Do you think I can buy this house?

Milliewilly

When_is_the_reset? wrote: »

I think the days of doing this are gone - Thank goodness.

Leveraging up small incomes to build a property empire and denying others is soooo 2006.

Just keep renting!

Don't try to build a better future for yourself because you are denying others??

When_is_the_reset?

Milliewilly wrote: »

Don't try to build a better future for yourself because you are denying others??

Bidding up house prices while on a cheap credit fix and making the next generation work even harder for your comfort is obscene and just plain wrong.

It does deny others, especially when the credit is removed but the people who borrowed cannot 'afford' to sell for a more realistic price to those who have not participated in the madness.

I am glad that more and more people are realising this. Even David Willetts MP.

Jonbvn

When_is_the_reset? wrote: »

Bidding up house prices while on a cheap credit fix and making the next generation work even harder for your comfort is obscene and just plain wrong.

It does deny others, especially when the credit is removed but the people who borrowed cannot 'afford' to sell for a more realistic price to those who have not participated in the madness.

I think they call this capitalism? What do you suggest, collectivism?

dopester

Jonbvn wrote: »

I think they call this capitalism? What do you suggest, collectivism?

If people want to skirt with the risks of bankruptcy by overextending themselves in buying 3 properties, and you applaud it - so be it.

Just don't get your violin out to play the tune of sympathy , fully overlooking their recklessness, when it all goes wrong for them.

Thrugelmir

getmore4less wrote: »

your landlord is getting 3.7% that smacks of cheap rent of peak price

Why is he selling?

Seems a logical time for the landlord to pocket the capital gain. Both Capital Gains and Income Tax tax is likely to rise in the near future. Better returns can be had elsewhere at the moment.

Not sure why the OP doesn't live in one of his BTL's. Rather than pay rent (dead money) may as well pay the mortgage off. As I guess the BTL mortgages are interest only not repayment.

Jonbvn

dopester wrote: »

If people want to skirt with the risks of bankruptcy by overextending themselves in buying 3 properties, and you applaud it - so be it.

Please show me where I applauded anything??? People are allowed to take risks. Get over it.

Some of you perma bears are so risk averse I do wonder if you are scared to get out of bed.;)

getmore4less

Thrugelmir wrote: »

Seems a logical time for the landlord to pocket the capital gain. Both Capital Gains and Income Tax tax is likely to rise in the near future. Better returns can be had elsewhere at the moment.

Thats the point at a 3.7% gross yield it looks over priced or under market rent.

If it was going up as fast as the OP thinks then unless the landlord is in real cashflow trouble they would just keep it a bit longer. If the landlord bought much cheaper then they could be loking at a big CGT bill.

I wonder what yield the OP gets on their BTL(still no answer).

Arthritic_Toe

Interest on a 250k mortgage at 5% would be 1050 per month ish, so the house has to increase in value by 250/month to make it worthwhile. Otherwise you're better off renting.
(Mortgage interest is dead money).

hamblettamaud

I too have no sympathy for people who buy-to-let. They are party responsible for the hugely inflated prices of the mid 2000s.

Thrugelmir

getmore4less wrote: »

Thats the point at a 3.7% gross yield it looks over priced or under market rent.

Most likely a combination of both.