Masive collapse in rental values - 3-4 years till prices bottom out

brit1234

Anecdotal information on Buy to Let Collapse and staving repossession.

On todays Working Lunch a struggling long term landlord and how he tries to survive.

Summary

1. 4 out of 13 properties empty.
2. Rents slashed to get tenants in
3. 1990 rent £1700, now lucky to get £1300 a month
4. No upside for 5-7 years
5. Banks want to repossess flats
6. Can't sell properties
7. When to buy again, 3-4 years for the property market to bottom out
8. Large waves of forced sales.

:eek:

Enjoy video below:
http://www.bbc.co.uk/iplayer/episode/b00h5w60/Working_Lunch_23_01_2009/
17:30 mins in and 5 mins long

skap7309

With every passing day it seems the bottom of this crash is getting further and further away. This is big time now, whilst at the same time quite a scary prospect.
We had one hell of a bubble and i firmly believe that we are gonna have one hell of a crash. Possibly Japan style. This is a bad GLOBAL recession so it is going to be years before the good times return.

thebaldwindowfitter

in the bible which by sum is hailed as the biggest prosperaty hand book it says many times ask and though shalt receive .with this recession i think there are to many people asking for just that.money is made round to go round

carolt

brit1234 wrote: »

Anecdotal information on Buy to Let Collapse and staving repossession.

On todays Working Lunch a struggling long term landlord and how he tries to survive.

Summary

1. 4 out of 13 properties empty.
2. Rents slashed to get tenants in
3. 1990 rent £1700, now lucky to get £1300 a month
4. No upside for 5-7 years
5. Banks want to repossess flats
6. Can't sell properties
7. When to buy again, 3-4 years for the property market to bottom out
8. Large waves of forced sales.

:eek:

Enjoy video below:
http://www.bbc.co.uk/iplayer/episode/b00h5w60/Working_Lunch_23_01_2009/
17:30 mins in and 5 mins long

Thanks Brit.

I'm sure lots of landlords will be along in just a minute to point out that it's all going swimmingly for them. :rolleyes:

PasturesNew

skap7309 wrote: »

With every passing day it seems the bottom of this crash is getting further and further away.

I've been thinking this for about 6 months now and my original (pre selling) plan was to buy in about 2012.... but now I'm wondering if I need to hang on a bit longer and go straight into one of those "over 55s" developments. If I bought in 2012 it'd be on my mind from day one when to move into something more manageable ... so it seems more sensible to just wait/save until I'm 55 and THEN buy by final house.

stevetodd

carolt wrote: »

Thanks Brit.

I'm sure lots of landlords will be along in just a minute to point out that it's all going swimmingy for them. :rolleyes:

Don't want to dissapoint you Carol, so here goes:

Where on earth did they find someone who gets less rent now than in 1990 (thats 19 years ago!), frankly I don't believe it. Rents have just about doubled in my properties since 1991 (I didn't enter the market until then). In fact they have more than doubled (but to be fair I discounted the very good improvements that I have made since then).

If he has owned the properties since 1990 and enjoyed the rising market, how come he is in equity trouble to the point of repossession, he doesn't strike me as very shrewd.

chucky

carolt wrote: »

Thanks Brit.

I'm sure lots of landlords will be along in just a minute to point out that it's all going swimmingy for them. :rolleyes:

My mortgage interest payments have dropped 100% with all of these rate cuts and rental rates have only dropped maximum 10% - yes things are going very well.
Thanks for the concern carol.

chucky

stevetodd wrote: »

Don't want to dissapoint you Carol, so here goes:

Where on earth did they find someone who gets less rent now than in 1990 (thats 19 years ago!), frankly I don't believe it. Rents have just about doubled in my properties since 1991 (I didn't enter the market until then). In fact they have more than doubled (but to be fair I discounted the very good improvements that I have made since then).

If he has owned the properties since 1990 and enjoyed the rising market, how come he is in equity trouble to the point of repossession, he doesn't strike me as very shrewd.

come on Steve - it's a Brit post!!!

he's the man that believes all of the 9/11 conspiracies and that Elvis is still alive!!!

stevetodd

chucky wrote: »

My mortgage interest payments have dropped 100% with all of these rate cuts and rental rates have only dropped maximum 10% - yes things are going very well.
Thanks for the concern carol.

Obviously good news for Carol if she is paying less rent now than she was 19 years ago, well done Carol!

silvercar

In the Times property section today there is an article that catagorises the newish BTL brigade into two groups, those that bought city centre apartments in modest incomed areas where there is a glut of similar properties and those that bought sensible homes in areas where there is a demand for rentals.

The first group MEWed their first BTLs to fund their next properties and it is this group that are in serious trouble, long voids, falling rents, inability to remortgage. Whereas the second group have just got on with their job of being landlords and can't believe that the first group existed.

Putting the two groups together shows how meaningless averages are.

silvercar

Article is also online:

http://property.timesonline.co.uk/tol/life_and_style/property/article5566194.ece

(but shorter for some reason).