'50% drops'

blisk

Heyman wrote: »

Good to see youre getting ready. :T

Don't forget to build a bunker when your neighbours are climbing through the windows.

dopester

Heyman wrote: »

Hard to see how there's going to be downward pressure on rents with that kind of demand, which I doubt is going to abate any time soon.

Even the landlord master is saying the party is over.

The risk for buy-to-let borrowers is not only rising mortgage costs, but tenants failing to pay the rent. "One or two have lost jobs, but our properties benefit from rent guarantees," says Fergus."

The insurance he took out will see the rent paid for a set time, but I doubt the hordes of other BTL-ers will have taken out such cover. Landlords will have to lower their rents to compete in the market as there is plenty of new supply coming through every day.

neverdespairgirl

stevetodd wrote: »

I intend to buy 3 more houses.

Why do you intend to do this?

stevetodd

neverdespairgirl wrote: »

Why do you intend to do this?

Because they will be good investments. For the last few years I have had a bit too much in cash, whilst I didn't want to sell any properties, I did think from 2005 onwards (when prices did get a little sticky) that I didn't want to invest further in property. However if the market falls to the point where I can buy 3 bed victorian houses in Harringey for 215k then I suspect (in the medium to long term) that they will be extremely good investments.

andrewmp

Alan_M wrote: »

Actually this is the most sensible thing you've posted......

However the reverse is also true, those buying now either have been living a time capsule somewhere or have no choice....

Therefore the market grinds to a halt and everyone batons down the hatches....

The credit problems and mortgage issues are compounding the problem and visa versa, it's a vicious circle....but then, it's not a surprise really is it...what is a surprise is how big it's become and the whole scale panic that's set in on a global level.

I bought a month ago and don't live in a capsule and didn't "have" to buy either. It was a lot cheaper to buy than to rent, that was always the driving factor for me.

carolt

stevetodd wrote: »

Because they will be good investments. For the last few years I have had a bit too much in cash, whilst I didn't want to sell any properties, I did think from 2005 onwards (when prices did get a little sticky) that I didn't want to invest further in property. However if the market falls to the point where I can buy 3 bed victorian houses in Harringey for 215k then I suspect (in the medium to long term) that they will be extremely good investments.

Why? They cost 100K 10 years ago.

stevetodd

carolt wrote: »

Why? They cost 100K 10 years ago.

Because my tardis is broken, so I have to settle for 215k. I bought my first property in 1988 I am well aware of what things cost years ago, that was then and this is now

carolt

I think you missed my point.

Why are they worth over double what they were then, given that salaries have definitely not doubled in that time, and at a point when the world economic trajectory appears to be down rather than up, as it was then.

Still, it's your own problem. Just wouldn't advise anyone to join you. :rolleyes:

stevetodd

carolt wrote: »

I think you missed my point.

Why are they worth over double what they were then, given that salaries have definitely not doubled in that time, and at a point when the world economic trajectory appears to be down rather than up, as it was then.

Still, it's your own problem. Just wouldn't advise anyone to join you. :rolleyes:

That's more or less what people were telling me back in 1990 when I ventured into the BTL market, everyone around me was selling, very few were buying. Thank god despite being inexperienced at the time I didn't listen to them then.

carolt

Well do please go ahead now.

Shan't join you. :rolleyes: