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Buy To Fret

#21
#22
Buy-to-let: Warning for 'accidental' landlords

Home owners who think they can ride out the housing downturn by offering their properties to let, rather than for sale face a nasty shock.

Torygraph

It may sound like the easy option, but home owners who think they can ride out the housing downturn by offering their properties to let rather than for sale face a nasty shock. This is a difficult rental market in which only the best properties are letting easily, and those "accidental" landlords who take a less than professional approach to renting out their homes are facing long and expensive void periods.
More Bear food.

I reckon short term braking effect on the rate of house price falls, but once tipping point is reached for many of those hoping to weather the storm then all those pent up sales could depress prices even more rapidly.
 
#23
in_the_cheapseats said:
Interesting but cruel. There are two problems that this policy manifests.

1. It will stop dead new buy to let punters. Not necessarily a bad thing. Trouble is the only other possible buyers are new buyers looking for property to live in rather than invest. Typical buy to let properties are most suitable to first time buyers. How many of them have access to 20-30% deposit even at current depressed prices?

which leads to

2. If there are no buyers then we are looking at another big reduction in the price of property before new buyers will be tempted/can afford to be back in the market.

Now I don't have a lot of sympathy for those property empires like Anthea Turners squeeze, Grant Bovey who lived the high life, milked it and assembled a £100m of debt rather than equity but I do have time for smaller investors who have been assembling their pensions. I can't believe it is in the banks best interests to screw these people. It would be self defeating.
The job of a bank is to make money, if that means that careful savers and investors dip out then the banks will not care. This problem is dire and I do not forsee it improving until 2012. I base this on my memories and studies of the last property crashes 1972-1978, 1990 - 1996 this is set to be 2007-2012 at least. The buy to let were targetting young professionals and now this market is saturated the owners will have to wait until prices drop far enough to give the next round of what we used to call yuppies a stimulus to consider buying again. One thing is certain, the conveyancing companies and estate agents will lose out in a big way. :cry: :cry: :cry: :cry: :cry:
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:


Does anyone here want to tell us of their problems in remortgages? Any good news stories of banks realising that supporting their current customers may be in their own best interests?
 
#24
I, probably like most people haven't got the knowledge to predict what is going to happen to the housing market but, sad to say for some, hope the brown stuff hits the fan big time with house prices as I will be a first time buyer soon (I'm 50 and it's a long story) I have tied accommodation that expires very soon and live in the South East (Kent)
I have seen massive drops in the area and will want to rent until the market bottoms out but haven't seen much of a dive in rental prices yet. Will it happen? Help me out and reasons why not if applicable.
There's a husband and wife team in the Ashford area who bar near 'own' that part of the world with their buy to let programme and the smug pair were on telly about a year ago saying how not to worry and they are not worried about the 'possible' slump. Haven't seen them for a while!
Sorry if you depend on the market for your living but I get up every day now hoping for bad news with house prices. Becketts spout of a recovery was on a par with the 'green shoots' muppet.
Vive La house price crash! Some people actually want one!
 
#26
Counter-Bluffer-Ops said:
Interesting article waning that house prices could drop a further 55%. Extract and link below:

People who bought buy-to-let flats are expected to “begin panic selling” and the average home value could drop below £100,000.

http://www.telegraph.co.uk/finance/...prices-could-fall-by-further-55-per-cent.html
If the arse drops that far ut of the property market then you can expect anarchy.
Do you really think middle England is going to stand for paying a 150k mortgage ona a sub 100k property? If they all stop what do you think will happen? Lets face it, if property values drop that far then its game over, there isn't enough money left in the pot to bail out the banks should that happen.
 
#27
jagman said:
[If the arse drops that far ut of the property market then you can expect anarchy.
Do you really think middle England is going to stand for paying a 150k mortgage ona a sub 100k property? If they all stop what do you think will happen? Lets face it, if property values drop that far then its game over, there isn't enough money left in the pot to bail out the banks should that happen.
A great proportion of 'middle-England' are mortgage free, and will be completely unaffected by the drop in house values. Incidentally, the losses suffered by the stock market to date are absolutely enormous, and these have seriously affected middle-England - don't see much sign of civil unrest though.

The simple fact is that a great many people have been suckered into buying hugely over-priced property. Property values are now correcting accordingly - as with bereavement they are still going through the stages of anger and denial - acceptance will surely follow.
 
#28
pombsen-armchair-warrior said:
jagman said:
[If the arse drops that far ut of the property market then you can expect anarchy.
Do you really think middle England is going to stand for paying a 150k mortgage ona a sub 100k property? If they all stop what do you think will happen? Lets face it, if property values drop that far then its game over, there isn't enough money left in the pot to bail out the banks should that happen.
A great proportion of 'middle-England' are mortgage free, and will be completely unaffected by the drop in house values. Incidentally, the losses suffered by the stock market to date are absolutely enormous, and these have seriously affected middle-England - don't see much sign of civil unrest though.

The simple fact is that a great many people have been suckered into buying hugely over-priced property. Property values are now correcting accordingly - as with bereavement they are still going through the stages of anger and denial - acceptance will surely follow.
I get what you are saying but you are missing my point
If Mr & Mrs Avergage have a house they have paid 150k plus for and a 150k mortgage to go with it, subsequently valued at under 100k and then interest rates go back up to high levels how long before tens of thousands of people just walk away?
By not standing for it I mean simply turning around and saying feck it, I can't pay for it and its worthless, the bank can have it
 

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