looking to buy to let for 1st time ; advice appreciated

molit

bluesnake wrote: »

Others have done it in better times, like Fergus and Judith Wilson.

There will always be very poor people. Some are unfortunate and some are unlucky and I empathize with these people. However, there is an group that falls into categories that: won't save; bought into the deadly consumer society; can't be bothered to work; need to be entertained; need the latest and greatest car, iphone, etc and are broke. I am not wealthy and earn less than the UK average salary. I'd be a mug to feel any sympathy when my friend earns £45000, can not make ends meet and always broke. One has to make ones coat according to the size of the cloth!

There is also the group that has worked hard, saved, not gone on holidays, not bought new cars who people think should be willing to sell their houses at less than they are worth so that other people don't have to go through that. Apologies fo going off topic slightly, but there are too many people who think that they shouldnt have to make sacrifices to buy a house

Orpheo

molit wrote: »

There is also the group that has worked hard, saved, not gone on holidays, not bought new cars who people think should be willing to sell their houses at less than they are worth so that other people don't have to go through that. Apologies fo going off topic slightly, but there are too many people who think that they shouldnt have to make sacrifices to buy a house

Apologies for going off topic slightly but the nature of people's "sacrifice" has been truly biblical. They've sacrificed the prospects of the next generation.

Houses are never sold for less than they're worth. Sometimes houses are never sold because the owners have become delusional about their worth. The age of doubling house prices is over, it was never an entitlement. The value of your investment may go down as well as up. As long as houses are treated as an investment this risk will remain.

bluesnake

molit wrote: »

There is also the group that has worked hard, saved, not gone on holidays, not bought new cars who people think should be willing to sell their houses at less than they are worth so that other people don't have to go through that. Apologies fo going off topic slightly, but there are too many people who think that they shouldnt have to make sacrifices to buy a house

I when on holiday two years ago - first time in 15-20 years and was under £500 in total. My car is 20 years old, was bought second hand too. It is their house and they can ask for it what ever they want.

While as mentioned, i am sorry for some, but for the others, why should people be willing to sell their houses for less, to other have made bad and inappropriate lifestyle choices. Perhaps they should ask 'I am now here, what can I do to get to there?' and 'What am I doing wrong?', rather than expect a handout.

Perhaps you want to set an example and sell your house below it value, to the benefit o another family?

molit

yep, I completely agree, apologies if that didnt come across in my post

brit1234

molit wrote: »

some peole think BTL landlords are the scourge of the world

Yes lots do including myself. They priced out first time buyers and are a parasite on society. I will feel no sympathy as buy to let repossessions continue to increase over the next 2 years.

madeupname1 wrote: »

I have found BTL to be an excellent investment, but I am in it for long term capital growth, rather than montly income.

However in the short to medium term you will be making a lose. With prices set to continue falling for years and maybe years of static growth it could be over a decade before they recover to today's prices.

If you are going to buy why not wait till prices bottom out unless you can guarantee excellent rents till then.

paul1964_2

missile wrote: »

So you want LLs to go broke and their tenants on the street?

Unless the LL takes a bulldozer to the house, someone will end up living in it - so no increase in homelessness.

new_home_owner_3

brit1234 wrote: »

Yes lots do including myself. They priced out first time buyers and are a parasite on society. I will feel no sympathy as buy to let repossessions continue to increase over the next 2 years.



However in the short to medium term you will be making a lose. With prices set to continue falling for years and maybe years of static growth it could be over a decade before they recover to today's prices.

If you are going to buy why not wait till prices bottom out unless you can guarantee excellent rents till then.

are house prices really falling that fast, the facts are house prices will not drop until interest rates go up and im afraid interest rates are not going up just yet.

If interest rates do go up there would be price reductions due to people being forced to sell, especially the ones in negative equity who bought in 2007.

the government dont want to be bailing the banks out again and if theyre was a house crash due to high interest rates, you would have a load of people forced to sell their homes for 80,000 and it would only clear half of what they owe the bank.

would you expect the bank or the government to make up the shortfall the banks lost, just so you can get a cheap home?


havent you worked it out yet, why do you think they have extended the mortgage rescue scheme?

Jimmy_31

new_home_owner wrote: »

are house prices really falling that fast, the facts are house prices will not drop until interest rates go up and im afraid interest rates are not going up just yet.

If interest rates do go up there would be price reductions due to people being forced to sell, especially the ones in negative equity who bought in 2007.

the government dont want to be bailing the banks out again and if theyre was a house crash due to high interest rates, you would have a load of people forced to sell their homes for 80,000 and it would only clear half of what they owe the bank.

would you expect the bank or the government to make up the shortfall the banks lost, just so you can get a cheap home?


havent you worked it out yet, why do you think they have extended the mortgage rescue scheme?

Why shouldnt the banks have to make up the shortfall, their the ones who were throwing money at anybody who was daft enough to take it so both partys are to blame so both should suffer the consequences.

new_home_owner_3

Jimmy_31 wrote: »

Why shouldnt the banks have to make up the shortfall, their the ones who were throwing money at anybody who was daft enough to take it so both partys are to blame so both should suffer the consequences.

the government have bailed the banks out, do you think by the government/treasury raising the boe rate, they will get their money back quicker?

if they do the banks will have to reposess houses and they will get a lot less of what they have leant out, we all know where going through a rough spell and its in the banks and the governments interest they keep people in their homes.

for example, family bought home in 2007 for 180,000 pounds, they borrowed from the bank 160,000 pounds.

goverenment bail banks out 2009 due to reckless borrowing.

Now in 2011 the house is worth 180,000 pounds but the main bread winner as lost his /her job, but they can afford it because interest rates are so low.

then fast forward 2012 they raise interest rates to 6% family miss payments and loads of other home owners out of work miss payments due to higher rates making house prices fall.

House prices fall drastically due to high interest rates, family have to sell house but its only worth 120,000 pound and after fees the bank they had their mortgage with will only get about 110,000 pounds.

now the bank owe the government but they have just lost 50,000 pounds from one property and theyve also made family homeless who will be living off the state.

interest rates are not going up amd house prices are not crashing until interest rates go up which i just can not see happeing has it wil cost the government billions.

molit

can i suggest that this discussion be,ongs on the debate house price board and not here - the OP was asking for opinions about BTL, not for a debate on the rights and wrongs of government funding of interst payments on mortgages