Buy to let fever?

poopscoop

Conrad wrote:

I now seek new investments the crowd hasnt noticed yet.

So do many other people. It could be a change of legislation, a new law, piggy-backing off a dislocation, etc.

Conrad

meanmachine wrote:

So you're saying that a TV show recorded months ago and airing to 4million+ people is unlikely to contain any ahead-of-the-curve investment secrets?

As if...

And ten years' ago, it wouldn't have mattered. Most muppets wouldn't have had the means to borrow the cash to "invest".

Today, quite literally, billions could be funnelled in one direction or another, on the say so of a couple of telly presenters!

People is dumb.

Youve lost me here. Come again.

libitina_2

meanmachine wrote:

Six years ago I remember telly shows such as "How to be an eMillionaire".

A few hundred years ago Kirsty and Phil would have been flogging us tulips.

I hope the show is all about yields and why current prices (ramped uo by, guess who, Kirsty n Phil) now make it impossible to make money from this latest craze.

I wonder....

I posted a link to this thread on HPC and a member there asks

Television shows on "how to be an e-millionaire"? Does anyone remember any of these and can they tell us some details?

Billy Shears

meanmachine_2

Conrad wrote:

Youve lost me here. Come again.

Sorry. I'm agreeing with you.

A mass entertainment show is the last place you should look to for clever investments.

By the time Tarquin the TV producer has got wind of something, you know the smart money has gone elsewhere.

lynzpower

Better get on with popping that corn, only 2 hours to go...

meanmachine_2

libitina wrote:

I posted a link to this thread on HPC and a member there asks

http://www.ukgameshows.com/index.php/The_E-millionaire_Show

schoolsforschools.com was one of the winners.

And, yes, it's now defunct.

And like the new tech bubble, these dotcom shows didn't last long. Show Me the Money was another bandwagon jumper.

http://www.ukgameshows.com/index.php/Show_me_the_Money


The bloke in the street can't get their 'eads round stuff like shares, can they? Not like good old bricks and mortar.

tomstickland

Conrad wrote:

Well Im experienced. Ive sold my UK B2Ls in order to sweat the money harder in other investments including a commercial property, property in Berlin and now getting into Morocco.

Id rather set a course than drift on the tide with fingers crossed.

The reason I got out of B2L is litteraly every other person I meet is into it. A crowded market always holds a lot of danger. B2L used to be a niche business, now everyone from my Grandma to 18 year old kids have a portfolio.

B2L is being treated by millions of Brittons as a magic money making machine. In my expereince life just aint that simple.

I got in before the crowd, Ive gooten out before the crowd.

I now seek new investments the crowd hasnt noticed yet.

Makes perfect sense to me. How long until many people get their fingers burnt though?

Rob76

I’m very surprised to see that Manchester is being pushed as a BTL hotspot. There has been massive overdevelopment of the city centre flat market and combined an endless stream of people who thought it would be a licence to print money, the yields have nosedived. 35 The Ropeworks (M15 4QJ) is a pretty normal development, split between owner occupiers and BTL so it’s good to show the numbers:

Rental Yeild: Flat B48 is up for rent at £825pcm, was bought in Dec 2003 for £200,000. Income is £9900pa - £800 service charge - £120 ground rent giving a yield of 4.5% assuming no voids, repairs, management charges, etc. If it was bought with cash then that is an appalling return, if bought with a mortgage then it will be losing money every month.

But the Capital Appreciation means that loss every month is not too much to worry about, after all BTLs are in it for the long term… Afraid not. As you can see from the data from the last four resales, oversupply has hit prices pretty hard as well.

Flat B67
£235,000 20-Jan-2006
£295,000 24-Dec-2003

Flat B13
£135,500 11-Jan-2006
£117,500 06-Dec-2002

Flat B72
£215,000 30-Sep-2005
£319,000 24-Dec-2003

Flat B66
£192,500 26-Aug-2005
£234,000 23-Dec-2002

It will be interesting to see where this goes, I guess there is a nasty decision to take. Do you keep on making a loss every month or do you call it a day and capitalise a loss that will run into the tens of thousands? Time will tell…

bobsa1

I admit I am looking at increasing my small portfolio at the moment. I agree that it can be risky and voids etc just eat money.

Like all investments property is a risk and you really should know your market.

My opinion is that there are still some good places to invest, but they are few and far between.

What always makes me smile is the fact people see it as easy money. It is the hardest money I have ever earned and no matter what your capital increase it is never cash in the bank until you sell.

lynzpower

LOL kirsty ROLLING in cash !!