Titanic news: 90% of landlords decide to 'ride out' ice berg

macaque_2

Napoleon once described us as a nation of shopkeepers. He forgot to mention we were also stupid.

ALMOST 90 per cent of UK landlords have decided to ride out the credit slide and keep hold of their property portfolios.

http://www.dailyrecord.co.uk/lifestyle/homes-in-scotland/2009/01/31/landlords-are-keeping-their-portfolios-until-prices-rise-86908-21085420

CLAPTON

Obviously they should rush out and sell to all those eager buyers who will fund the purchases with those ready available BTL mortgages.... ....... maybe the French are buying with the cheap pound and all that

pararct

I thought it was a House Price Crash not a credit slide?
Anyway why should they sell if their circumstances are viable?

It will be a log time before we see the dizzy heights of 2007 in values again. Didn't someone mention the other day 2030? Most of them should have paid off their mortgages by then.

scousethife

macaque wrote: »

Napoleon once described us as a nation of shopkeepers. He forgot to mention we were also stupid.

Brilliant!

I properly lolled out loud

FungusFighter

If 90% are sticking it out, doesn't that mean that 10% are bailing?

How many is that - 10,000? 50,000? 100,000? 200,000?:eek:

Yup, that will help prices recover:rotfl: :rotfl:

Swipe

It's all going to end in tears

islandannie

Well I`ve decided to keep my property portfolio,it`s all mortgage free and provides me with a very hefty income.

Does that make me stupid?

Or can you suggest a better avenue for investment?

Alan_M_2

My neighbour is doing the same, he owns 15 properties (some of which are blocks of flats), all paid for, all rented and all bought over 10 years ago.....Why on earth would he consider selling now? He'd be insane not to hold onto them...(He's mid 40's - so by the time we've got over this one, the next bubble should be coinciding nicely with His retirement and he'll cash in for huge sums of money).......it's just a big merry go round.

dopester

Alan_M wrote: »

My neighbour is doing the same, he owns 15 properties (some of which are blocks of flats), all paid for, all rented and all bought over 10 years ago.....Why on earth would he consider selling now? He'd be insane not to hold onto them...(He's mid 40's - so by the time we've got over this one, the next bubble should be coinciding nicely with His retirement and he'll cash in for huge sums of money).......it's just a big merry go round.

Because house prices may well crash to levels pre-1998. Why not cash in rather than ride it all the way down - but fine... let him get schooled by the market. Any outstanding mortgages? If so, you and he might not think so but even glory BTL-boy might be snogging negative equity before we are through.

Maybe you should just look out and see the carnage so many of the banks are in, and we now have the government making noises to show how fearful they are of the market proper (for gilts and bonds ect).

Only a very few owners of a collapsing financial asset trade it for money at 90 percent of peak value. Some others may get out at 80 percent, 50 percent or 30 percent of peak value. In each case, sellers are simply transforming the remaining future value losses to someone else. In a bear market, the vast, vast majority does nothing and gets stuck holding assets with low or non-existent valuations.

islandannie

dopester wrote: »

Because house prices may well crash to levels pre-1998. Why not cash in rather than ride it all the way down - but fine... let him get schooled by the market. Any outstanding mortgages? If so, you and he might not think so but even glory BTL-boy might be snogging negative equity before we are through.

Maybe you should just look out and see the carnage so many of the banks are in, and we now have the government making noises to show how fearful they are of the market proper (for gilts and bonds ect).

So should i stick or twist?

trenchwars

Well that should keep rental prices depressed which will mean less incentive for people to buy which in turn will keep house prices down.