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New buy-to-let investors face profit crunch

"A new study of the residential investment market shows almost a third have been a landlord for a year or less, fuelling fears that a significant minority of buy-to-let investors are vulnerable to falling prices or rents failing to cover interest payments on newly acquired properties"


http://www.telegraph.co.uk/money/main.jhtml;jsessionid=MR2ZS5513G4KDQFIQMFSFGGAVCBQ0IV0?xml=/money/2007/01/10/cnhomes10.xml

Comments

  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Quote "But Arla says most buy-to-let investors have been landlords for three years or less. More than 20pc have been in the market for less than a year, suggesting they have benefited little from recent rises in house prices. Adrian Turner batted away concerns: "This new breed of landlord understands that residential property investment can, and must, take account of the ups and downs of the sales and the rental cycles. They are not spooked by scare headlines about housing."

    Can't really go calling them the last suckers if you are a VI, can you?
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Quote "But Arla says most buy-to-let investors have been landlords for three years or less. More than 20pc have been in the market for less than a year, suggesting they have benefited little from recent rises in house prices. Adrian Turner batted away concerns: "This new breed of landlord understands that residential property investment can, and must, take account of the ups and downs of the sales and the rental cycles. They are not spooked by scare headlines about housing."

    Can't really go calling them the last suckers if you are a VI, can you?
    I've just re-read my own post and highlighted some different words. Given that "this new breed" "understands" .... "cycles" then why are they buying at or very near the top? :confused:
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    i am sure the number of threads on here from tenants of newbie landlords who dont know what the heck they are doing will increase ......... it looks like an easy business, and it is - until you get the tenant from hell, and its only at that point that you realise how little you know and what a big pile of doo-doo you are actually in...... i have no sympathy with these landlords, and every sympathy for the tenants.
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