house price falls help buy-to-let investors

Heyman_2

silvercar wrote: »

Well the more people who can't get a mortgage to buy, the more tenants there are.

The more people buying property to rent out, the more properties available.

Should balance out. The people that will lose out will be the tenants with bad credit/ rely on benefits who will be squeezed out of the decent properties by the renters waiting to buy.

Fair point. I actually think the bigger problem will be the gap between what BTL-ers want to charge in rent and what people can actually pay.

Then you get the problems of the amateur landlord not paying the mortgage with the rent they receive and getting repo'd :rolleyes:

It's all speculation I suppose but my feeling is that now isn't a good time to get into BTL. Maybe another year or two when property prices are rock bottom.

Really2

Heyman wrote: »

It's all speculation I suppose but my feeling is that now isn't a good time to get into BTL. Maybe another year or two when property prices are rock bottom.

The other view is though if you are cash rich what provides a return at the moment?
We saw what happened yesterday and the posts following it.

besonders1

Well good for them! Most of the houses BTL's have in their price range are the grotty, boarded up, rough terraces in areas that FTB's would never dream of buying anyway, these are the ones that are the first fall in value, so savers that decide to do this will lose they're capital quicker than just having the cash sitting in their bank account.

cootambear

Topov wrote: »

... and mortage rates are going through the roof.. and workmen are back in short supply and demanding the earth for the tiniest jobs... and carpet and furnishing places are coming out of recession and getting rid of all the current discounts (and putting up prices due to inflation)... and the stamp duty holiday has ended...

There are a lot more things to consider than just the purchase price of a house.

Is this the first prediction of the next house price crash, before this one has even bottomed?

Sir_Humphrey

Really2 wrote: »

I would of thought cash buy would not be leveraged at all?

Could it be those nearly retired savers are now looking to get a return on cash?

Leverage, or no leverage, it is still depreciating!

Really2

Sir_Humphrey wrote: »

Leverage, or no leverage, it is still depreciating!

Agreed, the people what i heard about were the old type of landlord (already own 1/4 of a town).
So It was not you new armature type. I am not sure how important depreciation is to them as they have had portfolios going back a couple of century's and will most be past on to future generations:)

pyewackitt

So... let them buy...

They won't prop up the market, we will still see falls... they will however cause rents to become even cheaper (yay) and will suffer capital loss on their houses as prices keep falling because of bankruptcies/redundancies/downsizing/retirements and the fact that with FTB mortgages being so hard to get and the deposits needed larger than at any time for 10 yrs the typical 'housing chain' is broken with no FTB at the bottom of the ladder.

Almost every major housing price crash has a mini rally full of suckers who think that either the bottom is reached or that houses are good value (because they are so used to seeing extortionate pricing a minor fall seems more 'affordable'). These rallies often last a few months before reality sets in and they realise that prices are dictated by the widers economy... not the other way around... i.e. that if people are still losing jobs and businesses collapsing there aren't enough buyers to maintain said rally and the collapse recommences. On one hand a small rally is good because it indicates new lows will be reached, on the other hand it can 'wipe out' those who mistake it for a full recovery... DYOR

JonnyBravo

pyewackitt wrote: »

So... let them buy...

They won't prop up the market, we will still see falls... they will however cause rents to become even cheaper (yay) and will suffer capital loss on their houses as prices keep falling because of bankruptcies/redundancies/downsizing/retirements and the fact that with FTB mortgages being so hard to get and the deposits needed larger than at any time for 10 yrs the typical 'housing chain' is broken with no FTB at the bottom of the ladder.

Almost every major housing price crash has a mini rally full of suckers who think that either the bottom is reached or that houses are good value (because they are so used to seeing extortionate pricing a minor fall seems more 'affordable'). These rallies often last a few months before reality sets in and they realise that prices are dictated by the widers economy... not the other way around... i.e. that if people are still losing jobs and businesses collapsing there aren't enough buyers to maintain said rally and the collapse recommences. On one hand a small rally is good because it indicates new lows will be reached, on the other hand it can 'wipe out' those who mistake it for a full recovery... DYOR

Whoa there fella.... a little bit of your spittle headed for me then..... slow down, calm down dear, it's only a silly newspaper article

pyewackitt

JonnyBravo wrote: »

Whoa there fella.... a little bit of your spittle headed for me then..... slow down, calm down dear, it's only a silly newspaper article

It's unfortunate but sometimes people mistake newspapers for publications that tell you what to do or what's going to happen... really they just tell you a selective bunch of stuff that happened yesterday presented in line with the opinions/predjudice of the journo reporting the story.

Anyways... here's a hanky :beer:

kabayiri

Topov wrote: »

Does no one learn anything from History?

Mr Brown doesn't learn, and he is supposed to be a historian!

It all comes down to the Puntability Ratio (ok, so I made this term up).

Oop here in the north west, there have been a few half decent properties coming up in the auctions for between 60K and 100K. Again, as others will mention, location is important.

We have discussed it in this here household. If you have the cash, and treat it as at least a mid-term investment, I can't see the problem ?