Reply to: Pop!

[Lucifer Box]

you buy them. You'll be contracting longer then the lease on them.

No, I insist, after you.

[rootsnall]

It's been great fun being a BTL landlord on the way up. I personally know I couldn't hack it very well on the way down especially if I was sat on a whole portfolio.

[lilelvis2000]

I've just taken 10K off the price of my house. Still no viewings in more than three months. I'm just now in the process of changing my agent.

But a look on the yahoo property web site shows my area dropping for prices on single detached houses, for quite some time.

my wife will cry. as it's her house and she hoped she would get about 20K more than what we're asking. No chance. its so over decorated I reckon I've to drop it another 5K just to get people in.

On the other side of the pond. My parents had a open viewing day on their house the first day it was on the market. And - sis booom bah - they sold it two days later for more than the asking price. And over there a deal is a deal.

[hyperD]

I'm possitive there is a distortion in the market
There are too many buy to lets competing for rental money for rents to rise significantly. Supply is outstretching demand in the lettings market.

The purchase market has the demand, due to expectations of free money, it's not a demand for housing for housings sake that is driving it, it's a demand to supply to the over supplied lettings market, not for lettings sake but for percieved free monies 'investment' sake.

So we have a market built on expectation of limitless rises with no consideration for yields. Unrealistic IMHO.

I heard the other day that the demand for 1 bed flats is being upstaged by the demand for housing stock with greated number of rooms e.g. 3+ bedroom houses.

I know a mutual friend that moved from IT into BTL fulltime in Scotland and has a huge asset base. I didn't have a chance to talk to him in full but he was talking about yields dropping and cost of borrowing rising (and the usual problems of being a landlord). He also mentioned that he may pull out next year if things continue as they are.

I am hopefully in contact with him in the next month or so and I would love to find out the real story. He has a large housing portfolio and doing this fulltime (not just one or two properties).

[TheRightStuff]

Pure coincidence, it's different this time.

Best buy those BTLs now while prices are still comparatively cheap.

you buy them. You'll be contracting longer then the lease on them.

[Lucifer Box]

The Royal Institution of Chartered Surveyors said tenants are experiencing the biggest and most sustained increase in rents since it first started measuring them in 1998. It added that the recent increases were similar to those in the late 1980s that preceded Britain's last major housing crash.

Pure coincidence, it's different this time.

Best buy those BTLs now while prices are still comparatively cheap.

[Bagpuss]

Surely the landlords will just put up rents to cover the shortfall?

It's all down to Demand > Supply:

1. Welfare and teenage reproduction rates
2. Increased divorce rates
3. Uncontrolled immigration
4. Convoluted planning permission
5. Media driven asset ownership

I'm possitive there is a distortion in the market
There are too many buy to lets competing for rental money for rents to rise significantly. Supply is outstretching demand in the lettings market.

The purchase market has the demand, due to expectations of free money, it's not a demand for housing for housings sake that is driving it, it's a demand to supply to the over supplied lettings market, not for lettings sake but for percieved free monies 'investment' sake.

So we have a market built on expectation of limitless rises with no consideration for yields. Unrealistic IMHO.

[hyperD]

As soon as subsidised (as in rents are not covering mortgage repayments) buy to let becomes unaffordable prices will fall, it can't be far away.

Surely the landlords will just put up rents to cover the shortfall?

Torygraph

It's all down to Demand > Supply:

1. Welfare and teenage reproduction rates
2. Increased divorce rates
3. Uncontrolled immigration
4. Convoluted planning permission
5. Media driven asset ownership

[Lucifer Box]

Pop

Sorry, I thought this thread was about favourite fizzy beverages.

Dandelion and Burdock for me.

[TheRightStuff]

You weren't around in the 80s & 90s then...

A totally different era. Wage inflation was also very high at the time.

[TheRightStuff]

I'm just trying to sell a couple of places and we had a flurry of viewers upto about a month ago, eerily quiet the last few weekends.

There you go.
The value is not what the estate agent thinks it's what the market thinks.
The value at which you complete contracts.
Not accepting an offer or exchanging but completing.
Before then it's all air money.
I think it should be illegal for propertys to have Sold boards when only an offer has been accepted. It's not sold it's under offer. Alot of things can happen that the sale will not complete.

[wendigo100]

Well, they say there is an 18 year cycle in property prices - i.e. the bubble pops every eighteen years. Some sort of natural economic cycle.

Come to think of it, there was a slump in the mid-seventies, and I remember the one in the early nineties. So on that reckoning we've got another couple of years to go.

[rootsnall]

lets see if it sells at that price. I don't think so. I've had to knock 10K off my house and I'm having less viewings now then before the price cut.
Interest rates are high and agents are saying the market is dying. Last weekend for the 1st time in ages my agent said they were sitting at their desks waiting for phone calls. Usually Saturdays is their busiest time.

I'm just trying to sell a couple of places and we had a flurry of viewers upto about a month ago, eerily quiet the last few weekends.

[TheRightStuff]

What a load of bulltulip. I've heard the same arguments for years and am still waiting for this bubble to burst. Seems to me that as long as demand outweighs supply we will continue to see a steady rise in house prices. This time last year a neighbour had their house valued at £310,000. Yesterday they had it valued at £345,000! I do feel for those who are not already on the property ladder!

lets see if it sells at that price. I don't think so. I've had to knock 10K off my house and I'm having less viewings now then before the price cut.
Interest rates are high and agents are saying the market is dying. Last weekend for the 1st time in ages my agent said they were sitting at their desks waiting for phone calls. Usually Saturdays is their busiest time.

[gingerjedi]

Year on year they won't fall...stop worrying...

The first 3 months of this year was madness and its just realigning itself...by year end we will have a Y on Y increase of between 5% and 10%

FACT!

Are we talking Beeny's breasts or house prices?