More Buy to Let Mortgages

Eyesparky

SquatNow wrote: »

OK, so it's ***only*** 191,100 properties that are going to get reposessed.

A fair number of people in this group may well find things difficult, but you have to note that amongst these will be professional landlords with portfolios with low LTVs. It is true that a number of people with little appreciation for the rental market or the true value of the properties they bought are ill prepared for running a business in this area but that does not mean that all these loans are to total idiots ... some, but not all.

SquatNow

Confused_landord wrote: »

Hi Squat now...but what would your opinion be on the BTL that have got very large equities from there properties and do pull out money from them , to expand there port-folios???? in the long run its all about managing money,wisely

Borrowing money to buy an asset at the peak of a boom can never be considered to be "managing money wisely".

The biggest shame of all this? That money they are "Managing" and "borrowing" is SOMEBODY ELSES MONEY.

If the BTL fraggle loses it all by taking an obviosly bad gamble on buying an asset at the peak of a boom, at the end of the day it isn't his money he has lost.

ds1980

subjecttocontract wrote: »

A lot of the BTL virgins who entered the market in the last 2 or 3 years are likely to have problems. It never ceases to amaze me that even now there are people who have never let before looking to climb on board. Many do no homework, don't know anything about the business, employ one of the many rubbish letting agents, let the property to poor quality tenants and then spend a lot of time, effort and money getting themselves out of a big mess.

Of course there are plenty of professional landlords who have been around a while who know what they are doing and who will survive virtually any downturn.

I have got into this game in the last 3-4 years. Never done it before. I have 1 property where rent is £300 a week and mortage is £500 a month it was under £400. PLease don't tar us all with the same brush. There is still money in it if you know where to look. All my others are on repayment and they easily cover the mortgage as a bonus the houses and flats are worth significantly more than i paid. I have never remortgaged and never bought a new build i am only 27. They are my pension and will never sell them. I understand what you are saying but people have been banging on about repossesions from the amateaurs but most of the btl's are wealthy asain folk whi arent short of a bob and its these stupid people that make us good landlords be able to make our money.

Eyesparky

SquatNow wrote: »

Borrowing money to buy an asset at the peak of a boom can never be considered to be "managing money wisely".

The biggest shame of all this? That money they are "Managing" and "borrowing" is SOMEBODY ELSES MONEY.

If the BTL fraggle loses it all by taking an obviosly bad gamble on buying an asset at the peak of a boom, at the end of the day it isn't his money he has lost.

If a bank repossesses a house the BTL investor will be liable for the differential between what the market achieves for the property and the loan they have taken out (plus fees). Hence it is ultimately the investors risk. Without investors of one kind or another borrowing money in order to back risk taking activity there would be no economy ... perhaps your ultimate ideal. I personally like living in a country with some semblance of market economy.

ds1980

SquatNow wrote: »

Borrowing money to buy an asset at the peak of a boom can never be considered to be "managing money wisely".

The biggest shame of all this? That money they are "Managing" and "borrowing" is SOMEBODY ELSES MONEY.

If the BTL fraggle loses it all by taking an obviosly bad gamble on buying an asset at the peak of a boom, at the end of the day it isn't his money he has lost.

I like reading your posts but you sometimes post absolute tosh. People borrow money all the time for all manner of things. I don't see you talking about these people who take much greater risks! Get down from your horse and drink yer milk

SquatNow

Eyesparky wrote: »

If a bank repossesses a house the BTL investor will be liable for the differential between what the market achieves for the property and the loan they have taken out (plus fees). Hence it is ultimately the investors risk. Without investors of one kind or another borrowing money in order to back risk taking activity there would be no economy ... perhaps your ultimate ideal. I personally like living in a country with some semblance of market economy.

I see your point, but the ability for the BTLer to go bankrupt and walk away introduces a massive problem.

If the BTLers were forced to keep that outstanding debt for their entire lives and live horrible lives in penury working to repay it then you'de have a fair comment.

Of course no-one would go into BTL either.

BTL is a crap shoot. you win, you get rich. You lose, someone else gets poor.

Eyesparky

SquatNow wrote: »

I see your point, but the ability for the BTLer to go bankrupt and walk away introduces a massive problem.

If the BTLers were forced to keep that outstanding debt for their entire lives and live horrible lives in penury working to repay it then you'de have a fair comment.

Of course no-one would go into BTL either.

BTL is a crap shoot. you win, you get rich. You lose, someone else gets poor.

Totally naive and untrue ... but when has that ever stopped anyone. Hope it all works out for you and the revolution of regurgitated ideals is a whopping success. I'm off to live a life while I am still permitted to.