Sellers' gloom over property market inactivity

Graham_Devon

IveSeenTheLight wrote: »

Will it?

Surely the likelyhood is that if credit dries up further, the market will shift even more toward rental property, pushing the rental market into an even stronger place to position an investment.

Which will bring further problems to that investment.

You can't have a situation where rents just keep increasing.

The way you talk about it you make it sound like a no loss, no risk way of investing. It's clearly not, just currently, in the very short term, doing well out of a dysfunctional market...but it's also pushing real families to the edge, in terms of affordability and quality of life.

geneer

http://uk.reuters.com/article/2011/09/12/uk-economy-house-prices-idUKTRE78B71B20110912
LONDON (Reuters)- House prices in England and Wales fell in August

http://www.cityam.com/house-prices/house-prices-slip-august
House prices in England and Wales fell in August and transactions slipped to levels last seen during the recession in 2009, a survey showed on Tuesday.

http://www.moneynews.co.uk/9965/housing-market-continues-to-falter-claims-rics/
Housing market continues to falter claims RICS

IveSeenTheLight

Graham_Devon wrote: »

Which will bring further problems to that investment.

You can't have a situation where rents just keep increasing.

The way you talk about it you make it sound like a no loss, no risk way of investing. It's clearly not, just currently, in the very short term, doing well out of a dysfunctional market...but it's also pushing real families to the edge, in terms of affordability and quality of life.

Go campaign for the government to do something about it then.

The reality is (and can be shown with facts) that a restriction in credit leads to a reduction in owner occupancy levels.

this naturally increases the need for rental properties.

I don;t see any mass government social housing expansion, nor can I see them having the funds to do so.

P.S. I never mentioned anything about rental return and the direction it would head in.
However to keep it simple, if your investment (mortgage debt) remains static at best or is reduced month on month, whilst rents increase even just by inflation, the investment improves as time passes

I'm looking at a property, looking to put down a deposit tat would return around £700 in profit each pcm.
Investing the same deposit amount in a net return of 5% would return only around £300 pcm

The indications are that the rental market is currently strong and likely only to get even stronger.
People are already talking about the rent generation.

If there is a gap in the market, investors will fill that gap

Percy1983

HAMISH_MCTAVISH wrote: »

Virtually unchanged from last month.

11% report rising prices.

53% report stable prices.

35% report falling prices.

I see a shift towards falling.

With that I guess you virtually unchanged is the same a child growing, ask them every day if they have got taller then the day before and the answer will always be no, yet they have got bigger (clearly so if you take a bigger gap between measurements).

The market looks fine to me, the boom as gone and we are back to a good level.

Thrugelmir

IveSeenTheLight wrote: »

Will it?

Surely the likelyhood is that if credit dries up further, the market will shift even more toward rental property, pushing the rental market into an even stronger place to position an investment.

Where's the money coming from to fund the investment into BTL?

BTL in itself was a debt fuelled boom.

Bradford & Bingley in their half year numbers reported £22.5 billion of BTL debt at at an average LTV of 81.6%. Hasn't been a great investment for many.

m00m00

It will just continue the pattern of the extremely rich getting even richer, while the best the rest can hope for is an illusion of wealth.

Credit has been the means of creating this illusion.

Thrugelmir

m00m00 wrote: »

It will just continue the pattern of the extremely rich getting even richer, while the best the rest can hope for is an illusion of wealth.

Those that work hard, save and create wealth will still get their reward. Read the fable of the Hare and the Tortoise.

pqrdef

Thrugelmir wrote: »

Those that work hard, save and create wealth will still get their reward. Read the fable of the Hare and the Tortoise.

Right. Let's all go down the bookies and bet on 100-1 outsiders, because the faster horses will all screw up and fall down and the no-hopers will win, every time.

IveSeenTheLight

Thrugelmir wrote: »

Where's the money coming from to fund the investment into BTL?

I've had decision's in principle for remortgaging two of my BTL's and taking out a third.

From an investment point of view, the banks are getting a better return from BTL's and I can foresee that we see an increase in the percentage of BTL mortgages.

Indeed, we are already seeing that increase

http://www.cml.org.uk/cml/media/press/3001

Graham_Devon

IveSeenTheLight wrote: »

I can foresee that we see an increase in the percentage of BTL mortgages.

Indeed, we are already seeing that increase

http://www.cml.org.uk/cml/media/press/3001

Your foresight is pretty superior!