Panic selling by landlords could turn slump into rout

carolt

inmypocketnottheirs wrote: »

You have to bear in mind that carolt doesn't like truth to get in the way of a good story!

And let nothing get in the way of a good insult!

Especially when you don't have a point to make!

Markyt

!!!!!!? wrote: »

He specifically pointed out that B&B were more exposed than most to the 'novice' BTL LL. ie. The sort of person who jumped into the market late, after the sums didn't add up, expecting to make a profit from capital appreciation and typically leveraging to the hilt.

I suspect B&B are also losing quality re-mortgages to the competition. This leaves them in a bad position and skews the figures - those with good rating and lots of equity go elsewhere, leading the proportion (though possibly not actual numbers) of bad debt to increase significantly. It's a vicious circle and I don't know how they'll break out of it without the funding to attract back the high quality borrowers.

Generali

!!!!!!? wrote: »

There was a good piece on Channel Four News last night about B&B where an analyst pointed out that BTL exposure was 'the great unknown factor' as we go into an environment of a falling market and was why B&B in particular were dragged down on the markets.

He specifically pointed out that B&B were more exposed than most to the 'novice' BTL LL. ie. The sort of person who jumped into the market late, after the sums didn't add up, expecting to make a profit from capital appreciation and typically leveraging to the hilt.

BTL LLs (or at least the ones posting on here) have been saying for a long time, "I'm in it for the long term". Now we can find out if they're actually in it for the long term or in it until the repossession order comes through!

If the mortgage market doesn't go back to 'business as normal' (ie huge amounts of money available for all to borrow at historic low rates) then of course the ones only in it until they lose money will find that they're in it for the long term, like it or not!

carolt

Generali wrote: »

BTL LLs (or at least the ones posting on here) have been saying for a long time, "I'm in it for the long term". Now we can find out if they're actually in it for the long term or in it until the repossession order comes through!

If the mortgage market doesn't go back to 'business as normal' (ie huge amounts of money available for all to borrow at historic low rates) then of course the ones only in it until they lose money will find that they're in it for the long term, like it or not!

Yes, I'm inclined to feel that all those who've claimed this should be made to stick it out come hell or high water.

We'll cheer them from the sidelines!

Trollfever

And guess who the chairman of the CML is.

:rotfl:

CML stats are here:

http://www.cml.org.uk/cml/statistics

WTF?_2

Generali wrote: »

BTL LLs (or at least the ones posting on here) have been saying for a long time, "I'm in it for the long term". Now we can find out if they're actually in it for the long term or in it until the repossession order comes through!

If the mortgage market doesn't go back to 'business as normal' (ie huge amounts of money available for all to borrow at historic low rates) then of course the ones only in it until they lose money will find that they're in it for the long term, like it or not!

I don't think that the old pro landlords have anything to worry about. They bought when it made sense to do so and from what I gather, stopped buying some time ago and some even flogged off properties with massive amounts of equity at the peak.

But there will be blood on the streets from the 'get rich quick' crowd who kept buying in long after it made no sense to do so (and thus priced FTBs out of the market). Handily, that will provide a nice flow of distressed properties to keep supply going as prices head downwards.

Generali

Trollfever wrote: »

And guess who the chairman of the CML is.

:rotfl:

CML stats are here:

http://www.cml.org.uk/cml/statistics

Michael Coogan. Is Squat Now his evil twin?

mystic_trev

Generali wrote: »

BTL LLs (or at least the ones posting on here) have been saying for a long time, "I'm in it for the long term". Now we can find out if they're actually in it for the long term or in it until the repossession order comes through!

To bloody right! I bought my first Investment property back in 1996, so I've done quite nicely

I've been ranting on for the last couple of years, warning the newbie BTL 'muppets' what the likely outcome of all this would be :rolleyes: All I got in return is It's different this time It's me Pension innit and (of course) New paradigm, property will only go up!

Well it certainly is a new paradigm. House prices will go down faster than they went up, and as for your Pension? It'll go down the plughole...........

One things for certain about the forthcoming 'crash' It'll be different this time!

inmypocketnottheirs

mystic_trev wrote: »

All I got in return is It's different this time It's me Pension innit and (of course) New paradigm, property will only go up!

Well it certainly is a new paradigm. House prices will go down faster than they went up, and as for your Pension? It'll go down the plughole...........

As has my Scottish Widows pension. At least when I want to know where my BTL money is I can just drive past the property!!!!

Its all about a balanced risk. However this thread was only started off by a HPC'er.

Generali

inmypocketnottheirs wrote: »

As has my Scottish Widows pension. At least when I want to know where my BTL money is I can just drive past the property!!!!

Its all about a balanced risk. However this thread was only started off by a HPC'er.

I think that house prices are waaay to high. I also think that they'll fall a long way. The best way to invest is to diversify as it is the easiest way to reduce your risk, not to hold all your assets in one class or worse, one item, IMO.