BTL - Oh Dear

[Bagpuss]

Random abuse, no constructive opinion etc.

Let's put it this way,

Duh, Read the article dude, the properties aren't letting out, duh, that must mean there isn't demand, duh, geddit? Sub prime lending boom, duh, geddit yet? every Tom Dick and Rec-con jumping on the self cert gravy train, geddit? Ferris Bueller? Bueller?

Why not provide some evidence that it isn't the case instead of being such a plonker?

[rootsnall]

More bollocks. Do you have any figures to back up these random firings of your limited neurons?

I think we are about to find out how dodgy the lending has been when the model is put under strain. The banks have been dishing money out to people who won't be able to weather even a small downturn in the economy. I think it'll get messy ! No figures I'm afraid.

[sasguru]

Let's put it this way,

Duh, Read the article dude, the properties aren't letting out, duh, that must mean there isn't demand, duh, geddit? Ferris Bueller? Bueller?

They're letting out fine in London - rents are on the rise.
I was asking for proof that the BTL market is underpinned by sub-prime mortgages - this implies the majority are sub-prime.

[sasguru]

Why not provide some evidence that it isn't the case instead of being such a plonker?

It's incumbent on the person making the contentious statement to provide the evidence. But I doubt that the scientific method counts for much with opinionated twats.

[DimPrawn]

Those who bought last week, looking for a huge equity rise in a short timeframe are idiots.

Those who did their homework, borrowed cheaply and bought the right property in the right location are laughing.

As in any investment arena, there are winners and idiots.

BTL is still a good investment if you know what you are doing. However it is not a get rich quick scheme. Not any longer.

[Bagpuss]

They're letting out fine in London - rents are on the rise.
I was asking for proof that the BTL market is underpinned by sub-prime mortgages - this implies the majority are sub-prime.

A hell of a lot is self certification through mortgage brokers without proper due investigation of incomes that much is apparent from the multitude of media investigations over the last couple of years most of this debt will be by definition sub-prime. The extent of the impending economic 'crisis' is as yet unknown, but when the council of mortgages lenders predicts repossesions up by 50% next year I'd be inclined to take note. Although I'd guess they need to run it past you first.

[shaunbhoy]

but when the council of mortgages lenders predicts repossesions up by 50% next year I'd be inclined to take note

Note for the panicky and hard of thinking. Repossessions up 50% next year does NOT equate to 50% of mortgaged houses being repossessed next year.

[sasguru]

Those who bought last week, looking for a huge equity rise in a short timeframe are idiots.

Those who did their homework, borrowed cheaply and bought the right property in the right location are laughing.

As in any investment arena, there are winners and idiots.

BTL is still a good investment if you know what you are doing. However it is not a get rich quick scheme. Not any longer.

Exactly. The housing market is intensely localised and cannot be generalised. We seem to have developed a multi-tier market. But of course people who haven't actually experienced BTL cannot know this.

[Bagpuss]

Stop changing the subject, the article is about the market now, not what happened 5 years ago. The BTL boom is over, and in a dramatic fashion. Now if it's so rosey in London please provide an example of a property that can be bought on 85% LTV and rented for more than the interest only payment on a 7% loan. From what you have said this should be very easy to do.....

[sasguru]

. Now if it's so rosey in London please provide an example of a property that can be bought on 85% LTV and rented for more than the interest only payment on a 7% loan. From what you have said this should be very easy to do.....

You're missing the point. Anyone who does the above is clearly mad.
But there are plenty of serious BTL landlords who have been in the market for a while and who are looking for medium - long term growth (i.e. can cope with a downturn) and can put down more than a 15% deposit. I would imagine this is the majority. With rents on decent props in London rising this is not an unwise investment by any means.
Even some of the newbies may survive negative equity if their rent covers the mortgage and they have no or few voids. All depends on researching thoroughly the area, the type of prop and the likely market for renters.