Good property crash BTLs

MattLG

What sorts of properties do well with regard to lettings when the housing market crashes? I'm guessing smaller, cheaper places do better because people are less likely to be able to afford the more expensive rents. I'm also guessing that the increase in people who have been repossessed will also increase the demand for the smaller lettings.

MattLG

meanmachine_2

Come now, you know property never crashes.

It only ever goes up and up and up until the richest man in Britain can no longer afford even a studio in Catford.

Crashes are likely to be accompanied by a recession, as the two are sadly linked.

SO if/when it does kick off, it'll be more difficult to get money out of the bank and the demand for rentals across the board is likely to be down since people take drastic action and move in with family etc.

GDB2222

MattLG wrote:

What sorts of properties do well with regard to lettings when the housing market crashes? I'm guessing smaller, cheaper places do better because people are less likely to be able to afford the more expensive rents. I'm also guessing that the increase in people who have been repossessed will also increase the demand for the smaller lettings.

MattLG

Two bed flats are pretty good round here. During the last recession (early 90's) the rental market remained strong. This time, though, things may be different because there are so many BTLs around. If you expect a crash, don't buy.

FaTB

I think you would be very hard pressed to find a property that is a good BTL investment during a crash.

There would be far better investments about, without the hassle.

HGLTsuperstar

Student houses in university towns, never fail! Look at any road in Selly Oak, Birmingham for proof!

funky_phantom

I'm new to the BTL market. Any advice would be much appreciated. I'm particularly looking for online resources.

Rave

If you're new to the BTL market, then IMO you're about four years too late. BTL looks like a terrible investment right now.

MattLG

The people who have been in the trade for 20+ years are saying we're due for a huge crash (don't listen to the "it's different this time" muppets who've been doing this for only 5-6 years). If you're gonna get into BTL, you've gotta be very careful these days. Don't just jump on the bandwagon.

MattLG

kinster_2

which crystal ball did they look into?

gallygirl

Don't jump on the band wagon, but there will always be demand for 'council houses' and as the council haven't got any left soemone has to offer them.


Beware though, apart from house prices. You're likely to get either tenants who are always getting into arrears, don't want to bother you when a roof leaks so damage ends up worse than it could have been, can't work out how to tighten up plastic plumbing or trash the place.

Have has 1st 3 but not the latter..... yet....:eek:

Swipe

HGLTsuperstar wrote:

Student houses in university towns, never fail! Look at any road in Selly Oak, Birmingham for proof!

Don't be so sure these days. More and more students are staying at home and going to local universities and many institutions are on huge halls of residence building/investment projects. I think most students who go away to uni these days are opting for modern halls-type accommodation with free heating, free highspeed Internet and a gym in the same building. For some reason, these do seem more tempting than an overpriced grotty room in a damp ridden terraced
house where bills are not included.

Students these days are definitely a different breed to what they used to be in the 70s and 80s.