UK property - overvalued and poised for a correction soon?

sm9ai

Gorgeous_George wrote:

The problem is that there are not enough houses.

My BTL is worth about £80K. The rent is £85 per week (£368 per month). A 100% interest only mortgage would be about £380 and a 25 year repayment mortgage would be just over £500 per month.

I provide buildings insurance, curtains, carpets, oven, hob and room heating. An owner would need to buy these items themselves.

Not slagging you off just curious

So you have a BTL and effectively subsidise your tennant.

You also believe houses are slightly overpriced.

So why do you still have the BTL? Or do you believe that there too high but people will still keep paying stupid prices?

pianeet

in my opinion the reason house prices increased so rapidly in the last 6 years is because of the minimum wage ,where you were once paid £2.50 an hour for unskilled labour you now get £5.50 and if you work enough hours you can earn a reasonable wage.
The problem in my area is were there was always plenty of wharehouse and remedial jobs these are all being taken by economic immigrants ,who on the whole work a lot harder and are more reliable,so a lot of peolple now cant find permenant work and they are really struggling to make ends meet,for those that have been on the property ladder for a while this should not be a problem but for those with a £100,000 mortgage, plus extorinate council tax,and utility bills i cant see how they can manage.

meanmachine_2

talksalot81 wrote:

My response was in reference to a poster who wished BTL to be heavily taxed. I strongly agree with this. Houses are homes primarily but the financial climate has made it such that they are investments primarily and homes only if necessary. That is fundamentally flawed

And MY response was directed at a poster who faked sympathy for FTBers, didn't know quite how or why they would get into the market, and then glibly confessed to having FOUR properties.

Obscene - and should be taxed into oblivion.

We regard four wheel drives as reprehensible, and yet tax them more stringently than BTLers which are a total scourge on this country.

I suggest BTLers try selling food and water to starving Africans and see how kindly they're written about.

It's much the same thing.

Maybe BTLers would like to buy up all of the AIDS vaccines in the third world and sell them back to Africans at twice the price.

Think that "risk taking" is to be applauded?

No, didn't think so.

undercoat11

I think that BTL has had an impact on the property market. For example, where I live the small terraced houses are sometimes priced higher than ordinary family houses in nice areas because they are close to the university and lots of BTL people will buy them. The schools in these areas are having to close because they don't have any children in them - this is a large city by the way, not a village. They are asking £250,000 for a 2 bedroomed terrace - these are the houses that FTBers would have bought at one time, only much, much cheaper. Of course, they can get a 3 bedroomed semi in a pleasant area for less - but they would still have to pay £230,000 which seems crazy to me. Where will it all end?

talksalot81

meanmachine wrote:

And MY response was directed at a poster who faked sympathy for FTBers, didn't know quite how or why they would get into the market, and then glibly confessed to having FOUR properties.

Obscene - and should be taxed into oblivion.

We regard four wheel drives as reprehensible, and yet tax them more stringently than BTLers which are a total scourge on this country.

I suggest BTLers try selling food and water to starving Africans and see how kindly they're written about.

It's much the same thing.

Maybe BTLers would like to buy up all of the AIDS vaccines in the third world and sell them back to Africans at twice the price.

Think that "risk taking" is to be applauded?

No, didn't think so.

Calm down, I am 100% in agreement with you.

meanmachine_2

talksalot81 wrote:

Calm down, I am 100% in agreement with you.

No I appreciate that.

I only get cross when people seem totally - or wilfully - ignorant of their own actions.

"Oh I'm so glad that I'm not a FTBer today what with prices so high. Oh where will it all end? ...And by the way, I'm about to buy my fifth BTL with unearned equity, clever me for taking a "risk"."

Hmm, try taking that same risk, but starting your empire at today's prices. You couldn't is the basic answer.

And these selfsame people will be the ones who bail out when/if the market does turn nasty, forcing prices down even further and then asking "dear me, why are prices going down so quickly? Poor homeowners in negative equity. Whatever is going on. Oh, by the way, lucky me I offloaded my final property last week".

Etc etc.

roswell

Ok so tomorrow morning Gordon wakes up and says 50% tax on all rents in the country ... and you dont think every BTL weather new or old wont sell ??

then every FTB will go to Mr bank and say " Whats the most you can give me because i cant miss this chance to have a house because they only go up in value" and this wil be good why ??

so next weeks threads will be " Cant buy and there`s no were to rent" and property prices will be pushed up more becuase Mr bank again lent lots of money to someone so they could get on the ladder.

meanmachine_2

roswell wrote:

Ok so tomorrow morning Gordon wakes up and says 50% tax on all rents in the country ... and you dont think every BTL weather new or old wont sell ??

I don't think even Gordon Brown would announce that on Xmas day.

But that would be a great present.

Not sure what the answer is to limiting BTL. An LTV restriction like in Germany?

I can imagine the govt doing something soon - under the guise of "promoting traditional pensions" or somesuch nonsense.

sm9ai

meanmachine wrote:

And MY response was directed at a poster who faked sympathy for FTBers, didn't know quite how or why they would get into the market, and then glibly confessed to having FOUR properties.

Obscene - and should be taxed into oblivion.

We regard four wheel drives as reprehensible, and yet tax them more stringently than BTLers which are a total scourge on this country.

I suggest BTLers try selling food and water to starving Africans and see how kindly they're written about.

It's much the same thing.

Maybe BTLers would like to buy up all of the AIDS vaccines in the third world and sell them back to Africans at twice the price.

Think that "risk taking" is to be applauded?

No, didn't think so.

Stick with it. Sentiment is changing, probably becuase parents are fed up with there children still living with them.

People hate 4x4's so gordo taxes them. Well now people are starting to hate btl's a lot more so they will be next on the list!

Gorgeous_George

If all those who rent from BTLers were to buy the houses from the BTLers, those who choose to live at home will still do so. There wouldn't be more houses available and the effect of the BTLs coming back onto the market would be marginal.

Housing associations snapped up thousands of homes from councils at knock-down prices. Why are housing associations not pilloried in the way BTL LLs are?

The answer is to build more homes both for the rental market and for homebuyers.



GG