buy to let - buy now or wait!!!!!

IT_nerd

nrsql wrote: »

I've seen predictions of 35% fall over the next few years.

Is that not from peak prices?

TDS_2

Amar1 wrote: »

Though I agree in once sense, in another with the market being the way it is, there are some real bargains around the market...

'Real bargains' relative to what? Aug 2007 prices?

It's clearly a better time to buy than Summer 2007, but then you could've said the same at Easter.

I suggest that the OP considers why it is that they are so keen to invest in property. Is it because they saw many people getting rich in the last few years of boom? If you have the means to buy a BTL at current prices, why not sit on that deposit and see what happens. If prices continue to slide, you will be able to buy more for your money. Prices are not going to shoot up even once the bottom is reached, so don't be afraid of missing the bottom (said the actress to the bishop).

A lot of ppl (inc. the OP by the sounds of it) are still blinkered into thinking that BTL is a one way road to riches. "If BTL was working in 2006/2007 (it wasn't) then why not buy now at these 'crazy low' prices?"

Amar1

TDS wrote: »

'Real bargains' relative to what? Aug 2007 prices?

It's clearly a better time to buy than Summer 2007, but then you could've said the same at Easter.

Hi TDS,

When I wrote real bargains I did not mean in comparison to Aug 2007 prices but rather in terms of what I perceive future house prices will level out at or even in some cases rise to. Real bargains such as repossessed houses in a very nice area which can get a good rental yield in the future and will likely have a standard increase in value in comparison to the purchase price. I have seen a few of these and have stated that these could be a real bargain in the market will change that way.

nrsql

earlgrey wrote: »

Isn't the major difficulty that there's no certain way to get your sums right? Without knowing what the capital loss will be aren't all sums nothing more than guesses?

I'm also not sure I buy into this long-term/short-term idea. Losing capital short term will still effect the long term outcome.

Nope. If you just consider the cash flow then you will be making a profit whatever happens. Doesn't matter if prces continue to fall.
Of course when you come to sell many years hence it would be nice if the property has appreciated but you will have all the profit accrued in the meantime.

Problems come when pople run proprties at a loss and hope to profit by appreciation meaning they are trying to predict the market.
Rntal values are a lot more stable so not so high risk.