dunx1 Posted January 7, 2008 Report Share Posted January 7, 2008 Property Prices dropped for 17yrs in Japan and people had £100,000 mortgages on properties worth £20,000, however they are now on the way back up. It just depends how long term you are willing to be. Also re there being a sharp crash in March i doubt it very much - House prices typically take a very long time to adjust and while there will be sellers on the way down people will always see this as a buying op. and a bargain. This is based on perceived value. A few years ago £160,000 for a small 2 bed terrace in Fulham seemed expensive - now you would be lucky to see an ex council for less than £340,000. Its just an opinion I don't consider myself a doom monger just a realist! Link to comment Share on other sites More sharing options...
Molly's dad Posted January 7, 2008 Report Share Posted January 7, 2008 "is it time to get out of buy to let" Yes if you are in it for the short term capital growth. I dont see the stellar increases continuing and the market with flatten out for the next few yrs. No if you are in it for the long term and for the cash flow as rentals will increase. She has got to be the most successful BTL'er in the UK, JUdith Wilson, has now 700 properties worth £250+ Million and when did she start? "In 1991, the UK was still in recession and the property market hit rock bottom. Judith started buying properties, mainly at auction. These were properties with protected tenancies, which had the advantage that Judith did not have to go out and find tenants. This was important as she intended to keep the properties as a long-term investment. In the mid-90's as the UK came out of recession, those properties increased in value. Judith was able to access the increase in value, and intended to use this equity to buy more properties." http://www.jwipb.co.uk/bio.asp and "According to two former maths teachers from south London, who are Britain's buy-to-let king and queen, the property market will never crash. Husband and wife magnates Fergus and Judith Wilson have just signed a deal to buy their 700th house. If things go to plan, they will become the country's first buy-to-let billionaires. Every week they buy another house - and on one day alone spent £10m buying 40 properties off a distressed developer." From Dec '06; http://www.guardian.co.uk/money/2006/dec/1...ess.houseprices As has been said many times - depends on your strategy.......... Link to comment Share on other sites More sharing options...
dunx1 Posted January 7, 2008 Report Share Posted January 7, 2008 I'm surprised about the confidence that rental prices will increase. Credit markets are tightening and this will reduce consumer/company spending. In turn companies will often make less money and need to reduce staff/keep wages low or may go out of business. this may create a number of factors... 1. immigrants go home/stop coming. 2. People leave the Uk. 3. Tenants default on rents. Combine this with the increased returns on cash and an increase in mortgage payments we will probably see over the coming years even if the BoE lower rates then this isn't ideal for a robust BTL market. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted January 7, 2008 Report Share Posted January 7, 2008 Credit markets tightening ...full on recession ..the way you describle it ........that makes it all the harder for people to purchase and force them into the rental market .....as demand goes up ...there is some law somewhere which suggests the rent may go up ! and the price of prop coming down ...buy buy buy... Immigrants stop coming ...are you kidding !? with what uk government give them they will be coming for the forseeable future ......have just agreed a deal to let yet another house to local council to house the over "supply" of asylum seekers People leaving UK ???????? what youi mean a mass exodus ?? cant see it myself ! tenants default on rent ....some always have some always will........good referencing and increased demand make selectivity a bit easier Combine this with the increased returns on cash and an increase in mortgage payments we will probably see over the coming years even if the BoE lower rates then this isn't ideal for a robust BTL market........and to make it even better lots of amatuer LL leaving market to reinvest back in stock market .....will all just make the going pretty good for those in for the long term ..... But if you are looking to take profits "soon" then now is probably a good a time as any ...... but be prepared to kick yourslf pretty hard in 5-10 years time ! Link to comment Share on other sites More sharing options...
dunx1 Posted January 7, 2008 Report Share Posted January 7, 2008 Well no one really knows including me - life would be so easy if we did!!! Best of luck either way and they do say "Safe as houses"!! Link to comment Share on other sites More sharing options...
paul99 Posted January 10, 2008 Report Share Posted January 10, 2008 From what I've picked up along the way the immigrant rental situation sounds in fairly good health - eg: from Homes Abroad Link to comment Share on other sites More sharing options...
paul99 Posted January 15, 2008 Report Share Posted January 15, 2008 FYI - from a few days back, but another interesting article from Reuters: Housing market 2008 -- what the experts predict Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted January 16, 2008 Report Share Posted January 16, 2008 "LONDON (Reuters) - Signs have been mounting of a slowdown in the property market" YEP for 8 years now !! didn't anyone tell them !! Well just goes to show no has a clue what they are talking about some up 4% some say down 10% .. Diffferent sectors will do different things, as will areas, and yes even individual properties ... I "reckon" that i will make more profit from prop this year than ever b4 due to motivated sellers and keen flexible and creative buying, employing as always "due diligence" ,a truck full of cheek with offers, and the assistance of well thought out and solid financing.... Remembering that there are condsiderably more things that one can do with a prop other than just BTL ! as i'm sure you will agree ...Paul (as Jim would say ) .....We've got a triangle here .... 1.you on one point 2.the systems to utilise and capitalise on to make the money on point 2 3.the "stock" or "commoddity" to play with (prop) well 2 is firmly proven and in place 3 will be around for the very forseeable future So that just leaves No 1 ...You.... will you make a profit this year ......Clearly only YOU have the answer ! Link to comment Share on other sites More sharing options...
oneportfolio Posted January 16, 2008 Report Share Posted January 16, 2008 The profile of a buy-to-let investor has drastically changed over the past few years. It is not uncommon now to see someone who has entirely no experience in the propery market bidding at auction alongside experienced landlords for investment property. With signs that the market is slowing, these inexperienced investors, with huge portfolios, are often left with properties that are highly overvalued and have huge rental voids that they can't afford - especially if they are NMD dealing which most are. Saying that, I still believe now is a great time to invest. As the market currently stands it seems all offers on property are getting considered with the UK's homeowners rising debt problems, family breakups and other problems that 'desparate sellers' are faced with. ONEPORTFOLIO Investment Property - UK Buy To Let at up to 20% BMV. Link to comment Share on other sites More sharing options...
Selkirk Posted January 16, 2008 Report Share Posted January 16, 2008 Don't know all the methodoligies but two things I do believe, this type of inverstment has to be long term and people still have to live somewhere. Spring will be a good indicator, Hips will be old news, the credit crunch will be boring and another drop in BBR (surely). Don't listen to those hacks or so called professionals do your own research and make your decisions and leave the sheep to follow each other. Link to comment Share on other sites More sharing options...
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