Mail - Buy-to-let is now a safer home for savings

Turnbull2000

http://www.dailymail.co.uk/property/article-2064217/Rise-nest-egg-landlords-As-ordinary-families-lose-faith-banks-shares-buy-let-safer-home-savings.html

For Michael and Verity Howard, investing their savings in buy-to-let seems a more reliable way of building up a nest egg for their children than leaving it to languish in the bank or playing the stock market.


Encouraged by the relaxation in lending criteria for buy-to-let loans, which has seen an increase in higher loan-to-value - or low-deposit - mortgages, the couple are now looking for rental property.

Investing in buy-to-let is one of the few ways to make money from property now. The Howards are typical of the increasing band of have-ago landlords profiting from first time buyers' inability to afford the hefty deposits needed to get on the property ladder.

First-time buyers really do need 95-100% mortgages back. There's simply too many influential groups who wish to maintain land and property values to believe that falling prices and more house building will provide them with a step on the ladder. The Times explained this quite neatly today.

HAMISH_MCTAVISH

Turnbull2000 wrote: »

First-time buyers really do need 95-100% mortgages back.

They do indeed.

It's the only way they're able to compete with cash-rich BTL investors.

The BTL sector continues to grow whilst FTB numbers dropped to a new all time low last month, yet prices rose anyway.

Graham_Devon

HAMISH_MCTAVISH wrote: »

They do indeed.

It's the only way they're able to compete with cash-rich BTL investors.

The BTL sector continues to grow whilst FTB numbers dropped to a new all time low last month, yet prices rose anyway.

They don't. Not at all.

You both wish for that. But it's not what is needed, or indeed wanted in many cases.

Please give up with this pretence that you know whats good for people, and also your faux concern for others. It's all about you and whats best for you.

IronWolf

How is this classed as "news" ????????

Oh and I dont think them taking out a £100k loan on their current house as a deposit on a BTL counts as "investing their savings". :rotfl:

HAMISH_MCTAVISH

Graham_Devon wrote: »

They don't. Not at all.

You both wish for that. But it's not what is needed, or indeed wanted in many cases.

Please give up with this pretence that you know whats good for people, and also your faux concern for others. It's all about you and whats best for you.

You gigantic hypocrite Graham.

You want to see FTB-s locked out of the housing market in a vain hope prices will fall.

And you're quite happy to see them forced to enrich landlords while you wait for the big crash that's never coming.

You and the rest of the bear mob have no regard for FTB-s or what's best for them.

At least geneer admits that it's all about reducing FTB numbers so there's less competition for the few left. Perhaps it's time for you to be a bit more honest as well.;)

Graham_Devon

HAMISH_MCTAVISH wrote: »

You gigantic hypocrite Graham.

You want to see FTB-s locked out of the housing market in a vain hope prices will fall.

That's what you tell me I want.

There is a difference in what I want to see, and what you tell me I want to see.

We've been over this before. You simply leave the thread.

As for the landlord bit, we have been over that before too, with myself wanting more regulation on the side of the tennant, and you suggesting it's not needed. Take your foot out of your mouth.

ruggedtoast

Again the boomers plunder the fruits of the labour of the young. They are like a pack of locusts bleeding the poor cow dry. But there is no more milk.

Soon they will buy, but they will not let.

kabayiri

You can understand why people opt for B2L though. People with regular savings and private pensions are being shafted.

I know of 3 people who cashed in pension pots to buy property, and at least 2 of those make very reluctant landlords. They don't enjoy the hassle.

Aberdeenangarse

What's it say in the Dorset Echo?

chucknorris

kabayiri wrote: »

You can understand why people opt for B2L though. People with regular savings and private pensions are being shafted.

I know of 3 people who cashed in pension pots to buy property, and at least 2 of those make very reluctant landlords. They don't enjoy the hassle.

The problem is that it's not just investing rather than 'saving' it's actually running a business. I'm not sure if you mean they have recently done this, I've been a landlord for over 20 years (with a few properties) when starting out enthuisiasm should carry you through the early years. If they are reluctant now in the early years as time passes and they encounter bad tenants this reluctance will become much stronger. There's no way I would want to be doing this in my late 60's and beyond so it's something I want to get out of at or around my retirement. I see commercial property as a much better prospect than residential in my later years.

googler

HAMISH_MCTAVISH wrote: »

The BTL sector continues to grow whilst FTB numbers dropped to a new all time low last month, yet prices rose anyway.

But the 'prices' are merely -

'the average of all prices in a certain city/county/area/country'

and if there's low numbers of sales at lower levels, and all the activity is at mid and high levels, the averages go up, and prices seem to rise.