my buy-to-let dream cost me everything

dixie_dean_2

Melissa, I said the person must be a RAVING Tory. You sound like a nice, shiny green, David Cameron sort of Tory.

Doc_N

dixie_dean wrote: »

Melissa, I said the person must be a RAVING Tory. You sound like a nice, shiny green, David Cameron sort of Tory.

Would that be a Quentin Davies sort of Tory too?

BobProperty

eco-friendly wrote: »

.....Back in 1989 when we had the REAL crash the only people that benefited were Landlords , YUP ! BTLers. Around 60.000 people lost their homes, and many lost their jobs also , a lot of those repossessed properties were auctioned off at " bargain prices " ! and the crazy thing was ,some families found themselves re-housed in properties bought at auction round the corner from were they originally stayed, but now on state benefits. Appalling that the goverment allowed this to happen, but they did.....

That would be professional landlords with large cash deposits then, because in 1989-1992 mortgages were hard to get and the term BTL didn't exist. So people who had cash reserves and knew what they were doing made money? Wow! Sybil Fawlty's Mastermind "Specialist Subject" comes to mind.....

"The government allowed this to happen" One, I think the markets did it, something the government can not control. Two, where would you like the people who were repossessed to live? You want a law saying you can't rent within 1/2 a mile of where you had your house repossessed? Three, please outline how you would legislate to prevent this.

Generali

Brave, cash rich people do well out of recessions.

Holders of assets and those that lose their jobs do badly.

dannyboycey

Generali wrote: »

Brave, cash rich people do well out of recessions.

Holders of assets and those that lose their jobs do badly.

Yep. Although it looks like a good time to buy gold if you have any spare cash!

WTF?_2

BobProperty wrote: »

"The government allowed this to happen" One, I think the markets did it, something the government can not control. Two, where would you like the people who were repossessed to live? You want a law saying you can't rent within 1/2 a mile of where you had your house repossessed? Three, please outline how you would legislate to prevent this.

Well, it was the US and UK governments who pursued a policy of low interest rates, increasing the money supply and allowing less regulation of money markets so in large part, they bear a great deal of responsibility for the way things have gone in the last 5-6 years.

They did it precisely to create a boom and keep it going for as long as possible. The last time the UK boom looked like flagging, mid 2005, the BoE delivered an out of the blue interest rate cut which certainly got things moving for a bit longer. Unfortunately by staving off an inevitable recession they just make things worse for when it all does go pear shaped.

My guess is that Brown will make sure that everything is done to keep the illusion of a strong economy/housing market going until at least after the next election. Once he's re-elected and safe for five years he might actually do something to tackle the underlying problems.

MissMoneypenny

!!!!!!? wrote: »

My guess is that Brown will make sure that everything is done to keep the illusion of a strong economy/housing market going until at least after the next election. Once he's re-elected and safe for five years he might actually do something to tackle the underlying problems.

That is my fear:eek:

Conrad

Ah the power of the crash.

I've just bought a block of 20 flats with existing tenants in Germany. The rent yield is over 20% (we will get it to 30% by improving some of the flats).

It has a football stadium sized foot print of land and it's in a town that is now booming - believe it or not Poles are invading the place, sounds familiar!

The price I paid......... have a guess?




£50,000. The same property was sold for £400,000 just prior to the German property crash in 1996.


As I say, the power of sentiment is breathtaking.

Barnard Marcus auctions in London last week had many new build repossessed flats for sale. A typical example:

Nottingham - flat 3, Brook Court bought for £139000 in November 2005.

WHAT PRICE DO YOU THINK THE AUCTION ACHIEVED.........?



It did'nt!!!

The reserve of £70,000 was'nt even achieved.
This is one of many such examples in just that one auction.


BUT PROPERTY ALWAYS GOES UP - Galliard Homes are still building such developments so it must be true...........

WTF?_2

Conrad wrote: »

£50,000. The same property was sold for £400,000 just prior to the German property crash in 1996.


As I say, the power of sentiment is breathtaking.

....


BUT PROPERTY ALWAYS GOES UP - Galliard Homes are still building such developments so it must be true...........

Ah, but in good old Blighty property always goes up. Who knows what way it works over in those weird continental societies.

Oh, and we don't have any sub-prime here either. No sir. That's just those irresponsible yanks who of course are also responsible for any problems our debt industry might be having.

Nope, Britain has a strong sustainable economy with a thriving property market built on sound fundamentals. :rolleyes:

dannyboycey

eco-friendly wrote: »

O danny boy..........................


Back in 1989 when we had the REAL crash the only people that benefited were Landlords , YUP ! BTLers.

Many BTL'ers are on interest only mortgages for obvious reasons. The recent run of rate rises has wiped out their profits and many are now subsidising their tenants!

OK, but it's a long term investment I hear you say. Well. I hope you're not too busy for the next 10-15 years... because that's the kind of downturn that could be on the cards (look at Japan). Interest rates will be lowered allowing BTL'ers to claw back some of their losses, but will they take the bait or cut and run before they go into negative equity on a property/ies that they haven't paid a penny off? It's too little too late....there's only one way to go now!