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Debate House Prices
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Some interesting BTL Stats...
Comments
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vivatifosi wrote: »Blimey. Were you Kate and Wills's landlord?
LOL.... Not quite.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
vivatifosi wrote: »Interesting article Hamish, thanks. So reading this, as part of my cunning plan to build a BTL empire I need to invest in two bedroom properties in Milton Keynes at a cost of under £100k per property.
Joking aside, where I live there is quite a shortage of two-bedroom homes, so interesting to see that they are higher yield more widely.
It is interesting....
Yield, like price, is a function of supply and demand.
It'll be interesting to see how the changing demographics impact the different market segments over the next couple of decades.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I would far rather invest in shares than a BTL at those gross yields. If I lived somewhere cheaper (currently in London) though I might be tempted to buy three or four terraced houses and rent then out.
As it is I'd rather not touch a £300-400k rental property witha barge pole. Would likely only get <5% gross yield. Not enough reward for the risk for me.0 -
chewmylegoff wrote: »If I lived somewhere cheaper (currently in London) though I might be tempted to buy three or four terraced houses and rent then out.
That's the thing.
In most other places, BTL makes sense from a yield perspective.
Not so much in London, but then in London the realistic prospect of capital gains does compensate to some extent.As it is I'd rather not touch a £300-400k rental property witha barge pole. Would likely only get <5% gross yield. Not enough reward for the risk for me.
I wouldn't either. London is a strange situation IMO.
Elsewhere is a different story though.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
How does this work? I live not far from Croydon so how do you make 7-8% gross yields on a property if you were to buy now? Especially as a 2 bed flat which is the typical BTL property goes for around £850 a month?
I dont know your market, but the answer is probably that you dont.
You need to go for the real low end of the market to make a good yield in many areas, as the graph shows. Think studios, converted one bedders etc.
Only problem is, that you get a lower quality class of tenant to go with it, so take the risk of more maintenance/legal costs.0 -
HAMISH_MCTAVISH wrote: »No, these are the FTB-s with a rich daddy to buy them a house while they go through Uni.
I'm looking in a very specific area.
So when it comes to buying a house for yourself, you appear to be putting lower offers in than others? Yet tell the rest of us that higher prices are better for us?0 -
Graham_Devon wrote: »So when it comes to buying a house for yourself, you appear to be putting lower offers in than others? Yet tell the rest of us that higher prices are better for us?
Well, having been exposed to endless pages of posters telling me that the indices were skewed, houses aren't selling at close to peak prices, lowball offers are the way to go, etc etc etc...... I did think it might be an idea to try offering 5% or so below peak prices.
Not working very well though so far.:(
Seems to be a pretty lousy plan if you actually want to buy a house up here.
Maybe I should rethink and up the offers....;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Well I personally don't believe you are making offers.
You'd have been the first to come along and suggest people were offering higher than you. It's only just now in a sticky situation you have decided to enlighten us all.0 -
Graham_Devon wrote: »Well I personally don't believe you are making offers.
You'd have been the first to come along and suggest people were offering higher than you. It's only just now in a sticky situation you have decided to enlighten us all.
Oh dear Graham.... Epic fail.
I already posted about this exact situation many months ago.
HAMISH_MCTAVISH wrote: »I've been trying to buy a BTL for the last few months. Keep getting outbid by owner occupiers. I'm offering 5% or so below 2007 prices. They're selling for 5% or so above.
Damn those deluded vendors and their deluded buyers.:cool:
Care to withdraw your comment now?:rotfl:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No, these are the FTB-s with a rich daddy to buy them a house while they go through Uni.
I'm looking in a very specific area.
When you get your head out of that "very specific area", why not just be content with what you have ? I suspect that you live a fairly comfortable life, so why not just live it, instead of striving for more ?
In fact, if you are so clever, why not try making other people's lives a little better, instead of trying to gain more for yourself ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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