EA's Trying To Control The Market

pickles110564

Doc_N wrote: »

I'm just waiting for the government to remove the tax relief BTLs are currently getting on their loans - it's being widely mooted as another moneyspinner for a government thats short of cash (and one that won't upset many voters).

No problem i will just pass it on to my tenants, my last took two days to get new tenants in paying more money.:T :j :j

Doc_N

pickles110564 wrote: »

No problem i will just pass it on to my tenants, my last took two days to get new tenants in paying more money.:T :j :j

Not so easy - don't forget that with lower prices they'll be able to buy for themselves, so there won't be as many tenants. Fewer tenants = lower rents = more pressure on BTLs to sell = lower prices. A virtuous circle.

macaque_2

pickles110564 wrote: »

No problem i will just pass it on to my tenants, my last took two days to get new tenants in paying more money.:T :j :j

Don't forget that the amount you can charge a tenant is driven by market forces rather than your personal financial needs.

pickles110564

macaque wrote: »

Don't forget that the amount you can charge a tenant is driven by market forces rather than your personal financial needs.

How long do you think they will be at this low price for?
You mention your kids are waiting to buy and in my department at work i know of at least 6 dads looking forward to lower prices as well.
This surely means demand will outstrip supply and prices will start rising when all these eager young kids want to get on the housing ladder.
I for one will also add to my btls taking advantage of the lower prices.
:T :rotfl: roll on the crash

benb76

pickles110564 wrote: »

How long do you think they will be at this low price for?
You mention your kids are waiting to buy and in my department at work i know of at least 6 dads looking forward to lower prices as well.
This surely means demand will outstrip supply and prices will start rising when all these eager young kids want to get on the housing ladder.
I for one will also add to my btls taking advantage of the lower prices.
:T :rotfl: roll on the crash

This is a very good point which many on this thread have overlooked, there are enough potential buyers out there waiting for a small drop (or even stagnation so that their earnings rise relative to house prices), to ensure that prices are unlikely to drop by more than 1-2% and that they will recover fairly soon.

Doc_N

pickles110564 wrote: »

How long do you think they will be at this low price for?
You mention your kids are waiting to buy and in my department at work i know of at least 6 dads looking forward to lower prices as well.
This surely means demand will outstrip supply and prices will start rising when all these eager young kids want to get on the housing ladder.
I for one will also add to my btls taking advantage of the lower prices.
:T :rotfl: roll on the crash

I have a sense of deja vu here - you said this before. I'm delighted for you that you'll be able to add to your BTLs, but it will be tough for all the marginal BTL people out there who will have to sell at a loss to keep their heads above water.

You should be in for a very profitable time (unless of course prices keep falling after you've bought, which they may well do - it's always impossible to gauge the bottom of the market). I don't think you're going to find demand outstripping supply for quite a while after the slump starts, though.

Yes, there are FTBs waiting in the wings, but they are going to be easily outnumbered by the sellers panicking to sell up before prices fall still further. Plus of course the FTBs who can't make ends meet any more. Plus the ordinary buyers who overcomitted themselves, thinking that interest rates would stay low and that prices would keep on rising.

Roll on the crash, indeed. It will allow average earners (and their kids) the chance to buy their houses again. I don't think there's going to be much sympathy for all the BTL people who get wiped out.

It's also going to be interesting to watch all the whining that will go on from the likes of Rosie Millard and the other BTLs when tax relief on loan interest goes, as I'm sure it will - quite possibly in the next budget.

Doc_N

benb76 wrote: »

This is a very good point which many on this thread have overlooked, there are enough potential buyers out there waiting for a small drop (or even stagnation so that their earnings rise relative to house prices), to ensure that prices are unlikely to drop by more than 1-2% and that they will recover fairly soon.

I think you're wrong on this - see above. During the last house price slump in the early 90s there were plenty of FTBs waiting to buy, but prices just kept on falling for about 5 years from a peak of around £112k to a low of around £70k.


http://www.housepricecrash.co.uk/forum/

pickles110564

Doc_N wrote: »

Roll on the crash, indeed. It will allow average earners (and their kids) the chance to buy their houses again. I don't think there's going to be much sympathy for all the BTL people who get wiped out.

It's also going to be interesting to watch all the whining that will go on from the likes of Rosie Millard and the other BTLs when tax relief on loan interest goes, as I'm sure it will - quite possibly in the next budget.

In my small town all the Btl's i know have 4 at least with 2 Btl's having over 100 . I know for a fact that they wont get hurt by the so called crash and will like myself add more if it does fall.

sm9ai

If prices fall look at the US as an example. They don't bounce straight back up.

As for BTL increasing prices, that won't work. The first thing people will do with higher mortgage payments is let out their spare room(s). Therefore more supply for BTL to compete with.

Romani_Ite_Domum

pickles110564 wrote: »

In my small town all the Btl's i know have 4 at least with 2 Btl's having over 100 . I know for a fact that they wont get hurt by the so called crash and will like myself add more if it does fall.

Just out of interest, how will these people finance more BTLs in a falling market?