Would you buy a buy to let at the moment

Graham_Devon

tartanterra wrote: »

And it's also obvious that a bubble in the market for three or four years (which is unlikely to ever be repeated) couldn't possibly be reflective of the entire multiple property ownership market, which after all, has been in existence for an extremely long time.

Excuse me...wot?

tartanterra

Graham_Devon wrote: »

Excuse me...wot?

You're excused.

I suggest you read the post again. It's quite simple, and nothing at all to do with rocket science.:D

Thrugelmir

tartanterra wrote: »

And it's also obvious that a bubble in the market for three or four years (which is unlikely to ever be repeated) couldn't possibly be reflective of the entire multiple property ownership market, which after all, has been in existence for an extremely long time.

In the past residential property investment was highly concentrated into HMO's. Only more recently (past 10 years) has the growth expanded into all property types. Where capital growth rates meant that basic business economics was thrown out the window. If you gave everybody in the country a £100,000 to start a business. I doubt that 5% would still be trading and making a profit 3 years later. They would fail for a multitude of reasons.

Conrad

I would got for an HMO let to non student, decent tanants. My mate, a letting agent, does this for himself and has had only 2 weeks voids in 3 years. He collects the rent each week.

On a £180k house, with say £20k to renovate and add wifi etc (such tenants like this), he gets £1500 per month rent.
He expects to have to rerenovate every 10 years. Another mate of mine does this to, but he lets to any old person and does have some hassles, but he makes a healthy income and doesn't have to work, which would not be so if they were ordinary B2Ls.

It can be done as long as you approach it correctly and aim for a 10% yield.

The bears are as ever fixated on the here and now and don't factor in future change. In time lending will return and also people are returning to the ways they used to raise a mortgage before self cert was invented.
Interest only rules are easy to get around - lenders for yeasrs have insisted on ISA's so people arrange one then cancel it the day they move in - not because they are irresponsible, but because overpaying the debt makes sense as ISA rates are lower and or suject to stock market fluctuations.

See beyone the newspapers is my advice.

tartanterra

Thrugelmir wrote: »

In the past residential property investment was highly concentrated into HMO's.

I'm genuinely interested in these figures. Could you post a link to them please?

Conrad

Thrugelmir wrote: »

In the past residential property investment was highly concentrated into HMO's. Only more recently (past 10 years) has the growth expanded into all property types. Where capital growth rates meant that basic business economics was thrown out the window. If you gave everybody in the country a £100,000 to start a business. I doubt that 5% would still be trading and making a profit 3 years later. They would fail for a multitude of reasons.

Not one of my clients has crystalised a loss. Many did not use b2l mortgages, they just let thier hitherto main resi or got a second / thrid property using schemes such as the standard life Bank second residence mortgage.

Most are making significant monthly profits now rates are low, and using this to pay down thier capital ready for the inevitable rise.

Honestly thruge, your world is inside your head, theoretical academic stuff.

Sure there will be a few that go tits up, but less than 1%. The rest just plod on and in 25 years will have a nice little rental income, it really is that simple.

We've all used ISA's and ladybird savers, but in the end there's nothing like real assets. Pension pots pretty much die with you - wow great investment!

Thrugelmir

Conrad wrote: »

Interest only rules are easy to get around - lenders for yeasrs have insisted on ISA's so people arrange one then cancel it the day they move in - not because they are irresponsible, but because overpaying the debt makes sense as ISA rates are lower and or suject to stock market fluctuations.

People by nature will always borrow as much as they can. In more recent years with assistance from mortgage brokers and lenders who were only to pleased to help as it boosted their income and enabled them to hit lending targets.

Retail banking is merely turning the clock back 20 years. To how it use to be done. In a word conservatively (small c). Something I know people don't want to acknowledge.

The bulls are fixated that available credit is going to materialise out of nowhere and that global investors are going to prefer lending to UK homeowners than any other investment they could make.

Harry_Powell

I'd love to know the REAL background for some of the resident bears. Do they all live in the back bedrooms and cellars of their parents, surrounded by tins of beans and wearing tin hats?

I've never 'seen' such a risk adverse set of people. No wonder they don't own houses, they haven't the snuff to make anything of themselves because they're too busy quaking in their boots and posting their trash on internet websites trying to make other people as scared of life as they are. It's sad really.

Thrugelmir

Conrad wrote: »

Not one of my clients has crystalised a loss. Many did not use b2l mortgages, they just let thier hitherto main resi or got a second / thrid property using schemes such as the standard life Bank second residence mortgage.

Most are making significant monthly profits now rates are low, and using this to pay down thier capital ready for the inevitable rise.


Sure there will be a few that go tits up, but less than 1%. The rest just plod on and in 25 years will have a nice little rental income, it really is that simple.

We've all used ISA's and ladybird savers, but in the end there's nothing like real assets. Pension pots pretty much die with you - wow great investment!

Who said make a loss?

I've always said if you see a wave surf it. Waves peter out.

This wave is in its last legs.

Honestly thruge, your world is inside your head, theoretical academic stuff.

The new generation always think they've reinvented the wheel. :rotfl:

Times never change.

tartanterra

Harry_Powell wrote: »

I'd love to know the REAL background for some of the resident bears. Do they all live in the back bedrooms and cellars of their parents, surrounded by tins of beans and wearing tin hats?

I've never 'seen' such a risk adverse set of people. No wonder they don't own houses, they haven't the snuff to make anything of themselves because they're too busy quaking in their boots and posting their trash on internet websites trying to make other people as scared of life as they are. It's sad really.

Quick men!
House prices have dropped by 0.000001%!
To the MSE forums at the double!!!!!!