Great News For Homeowners and First Time Buyers!!!

brit1234

hearts wrote: »

Bottom prices in most areas cant fall far. As soon as they reach a certain level they become a good investment for BTL. If the Yields become favourable properties will be snapped up.

In my opinion highly unlikely.

Prices are still going to fall what ever, they are still hugely overvalued fueled by cheap credit which is gone. No matter how much interest rates drop to there simply won't be the money to lend at todays prices. Infact the more interest rates come down it gives little incentive for people to save and banks need savers money desperately. So it is highly unlikely they are going to lend to buy to let investors without big deposits and where are they going to get these deposits from when the prices of their properties are falling. Anyone in any doubt just look at a landlord forum complaining about 75% LTVs (Loan toValue).

No their rents are falling with the portfolio value, many are deep in negative equity or being repossessed.

Don't listern to landlord scare stories, they just want to raise prices so they can bail out or buy more property and they want you to sacrifice you hard earned money to do it.

Wait and save prices will continue to plumet. If you don't believe me look at these graphs and ask yourself why if interest rate cuts in America have had no effect and never had a effect in previous recessions why will they now?

House Sales Collapsing

House Prices Collapsing





Repossessions fast rissing




:eek::eek::eek::eek::eek:

geoffky

prices are falling fast and rates are falling..god its going to be even better next year..

savemoney

It wasnt so much cheap credit it was the lending of cheap credit to people who couldn't possible afford to pay back any length of time

brit1234

savemoney wrote: »

It wasnt so much cheap credit it was the lending of cheap credit to people who couldn't possible afford to pay back any length of time

I disagree. If it wasn't for huge amount of cheap credit then we wouldn't have had bubbles. Yes higher risk people suffer most but lower risk people also suffer as all have to borrow more due to rampant inflation of the bubble asset. Far better to prevent bubbles in the first place for example restoring RPI as the BOEs indication of inflation.

tom_thumb_2

brit1234 wrote: »

And you the rotting fly infested turnip.

i think you need to take a closer look in the mirror turd breath!

linda4767

Lol...........

wymondham

pickledpink wrote: »

Great News For Homeowners!!!! Mortgages Will Be Cheaper!!
http://www.dailymail.co.uk/news/arti...-rate-cut.html

Great news, isn't it?:money: :T

I've already got a house, but this makes me want to go get another one .... on no it's Sunday tomorrow! :rotfl:

neverdespairgirl

hearts wrote: »

An average lower value house in my area. £120k aprox. Rental achieved. £550 per month.
Drop 20% 96k same rent achieveable. Yield then becomes very attractive.

That's a gross yield of 6.8% - what's attractive about that?

shaven-monkey

brit1234 wrote: »

I disagree. If it wasn't for huge amount of cheap credit then we wouldn't have had bubbles. Yes higher risk people suffer most but lower risk people also suffer as all have to borrow more due to rampant inflation of the bubble asset. Far better to prevent bubbles in the first place for example restoring RPI as the BOEs indication of inflation.

It was a combination of cheap credit and a delusion among the banking community that they could repackage the debts into special purpose vehicles and then treat them as an asset which caused the credit crunch. Couple that with lending to people on the basis that they said they could pay it back without checking and you get a certain amount of inflation. Add to that a theft of value from taxpayers for the next 20 years to bail out the bankers who did this to preserve shareholder value and a banking system which is clearly dysfunctional and yes, everyone suffers apart from the shareholders in those banks that got bailed out.
It's called national socialism.
Or state corporatism if you prefer.
Privatise the profits and socialise the costs.

Either way the house prices will continue to fall because we're entering a severe reduction in the velocity of moneyflow. Banks will only lend to people they know will be able to pay it back and with a rise in unemployment, few people will be able to meet the criteria for mortgages anyway. From what i've seen you'll be lucky to get a 3x salary mortgage even with a 25% deposit available at terms anyone would call reasonable by the standards of the last 10 years from anyone. If you're lucky enough to qualify you end up in negative equity within a few months because nobody else can qualify, driving the house prices lower.

Gross yield of 6.8% was attractive to the BTL formula when your property value was increasing as well as rental yield. It's marginally attractive now if you think the money you put down on the property will buy as many loaves of bread when you choose to sell.

geoffky

hearts wrote: »

Bottom prices in most areas cant fall far. As soon as they reach a certain level they become a good investment for BTL. If the Yields become favourable properties will be snapped up.
An average lower value house in my area. £120k aprox. Rental achieved. £550 per month.
Drop 20% 96k same rent achieveable. Yield then becomes very attractive.

So whereas higher value houses may drop on a house by house basis by differing amounts. I don't think there is a likelyhood of the lower end dropping by much. Which I would asume is the FTB market.
Obviously this is only my opinion.

Can you show me where these 90% or 95% mortgages are available to blt property's as most blt think housing is poison and are struggling with what they have just to get by...blt as a product is fineshed for a long time...