1st Anniversary: HPC: Did you warn us? Where are your proudest postings?

poppy10_2

The downfall of a BTL-er:

September 2007:

bargainbarmy wrote: »

I'm really sorry to have to say this to you CarolT but you are talking through your proverbial. I am asurveyor and know the trends of the market inside and out. there is not going to be a crash. Prices will level out , possibly drop 5% but that's it.

If, as predicted, interest rates level and possibly go down , the market will get used to those rates and prices will go staedily up after say a year.

The crash you are looking for is NEVER going to happen. You had better realise this now as all that money you are paying in rent is going down the drain and you will never see anything for it.

My advice to you is to buy something, anything, possibly not even for you to live in but to rent out. You could even continue to live in your council house butat least you would have a foothold on the market.

No disrespect but I think you are making excuses for yourself why you haven't bought yet. You know you have missed the boat and you are hiding behind this fact by saying you think the market is going to crash.

No market has crashed by 50% ever. The words 'wake up' and 'coffee' are coming to mind !!! Also unless your mum is some renowned property mogul I wouldn't base your facts that the market is going to crash just because she says so!!!

November 2008:

bargainbarmy wrote: »

Turned down for add'l borrowing on home mortgage because I have 5 BTL properties


Hi I wondered if anybody could give me some advice about what to do about this.

I am with Nationwide on their variable rate of 4.69% and I am very happy with this rate so wouldn't want to move lenders unless I had to. I have 5 BTL properties that I own with my sister in a limited company, and I have another BTL that I own with my wife that we purchased in March 2008. My wife and I paid £81K for this property and ploughed all our £25K savings into it with £12K deposit and £13K doing it up. Prior to May of this year it would have sold for £120K done up which is what we tried to do. Obviously the market collapsed overnight and we could not sell it. We have now rented it for £500pcm and the mortgage payment and service charge comes to £300.

Anyway to cut a long story short we need to recoup our £25k savings as we need a buffer in our bank account for a rainy day. We are making £200 per month on this property and as regards all the other BTL they are all rented out and we are making about £400 profit on those in the limited company.
We owe £7k on 0% credit cards which we will pay off at the end of this month and also have a unsecured personal loan with natwest which has £13k outstanding on it. We have no other credit commitments but we also have no other savings left now in the bank.

.....

My sister earns £200K a year so she is able to prop up the BTL business if ever there was a shortfall meeting the mortgage payments. I even told Nationwide that my sister would act as Guarantor for the extra borrowing but they wouldn't have any of it.

Any suggestions as what I should do cos we have no spare cash at all and desperately need to get our money back? Really desperate now.

John_Pierpoint

harryhound wrote: »

(I think, in the current market, I would only risk a redevelopment/renovation bought at a distress price, for a couple prepared to spend next summer in a caravan in the garden).:beer:

Harry

.

If any of you are brave enough to fancy doing this, I will have a small Victorian detached for sale in "original" state in at KT8 post code (*) next Easter; so send me a PM;).

Actually, I would exercise the new permitted development rights and build a nice log cabin in the garden, rather than live in a temporary caravan. :easter:

(*) That is not a million miles from Hampton Court.

moneymass

The downfall of a BTL-er:....

But the nice surveyor man said it was going to be ok...

mr.broderick

Mr.B with his finger firmly on the pulse...

18-08-2008, 9:08 PM
#106 chucky
Serious MoneySaving Fan


Join Date: Oct 2004
Post Count: 751
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Quote:
Originally Posted by mr.broderick
Just popped in with a little bit of anecdotal, our boss who is going through a divorce has just bought a house that was up at £125k for £120k. 4 ftb'ers fighting over it, also today lloyds tsb reduce their mortgage rates for the 2nd time in a week due to confidence returning to the market? Doesn't sound like we are in a crash to me? .

stop it Broders!!!

stating what actually goes on in the markets is not allowed in this Forum - fellow posters will be getting upset with you again!!!

sabretoothtigger

You should blank out the name in the quotes as there is no need to single out people individually, obviously many people borrowed more then necessary.

And what was said about it never happening before is still correct but not much use now

before_hollywood

i wonder if on my occasional visits to these parts i posted a gem?

scousethife

Nelly was funny

sarkin

poppy10 wrote: »

The downfall of a BTL-er:

September 2007:
The downfall of a BTL-er:

September 2007:
Quote:
Originally Posted by bargainbarmy
I'm really sorry to have to say this to you CarolT but you are talking through your proverbial. I am asurveyor and know the trends of the market inside and out. there is not going to be a crash. Prices will level out , possibly drop 5% but that's it.

If, as predicted, interest rates level and possibly go down , the market will get used to those rates and prices will go staedily up after say a year.

The crash you are looking for is NEVER going to happen. You had better realise this now as all that money you are paying in rent is going down the drain and you will never see anything for it.

My advice to you is to buy something, anything, possibly not even for you to live in but to rent out. You could even continue to live in your council house butat least you would have a foothold on the market.

No disrespect but I think you are making excuses for yourself why you haven't bought yet. You know you have missed the boat and you are hiding behind this fact by saying you think the market is going to crash.

No market has crashed by 50% ever. The words 'wake up' and 'coffee' are coming to mind !!! Also unless your mum is some renowned property mogul I wouldn't base your facts that the market is going to crash just because she says so!!!


November 2008:
Quote:
Originally Posted by bargainbarmy
Turned down for add'l borrowing on home mortgage because I have 5 BTL properties


Hi I wondered if anybody could give me some advice about what to do about this.

I am with Nationwide on their variable rate of 4.69% and I am very happy with this rate so wouldn't want to move lenders unless I had to. I have 5 BTL properties that I own with my sister in a limited company, and I have another BTL that I own with my wife that we purchased in March 2008. My wife and I paid £81K for this property and ploughed all our £25K savings into it with £12K deposit and £13K doing it up. Prior to May of this year it would have sold for £120K done up which is what we tried to do. Obviously the market collapsed overnight and we could not sell it. We have now rented it for £500pcm and the mortgage payment and service charge comes to £300.

Anyway to cut a long story short we need to recoup our £25k savings as we need a buffer in our bank account for a rainy day. We are making £200 per month on this property and as regards all the other BTL they are all rented out and we are making about £400 profit on those in the limited company.
We owe £7k on 0% credit cards which we will pay off at the end of this month and also have a unsecured personal loan with natwest which has £13k outstanding on it. We have no other credit commitments but we also have no other savings left now in the bank.

.....

My sister earns £200K a year so she is able to prop up the BTL business if ever there was a shortfall meeting the mortgage payments. I even told Nationwide that my sister would act as Guarantor for the extra borrowing but they wouldn't have any of it.

Any suggestions as what I should do cos we have no spare cash at all and desperately need to get our money back? Really desperate now.



November 2008:

And this is why bears are having a field day.

sabretoothtigger

Bear Sterns isnt

Cannon_Fodder

poppy10 wrote: »

The downfall of a BTL-er:

September 2007:



November 2008:

But all BTLers have sound business plans, surely?

bargainbarmy wrote: »

We have a £150,000 business loan which is secured against my home as a second charge but this loan is in the name of our limited company. Any mortgage we have on our first home is a first charge so the second charge will not affect it. We also have BTL mortgages on all but one of the BTL properties, the other one we own outright.