Buy to let fever?

F_T_Buyer

What a joke.

They say the minimum return should be 5% (still very low IMHO) then say the best place to invest is Oxford. Flat £300k, rent £1200 - Yield 4.8% dear oh dear... is that the best example Kirsty?

Clearly ramping the property market.

Oh, and Kirsty has been trying to sell her flat for ages... it was in the Times last year!

nmiah786

lynzpower wrote:

Not just me noticing that then.. wasnt the only thing she wasnt quite correct on was it :rotfl:

Thank god for that...thought I was going deaf!!!

Like Tom, I found the bit about 30% to 60% price predictions quite ridicolous (sp?)......"so in 5 years time the average property could go from £200k to £360k....."

Wacky........House price crash.....bring it on!!!!

Rob76

Thanks MeanMachine, I like to keep an eye on a few areas I know a bit about to see what’s going on. The published stats for housing have to be treated very carefully and the only one I really trust is the individual sale price from the land registry. The main reason that Manchester city center flats have dropped in the way they have is oversupply, but looking generally across the country I think there are more fundamental reasons why house prices are unlikely to rise further.

I believe we are generally at the upper boundary for house prices for the current interest rate / average salary combination, now that mortgages are generally obtained on the basis of the current monthly cost rather than the total cost over the life of the loan at more sustainable interest rates. With low salary inflation and the higher likelihood of increased interest rates, coupled with relatively higher cost inflation of necessities I would expect that upper boundary to be reduced, and with it house prices on average, across the country.

The trouble with trying to predict the course of house prices at national or local level is that there are too many variables involved to create an accurate model and many of the factors that must be considered cannot be accurately predicted themselves. In my opinion, the most accurate prediction that can be produced today would be a percentage chance of prices being within a certain range on a certain date. Anyone making predictions that house prices will be +x% or –x% in y months, will ether be wrong or very lucky.

Getting back to the programme, if anyone mistakes an hour of filler on C4 for investment advice then they will probably get the returns they deserve.

tomstickland

It's all about buzzwords. It's cool to have "an investment portfolio" don't ya know?

lynzpower

All those comments about high rents near hospitals might throw up some difficulties with such widespread NHS redundancies.

BobProperty

tomstickland wrote:

Right, I've just watched the program and it was a confusing mix of meaningless waffle and soundbites with some serious info buried in it, maybe to make it seem more trustable.
According to Kirsty, investing in the wrong place could give you a "headache", is that an "achey wachey lickle head ache" then? Make the wrong decision and you could end up with "a slow burner". So the worst outcome would be a slow growth rather than a massive growth. For every hot spot "independant market advice" predicted a 30,40 or 50% growth in the next 5 years.....

Couldn't agree more. I've made notes while it was on and I've just been looking at the channel 4 website re Manchester. I think some researcher just phoned an estate agent up and wrote up the details later after a bit of "Googleing". Quotes off the website like "Meanwhile, the city’s large student population (39,444 of them) tends to rent in Castlefield, Hulme and Withington." don't fill me with any confidence that they know what they are talking about. Any Manc or Stopfordian know there's a hell of a lot of students in Fallowfield and Rusholme (probably more than in Withington and Castlefield) but they don't get a mention. The prices and rents of city centre properties has already been covered.
Also, what did Phil say at the end? something about following our 3 rules of "Right place, right time and ?" yet the website has 6 rules and I don't remember either of them mentioning timing?
Finally from the website:
"To make a rental property worthwhile it needs at least a 5% return"
I ask the question "Is this a business or a bank deposit?

nmiah786

diddydi wrote:

Because he has a 1 million pound portfolio

Just out of interest what proportion of that £1M portfolio is mortgaged?

gallygirl

Overall I thought it was reasonably balanced. And I have to agree with Camden. The area around Kings Cross Thameslink is an absolute dump - but if you look UP the buildings are actually lovely. Billions of investment in the area, the most beautiful station in the world (IMHO) shortly to become the new Eurostar station. I wish we'd bought there a few years ago, but less face it prices have never been cheap, just with hindsight.

The problem with the top 10 is that they are all already so expensive. We couldn't afford to borrow 250k for a property in Oxford etc, only in Easington could you buy for less than 100k.

Looks like Korea to me (she says, opening atlas at random). ......
eureka!!!! think I've stumbled on something, can't find any for sale!!!!!:j

BobProperty

Carrying on reading the website and I get the distinct impression that parts of it were written by someone who didn't read the TV programme script.
From the website:
Golden rule 4 of 6:
"Restricted supply of property
Oversupply of property is bad news if you’re looking for a buy-to-let property. A large number of new homes that are not selling where many people have pre-bought as an investment suggests that investors are putting all their eggs in the same basket. As a result they end up competing with each other for the attention of potential buyers/tenants. This could mean that the investor has to offer discounts to stand out in a densely-packed market. Bad news for the property owner."
You mean some BTL buyers have made mistakes :eek: surely not?
You can't mean there are places with falling prices and falling rents, can you? double :eek:
Wouldn't the above be good for FTB?
The above also implies that it is better to buy somewhere elsewhere than where the crowds are buying (oh dear).

lynzpower

Bob,
was that a one bed flat in reddish?