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Debate House Prices


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Banks shut of BTL lifesupport.

245678

Comments

  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Most LL's have interest only mortgages..........

    So living for today rather than saving for tomorrow.

    We had an IO mortgage when we rented a place, but that didn't mean we were p*ssing the remaining income up the wall.
  • Going4TheDream
    Going4TheDream Posts: 1,258 Forumite
    Part of the Furniture Combo Breaker
    Thrugelmir wrote: »
    Most LL's have interest only mortgages..........

    So living for today rather than saving for tomorrow.


    Suppose that is ok if prices are going up and they sell at a profit, or are investing the different between the mortgage and rent to repay the loan...if not hardly seems worth the hassle after all the legalities and responsibilities
    Dont wait for your boat to come in 'Swim out and meet the bloody thing' ;)
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Going4TheDream wrote: »
    Suppose that is ok if prices are going up and they sell at a profit, or are investing the different between the mortgage and rent to repay the loan...if not hardly seems worth the hassle after all the legalities and responsibilities

    You could apply this to any investment. Simply put, if it makes you money it tends to be worthwhile, if it doesn't make you money don't bother. Obviously there's risk reward stuff going on within that.

    It appears that this is my 6,000th post. I'm sure you all won't mind if I go and have a quiet sob in the corner and think about all the things I could have been doing instead.
  • Aberdeenangarse
    Aberdeenangarse Posts: 1,262 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Cleaver wrote: »
    It appears that this is my 6,000th post. I'm sure you all won't mind if I go and have a quiet sob in the corner and think about all the things I could have been doing instead.

    Congrats :beer: I'm sure you've still had time to surf for a bit of !!!!!! ;)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Cleaver wrote: »
    We had an IO mortgage when we rented a place, but that didn't mean we were p*ssing the remaining income up the wall.

    My comment was in response to
    Most tenants will have paid off their landlords mortgages
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Going4TheDream wrote: »
    or are investing the different between the mortgage and rent to repay the loan...

    The BTL boom was built on rapidly increasing property prices. Not on the profitability of rental income.
  • Going4TheDream
    Going4TheDream Posts: 1,258 Forumite
    Part of the Furniture Combo Breaker
    Thrugelmir wrote: »
    The BTL boom was built on rapidly increasing property prices. Not on the profitability of rental income.

    Thanks for enlightening me! So what is the big pull now that house prices are not rising so rapidly?
    Dont wait for your boat to come in 'Swim out and meet the bloody thing' ;)
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    Going4TheDream wrote: »
    Thanks for enlightening me! So what is the big pull now that house prices are not rising so rapidly?

    Rapidly rising rents.

    Plus expectations of future prices rises, disillusionment with poor interest rates, disillusionment with pensions and property generally perceived as a safe bet.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • geneer
    geneer Posts: 4,220 Forumite
    Going4TheDream wrote: »
    Thanks for enlightening me! So what is the big pull now that house prices are not rising so rapidly?


    What big pull.

    A significant proportion of BTLs are remortgages.

    The number of BTL mortgages was rocketing in 2007 and before.
    Compared to that, its a bit of a trickle.

    Naturally the VI shills big this up as much as possible, and naturally
    a certain demographic of out forum are all to happy to lap it up.

    But the numbers simply don't support the assertions.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    My comment was in response to

    I know. I was just saying that we had an IO mortgage and yet our tenants still ended up paying towards the capital on the mortgage of that property.
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