'BTL Landlords go long'

dopester

Well considering as I expect mass-unemployment in the near future... I'm not too bothered about all these yields on crummy BTLs in backwater towns.

We're tapped out in debt in this country.... you have remarkable confidence in the financial fire-power of the minority who have been prudent. And if people like these, buying still at near top, are your professionals, then we'll see how they'll be coping with 20%+ drops... or much worse. Sure the banks will be throwing money at them.

MissMoneypenny

IveSeenTheLight wrote: »

Unless of course you are implying that I bought the properties in les desirable areas of which I can assure you I did not. Both properties are in high sought areas.

What I implying is that you seem to think you are immune from a house priced crash because of the large paper gains you have made, even though you have only bought your BTLs in 2007. Why do you think that property can go up by that much in the space of a few months, but can't drop by the same percentage in the same time?

John_Pierpoint

If times get really tough, the government will reintroduce rent controls and protection from eviction. A BTL landlord has one vote, unlike his portfolio of properties, where each tenant has one vote (& and the ability to riot and throw brick bats).

By that time BTL prices would have fallen so far that the banks would be childishly thankful to have the banks nationalise their mortgages.

IveSeenTheLight

MissMoneypenny wrote: »

What I implying is that you seem to think you are immune from a house priced crash because of the large paper gains you have made, even though you have only bought your BTLs in 2007. Why do you think that property can go up by that much in the space of a few months, but can't drop by the same percentage in the same time?

I have never said I am immune from a house price crash.
Why do people always mis-quote or try to interpret what I think?

I bought one of my BTL properties in Jan 2007 and yes I have said that previous paper gains on the property (29% since Jan 2007) and (if required) in conjunction with increased capital payments I have made makes me feel confident that I could cope with any house price correction.

I use this property as an example as my other property I bought in 2004 and has a much lower LTV with much higher equity.

The date I bought a property is really not signifiant. You need to work with much different sets of figures to assess the affordability

At present my received rent to mortgage payment ration is 1.52 times.
One of the properties rent almost covers the mortgage on the two properties
I currently have 17 months of mortgage payments cover, should I have void periods, which is growing each month.

These are some reasons why I think I am well placed to cope with any correction

From your original post, I stil dont see the relation to your post and my one
http://forums.moneysavingexpert.com/showpost.html?p=10533339&postcount=120
reviewing my post, I notice I made a mistake. One of my properties is 29% LTV, the other is 57& LTV, not 27% as I initially posted. Guess my fat fingers hit the 2 instead of the 5