current market state. But further down the road, when people have experienced a sustained drop - all the factors you are indicating will have been adjusted for becuase of the house price falls, i.e. employment prospects, rental will take into account so basically you can't take current economic conditions and transplant it 2 years down the road as is.

I think the biggest factor of all is what happens to the US economy over the next 2 years if it grows at a healthy rate that should keep the rest of the world ticking along including Britain so like you say the slowdown would be short-lived.

As unfortunately UK Public finances have deterioirated to the point where Mr Brown cannot do any further spending binges.

michldavis

DONT BUY AT THESE PRICES!!!! You will be up to your eyes in negative equity. Ive sold up and now renting cos of the market... luckily I got out in time. £1 trillion debt is not good for this country and the house prices have already started to drop... wait for the Spring and you will see a glut of houses. Put your money in an egg savings account and earn 5.5%. My friends bought in 1989 and they were stuck for 10 years in the same property just to break even.
Doom and gloomers are right Im afraid and you can see it right before your eyes US dollar is sinking to the floor which will rebound on us in the UK. Please be safe :-/

deemy2004

and where the dollar goes, sterling is likely to follow !

Well, it is a 'special relationship' afterall !!!

Brown has borrowed to the hilt, corporate uk has borrowed to the hilt, the consumer has borrowed to the hilt.

Not good at all !!

stuartlwilliams

obviously you should NOT (sorry typo before) purchase the property you mentioned.  But that doesn't mean the whole market is bad.  Keep looking.  Base your decision on the income generated by the BTL.  Don't worry too much on whether the value will go up or done.  BTL is a long term investment.  Do not invest in negative cash flow.  Would you pay a bank to hold your savings?  Also, plan for interest rates to go up, so make sure your rental income can handle a few rate rises, say 1.5% increase.

MarkyMarkD

obviously you should purchase the property you mentioned.  But that doesn't mean the whole market is bad.  

shouldn't surely??