If prices crash I'll just buy more loverly property

carolt

mewbie wrote: »

I don't think anyone is buying BTL property anymore. Roll back a few years (is it that long already - lol) and a risky geared investment was a good gamble (and it was always a gamble).

Now if you look at BTL there are a few questions like how to borrow the money and how much profit will the rent make over the interest and expenses. Take out a hundred k of debt in order to 'make' ten pound a month? You'd have to be absolutely nailed on barking bonkers mad.

You do have a lovely turn of phrase mewbie. Quite a gift.

FungusFighter

the_ash_and_the_oak wrote: »

don't think this mantra was ever to be taken seriously given that BTL would be buying on the credit whos reduced availability would be the a major contributory factor to the drops themselves...

..but the statement itself is just a different formation of the idea that a reduction in capital prices would necessarily make them cheaper to buy - and doesn't really take into the account the factors that would cause such a price drop

Que?

FungusFighter

(And whilst I'm here, sitting up and me spelling aint too bad, will you weirdos PLEASE stop thanking me, I'm trying to be a bit of a rebel here and yr ruining me credibility ok?:D)

wageslave

FungusFighter wrote: »

(And whilst I'm here, sitting up and me spelling aint too bad, will you weirdos PLEASE stop thanking me, I'm trying to be a bit of a rebel here and yr ruining me credibility ok?:D)

But we like you................

Afriend_2

FungusFighter wrote: »

(And whilst I'm here, sitting up and me spelling aint too bad, will you weirdos PLEASE stop thanking me, I'm trying to be a bit of a rebel here and yr ruining me credibility ok?:D)

My bad, poor eyesight. I thought it was the abuse button.

FungusFighter

wageslave wrote: »

But we like you................

The birds always do (sigh):cool:

the_ash_and_the_oak

FungusFighter wrote: »

Que?

basically the idea that prices getting cheaper means it would be easier to "just buy more" ignored that the credit to buy them with wouldn't be so easy to get hold of (especially with this being a significant cause of falls)

but that this is also kind of a parallel to the idea that if prices get cheaper it will be 'easier' for people to 'get on the ladder' which also makes a similar mistake

HAMISH_MCTAVISH

the_ash_and_the_oak wrote: »

basically the idea that prices getting cheaper means it would be easier to "just buy more" ignored that the credit to buy them with wouldn't be so easy to get hold of (especially with this being a significant cause of falls)

but that this is also kind of a parallel to the idea that if prices get cheaper it will be 'easier' for people to 'get on the ladder' which also makes a similar mistake

One bed flats up here are only 75K now.

If they fell by 70%, I could buy a few using just cash.

So could many others..... Which is why they would never fall that low. (Absent an outbreak of plague nuclear war or a meteor strike....)

the_ash_and_the_oak

HAMISH_MCTAVISH wrote: »

One bed flats up here are only 75K now.

If they fell by 70%, I could buy a few using just cash.

So could many others..... Which is why they would never fall that low. (Absent an outbreak of plague nuclear war or a meteor strike....)

dont really think ive ever suggested they'll fall 70% imo.

think the phrase talked about in the original post was talking about the response to any suggestions of falls in the 10-40% bracket. agree that any cash buyers would be able to buy "more lovely property" but imo most prospective btls woulkd be using credit whether prices go up, stay static, or fall by that (10-40%) amount

IveSeenTheLight

mewbie wrote: »

I don't think anyone is buying BTL property anymore. Roll back a few years (is it that long already - lol) and a risky geared investment was a good gamble (and it was always a gamble).

You should do a bit more reading mewbie rather than thinking you know.

from http://www.cml.org.uk/cml/media/press/2358

Buy-to-let activity in second quarter of 2009

There were 21,600 new buy-to-let loans advanced in the second quarter, a relatively modest 4% decline from 22,400 in the preceding three months.

The fall in advances in the second quarter was concentrated in remortgaging, down 15% on the preceding quarter, whereas the number of house purchase loans rose 5%.