Reply to: Interest rates to rise price of flats falling

[Causus Deli]

Who knows?

[Ardesco]

Today, 15:28 Remove user from ignore list
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[Causus Deli]

Why don't you rent out to bona-fide people?

I go through agents and it's difficult to pick and choose, I haven't lost out financially. I notice Poles tend to leave the places disgustingly dirty but a few hours hard work never hurt anyone and it's just not worth trying to get it paid for out of deposits these days.

I had a Polish couple who came in the country about 3 years ago (small 1-bed flat), they had two sprogs back to back and now have a nice shiney council 3-bed house. As usual didn't pay the last months rent and had the affront to ask for the months deposit, having given no notice at all. We expect this and are geared not to lose money.

[Ivor1]

Why don't you rent out to bona-fide people?

A lot of the local councils or at least my one will guarantee to rent the place off you for 5 years, tenants tend to be immigrants.

IMO they should stop the tax relief on the rent the landlord gets and use towards the mortgage, this should free up some more housing.

[sasguru]

Yes, many of my tenants are immigrants. I don't agree with the situation but why not exploit it for my benefit. Amazing isn't it a labour policy benefitting parasites like me. It does have it's drawbacks, I do get called by the immigration department regularly and get some skipping the country leaving a mess behind them. Others subletting to illegals etc and the fraud squad being interested in people I didn't even know were staying at one of my addresses. What a shambles we have created in our great land.

Why don't you rent out to bona-fide people?

[Causus Deli]

You mean you're making money from immigration?

Yes, many of my tenants are immigrants. I don't agree with the situation but why not exploit it for my benefit. Amazing isn't it a labour policy benefitting parasites like me. It does have it's drawbacks, I do get called by the immigration department regularly and get some skipping the country leaving a mess behind them. Others subletting to illegals etc and the fraud squad being interested in people I didn't even know were staying at one of my addresses. What a shambles we have created in our great land.

[sasguru]

I'm on hold and will reinvest when things take off which given the population growth must.

You mean you're making money from immigration?

[Causus Deli]

Envy is sooo ugly. If I worried every time someone says it's bust time I'd be on my nineteenth nervous breakdown.

[ASB]

I have a thought though that there is another possibility... We have seen the rate rise today and I expect there to be more to really get borrowing etc under control. This will mean more people who borrowed heavily going under. If I was a buy to letter I would be looking to sell now at peak of the market and then re-invest in a year or two.

Or possibly.......

There are, say 20,000 additional repossessions. This produces additional rental demand, at least to those who will take HB or are SRL's.

[Hart-floot]

I am simply raising my rents anyway.

Get prepared for the voids then

[chubba]

Yup, not surprised your solicitor told you not to bother, my Dad said the same to my brother about seven years ago as he thought the growth would not continue. The old man has passed away since but am sure he would be happy to admit to being wrong on that one!

Lots of people say market will level out, most of the ones I have heard say it have been estate agents.

I have a thought though that there is another possibility... We have seen the rate rise today and I expect there to be more to really get borrowing etc under control. This will mean more people who borrowed heavily going under. If I was a buy to letter I would be looking to sell now at peak of the market and then re-invest in a year or two. If there are BTLers who think like me then it could see a glut of properties come on the market (the BTLs and the repossessions).

We saw a month or so ago a glut of houses come on the market to try and beat the HIPs and this had a really dramatic effect on the market. From there being few houses on the market in this area and buyers fighting over what was there the situation reversed to buyers having a lot to choose from and this is when lower than asking price offers really kicked in and the housing market slowed to almost standing.

The end is nigh!

[Causus Deli]

My solicitor told me not to buy my first flat (2-bed) 7 years ago. I bought it for 104K and sold it 2 years ago for 168K. They are now selling at 175K (not asking). Those 2 years would have indeed not been worth it. I'm on hold and will reinvest when things take off which given the population growth must.

[sunnysan]

No Crash

I dont think there will be a violent crash butmore the loss of ROI more like it

The point is

People like CD have 7 years of equity in property then good and well. Property is a good investment.

But CD has benefitted from 7 years of strong growth which has undoubtedly(Alongwith some balls) built his BTL empire.

All thing considered
1) Higher interest rates
2) Increased mortgage
3) Pessimistic growth prospects
4) Availablity of cheaper rental accomodation
5) Stamp Tax of 12k

I have made the decision that it is not worth my while to increase my mortgage and expose myself to higher interest rates at this time.

I do believe that if I buy now or in a years time I would have not missed out on that much growth. My decision is based on personal circumstances and risk/reward.

At this point in time, I dont think its a good investment. Not in London anyway

[chubba]

Oh yeah, was posted on another thread a while ago:
http://www.propertysnake.co.uk/

Seeing is believing! And this only seems to show houses on Rightmove that have actually been reduced, not all of the deals that go through under asking price...

[chubba]

This is what they wish you to do, by scaring you, it's jealousy. If I had taken the same advice 7 years ago when I started btl then I wouldn't be where I am now having made quite a few bob and sitting on many properties with plenty equity. There may be a reallignment of prices but the best deals will again be snapped up by investors and unless you are vigilant and brave you will miss out. I am simply raising my rents anyway.

Yeah, houses prices will keep rising at 10% year-in year-out! You heard it from someone on a forum so it must be true!!

My house is on the market. At the beginning of the year one just up the road went on the market and it sold in less than 4 days - there was such demand for houses at that time. Ours has been on for about a month, had a couple of offers but both of these were below (not much but still below) the asking price.

Am looking to buy as well (cannot convince the Mrs to take a risk on renting for a year) and yes, I am also seeing the same old melons, sometimes with price reductions, sometimes not but they really are sticking now. Some properties I have seen have been on the market for 6 months or more.

All the Estate Agents I have spoken to have said the market is slowing down, I feel this cannot be disputed.

But then again, this could just be a seasonal blip? People getting ready for holidays etc and not wanting to move at this time of year?

Yeah right!

THE CRASH IS COMING, BATTEN DOWN THE HATCHES

Another couple of rate rises, house repo's go up, mortgage repayments go up and confidence in the market may hit a downward spiral.

Especially if people like Causus Deli get nervous, think we have hit the ceiling and put their BTLs on the market. Market flooded, double whammy, prices will tumble.

I have been predicting the crash for about 6 years though "this can't continue" etc etc so don't listen to me...