another 'am i doing the right thing?' thread.

AMILLIONDOLLARS

It all so relevant really, if prices dropped 50% tommorrow, we'd be getting the BTLers back buying everything in sight, thereby bringing us back to square one with even higher prices. There does need to be a steady fall in prices for the gradual return of the FTBs, its up to them to consider when the time is right for them. But a word of warning, they mustn't leave it too late or they'll miss the boat once again. Someone said to me this weekend that they were waiting for rock bottom prices, I said that will never be!

You mentioned that there is room for an extension, so there is room to grow in your property, last year this type of property would have been snapped up by a developer, next year who knows!!

If your worried about the price renegotiate, I think your vendors may prefer a drop in price rather then you pulling out completely, they've been reading the papers and listening to the news as well!. I'd hate for you to say next year "if only I'd...." sometimes in this life there are no second chances, so renegotiate the price, if they are not willing, at least you've tried.

AMD

poppy10_2

AMILLIONDOLLARS wrote: »

if prices dropped 50% tommorrow, we'd be getting the BTLers back buying everything in sight

With whose money?

dopester

poppy10 wrote: »

With whose money?

Exactly... the lending gates will be fully chained up if prices fall substantially... not reopened because the lenders think it's a great time to buy again.

Only the soundest credit risks and those with their own capital will be able to take advantage come the very bottom of the slump, which might continue for years. Lenders won't be accepting existing property as collateral either (unless it's real premium stuff).

And don't expect the huge numbers of newly unemployed to be supporting BTL incomes either. Rent for many BTL owners will have to fall to cater for that.