Reply to: Why house prices will rise if you vote Labour

[mace]

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

Which part of London's that? In my part, typical price for a 2-bed flat = £300,000, typical rent for same flat = £1300 pcm. If you can find me a BTL mortgage for 5.2%, then I'll agree with you. With BTL only making sense with high margins, potential for huge losses is too great for me to consider it. First rule of investing spread your investments across multiple asset classes and sectors.

[beaker]

What no insult?

Paying cash never seems to stack up, as the margins get smaller you need to buy more, plus I'm not prepared to risk my own money.
I was talking to someone with 50 BTLs, who of course was liquidising some, however they were working on the high gearing approach i.e. put as little of your own money in as possible, I'm sure everyone knows the maths for doing that, however it's getting less easy to put a small amount in.

When rents are at least 110% of a 7% Interest only, I might consider it. i reckon on average now they are <90%.

Sadly your logical approach to property investment is hard to implement these days with prices so high and yields so low. 7% is the minumum yield you need to cover your costs with 5-10% down. With a 5% yield you need more like 30-40% equity, which is probably a lot of cash for an investment that generates nil annual profit and you're relying on capital growth, which is slowing.

My view is that it's worth doing this in a high capital growth area if you have the cash. Otherwise look further afield for higher yield opportunities eg. regional areas or apartments.

[Bagpuss]

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

What no insult?

Paying cash never seems to stack up, as the margins get smaller you need to buy more, plus I'm not prepared to risk my own money.
I was talking to someone with 50 BTLs, who of course was liquidising some, however they were working on the high gearing approach i.e. put as little of your own money in as possible, I'm sure everyone knows the maths for doing that, however it's getting less easy to put a small amount in.

When rents are at least 110% of a 7% Interest only, I might consider it. i reckon on average now they are <90%.

[sasguru]

when rents start to cover mortgage costs again I'll be in, until then I'm not subsidising someone's rent. I'll leave that to the financially illiterate

They do in London- depending on area, rents are rising.
Alternatively pay cash for the property.
I am actively looking for a BTL at the mo.

[Bagpuss]

when rents start to cover mortgage costs again I'll be in, until then I'm not subsidising someone's rent. I'll leave that to the financially illiterate

[King Cnvt]

If we assume only 200K people arrive per year, and on average they will live 4 to a house, that's 50,000 extra houses they will need above what we have at present.

They won't be buying any time soon, so they will be looking to rent. That's the demand side of the equation sorted, since Labour are definately going to call an election in a few weeks and will certainly win another term and will certainly turn a blind eye to all immigration.

BTL, you CANNOT go wrong.

Bagpuss, it's not too late to join the property boom mate.

[zeitghost]

Still ongoing apparently... CRE are seeking an injunction against the chap rather than prosecuting him...

Pikies are still there naturally enough.

[wendigo100]

Speaking of which zeity, any news about those pikies they tried to evict? You know, where the race commission got involved?

I think I'm disgusted but I can't remember who with.

[Malingering BA]

it has now revised that prediction upwards by about a third to an increase of 190,000 migrants per year over the next two decades.

The Conservatives say the UK "cannot cope" with this rate of growth. Speaking on BBC Radio 4's Today programme, shadow immigration spokesman Damian Green said: "We can't carry on like this. "This involves a population of a city the size of Liverpool being added to our population every five years or so.

We certainly can't carry on like this, what with shadow immigration spokesmen not being able to do their sums correctly. Liverpool has a population of 440,000 so this is a city the size of Liverpool being added every 440,000 / 190,000 = 2.3 years, more than double the stated rate. 0/10 see me after school, Damian Green.

[King Cnvt]

England is projected to have 171,500 new migrants a year, over 40,000 more than previous estimates.

Scotland's new arrivals are put at 8,500 a year compared with 4,000 previously, while Northern Ireland's population is likely to rise by 500 a year rather than fall by the same number.

Conversely, Wales is now expected to receive 2,000 fewer new migrants overall than previously thought.

Immigrants, they're not stupid.

[Bagpuss]

from a HSBC USA property report

>>In London, 108,000 people earn over £100,000 per annum, with a further 38,000 earning over £200,000 per annum.

Sounds impressive until you realise that's less than 1.4% of the population earning >100k.

[Bagpuss]

Do they have to be scousers?

We'll have to nail everything down.

How about we send all himigrants to Liverpool?

[Fishface]

from a HSBC USA property report

>>In London, 108,000 people earn over £100,000 per annum, with a further 38,000 earning over £200,000 per annum.

>>Currently over 35% of Londoners, out of a total population of about 7.5 million, were born outside the UK - and that percentage is heading towards an estimated 50% over the next decade as the population heads towards 8.5 million, begging the question of where they are all going to live, as it seems crowded enough already

>>Surprisingly, London is actually one of the least densely populated of any major city. Kowloon has 1700 dwellings per hectare, Barcelona 500, Paris 300 and London only 78. Indeed, if London had the same density as Paris, it would have a population of 35 million

BUY BUY BUY

[DBA_bloke]

Property is theft.

True Socialism is on the way!

It's only fair!

You are a Scouser and I claim my silly curly wig and ridiculous stick-on moustache. De do doh, don' de doh?

[Sysman]

Do they have to be scousers?

We'll have to nail everything down.

Property is theft.

True Socialism is on the way!

It's only fair!