MSE News: Rents fell in February

brit1234

Notmyrealname wrote: »

And house prices falling benefits BTL even more as they're pretty much the only people with the capital available now to be able to get mortgages to buy them

Apart from the many thousands of first time buyers with big deposits and excellent credit ratings waiting in the winds.

Yes I admit many landlords are buying at the moment, but many are highly exposed and highly geared. That capital you talk of can easily disappear in a falling market. Add on top of that new EU buy to let rules, higher mortgage costs, falling rents etc.

The future looks bad for buy to let.

By the way have you a way of paying off the mortgage at the end of it on interest only life or are you praying to sell and hope prices don't fall any more?

Lets hope these rent falls continue. :beer:

MiserlyMartin

Notmyrealname wrote: »

Ignore the fact that there are people like me take on DSS tenants who have no money for a deposit without forcing them to go through the embarrassment of a letting agency application process.

Oh how charitable of you!

This 'news' story on MSE is deeply flawed. Once this rush to beat stamp duty has finished, as it will be in the coming months, sales levels will slow right down again.

If you want to buy now then the cost of a house purchase has just increased by 1% due to the end of the stamp duty holiday. Its probable that a lot of sellers priced in an extra 1% to their asking price (due to the stamp duty holiday). Now prices finally paid will need to decrease by 1% for the buyers to to be level pegged. In other words asking prices will need to come down instantly by 1% in order for anyone to achieve a sale in this market and economy.

Regarding BTL, I've done the sums. They don't add up. More yield from having the money in the bank with no hassle and no risk from falling house prices.

Notmyrealname

brit1234 wrote: »

Apart from the many thousands of first time buyers with big deposits and excellent credit ratings waiting in the winds.

Won't guarantee you a mortgage if you can't pass the affordability test.

The future looks rosy for LLs as the high street lenders start upping the interest rates on retail mortgages...

All those lovely repossessed houses to buy.

Notmyrealname

MiserlyMartin wrote: »

Regarding BTL, I've done the sums. They don't add up. More yield from having the money in the bank with no hassle and no risk from falling house prices.

Thats because you're stupid and working on the Rightmove prices for houses instead of buying repos and paying bottom dollar.

Knock 30% off the purchase price then redo the sums.

My yield is currently about 11%. Please show me what bank I can put my money in to get that.

brit1234

Notmyrealname wrote: »

Won't guarantee you a mortgage if you can't pass the affordability test.

Pretty much does though doesn't it.

Notmyrealname wrote: »

The future looks rosy for LLs as the high street lenders start upping the interest rates on retail mortgages...

All those lovely repossessed houses to buy.

Yes the same mortgage rates will be going up for landlords as well and you do know landlords are far more likely to be repossessed the residential buyers. They is also another thread on here today with a sad story about a huge portfolio looking like the banks will take ownership from 3 investors.

MiserlyMartin

Notmyrealname wrote: »

Thats because you're stupid and working on the Rightmove prices for houses instead of buying repos and paying bottom dollar.

Knock 30% off the purchase price then redo the sums.

My yield is currently about 11%. Please show me what bank I can put my money in to get that.

Oh I always ignore asking prices, they have no relevance to the actual real market. You have to try and knock some off in the real world but that makes no difference. The yield is still not worth it compared to having the money in the bank. If you buy a repo you have to spend or (borrow in a lot of peoples cases) a load to bring the house to a reasonable standard, which leaves you in the same position as before.

11% sounds questionable - is that post tax after all expenses, maintenance and budgeting for only 10/12 months occupied?

drummer_666

rent around Birmingham has definitely not fallen! they are way higher than what the rent values are

and Birmingham is the area that has the most sales in the whole country in the last quarter

luckily I'll have my house soon. and I'll be renting out second room to the guy I live with at the moment, which will mean he'll be a little better off and I'll be a lot better off financially. Even more so if I rent the 3rd room for a while

smala01

The problem for me is where i want to live (city centre apartment) is absolutely the worst place to buy.

Typical apartments in my city have lost 40-50% of their value since 2006.

1 bed - £150k now available £80k
2 bed - £199k now available £100k

For professional people there is a more than proportionate premium for "high Spec" places to live. I wonder how much of the rent averages are skewed by the top end market.

Smala01

CRASH_BANG_WALLOP

Notmyrealname wrote: »

A bit thick says the halfwit who can't even use basic punctuation.

Is that why they rose the last two months in a row and 1% in 2011 according to Nationwide?
http://www.bbc.co.uk/news/business-16356568
http://www.bbc.co.uk/news/business-16903022
http://www.bbc.co.uk/news/business-17204783

And even in the great crash a few years ago they only fell 15%.

And house prices falling benefits BTL even more as they're pretty much the only people with the capital available now to be able to get mortgages to buy them now that mortgage companies are applying affordability tests to mortgage applicants meaning many won't get one no matter what deposit they have.

Nationwide dude? An index based mainly on the south east? Figures skewed by rich dudes investing in london. Need i go on