Buy to let fever?

Dan29

meanmachine wrote:

No, that's not my definition, thank you very much.

So when you say "It's impossible to make money" you mean "It's virtually impossible to achieve a yield in excess of approximately 8%"?

I agree that people shouldn't be making investment decisions based on tv programmes of this type, but if you're discounting capital appreciation, shouldn't we do the same when judging how much money can be made from shares?

BobProperty

The biggest difference (and problem) with shares v property is that most property investors are borrowing money. If you are paying cash for your properties then 8% might be OK as a return (I still think it isn't). But if you are borrowing 85% of the cost at 6%, and getting a 5% return, you are in trouble unless property prices and rents rise at a significant rate from day one (and that ignores voids, problem tenants, etc.). At present, I can not see how the property market can continue to rise at say 8% when wages aren't doing half that.

meanmachine_2

Dan29 wrote:

So when you say "It's impossible to make money" you mean "It's virtually impossible to achieve a yield in excess of approximately 8%"?

I agree that people shouldn't be making investment decisions based on tv programmes of this type, but if you're discounting capital appreciation, shouldn't we do the same when judging how much money can be made from shares?

Wow. Now you're comparing property to shares.

Can of worms, my friend.

Stock market crash - I lose the shirt off my back.

Property market crash - I'm potentially homeless.

If you're comparing shares to property then you're basically acknowledging that it's a very high risk venture. I quite agree my friend.

Sadly, most people who watch these infotaintment shows think it's a one-way bet.

BIIIIG mistake.

FaTB

The BTL ship sailed long ago, and it was called Titanic !!

UK_Landlord_2

Rubbish.

spot on, plenty of money left in property. you just have to be a bit smarter these days ;-)

Deemy

Really... people are not walking but running off the cliff !

You think 1990 was bad ? You wait and watch and prey you survive the chaos thats to follow....

stay tuned...

Pay down your debt while you can, cos the world is headed for a big financial shock when it tries to correct the ginormoous imbalances around the world namely the trade and budget deficit / surpluses.

The writings on the wall... like the titanic, were heading straight for the iceberg, but people carry on drinking wine and dancing their merry buy to let dance !

nelly_2

agreed this is going to be much bigger than 1990.

It has started allready remember all the job losses back then, its happening now too.

meanmachine_2

nelly wrote:

agreed this is going to be much bigger than 1990.

It has started allready remember all the job losses back then, its happening now too.

Naively I actually thought that, back in 2004, some logic had entered the property market and that a soft landing might be achieved.

Now I see that it's a wildly irrational beast and can't be contained.

It's like a rabid dog running full speed into a brick wall. EAs, sellers and buyers keep kicking the dog to make it go even faster, but it'll hit the wall eventually.

That five year time frame, before we reach absolute unaffordability, 1989 style, could arrive much sooner than I think. Painful to observefor those priced out of the market, but all things balance out in the end.

You either ride the rabid doggie (thinking it's healthy and full of life), or you stand well back.

Tassotti

The only property investors that lost money in the last crash are the ones who lost their nerve, and sold.

The brave saw it through and are now financially free.

sm9ai

Tassotti wrote:

They should cut their losses and get back on the ladder now before its too late. :mad:

I do love this phrase and it comes up a lot.

Too late for what exactly? how will this effect your children, your childrens children etc. At this rate house will be over the million mark and no future generation will ever own a house :rotfl: