Going buy to let: "So Sir, what's your strategy for paying back the capital?"

Crashy_Time

No, and if France votes the "wrong" way, looking ever more likely, then all bets are off. FTSE well down already.

Thrugelmir

Crashy_Time wrote: »

No, and if France votes the "wrong" way, looking ever more likely, then all bets are off.

Leaving the Euro Zone isn't on the agenda though.

brit1234

If you were looking to sell in London you have probably missed the boat. The house price downturn is now hitting the suburbs and South East England. This is the first year in ages I haven't heard much about the spring bounce. The general election is going to take us to the summer downturn holidays. We will see how strong the downturn is in late September, then we see if its stopped or accelerating.

pph

Is it too simplistic to say there's an inverse relationship between house price rises and rental price rises?

I.e. (and particularly in the London example) if the selling market drops off, rent there is likely to be an acceleration in the rise in rental charges? Similarly if there's lots of sales being made, there's less pressure on rental prices to go up?

Crashy_Time

Thrugelmir wrote: »

Leaving the Euro Zone isn't on the agenda though.

https://www.wsj.com/articles/french-election-puts-possibility-of-frexit-on-the-agenda-1487183427

Crashy_Time

pph wrote: »

Is it too simplistic to say there's an inverse relationship between house price rises and rental price rises?

I.e. (and particularly in the London example) if the selling market drops off, rent there is likely to be an acceleration in the rise in rental charges? Similarly if there's lots of sales being made, there's less pressure on rental prices to go up?

Rent is driven by HB (government intervention) prices by credit price and availability (bank intervention) Any changes to this intervention (we are already seeing them try to pop the BTL bubble) will reduce property prices.

Crashy_Time

http://moneyweek.com/property-crash-housing-bulls-turning-bearish/#.WPcj9fLxoHw.email?utm_source=emailfriend&utm_medium=email&utm_content=SharedArticle&utm_campaign=AddThis

Thrugelmir

pph wrote: »

Is it too simplistic to say there's an inverse relationship between house price rises and rental price rises?

I.e. (and particularly in the London example) if the selling market drops off, rent there is likely to be an acceleration in the rise in rental charges? Similarly if there's lots of sales being made, there's less pressure on rental prices to go up?

Interest rates and taxation policies will likewise influence the market.

Crashy_Time

Thrugelmir wrote: »

Interest rates and taxation policies will likewise influence the market.

BTL tax kicks off this month doesn`t it?

Crashy_Time

pph wrote: »

Is it too simplistic to say there's an inverse relationship between house price rises and rental price rises?

I.e. (and particularly in the London example) if the selling market drops off, rent there is likely to be an acceleration in the rise in rental charges? Similarly if there's lots of sales being made, there's less pressure on rental prices to go up?

There is a relationship between high housing costs and cheap and plentiful credit available to the masses/businesses/governments. The next financial phase will see rents and prices falling IMO.