Why house prices will rise if you vote Labour

[zeitghost]

Still ongoing apparently... CRE are seeking an injunction against the chap rather than prosecuting him...

Pikies are still there naturally enough.

[King Cnvt]

If we assume only 200K people arrive per year, and on average they will live 4 to a house, that's 50,000 extra houses they will need above what we have at present.

They won't be buying any time soon, so they will be looking to rent. That's the demand side of the equation sorted, since Labour are definately going to call an election in a few weeks and will certainly win another term and will certainly turn a blind eye to all immigration.

BTL, you CANNOT go wrong.

Bagpuss, it's not too late to join the property boom mate.

[Bagpuss]

when rents start to cover mortgage costs again I'll be in, until then I'm not subsidising someone's rent. I'll leave that to the financially illiterate

[sasguru]

when rents start to cover mortgage costs again I'll be in, until then I'm not subsidising someone's rent. I'll leave that to the financially illiterate

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

[Bagpuss]

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

What no insult?

Paying cash never seems to stack up, as the margins get smaller you need to buy more, plus I'm not prepared to risk my own money.
I was talking to someone with 50 BTLs, who of course was liquidising some, however they were working on the high gearing approach i.e. put as little of your own money in as possible, I'm sure everyone knows the maths for doing that, however it's getting less easy to put a small amount in.

When rents are at least 110% of a 7% Interest only, I might consider it. i reckon on average now they are <90%.

[beaker]

What no insult?

Paying cash never seems to stack up, as the margins get smaller you need to buy more, plus I'm not prepared to risk my own money.
I was talking to someone with 50 BTLs, who of course was liquidising some, however they were working on the high gearing approach i.e. put as little of your own money in as possible, I'm sure everyone knows the maths for doing that, however it's getting less easy to put a small amount in.

When rents are at least 110% of a 7% Interest only, I might consider it. i reckon on average now they are <90%.

Sadly your logical approach to property investment is hard to implement these days with prices so high and yields so low. 7% is the minumum yield you need to cover your costs with 5-10% down. With a 5% yield you need more like 30-40% equity, which is probably a lot of cash for an investment that generates nil annual profit and you're relying on capital growth, which is slowing.

My view is that it's worth doing this in a high capital growth area if you have the cash. Otherwise look further afield for higher yield opportunities eg. regional areas or apartments.

[mace]

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

Which part of London's that? In my part, typical price for a 2-bed flat = £300,000, typical rent for same flat = £1300 pcm. If you can find me a BTL mortgage for 5.2%, then I'll agree with you. With BTL only making sense with high margins, potential for huge losses is too great for me to consider it. First rule of investing spread your investments across multiple asset classes and sectors.