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Britain's deflating buy-to-let bubble
house21
Posts: 3 Newbie
In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn
I think as long the rental market is strong, there will be no major drop in prices. What do you think?
I think as long the rental market is strong, there will be no major drop in prices. What do you think?
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In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn
I think as long the rental market is strong, there will be no major drop in prices. What do you think?
I think that rents don't cover mortgage payments. Landlords are subsidising tenants. And the property marked is doomed!
:money:
PS. Welcome to MSE and you're not allowed links in your sig.0 -
Interesting report from ShareCast today -
Buy-to-let investors ignore warnings
http://uk.biz.yahoo.com/12102007/214/buy-investors-ignore-warnings.html0 -
There are plenty of HPC threads going already, can you please contain yourself to adding to one of those rather than starting a new one"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
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Interesting report from ShareCast today -
Buy-to-let investors ignore warnings
http://uk.biz.yahoo.com/12102007/214/buy-investors-ignore-warnings.html
like lemmings on a cliff top, they keep pushing, but not quite sure why, only it's what they need to doIt's a health benefit ...0 -
Interesting report from ShareCast today -
Buy-to-let investors ignore warnings
http://uk.biz.yahoo.com/12102007/214/buy-investors-ignore-warnings.html
These figures are so 6 weeks ago!
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Interesting example of a BTLer whoc is subsidising the mortgage for his rental property signifying he is not looking to sell his asset but ride through this period until there is profit again.
I think many BTLer's will be in a similar position.
I make a profit from my two buy to lets and subsidise the profits to maximise the mortgage payments. This provides extra security that if interest rates rise, I could if necessary adjust the monthly payments as I have decreased the outstanding capital amount.
As I am already subsidising the profit, the rent returned would have to be extremely low before I started to feel a pinch.
Will I be looking to sell up, No way.
Property prices have historically always shown an increase in the long term.
I read an article showing that on average, house prices double every 9 years, even accounting for dips, stagnation and crashes.
If you have a BTL on a long term strategy, there is no need to panic:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn
You're ignoring the fact that one could quite easily get mortgages secured on a rental property, before the banks product, called "buy to let mortgages", was invented.I can spell - but I can't type0 -
IveSeenTheLight wrote: »
Property prices have historically always shown an increase in the long term.
I read an article showing that on average, house prices double every 9 years, even accounting for dips, stagnation and crashes.
If you have a BTL on a long term strategy, there is no need to panic
wages/Prices have also more or less kept up over the same period 'cos of inflation.
However with inflation now set at a far lower figure - wage/prices up about 54% over the last 10 years, surely you can't expect prooerty price increases to be sustained at the same rate as the last 60 years?0
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