house price falls help buy-to-let investors

JonnyBravo

pyewackitt wrote: »

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

Oh thanks, that's much better

pyewackitt wrote: »

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.

A bit like the opinions here then really.... everyone's opinion is of course influenced by the position they find themselves in. (Yes I include myself)

Entertainer

A yield above 5 per cent is good enough to convince many, says Yolande Barnes, of Savills.

"Hi. I'm a buy to let investor and I don't like money."

socrates

This particular brand of BTL investors are another amateur bunch - who are getting sucked in.

The real players are working on around 10% yields for residential and 6.5% for commercial.

Commercial property is selling like hot cakes at the auctions they have never had it so good.

Personally I will only buy at 10% yield - I do not care if we are at the bottom or nearly there - that % allows for a multitude of outcomes and scenarios.

RomansProperties

I agree with socrates.

I have just purchased a property where the vendor saw us working on a house on the next street. Approached us in Spetember about it and decided that in Jan of this year if were wanted to buy it, they would act as the mortgage company.
Want a 10% deposit and charge a rate of 3.69%.
They owned the house with no mortgage so just wanted some kind of return and no hassle of selling the house.
I will get a return of about 14% when I have spent about 20k on refurbishing the property.

There is now more properties which people can buy to make good returns out there. I have spoke to a few agents and more and more investors are asking for property details

b0rker

Topov wrote: »

I read somewhere that there has been a temporary surge in the number of houses up for rent due to desperate home owners renting out their homes because they cant afford the mortgage and cant sell

As the SVRs are so low these are likely to be people who are still stuck on fixed rates and have lost their jobs and have been unable to get any work that will cover their outgoings?

How many people will actually be in these circumstances?

http://news.bbc.co.uk/1/hi/uk/7927504.stm

b0rker

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 professional (cash rich) investors are the ones who will take the risks and make major profits out of the favourable current conditions.

The amatuers will play it safe and sit and wait for the definite bottom and miss the boat.

benood

socrates wrote: »

This particular brand of BTL investors are another amateur bunch - who are getting sucked in.

The real players are working on around 10% yields for residential and 6.5% for commercial.

Commercial property is selling like hot cakes at the auctions they have never had it so good.

Personally I will only buy at 10% yield - I do not care if we are at the bottom or nearly there - that % allows for a multitude of outcomes and scenarios.

Interesting Socrates - I'm looking for 10% on residential but if anything I'd expect more from commercial typically I see 6.5% being achieved on residential and 10% on commercial - but I suppose it depends exactly how blue chip your commercial tenants are and how long their leases run.

Thrugelmir

Entertainer wrote: »

A yield above 5 per cent is good enough to convince many, says Yolande Barnes, of Savills.

"Hi. I'm a buy to let investor and I don't like money."

What's required at the moment is a little patience. To commit large amounts to one type of investment in the current economic climate seems pure folly. Whether it be property, gold, shares, bonds, wine or whatever. More so when people think that a 5% yield is a good return for a potentially high risk investment.

Opportunties will arise to invest in the future, but one things for sure we're in a rut for a while to come.

A general election really needs to come sooner rather than later. So proper long term policies are put into place. The manipulation of the press to bury the real news by creating a public frenzy discussing of Godwin's pension is a classic example.

pyewackitt

b0rker wrote: »

The professional (cash rich) investors are the ones who will take the risks and make major profits out of the favourable current conditions.

The amatuers will play it safe and sit and wait for the definite bottom and miss the boat.

Houses don't drop or recover like stock markets can - they don't do big 5-10% gains or losses in a day... when the bottom is hit it can stagnate or stay in about the same range as the low for up to a year or so (obviously this changes from region to region) so there's little chance anyone will 'miss the boat' when the prices are at there lowest if they are ready to move fast.

Similarly property prices usually slow down in the velocity of change before the bottom... at the moment neither Nationwide or HBOS/Lloyds figures suggest the velocity of change downwards has slowed.

Have a look at:

http://www.housepricecrash.co.uk/graphs-average-house-price.php

socrates

benood wrote: »

Interesting Socrates - I'm looking for 10% on residential but if anything I'd expect more from commercial typically I see 6.5% being achieved on residential and 10% on commercial - but I suppose it depends exactly how blue chip your commercial tenants are and how long their leases run.

The blue chip tenants are achieving 6.5% - the Limited Company ones are more - even up to 15% outside London - but how safe are they?