Anyone thinking of selling their BTL?

Glover1862

With all the gloom around is anyone temped to lock in returns? With all the new changes around and stock markets plunging which could be seen as a good indicator of times ahead.

I was thinking quite negatively this morning until I heard PM's questions and he continued to reel of all the government incentives, all these HTB ISA savers will need to spend that money somewhere in three or four years time. With Interest rates not going anywhere soon and even now a chance of a cut made me put in an offer with a view of fixing the mortgage for 5 years and worrying about it then. With buying made so cheap my only concern is rent rises may be subdued.

Carl31

with such a list of incentives, some might think it could be due to desperation?

BobQ

And the reason for selling a house is what? To buy shares?

westernpromise

Exactly, BobQ.

Sell you BTL and put it into shares? Bye bye lots of capital, probably.

Put it in a bank? Bye bye income and very possibly bye bye capital, via bail in.

Glover1862

I agree too much vested interest in property and pent up demand for a major crash and no real investment alternatives. Nearly every youngster I know has gone for the HTB Isa as seen as free money, more importantly they start to see ownership as a real possibility and like anything once you start looking you're almost sold. Partly why I stay away from new car dealerships!

padington

I reckon most landlords are considering to downsize portfolio's if the truth is known now . However the slack will get taken up by HTB. The capital appreciation tax or whatever it's called will bail Osborne out nicely (now needs to be paid quickly). So government will end in a good position.

The end result, I imagine, will be those that held onto as much property as possible will be quite glad they did as rents heave up whilst prices maintain high or higher.

Mainly because I foresee really quite low interest rates for a long long while.

Generali

Glover1862 wrote: »

With all the gloom around is anyone temped to lock in returns? With all the new changes around and stock markets plunging which could be seen as a good indicator of times ahead.

I was thinking quite negatively this morning until I heard PM's questions and he continued to reel of all the government incentives, all these HTB ISA savers will need to spend that money somewhere in three or four years time. With Interest rates not going anywhere soon and even now a chance of a cut made me put in an offer with a view of fixing the mortgage for 5 years and worrying about it then. With buying made so cheap my only concern is rent rises may be subdued.

I wouldn't count those chickens just yet.

Inflation in services (little impacted by the oil price) is about 2.5% and rising. Employment is at the sort of level where pay rises are probably about to take off.

I agree that the economy is broadly positive for house prices; I've not done the sums but I bet there is a strong correlation between growth and house prices. Assuming that interest rates will remain low to finance that is a mugs game.

As westernpromise states, the problem then is what to do with it. Shares are probably a pretty decent bet, especially after recent falls.

mwpt

Generali wrote: »

Inflation in services (little impacted by the oil price) is about 2.5% and rising. Employment is at the sort of level where pay rises are probably about to take off.

Ooooer, you're a brave or optimistic man Generali. I don't see wages going up much over this year.

Generali

mwpt wrote: »

Ooooer, you're a brave or optimistic man Generali. I don't see wages going up much over this year.

I reckon wages will be rising faster than GDP by the end of the year unless something changes dramatically.

Casa1862

Lot of mugs out there then according to this

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/11032396/Interest-rates-predictions-When-will-the-Bank-Rate-rise.html

Interests rates go up then I'd assume renting would be in more demand.

lush_walrus

Nope staying as we are at the moment, not buying or selling for at least the next year.