Investors Moving In?

wibble68_2

Hi,

I've been studying the market in the Didcot area for quite a while now.
Prices have gradually come down over the months and occasionally the more realistically priced houses will sell.

However, in the last week or so there have been an abnornal amount of sales for the current market.

My guess is that investors are starting to move back in to the market.

Any thoughts on this regarding the Didcot (Oxfordshire) area or indeed your own areas.

BuddyBonthenet

I just watched Homes Under the Hammer this morning and one of the people who bought a property at auction in July 08 in Marple (Stockport area on commuter belt for Manchester) had already bought 8 properties as investments that were now let out.

In the Nov 08 update the buyer said he had already bought two other properties, was in the process of buying one other, was actively looking at buying two others and would continue to buy for the next year or so, as he was now buying properties for 30%-40% less than they were worth 12 months ago. He does buy properties at auction that need work, but he was then renting each one out so that the income financed the work on the next property.

BTW he was still working full time whilst doing all this!

besonders1

Well its a gamble, Most BTL investors I have seen are doing the exact opposite and trying to off load houses at high prices although it tends to be those which have bought houses in affluent areas rather than the "undesirable" types that seem to only sell at auctions.

stephen163

BuddyBonthenet wrote: »

I just watched Homes Under the Hammer this morning and one of the people who bought a property at auction in July 08 in Marple (Stockport area on commuter belt for Manchester) had already bought 8 properties as investments that were now let out.

In the Nov 08 update the buyer said he had already bought two other properties, was in the process of buying one other, was actively looking at buying two others and would continue to buy for the next year or so, as he was now buying properties for 30%-40% less than they were worth 12 months ago. He does buy properties at auction that need work, but he was then renting each one out so that the income financed the work on the next property.

BTW he was still working full time whilst doing all this!

Owning that many BTL's is a really precarious position to be in IMO. I hope he's factored in what he'll do when interest rates go back up and the mortgage payments are greater than the rent receipts. I reckon that's going to catch out a lot of people.

fatpig_2

stephen163 wrote: »

Owning that many BTL's is a really precarious position to be in IMO. I hope he's factored in what he'll do when interest rates go back up and the mortgage payments are greater than the rent receipts. I reckon that's going to catch out a lot of people.

With a bit of luck the swine will all end up in the bankruptcy courts.

socrates

fatpig wrote: »

With a bit of luck the swine will all end up in the bankruptcy courts.

You should not wish these type of things upon your own family!

mewbie_2

wibble68 wrote: »

Hi,

I've been studying the market in the Didcot area for quite a while now.
Prices have gradually come down over the months and occasionally the more realistically priced houses will sell.

However, in the last week or so there have been an abnornal amount of sales for the current market.

My guess is that investors are starting to move back in to the market.

Any thoughts on this regarding the Didot (Oxfordshire) area or indeed your own areas.

It's misguided? Start of a bad recession with house prices forecast to drop this year alone by another 15%. What sort of 'investors' are these I wonder? Do they think the rent will cover the mortgage as jobs disappear and credit tightens yet further?

Oh I know. They're the ones with cajones for brains.

Geenie

mewbie wrote: »

It's misguided? Start of a bad recession with house prices forecast to drop this year alone by another 15%. What sort of 'investors' are these I wonder? Do they think the rent will cover the mortgage as jobs disappear and credit tightens yet further?

Oh I know. They're the ones with cajones for brains.

Or maybe they are the ones who have a lot of money sitting around in accounts not earning much interest, and want to reinvest stocks and shares in something else apart from a Madoff type scheme. I only say this because my daughter has just taken out a tenancy on a new build flat for her 2nd year at Uni along with several others in the block, and the dad of one of the students who is a long time investor in property was apparently trying to buy the flats off the developer, but they wouldn't sell as only for rental!

geoffky

90% of investors lost the shirts off their backs when the stock market crashed and they all piled in and thought it could not go down any more...but oh boy it went down a lot more and wiped a lot of people out...same thing will happen here....

Degenerate

If one is to believe the doom-mongers here that we are all headed for a hyper-inflationary financial armageddon, then tangible assets like houses and land are the safest place to put your money, regardless of their decreasing nominal values in a currency that, allegedly, is soon to be rendered worthless.

Cleaver

geoffky wrote: »

90% of investors lost the shirts off their backs when the stock market crashed and they all piled in and thought it could not go down any more...but oh boy it went down a lot more and wiped a lot of people out...same thing will happen here....

I disagree. Houses have tangible values to them in that you can live in them. 30,000 shares in boo.com has no value whatever once boo.com falls out of existence. I still think we'll see falls of 15 or 20% this year, and that's a good thing, but I don't think we'll see massive 70% falls like some on here. Don't really care if we did though, as I'd get myself a lovely 2 bed penthouse in a converted old building in central Manchester for 60k. Can't really see this somehow.

And good for people for buying houses if that's what they want to do. A lot of them will be people who have good deposits, want to buy a pad and simply want to get on with life. If they are BTLers then they are nuts, I couldn't think of a worse time to buy. But as for people wanting a home? Let's hope they have done their sums and good luck to 'em.

Remember that 95% of the population don't have the time or inclination to spend 3 hours a day on an internet forum debating the exact point of getting 'back in to the market'. They just see a house they can afford, possibly think "Hey, it's 50k cheaper than last year, let's just buy it".

I realise now that I've just posted things that were coming in to my head that have no reference to the point I quoted or indeed the thread I'm posting on. Maybe I should just randomly project all of my opinions on here whilst I have the chance. Erm... let's see... well, I shouldn't like Girls Aloud but I actually think they have some really catchy pop songs and a few actually sound a bit like Nine Inch Nails if you listen right. If you're having pate on toast, I always think it's best to let the toast go cold before spreading the pate. If you do have to buy a ready made pizza rather than make your own, get some fresh oregano to cut up and put on the top when it comes out of the oven, it makes all the difference. If you have never made your own pizza from sratch, do it tomorrow and you'll feel ace about yourself. Channel 4 used to have some interesting programmes, but is now mainly an excuse to show breasts in the form of 'documentaries' (or 'breastumentaries' if you will). Avoid Starbucks: if you ever pay more than £3.50 for a cafe coffee when you're not in an airport, train station or motorway services then you need to reassess your priorities. If you're eating out, eat dirt cheap street food or push the boat out and have something really special, as all the restaurants in the mid-range prices will just disappoint. Apply that same theory to travel too - stay in the penthouse suite or in a hostel with backpackers, you'll have a better experience either way than the Marriott or Ibis. If don't play chess, you should learn. It's not as geeky as you think and is a great way to help you think about things in a different way.

Right, I think that'll do.