Boiiiiiiiiing ........ splat

macaque_2

As we have been told repeatedly, the buy to let market has been proping up the property market as house prices soar far beyond the means of home owners. It is becoming increasingly clear however that the buy let market is now in deep doodoos:

IVA.com director Terry Balfour says: “We have seen a near meltdown in the buy-to-let market, with a combination of rental arrears caused mainly by tenants losing their jobs, void periods and high fixed rate mortgages causing serious problems.

“Buy-to-let is absolutely dead and will never return”, Mr Wilson told a national newspaper.
The couple are selling down their portfolio after coming under financial pressure when nearly 100 properties, nearly 13% of the total, were occupied by tenants failing to pay all, or part of, their rent in October 2008.

An HL analysis points out that nearly 183,500 buy-to-let mortgages were taken out in 2007, near the height of the market, representing £23bn worth of debt.
Many of those investors are uncomfortable today: the value of their investment has crashed 20%, while monthly repayments could surge if rates rise.

http://www.liverpooldailypost.co.uk/ldpbusiness/business-local/2010/03/22/investors-hit-as-the-buy-to-let-bubble-is-finally-burst-and-mortgage-debts-rocket-92534-26081117/

ruggedtoast

'If' rates rise?

Blacklight

'Could' surge 'if' rates rise.

phil_b_2

What has this got to do with Hamish's thread? It seems to be some kind of response?

As often is the case, the bears ammo comes in the form of predictions, if's, but's and maybe's.

Still waiting for those apocalyptic horseman folk!

doire_2

phil_b wrote: »

What has this got to do with Hamish's thread? It seems to be some kind of response?

As often is the case, the bears ammo comes in the form of predictions, if's, but's and maybe's.

Still waiting for those apocalyptic horseman folk!

And the bulls ammo comes from a supposed 10% rise in aberdeen?

1984ReturnsForReal_2

If people lose their jobs don't they get their rent paid from day one?

Percy1983

'If' rates rise? surely rates must rise.

I will be glad to see they BTL parasites losing money, did they really think there 'free money' pit would last forever?

Ron2256

Percy1983 wrote: »

did they really think there 'free money' pit would last forever?

Yes, they did think that. 'House prices always goes up' was their mantra.

Blacklight

Ron2256 wrote: »

Yes, they did think that. 'House prices always goes up' was their mantra.

I hate to be the one to break it to you... but if the events of the last four years demonstrate anything it's that they do.

Graham_Devon

ruggedtoast wrote: »

'If' rates rise?

Blacklight wrote: »

'Could' surge 'if' rates rise.

I think we all know rate rises are all but guarenteed at some point.

nembot

phil_b wrote: »

What has this got to do with Hamish's thread? It seems to be some kind of response?

As often is the case, the bears ammo comes in the form of predictions, if's, but's and maybe's.

Still waiting for those apocalyptic horseman folk!

No, just reality....