"Experts" warn of 'buy-to-let-bubble'

gmang

andybenw wrote: »

I watched it for about half an hour. I didn't hear the word property once.

Come on... they were all "property developers", or "real estate" as the yankers put it, in some form or other.

The "rich" elderly couple with 29 properties clearly bought one, then, through MEW, leveraged a second, etc etc. Their "portfolio" is a house of cards that will come crashing down as soon as rates go up even by a couple of percent.

andybenw

gmang wrote: »

Come on... they were all "property developers", or "real estate" as the yankers put it, in some form or other.

The "rich" elderly couple with 29 properties clearly bought one, then, through MEW, leveraged a second, etc etc. Their "portfolio" is a house of cards that will come crashing down as soon as rates go up even by a couple of percent.

Like I say. I didn't see the start. Or the finish. But I watched it for half an hour in the middle and didn't hear the word property once. I'm not lying. It seemed to me to be focusing on gullible idiots attending seminars, doing stupid exercises and shouting I will be rich.

geneer

Jeanetteathome wrote: »

Did anyone see the BBC2 programme **Money** last night? it delt with these *wealth creation gurus* that are popping up now - charging £200 - £500 for a seminar telling people how they can become millionaires. The main thing running through all of the people was that they made their fortunes on Property , either here or in the US, now they make their money selling books DVD and these seminars. It seemed to push the idea that millions can be made from buying and selling property. Terrible thing to get into right now I should have thought..

Idiots. The sheeple have memories like goldfish.

MrRee_2

Let's put somethings to bed, once and for all ....

1. Your average BTL Landlord is just your average person with money earning crap returns.

2. Once a BTL Landlord buys the first property, usually for outright cash, they see the ease of a 7% return.

3. They then realise that properties are not falling in price, so lever off the first to buy the second.

4. They then rent that second property for an ever increasing rental - increasing the yield to over 10%

5. They are astute, intelligent, people and see easy money coming in .... hell, they can stop working for a living!

6. They now need an accountant who recommends leverage on a third, fourth, fifth, sixth ......

7. It dawns on these BTL Landlords that the property they are buying is FTB fodder ... thus locking out FTB's

8. Locking out FTB's means that they have to rent their properties.

9. Easy money comes rolling in, they have assets worth nearly £1million - assets being bought for them!

10. If the FTB renters decide to buy then house prices will increase.

11. After 10 years the market is such that the assets are sold for £2million.

12. Retire in a life of supreme luxury - all paid for from the pockets of the renters.

We cannot lose ........ if house prises were going to crash they would have by now - they haven't - and won't!

geneer

Ree is right. I'd absolutely encourage BTW wanabees to leverage their properties just as much as they possibly can.
I mean, it can only ever be a win win.

Jeanetteathome

andybenw wrote: »

I watched it for about half an hour. I didn't hear the word property once. Fair enough, I didn't see the start but I hardly think the idea of the programme was to push property. It was more to ridicule these seminars.

The seminars were run by property developers who then went on with their money to set up these awful seminars and sell books & DVD's with this *you too can be a millionaire* . The three featured are all property developers - the daft young couple think they will own property soon and be millionaires by 30, they were paying for these two guys , also property developers to give them *mentorship*

MrRee_2

I've never seen so much jealousy of those who have actually got off their backsides and done something with their lives ... and, yes, sometimes made quite a lot of money from it too.

I applaud everyone who has made a success of themselves.

Going4TheDream

MrRee wrote: »

Let's put somethings to bed, once and for all ....

1. Your average BTL Landlord is just your average person with money earning crap returns.

And possibly for many I would say that many one property landlords are people in relationships who met someone who also had a property and rent it out one of them?

MrRee_2

Going4TheDream wrote: »

And possibly for many I would say that many one property landlords are people in relationships who met someone who also had a property and rent it out one of them?

True, reluctant Landlords are aplenty.

A friend of mine started a relationship with a young lady who had her own house.

They rented her house, as they couldn't sell it in 2009.

They have seen the benefits and easy money and they are looking for another .... this, I suppose, may be driving the market around here?

AD9898_2

MrRee wrote: »

Of course, if renters all of a sudden want to buy then BTL properties will sit empty ...... but, property prices will increase because of the high demand and the BTL properties will come to the market.

BTL Landlords cannot, actually, lose at all ...... big rents OR big capital increases - I'll take either thanks very much!

I think a lot of renters would like to buy but house prices are too high, the banks know this and so want massive deposits that good deal of people are unable to save for.....

The other argument is some bollox about a 'mortgage famine' or 'we need 100% mortgages back'

NO !! what we need amongst other things is regulation on BTL to stop rich landlords (and getting richer due to the current situation) hoovering up all the decent starter homes that used to be bought by younger average earners, then renting them back to them at extortionate rates.

In case no one can see, this is a vicious circle that normal market conditions can't rectify without intervention.... I wouldn't hold my breathe though as many of the 'law makers' are these very landlords.

Just completely corrupt.