Reply to: Buy to lets and paying their fair share

[scooterscot]

I don't think you've had a crazy Englandshire style boom before !?

It's going to be nasty throughout the UK at some stage, the places without a rising population that were the last to get the boom will get the worst of it. I can't see a 'crash' happening without a recession, it'll just stagnate if interest rates are the only problem. I'm trying to offload two properties at the moment and I think I might be a tiny bit too late for a quick exit.

I think your right.. is das not perfect?

[rootsnall]

I agree. Buuuut Ahhh my houses are not in crazy Englandshire, all north of the border, where a housing crash has not been witnessed since the 1920’s otherwise, stable, sensible, increases…

EDIT: wise investments. Apply here for scooterscot's fund management services

I don't think you've had a crazy Englandshire style boom before !?

It's going to be nasty throughout the UK at some stage, the places without a rising population that were the last to get the boom will get the worst of it. I can't see a 'crash' happening without a recession, it'll just stagnate if interest rates are the only problem. I'm trying to offload two properties at the moment and I think I might be a tiny bit too late for a quick exit.

[scooterscot]

I agree. Buuuut Ahhh my houses are not in crazy Englandshire, all north of the border, where a housing crash has not been witnessed since the 1920’s otherwise, stable, sensible, increases…

EDIT: wise investments. Apply here for scooterscot's fund management services

[DimPrawn]

Wise words mate.

[BlasterBates]

Yes but think....many say prices could drop 30% in the next 3-4 years, that means say your properties are worth 400 grand that is well over a 100 grand.

Lets say you have 200 grand and stick that in Equities and bonds, not currently overpriced except in some hot spots, you'll could easily make 8-10% a year, giving you 50-100 grand over 5 years, as opposed to losing a 100 grand.

Thus by selling up and changing into different assets you could be 200 grand better off than if you stay in property.

Me... I got out of property a while back, and switched to equities

After the housing crash I will probably move back into property

[scooterscot]

mine are at 60% LTV now and that's repayment... also I did not set out to buy them, they were places I once lived just never got used to selling always a buyer! If I were sitting at 80 - 89%+ LTV wow, M&S here I come.

[King Cnvt]

I don't get it, I'm not about to sell and jerk my load because the market may take a downturn in the next few years. Whit attitude is that? I’m in it for the long term, as I suspect most are. My rent covers the mortgage payment and I enjoy holding onto physical assets. People still rent not only because they cannot afford to buy but for my current tenants it is convenient and they don’t want to get tied down. I should charge more for this service.

A long term investment is just a short term investment gone wrong.

Sell before the fall, making a large profit, buy again at the bottom and repeat.

HTH

[pickle]

I don't get it, I'm not about to sell and jerk my load because the market may take a downturn in the next few years. Whit attitude is that? I’m in it for the long term, as I suspect most are. My rent covers the mortgage payment and I enjoy holding onto physical assets. People still rent not only because they cannot afford to buy but for my current tenants it is convenient and they don’t want to get tied down. I should charge more for this service.

I guess it depends on how long ago you got in and the current Loan to book values you have outstanding. If you are geared at high levels, like 85% on intrest only, then when prices start to slide it could get painful. People who have brought 3 or 4 properties in the last year or two will find themselves owing the banks 100k's above what their properties are "worth". And when you consider that the rate rises will mean most new entrants will get less in rent than they pay in mortgage, you can see where there is scope for it to go a bit t1ts up.

[scooterscot]

I'm not sure this is the case with all BTLers

Well then they deserve whits coming... Anyone gambling with that much money best get some more underwear from M&S there gonna need it.

[Moscow Mule]

... My rent covers the mortgage payment ...

I'm not sure this is the case with all BTLers

[scooterscot]

I don't get it, I'm not about to sell and jerk my load because the market may take a downturn in the next few years. Whit attitude is that? I’m in it for the long term, as I suspect most are. My rent covers the mortgage payment and I enjoy holding onto physical assets. People still rent not only because they cannot afford to buy but for my current tenants it is convenient and they don’t want to get tied down. I should charge more for this service.

[tim123]

Good point...

He needs to calculate what he is making because he could sell up and get 6.8% in a completely risk free savings account.

He needs to calculate what has he made on average to date, but more importantly what rate he expects in the future. With capital depreciation, future returns could easily be negative. Me....in his position I'd sell up and go in the Woolwich.

I agree (and have done so), but it is suprising how many intelligent people still think that the market is going to continue to rise at 10% plus per year for the forseeable future.

tim

[BlasterBates]

If he's including capital appreciation and he's had them a long time, wouldn't he be making much more than 5%-10%?

Good point...

He needs to calculate what he is making because he could sell up and get 6.8% in a completely risk free savings account.

He needs to calculate what has he made on average to date, but more importantly what rate he expects in the future. With capital depreciation, future returns could easily be negative. Me....in his position I'd sell up and go in the Woolwich.

[GeorgeGregan]

A good new site to keep an eye on for houses that have had their prices cut.

http://www.propertysnake.co.uk/

Thanks pickle, that's a fun site. Some good comments in there as well , e.g.
http://www.propertysnake.co.uk/site/detail/1279871

first time buyer || i've seen this place. It's NOT a 2 bed at all. you couldn't house a cat in the 2nd bedroom! it's basically a 1 bed where the kitchen has been moved into the lounge... it should've been marketed at 250K

[rootsnall]

I have various searches set up with real estate agents and websites, looking for 2 bedroom houses in parts of zone 2, max. £350k. I normally get 1 to 3 properties to look at per day, often none.

Today I got 19. Doomed!

I think you are probably seeing the properties that were trying to beat the HIPs deadline coming onto the market.