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Watched some property pwon (Bear style)
neas
Posts: 3,801 Forumite
Was thinking about all those BTLers who have 5-10 propertes... like a woman who bought 7 flats last night.
Alot of them have been continually MEWing older properties to boost their empire up and up and up... such that the 'perceived' equity in each property is around 25% say......
well if houses do drop 30% then BTLers would be in negative equity on nearly all their property... ramping up their payments on SVR (as they cant remortgage) and cutting their engine/buying power (as they cant mew whats not their).
All those 'Property Millionaires' who ower 4 million worth of mortgages on 6 million of property.... willl soon owe 4 million worth of mortgages on 4 million worth of property.
There'd be no equity to remortgage, forcing them to sell... which at the worst case (for us) means they break even... or best case they lose every house and their previous profits, fancy sports car, own home are repossessed.
Just realised that a crash of 30-40% will totally wipe the smiles off most BTLers faces.
Sure there some who will survive but.... I cant wait for it... a purging of bad BTLERs in the market.. whose greed is no inverted.
Sorry I never really thought about the combined effect it would have.
Alot of them have been continually MEWing older properties to boost their empire up and up and up... such that the 'perceived' equity in each property is around 25% say......
well if houses do drop 30% then BTLers would be in negative equity on nearly all their property... ramping up their payments on SVR (as they cant remortgage) and cutting their engine/buying power (as they cant mew whats not their).
All those 'Property Millionaires' who ower 4 million worth of mortgages on 6 million of property.... willl soon owe 4 million worth of mortgages on 4 million worth of property.
There'd be no equity to remortgage, forcing them to sell... which at the worst case (for us) means they break even... or best case they lose every house and their previous profits, fancy sports car, own home are repossessed.
Just realised that a crash of 30-40% will totally wipe the smiles off most BTLers faces.
Sure there some who will survive but.... I cant wait for it... a purging of bad BTLERs in the market.. whose greed is no inverted.
Sorry I never really thought about the combined effect it would have.
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