Is it still possible to make a profit on BTL???

Generali

Interesting results. I'd like to know how many of the 13% of voters that stated that a BTL doesn't need to 'wash its face' (pay for itself) are BTLers.

Good post about not needing to sell - preferably to hold forever. Wazza Buffet (Investor #1) reckons the best holding period is forever.

Col.Mastard

Property in west London is on Fire at the moment, with offers over the asking price on nearly everything on the market!!!

Prices have increased by 10% since Xmas!!! (According to the land registry records)

Well, you can forget Buy to Let in this area, and replace it with Buy to Sell!!!
My next door neighbour, bought a house across the road in September & sold it this week for a £65.000 profit!!! Leaving it unlet & without touching a single thing!!! :eek:

So, with this type of fuel, the fire is only going to get bigger!!!

Sad but true!!! No matter how much we love it or hate it!!! :mad:

Colin

Uncle_Fester_2

^^^^^^
:eek:

Sisyphus

Col.Mastard wrote: »

Property in west London is on Fire at the moment, with offers over the asking price on nearly everything on the market!!!

Prices have increased by 10% since Xmas!!! (According to the land registry records)

Well, you can forget Buy to Let in this area, and replace it with Buy to Sell!!!
My next door neighbour, bought a house across the road in September & sold it this week for a £65.000 profit!!! Leaving it unlet & without touching a single thing!!! :eek:

So, with this type of fuel, the fire is only going to get bigger!!!

Sad but true!!! No matter how much we love it or hate it!!! :mad:

Colin

All that doesn't sound like a good argument for a long term investment. Buy to sell 6 months later? That's the equivalent of day trading in stock markets.
"Buy now cos it can only go up" Could be a money maker but this speculative frenzy is just too similar to other bubbles.

mystic_trev

Sisyphus wrote: »

All that doesn't sound like a good argument for a long term investment. Buy to sell 6 months later? That's the equivalent of day trading in stock markets.
"Buy now cos it can only go up" Could be a money maker but this speculative frenzy is just too similar to other bubbles.

The thing is it's not like day trading as you can't move out of positions quickly. This is how a number of people got burnt in the late 80's. I knew two (in prime London) who took out bridging loans and were suddenly stuck with two houses in a market that was tanking. One went bankrurpt and the other had to sell both houses to clear his debts.

I'm finding this bubble frightening. I thought prices would drop at the end of 2004 then IR's went down in August 05 and it started to inflate again.Once sentiment changes and people start realising how much debt they're in (UK has a third of the debt of the whole of Europe) things are going to go horribly wrong!

All IMVHO

ds1980

£65 k in a day on the stock markets? Also the stock markets your using your money. Buying houses your using someone else's!

Everything you do is speculative otherwise there wouldnt be any point.

I do it all the time and have been doing it for the last 3 years. Complete in 2 weeks on latest and will sell in july or so for £50k profit (speculative) but i aint been wrong yet so why would i think any different. All for a little inconvenience.

Ain't the saying "buy low sell high"

ds1980

mystic_trev wrote: »

The thing is it's not like day trading as you can't move out of positions quickly. This is how a number of people got burnt in the late 80's. I knew two (in prime London) who took out bridging loans and were suddenly stuck with two houses in a market that was tanking. One went bankrurpt and the other had to sell both houses to clear his debts.

I'm finding this bubble frightening. I thought prices would drop at the end of 2004 then IR's went down in August 05 and it started to inflate again.Once sentiment changes and people start realising how much debt they're in (UK has a third of the debt of the whole of Europe) things are going to go horribly wrong!

All IMVHO

By which time you'll be no better off than you were in 2004 as theyve gone up so much.

I bought a house in 2004 for £56k now been valued at £90-£100k. Its not going to drop 50% so how will people be better off?

I certainly am not naive enough to think this can go on forever but there is certainly some steam left in it.

Sisyphus

ds1980 wrote: »

£65 k in a day on the stock markets? Also the stock markets your using your money. Buying houses your using someone else's!

Everything you do is speculative otherwise there wouldnt be any point.

I do it all the time and have been doing it for the last 3 years. Complete in 2 weeks on latest and will sell in july or so for £50k profit (speculative) but i aint been wrong yet so why would i think any different. All for a little inconvenience.

Ain't the saying "buy low sell high"

In a few lines, you've summed it up perfectly.
History was not your favourite subject at school was it.

ashcarrot

Sisyphus wrote: »

In a few lines, you've summed it up perfectly.
History was not your favourite subject at school was it.

Well I suppose if he can take a hit of 50% loss (probabily the max loss when it tanks) which i assume he's built up by now then let him take the risk and find out the hard way. As far as I can see now its plain betting at the moment. All this reminds me of the roosevelt stock crash, people (everyman and his dog) would loan huge amounts as the stock market was constantly rising with the constant demand for goods like fridges etc (creating profit and growth for the companies selling them) they'd be able to pay back the loans with the profits of the stock rises and take a profit then plunge even more into stocks. then everyone had a fridge and other consumer gadgets of the day and then one day Kaboom too many trying to sell on one day and bye bye stock market, and bye bye banks.

ds1980

History has no impact on what is happening now. Fortunately ive made my money now in the last few years for me not to care what happens really.

50% loss is only if i sell which i won't so its totally irrelevant.

If i can't sell it for a profit ill keep it.

its easy if you know how.