C & G tighten BTL lending criteria.

RomansProperties

4.8% is very low
There are a few terrace houses in the Leeds area now where you can get a 10% return.
Which should hopefully be enough for when the rates rise.

Thrugelmir

chucky wrote: »

to be fair to that comment about the yield - i wouldn't mind having a 4.8% yield on any investment during a recession.

people and landlords need to realise that there are good and better times with any investment. now isn't a good time.

Do some research and there are investments which on you can earn a 4.8% gross yield. Though of course like property there is a risk of capital gain \ loss.

During a downturn is the time to pick off good investments. As markets tend to move with the instinct of a herd. Successful investors take what is at the time a contrary view that in time becomes the next fad.

chucky

Thrugelmir wrote: »

Do some research and there are investments which on you can earn a 4.8% gross yield. Though of course like property there is a risk of capital gain \ loss.

During a downturn is the time to pick off good investments. As markets tend to move with the instinct of a herd. Successful investors take what is at the time a contrary view that in time becomes the next fad.

i wasn't disagreeing with you - just a comment saying that BTL isn't as bad it's made out to be, even during a recession.

capital growth on top of this yield is also a bonus that adds to the total yield once the property is sold.

crazygaijin

Yeah but what if its not capital growth but a huge loss? Then interest rates go back up and rents still tumble down even more, then you are talking about a negative yield.

I am interested AD9898 what do you think of this graph in my sig? Do you think we are in the bull trap now, with fear then capitulation still to come?

ad9898_3

crazygaijin wrote: »

Yeah but what if its not capital growth but a huge loss? Then interest rates go back up and rents still tumble down even more, then you are talking about a negative yield.

I am interested AD9898 what do you think of this graph in my sig? Do you think we are in the bull trap now, with fear then capitulation still to come?

Even though I'm a bear, I try to be at least a little balanced;), the bull trap does seem to be being created in the media, however in the real world I'm not sure it's happening, we need hard evidence of prices trending upwards for 2-3 months (as per the graph) and we need to see 'raised prices' on Rightmove actually selling. Although, as a bear, I find the recent media ramping irritating, it's little more than that at this time, and it's to be expected to be honest with the time of year, same thing happened last Spring, and look what happened.

I'm seeing neither at this time, so maybe the 'bull trap' this time won't be as 'good' as in previous crashes. My firm belief is all the economic indicators (unemployment, growth, future IR's, inflation, tax rises etc..) are all looking gloomy, any rise in house prices at this time will be totally unsustainable and will ultimately cause the crash to deepen as confidence ebbs away.

Gorgeous_George

Today is a better time to get into BTL than yesterday. Every day that sees house prices fall is better than the day before.

At some point, I might be tempted to buy another property or two but not until I think house prices are near the bottom. My one and only BTL cost me £15,500 in 2001 and I'd be happy to pay £50,000 for a similar property now that I know how easy it is to find quality tenants.

GG