Ajay Ahuja at it again - Crash denial

chucky

reverse ramp, reverse ramp, reverse ramp

mp2

ajayahuja wrote: »

mp2 - you obviously are not in business are you?

there is no auction of rents and undercutting going on! rents are fixed. LHA rates. they move upwards! did you know we have a shortgage of homes in the UK?

also, mortgages have shrunk by 66% on properties bought pre 2007. so someone buying now has to be buying at 50% of 2007 prices to get the mortgage payment we are currently getting. this is not happening yet.

there are alot of people on here that do not have any business acumen here and make rather strange comments which i do not see in any forums. i would suggest you hop over to some of the large property forums (not HPC!) and try and understand how property works. it is a simple way to get rich!

or you can visit my site.

erm, LHA rates are calculated on the mid range for any area. if the LHA rate is higher than the rent, the individual gets to keep the difference up to a certain point. if it is lower than the rent, then the individual makes up the difference.

in other words, if someone down the street if offering the same property as you at 20% cheaper, why wont people move in with them and pocket the difference, or reduce their excess?

ultimately youre still competing against every other property and btl out there. there are no hiding places.

secondly LHA rates are calculated as a mid point for your area at the end of each month. as rents come down in the market so do LHA rates, but you knew that already didnt you...

finally to base affordability based on when interest rates are at 0.5% is suicide. youre happy to tell people to buy in because you get a commission. but 1 years 2 years down the line when rates go up, the investor maybe in trouble yet you wont bat an eyelid as youve already secured your commmision.

its short sighted to argue the cost of a mortgage by basing it on 0.5% interest rates and say looks its so cheap at the moment.

the irony is that the low rates at the moment are allowing landlords on variable rates to undercut those on fixed rates so it is actually pulling down the rental market.

ad9898_3

chucky wrote: »

reverse ramp, reverse ramp, reverse ramp

Just wait until I'm editor of the Express. This would be my first front page.

'Danger !!!!!!!!!!!!!!!! falling house prices ahead.'

fc123

ad9898 wrote: »

Just wait until I'm editor of the Express. This would be my first front page.

'Danger !!!!!!!!!!!!!!!! falling house prices ahead.'

When are you planning on applying? Could be back to the boom if you leave it to long. AA is the guru.;)

ad9898_3

fc123 wrote: »

When are you planning on applying? Could be back to the boom if you leave it to long. AA is the guru.;)

It could be a while to be honest, I believe a PhD in 'Talking bollox' is required................. and before anybody says anything.....just don't ok.:D

chucky

ad9898 wrote: »

It could be a while to be honest, I believe a PhD in 'Talking bollox' is required................. and before anybody says anything.....just don't ok.:D

i'll pass on that one

how come AA is popular on othe forums too?
http://www.landlordzone.co.uk/forums/showthread.php?t=14876&page=3&highlight=ajay

brit1234

ajayahuja wrote: »

socks, trolls? why do people waste time posting silly pics. i used to be a teenager once, but come on guys. do you want to make money or post silly pics and call people names?

I have no idea what you mean.

Ajay's new office
A monitor now for every day of the year
:rotfl:

GazTops

Ajay, given your assertion about the continuing 'pent-up demand' for property - you might want to visit this website.


ww.emptyhomes.com

(had to leave out the first w due to being a new member)

This suggests c.800k empty properties in England alone - many being buy-to-sit, rather than BTL.

Then again, you're focussing in Scotland only, so this may be misleading as Scotland is a long way from the English border.

p.s. I rent out a 4 bedroom house in Glasgow and recently had my rent reduced due to the excessive number of available equivalents. Is this a Glasgow-only thing?

p.p.s. One of my Uni mates rents out a three bed end-terrace in Edinburgh and had his rent reduced (marginally), as he was considering moving to a cheaper local property. Is this just an Edinburgh....sorry just a Glasgow-and-Edinburgh thing?

ajayahuja

brit1234 - like the pic. u r in the lead!

regarding interest rates over a 25 year period. you must budget an average rate. every good investor will do this. this is why i invest in high yield. it gives me a comfort zone for rate rises. i buy at 12% yield. so if rates rise to 12% i am breaking even.

to consider rates in 10 to 15 years you need to consider the rent in 10 to 15 years. at a 3% inflation rate (based on long term averages) rent will be around 50% higher.

so your cashflow, if u do not remortgage, just gets better year on year if you just compute the long term averages. as long as there are no spikes to the market you are fine.

now a spike that did occur is the credit crunch. lending got withdrawn suddenly catching out a few. however the govt stepped in and lowered rates which helped us all out.

you have to have faith that the govt does not want to see businesses like mine or any other go bankrupt. as long as you take calculated risks you will be fine.

hoggums

This is all very well as long as you don't have to pay maintenance on the BTL's such as boiler inspections.....

http://www.residentiallandlord.co.uk/news1797.html