U.K Enters Recession..!!

Generali

BobProperty wrote: »

I'll make a guess at this anyway. The amateur will still be holding out for the rent they think they should get whereas a pro will realise that the market has dropped and quickly accept a lower rent just to keep the cashflow going. The pro therefore looks like a better deal to the renter. e.g. AmBTL has place to rent at £750pcm, ProBTL says £675, renter goes with ProBTL as cheaper. AmBTL stuck with empty property and keeps hoping for better rent. ProBTL has 90% of income of AmBTL hopes for but AmBTL has 0 actual income.

Maybe. It's also possible that the process works thus.

Pro BTLer: I know from experience and the current state of the market that if I hold out for £xxx pcm I'll get it in a couple of weeks. No need to panic. Cashflow is positive over the portfolio as a whole. Who cares about the individual properties?

Am BTLer: Oh heck George, according to the Daily Fish 'n' Chip Wrapper, we're going to have a recession and we're shelling out £850/month on that new build flat in Slum Towers. Better cut the rent to £450/month while we try to sell it. Anyway, you get the canoe from the shed, I'm off to find the life insurance papers.....

Tassotti

Ha ha..I have never had to finance any of my properties. All of them are profit making and increasing by the week.

I price the rent reasonably with regards to market value, and never had a void of more than two weeks, on every property.

Generali, the example you give of new build in slum towers is exactly the people I don't feel sorry for!!!

Bob nice to see you again...How ya keeping?

Tass

neverdespairgirl

Tassotti wrote: »

I am not trying to gload about my success. I am just trying to make the board aware that the majoririty on here have been talking about a house price crash since 2001.

On what do you base the assumption that the majority has been talking about a crash since 2001?

Certainly not me. I knew and cared nothing about house prices in 2001.

Generali

Tassotti wrote: »

Amateurs help me by buying a loss-making property. I then become a vulture and buy it off them and turn it into a profit-making property.

Have you bought any like this so far? I'd have thought that the time for large numbers of distressed sales really pushing prices down at the margin (although not necessarily the average) is some way off.

kennyboy66_2

Generali wrote: »

How do amateurs help you? I'd be interested to know.

Amateurs drive prices up to unsustainable levels - thus increasing the price paid by so called professionals, & increase the supply of rented housing thus driving down rental prices.

Amateurs may suffer more but only in la-la land could it be said that amateurs entering the market help professional landlords.

Generali

kennyboy66 wrote: »

Amateurs drive prices up to unsustainable levels - thus increasing the price paid by so called professionals, & increase the supply of rented housing thus driving down rental prices.

Amateurs may suffer more but only in la-la land could it be said that amateurs entering the market help professional landlords.

That was my feeling really. I can see how more desperate sellers could help in future but I don't really see how they help now.

Tassotti

Would have thought you would have known...It's basic economics...supply increases ,,price increases.

Mind you, itdepensds where you are....If you are charging way over the odds for a shoebox, then get real.

Generali

Tassotti wrote: »

Would have thought you would have known...It's basic economics...supply increases ,,price increases.

If supply increases, price falls unless demand increases with it.

TDS_2

Tassotti wrote: »

It's basic economics...supply increases ,,price increases.

lol. Time to go back and study basic economics...

MrDT

Tassotti wrote: »

basic economics...supply increases ,,price increases.

:doh:

duuuuuhr