Reply to: Brexit DOOM™: BTL

[RetSet]

"Rents in Britain Blah Blah...

Midlands +2.8% Around twice the rate of inflation. On a leveraged portfolio. Brings it in at an effective 9%.

I won't be slashing my wrists any time soon.

[clearedforlanding]

Nope. Have a if you're bored.

I have a thing for naive investors. What makes you think I don't when reading your posts.

On a positive note you are better material than MF.

[sasguru]

Entertain me.

Nope. Have a if you're bored.

[sasguru]

what you invested in ?

Boring index trackers.

[clearedforlanding]

Why do you think I sold my BTLS last year?

Bad weather affecting the rental price of allotments out on the east side of Scunthorpe?

I'll bite. Entertain me.

[diseasex]

Nope. Ride the markets, cowboy. Yee hah!

what you invested in ?

[northernladyuk]

Short URL alert! NLUK may be sending us off to some dodgy porn site that keeps popping up windows all over the place!

We're not discussing _that_ sort of renter!

It is pretty grimy but SFW.

[OwlHoot]

LMGTFY

Short URL alert! NLUK may be sending us off to some dodgy porn site that keeps popping up windows all over the place!

We're not discussing _that_ sort of renter!

[AtW]

But not from the EU. I don't think he feels unwelcome.

He gets £5k per week taxpayer-funded housing "allowance".

[chopper]

We are talking about renters here.

For example Governor of the Bank of England is a renter.

But not from the EU. I don't think he feels unwelcome.

The average pret-a-manger worker can't afford to rent a place in London. Not even when shacking up with ten of his mates.

For rich foreigners Brexit is also bad because buying property in a EU member state is much more interesting, a fair few of them would now choose Paris, Berlin, Amsterdam, Vienna etc

So what you're saying is that demand for properties in London is coming down because foreign buy-to-letters are choosing elsewhere, thus causing prices to become more sensible.

Boom. BOOOOOOM.

Lets have more of that.

[AtW]

The kind of foreigners who should be (wrongly) feeling unwelcome by the Brexit vote are those who can't afford a property of any description in London. So that can't be the reason.

The foreigners in London who can afford London properties don't give a **** what Brexit voters think. Fairly sure those Russian oligarchs aren't giving two hoots in that respect.

We are talking about renters here.

For example Governor of the Bank of England is a renter.

For rich foreigners Brexit is also bad because buying property in a EU member state is much more interesting, a fair few of them would now choose Paris, Berlin, Amsterdam, Vienna etc

[chopper]

Bubbles don't get corrected - they get burst.

Triggers could be difference, in this case Brexit can easily be one for London property - a fair few foreigners don't feel welcome anymore and they'll move somewhere else.

The kind of foreigners who should be (wrongly) feeling unwelcome by the Brexit vote are those who can't afford a property of any description in London. So that can't be the reason.

The foreigners in London who can afford London properties don't give a **** what Brexit voters think. Fairly sure those Russian oligarchs aren't giving two hoots in that respect.

[northernladyuk]

"Rents in Britain have recorded their first annual drop for six years, according to the UK’s biggest estate and lettings agency.

In February, the average rent in Britain was £921 a month, £5 lower than a year earlier, and the first annual decrease since 2011. Countrywide, which compiled the figures, said the buying frenzy ahead of the hike in stamp duty last year pushed up the supply of new homes for letting by 10%. Meanwhile tenant demand has been dropping, particularly in London, possibly related to Brexit.
England's housing market is 'broken', government admits in white paper

Rents are falling fastest in the capital, down 4.3% over the year to an average of £1,246 a month. It means tenants are now typically paying £63 a month less to secure an apartment compared to last year.

Rents in the south-east have also dropped, by an average of 2.6%, but in other parts of the UK they are still rising. Countrywide said rents in Wales were up 5.3% over the last 12 months to an average of £636 per month, while in the east of England they rose 3.1% to £945.

In London, the supply of new homes to let is up 18%, but the number of tenants looking for properties has fallen by 3%. Tenant demand is also falling in the south-east, but in other parts of the UK it continues to rise."

https://www.theguardian.com/business...y-hike-letting

Just after I bought my flat

LMGTFY

[AtW]

Sounds more like a correction of a bubble than because of Brexit. The article said 'probably' Brexit. Was Brexit to blame for the fall of house prices in 2008?

Bubbles don't get corrected - they get burst.

Triggers could be difference, in this case Brexit can easily be one for London property - a fair few foreigners don't feel welcome anymore and they'll move somewhere else.

[northernladyuk]

Explain to me why rents dropping is bad, particularly in London where they are already rediculously and unsustainably high:

2 bedroom flat to rent in Seventh Floor Apartement, Erebus Drive, Royal Artillery Quays, London, SE28
Studio flat to rent in West End Lane,London,NW6, NW6
2 bedroom house to rent in Agar Grove, Camden, NW1, NW1

Sounds more like a correction of a bubble than because of Brexit. The article said 'probably' Brexit. Was Brexit to blame for the fall of house prices in 2008?

See if you can work this one out for yourself.