How Much Did BTL Raise House Prices?

IveSeenTheLight

The-mouth-of-the-south wrote: »

The key point here Hamish is - Everything else is just whining from the "instant gratification generation" who don't realise how hard buying a house has always been.

For a lot of young people it’s not hard, it’s impossible.

Is this different to the generations of the past?

There is an argument that it has been too easy to buy in the last 30's, especially when compared to buying property before then

I've said before, what we may be seeing is a return to a time when home ownership percentages are lower and it is far harder to be able to buy a property.

DaddyBear

HAMISH_MCTAVISH wrote: »

Obviously worth bumping this thread

Hamish, your threads are never worth bumping. Of course you could have discussed this in one of the other pointless threads you started yesterday. Or do you have a personal competition to always have the most threads on page 1.

IveSeenTheLight

DaddyBear wrote: »

Hamish, your threads are never worth bumping.

On the contrary,
Hamish generally posts factual based links for meaningful discussion while you on the otherhand seem to make glaringly incorrect posts.

Exocet

HAMISH_MCTAVISH wrote: »

Only around 7% of the price of a house was attributable to increases caused by BTL.

The majority of the price rise was caused by underlying economic and demographic factors. Not BTL.

Go on then, I'll bite.

The majority of the price rise was caused by a speculative bubble. It is an illusion Hamish. 100k for one bed flat, 200k for a crappy semi. These are not realistic figures, they are bubble figures.

I admit to being wrong about the timing, or indeed the actuality of a crash happening. And I am surprised we are still in la la land as regards house prices. Maybe they will just tread water until inflation catches them up, or maybe there still will be a crash. Whichever, I don't expect the lunacy of 2003-2007 to retain its inflated status over sanity.

On the plus side, we have plenty of scope to argue this for another five years or so, as long as neither of us gets a life of course.

DaddyBear

IveSeenTheLight wrote: »

On the contrary,
Hamish generally posts factual based links for meaningful discussion

:rotfl::rotfl::rotfl:

IveSeenTheLight wrote: »

while you on the otherhand seem to make glaringly incorrect posts.

Ahhh yes, my opinion doesn't agree with yours so it's incorrect. Love it.

nembot

You're wasting your time DB, you really are.

DaddyBear

nembot wrote: »

You're wasting your time DB, you really are.

I know but this morning it's actually been a pleasant distraction from learning things like how many litres are in a size E nitrous oxide cylinder, the dissociation constant of lignocaine, and the pressure changes of the left ventricle throughout the cardiac cycle!!!!

brit1234

HAMISH_MCTAVISH wrote: »

House prices are ALWAYS all about supply and demand. There is nothing else.

Absolute rubbish Hamish its about supply of fiance, Available fiance limits the price.

nembot

To be fair Brit, if Hamish is right about S&D - the sheer number of properties coming onto the market recently means only one thing.

Gorgeous_George

I think 7% is quite a lot and probably over estimates the impact of BTL.

The number of buyers wouldn't necessarily fall if you remove the BTLer from the equation. If BTLers had not bought property, those who would rather be tenants would have competed for the buy.

The property that I bought had been on the market for 6 months and was in a sorry state of repair following repossesion. Nobody else wanted it. There was no competition to buy. It took 8 months of hard work to make it a desirable place to live.

FTBers preferred to pay 4 x more to buy a home that they could move into straightaway, complete with cheap carpets throughout. FTBers preferred to borrow 125% so that they could furnish their new shoe box with the latest trash. And buy the latest X box.

Not all BTL is of the 'Wilsons' type.

Yes, I make a modest profit at the moment - but only if my work has no value. I cannot claim minimum wage for my decorating efforts. I can claim zilch for the time spent doing the books. One bad tenant and I could make a huge loss. There is quite rightly a risk/reward thing going on.

Houses cost too much because EVERYBODY pays too much and the banks LEND too much. Too much to BTLers with multiple houses and too much to f-e-c-k-less kids playing mummies and daddies.

GG