Buy-to-let investors will need 50pc deposit - or no mortgage

mystic_trev

Crashy_Time wrote: »

there are going to be people who throw in their cards and put property up for sale, maybe flooding the market in some areas.

Are you thinking of buying in Cumbria?

Crashy_Time

mystic_trev wrote: »

Are you thinking of buying in Cumbria?

That`s already flooded.

Crashy_Time

wotsthat wrote: »

You sold at the point which you say was the time to buy and have rented for the best part of a couple of decades since.

I mention this just in case anyone new to your ramblings mistake confidence for knowing what you're talking about.

We were talking about the timing for BTL, I have never owned BTL. On the wider issues Wotsit, are you glad that the PTB are finally going to make BTL non-viable for the masses who want fancy themselves as landlords?

CLAPTON

Crashy_Time wrote: »

We were talking about the timing for BTL, I have never owned BTL. On the wider issues Wotsit, are you glad that the PTB are finally going to make BTL non-viable for the masses who want fancy themselves as landlords?

if being a landlord become unviable, then of course the number of owner occupiers will increase


however where do you envisage that the people who need to rent will live ?

Crashy_Time

CLAPTON wrote: »

if being a landlord become unviable, then of course the number of owner occupiers will increase


however where do you envisage that the people who need to rent will live ?

They will be lodgers of the previous renters who are now OO`s?

:rotfl: No? Let me try again,


..... where did I live before the BTL mania took off.........mmmmm...Oh I know, in a rented flat owned by a landlord!


Hopefully a good property crash will clear out the space between your ears Clapton.

CLAPTON

Crashy_Time wrote: »

They will be lodgers of the previous renters who are now OO`s?

:rotfl: No? Let me try again,


..... where did I live before the BTL mania took off.........mmmmm...Oh I know, in a rented flat owned by a landlord!


Hopefully a good property crash will clear out the space between your ears Clapton.

so being a landlord will continue to be a profitable business just like now

westernpromise

michaels wrote: »

So the working theory on this board is that a 2 bedroom property will house 3 or 4 renters (sharers) but only 2 buyers hence if a renter buys their property that leaves 1 or 2 others who were sharers now looking for somewhere to live. This may not be correct but certainly sounds plausible in London/SE commuter areas.

It's fairly clear that the maximum number of people a property can be mortgaged to is 2, whereas there is no such upper limit on how many can rent it. As a matter of observation it seems clear that you can create no more than two OOs per sold ex-rental property but you can displace more than two tenants.

I occupied my flat alone and have since rented it to either 2 or 3 tenants sharing, but never to one.

cells

michaels wrote: »

So the working theory on this board is that a 2 bedroom property will house 3 or 4 renters (sharers) but only 2 buyers hence if a renter buys their property that leaves 1 or 2 others who were sharers now looking for somewhere to live. This may not be correct but certainly sounds plausible in London/SE commuter areas.

effectively homeowners can bid at most 2 wages to buy a house

a group of renters can bid four wages to rent the house

The result is a shift from owners to renters especially in places where supply is more short (eg London) and rents are high. In places where supply is ample and rents a lot lower then renters dont need to cram and it will be owners bidding a max of 2 wages or renters bidding a max of two wages. And in that situation owning is better as its cheaper due to lower overheads and middlemen.

wotsthat

Crashy_Time wrote: »

We were talking about the timing for BTL, I have never owned BTL. On the wider issues Wotsit, are you glad that the PTB are finally going to make BTL non-viable for the masses who want fancy themselves as landlords?

I would've said the late nineties were a good time to buy for BTL's as well as OO's - wouldn't you? It's hindsight of course but it was a godawful time to sell and then rent forever. I'm amazed you can be so certain about the future when you've been so wrong so many times.

If BTL's can be deterred from competing with me when I take a leap up the housing ladder I'm up for that but hoping isn't the same as knowing.

Crashy_Time

CLAPTON wrote: »

so being a landlord will continue to be a profitable business just like now

Where do you think "all the people" will live Clapton?