Is the Smart Money Leaving Property?

mewbie_2

Looking at property seem to be quite a lot of nice rentable properties on the market. Wonder how many of those are BTL owned, trying to leave the market now before the next big dip?

2007-8 would have been a real shock for many. A little rise this year, sell quick, take a smaller hit than trying to hang on, changing other people's lightbulbs, for another five years.

Without HPI, being a landlord is not really where Mum and Dad's are at, especially if little one is going to need a 30k deposit soon for their own place.

Could be, and could trigger a more sizeable year of crashes.

HAMISH_MCTAVISH

mewbie wrote: »

Could be, and could trigger a more sizeable year of crashes.

And pigs might fly....:A

purch

changing other people's lightbulbs, for another five years.

That's what you have 'people' for !!!!!

mewbie_2

HAMISH_MCTAVISH wrote: »

And pigs might fly....:A

More likely to crash Hamish, especially if they are Singing Pigs.

Cleaver

mewbie wrote: »

changing other people's lightbulbs, for another five years.

I'll have you know that a letting agency used to rape us for 12.5% to change our lightbulbs on our behalf when we rented out a house.

Change our own lightbulbs? What do we look like, mugs?

phil_b_2

'Proper' BTL'ers don't buy a house and bail when the market dips a bit, they buy for the long term, and to have an asset making them money in their old age. You don't buy houses and flog them like stocks and shares.

Any BTL'er with at least a bit of intelligence won't bat an eyelid at the markets as they won't give a toss. They are still getting the same money each month and will worry about prices when they come to sell in another 30 years time.

There are of course those who were hoping to make a quick buck and bought at the peak but they are few and far between beleive it or not.

If you can get a property for a low'ish price, tart it up a bit and rent it out for the next 20 years it is still a great investment IMO.

mewbie_2

phil_b wrote: »

'Proper' BTL'ers don't buy a house and bail..

Maybe. But maybe they also see several years of flat or falling prices ahead and don't fancy holding all that risk. As for the non professionals, who saw a quick geared gain of life changing amounts of money - well now might also be a good time to cut and run.

I'm just looking at property for sale and thinking - that looks like a BTL, so does that one, and that one. Not family homes, but rental properties on the market. Two things about that. One is - they are not being snapped up anymore by the next generation of hopeful BTL owner / investors. And secondly - not every BTL owner wishing to get rid of their portfolio is going to announce it as publicly as the Wilsons.

Sell now, sell quick, and sell quietly. Maybe.

Thrugelmir

phil_b wrote: »

Any BTL'er with at least a bit of intelligence won't bat an eyelid at the markets as they won't give a toss. They are still getting the same money each month and will worry about prices when they come to sell in another 30 years time.

Ah the secret sucess of eternal money making is revealed. I've often puzzled as to why leveraging an asset for 30 years is such a draw.

As it obviously requires an enormous religous belief and endless prayer.

Something my limited attention span would have trouble coping with, bank a profit when you can mentality is my motto.

chopperharris

We have an advisement team for our money , its a considerable amount between the boss and I.One ifa on the books , fund managers commision and fees , three advisers paid quartely inlcuding an accountant.

I have asked every year for the past three should I get into btl , every year the answer is no.I even mentioned that a bond outwith the portfolio is maturing soon , 300k or so , and wanted to buy up some stuff at auction , still nope.

Well I have paid them all a few hunded thou over the last decade , the only thing i never listened to was to get into commercial and office property....glad I didnt listen as I seen the big one coming long before the experts.The adviser that mentioned that isnt on the team anymore , he was great on a personal level but not on a financial one , but he wasnt hired for finances... he was the reason why i brought in an ifa over and above what I had already.

A year ago I wanted to smack em all about , especially in march when our portfolios were valued at a drop of over 300k , 400k with fees and lost interest compared to being in a bank.Well its only a loss when you sell up.I admit i was thinking to do it to minimise losses , but thankfully i didnt....now the loss on valuation is just under 75k.Technically its more if you include the fees/lost interest etc , but still could have been worse.I reckon that the 75k down will take a while to get back as it was through selling underperfoming funds....but hey theres the tax break for this year ...woohoo.

Not one of them have suggested holding gold , or straight shares , and laughed that it could but only go up , after a few charts I seen what they meant.

I do though hold a quite a few thousand rbs shares as a hobby that in all truth I can afford to lose.My exit point for them all is 80p , high you might say but a considerable amount of them was at 11p so I am in profit from 45p or so.

Would I still consider btl , yep , I will ask them again in april and await a different answer.Maybe china is the next big btl.

michaels

Thinking of joining the ranks of STRs but min rental would be 1k and mortgage (60% ltv) is 350 so would need to see a big reduction in prices over the coming period to justify this (plus incidental costs of moving). Local sales market has been extremely strong since Feb with all reduction since 2007 (15%) currently recovered.

Is there an alternative way to bet against the local property market maybe using options?

Thrugelmir

michaels wrote: »

Thinking of joining the ranks of STRs but min rental would be 1k and mortgage (60% ltv) is 350 so would need to see a big reduction in prices over the coming period to justify this (plus incidental costs of moving). Local sales market has been extremely strong since Feb with all reduction since 2007 (15%) currently recovered.

Is there an alternative way to bet against the local property market maybe using options?

If you expect the market to fall, sell.

Little point in hedging your gamble. :rolleyes: