BTLs, are you planning to sell?

GDB2222

gallygirl wrote: »

I sold 2 BTL's in Oct 06 & Feb 07. Seriously thinking of going back in with a yield in excess of 4% but which would clear a repayment mortgage with £80 pcm to spare, or IO with £130 spare (we're talking bottom end, 3 bed (with conservatory ), ok area, asking price 59k).

Where do you get a 3 bed house for 59k?

rent_and_buy

I think if you have planned it right then btl landlords wont have to sell, the ones who will have to sell are the ones on tackers and variable rates, who have no equity in their properties, i mean a 2% tracker above base rate is okay now, what happens if it goes up to 5%, then you will see them panic, and they may have to sell.

I have a mate who has a flat he rents out and a house and they are both mortgaged up to the max, has soon as rates go up, which they surely will he will be in a mess.

I still think the house prices will fall more, the sooner the interest rates start going up more house will come on the onto the market has forced sales, this will be the same for normal house owners has well as btl landlords, its a shame, but like someone said if you have the money in the first place it seems to be these people who make the money.

Dithering_Dad

Thrugelmir wrote: »

Low interest rates were funded by the availability of cheap credit raised on the wholesale markets. We are not talking about BOE base rate, but actual mortgage rates. The cheap money funded all the low tracker rates and fixed mortgage rates. The majority of the larger lenders have already based their SVR at base plus 2%. Nationwide BS has already announced that do not intend to follow the BOE base rate with their SVR. The reason being that they need to offer depositors attractive savings rates to raise capital.

A number of the points you made in your post show a lack of understanding of the financial markets. Low interest rates aren't in place to stimulate spending. In summary they are low to enable the banking system to function properly. Also interest rates don't track inflation they are set by the BOE in an attempt to control inflation.

Whilst a considerable number of us speculate. At least we it in an informed manner. Yes we debate and disagree as we cannot predict future events. And more than likely revise our views week to week.

I have learnt a lot myself from being on this board and would never disrepect someone for their views. As different views make markets function.

Are you a BTL investor?

Thanks Thrugelmir, I couldn't have put it better myself. It's surprising how many people think mortgage lending rates and the BoE rates are one and the same.

The blank statement about BTL not being high risk and shares being high risk reveals a complete lack of experience in investing. I did enjoy the magician trick of distraction: make a short statement where it's clear you don't know what you're talking about and then quickly move onto a completely different and unrelated subject where you do have some little expertise (casino gambling) to distract us from the initial hopelessness of her financial understanding.

All good fun

Dithering_Dad

macaque wrote: »

I came close to giving you a 'thanks' for that effort. Now that would have been a turn up for the books.

Why? I don't remember us having had a 'run in' on the forums and I also believe we are of an accord as far as BTL's are concerned - i.e. we both don't think it's a financial strategy we'd like to pursue.

StevieJ

gallygirl wrote: »

You are not supposed to work out yield on that. You are supposed to work it out on current value. So, 2 years ago your 250k flat yielded say 5%. Now it's 'worth' 175k, on same rent, so yield is over 7%. It's a better investment . There's lies, damn lies & BTL analysis.


I think I may see a green shoot (better get the slug pellets out pronto )

I think Purch understands that :rotfl:

julieq

Dithering_Dad wrote: »

Thanks Thrugelmir, I couldn't have put it better myself. It's surprising how many people think mortgage lending rates and the BoE rates are one and the same.

The blank statement about BTL not being high risk and shares being high risk reveals a complete lack of experience in investing. I did enjoy the magician trick of distraction: make a short statement where it's clear you don't know what you're talking about and then quickly move onto a completely different and unrelated subject where you do have some little expertise (casino gambling) to distract us from the initial hopelessness of her financial understanding.

All good fun

I'll debate any subject you like DD, but I suspect I have a little more experience in risk management and investment than you do.

Why not start by explaining why you think share investments are lower risks than BTL? I've explained why I don't think they are, so you could always engage in the discussion instead of having a pally conversation with someone else on the thread. Did someone say deflection? :rotfl:

I don't think I said that base rates are the same as mortgage rates. But it is a closed system and they are closely related. What you haven't explained yet either is why you think rates will settle at a "natural" rate of 8%.

PS: just looked back at my "deflection": less than a third of it was about casino gambling, the rest was explaining and amplifying what I'd said.

gallygirl

StevieJ wrote: »

I think Purch understands that :rotfl:

Yes, worked that out , just pointing out how silly looking at stats can be. So, if I had no capital growth on the BTL's I sold I'd have had a yield of 14.5% :j but because of capital growth I 'only' had a yield of 5.2. Poor me .

GDB, try Kettering & Corby. For decent houses even cheaper, but not greatest of areas, try Wellingborough, such as THIS.

thekashmiriking

Hi people! Just to let you know...Mrs Rukhsana Kashmiri happens to be my mother lol and alot of what you are presuming is not true. My mum didnt try to evict them because the tenants kept giving excuses and false promises which never materialised. This went on for the most part of a year because my mum was being reasonable with them thinking they would pay up. It has now come to a point where she is fed up and wants either the rent she is owed or for them to move out. She only went on the BBC News because they said it would get them out quicker...lol. So there's the true story!!
CYA!!

FoxtonsRIP

Are you a Sockie chum?

Dithering_Dad

julieq wrote: »

I'll debate any subject you like DD, but I suspect I have a little more experience in risk management and investment than you do. .

Interesting... How can you say you have more experience in anything than me? I don't know you from Adam (and vise-versa) and have never come across you on this board before (or have I? ).

To be quite honest I did type a paragraph out about the different types of share investing; speculative penny shares in start-up enterprises compared to shares held in safe and solid Utility/Oil companies, to illustrate a risky share against a safe one, but then decided I really couldn't be @rsed and deleted it. The tone and aggressiveness of your posts has raised a red flag and I don't want to get into a discussion with someone who seems to just want an argument.

I will simply say that if you think BTL is right for you and is less of a risk, then good luck to you. I feel that I prefer shares, and will stick with that. Your money is your money, my money is my money, ours to invest as we wish. I wish to invest in shares, thanks.

Good luck with whatever you choose to do with your money.