laverda Posted July 5, 2007 Report Share Posted July 5, 2007 Hi would like to hear any oppinions as to what effect the recent interest rate may have on 1. House prices 2. Rent prices 3. Weather it is still financialy viable for investing in buy to let. 4. Any forsight as to what might be in the pipeline in the future as shortage of housing imigration and housing needs plus interest rates take hold. Link to comment Share on other sites More sharing options...
odecar Posted July 5, 2007 Report Share Posted July 5, 2007 1. House prices Reduce some of the inflation in prices and may make prices come down where vendor is over extended 2. Rent prices Short term no impact 3. Weather it is still financialy viable for investing in buy to let. Yes if in for th long term and can bargain down on price 4. Any forsight as to what might be in the pipeline in the future as shortage of housing imigration and housing needs plus interest rates take hold. Many people who are borrowing sub prime may be looking to sell to rent back to clear debts Link to comment Share on other sites More sharing options...
Molly's dad Posted July 5, 2007 Report Share Posted July 5, 2007 Increase in interest rates will slow the housing market down - there are a lot of people 'stretched' now and this will persuade them not to move or not to get onto the ladder just yet. However the general trend of house prices will increase due to supply and demand. There are more people wanting their own place to live, whether renting or buying, than there are places to rent/buy. Hence demand greater than supply. Hence supply will fetch a premuim as would any other commodoty that has a rarity vaule. My opinions. MD. Link to comment Share on other sites More sharing options...
Melboy Posted July 5, 2007 Report Share Posted July 5, 2007 It will make little or no difference to the serious investor. This IR is not high it has been increased from an artificially and historically low rate never seen before for around 40+ years to where it actually should be set. Anyone not savvy enough in the property game to understand that IR's go up and down in any given period of time should consider a new career for themselves (or investment strategy). Forget the 'bleeding hearts' stories you see on the telly and read in the papers there are ways and means of getting around everything and heres one for starters........ 25year mortgage? money a bit tight due to the latest IR rise? then extend it by 5 years to 30 years to ease the pressure. Anyway, as a saver I welcome the rise as will millions of other savers. Will it affect rental prices? No....... will more rental properties come onto the market from Landlords who have overstretched themself and jumped onto the property rental bandwagon?.... quite possible. Will house prices come down? I hope so.... then property Vultures like myself can start buying property again at sensible prices. Am I a hard-hearted and a tough old Sod?... Yes! (but I love my Mum) Mel. Link to comment Share on other sites More sharing options...
J4L Posted July 5, 2007 Report Share Posted July 5, 2007 Am I a hard-hearted and a tough old Sod?... Yes! (but I love my Mum) Mel. Well that's ok then! haha Link to comment Share on other sites More sharing options...
GPEL Posted July 5, 2007 Report Share Posted July 5, 2007 Not only are rates going up but sub-prime lenders are also increasingly under the FSA spotlight, which for those having gone down this route to fund a purchase that mainstream lenders shy away from is a bit bothersome. This is a specialist form of borrowing that has many uses for others than hardship cases and may close doors to funding those with less straight forward income streams. Link to comment Share on other sites More sharing options...
J4L Posted July 5, 2007 Report Share Posted July 5, 2007 I think we can all learn something from what Simon posted the other day where he brought to our attention that lenders are increasing setting up fees to make up for the discounts that they offer. It's a salient point and I thought I'd just mention it again. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 6, 2007 Report Share Posted July 6, 2007 Just keep watching ........ As interest rates go up - Monhly Mort pynts will stay "below" monthly rent with balance made up on set up fee ...hence nieve LL will believe he is in profit and continur buying -BoE will respond by hiking rate again FTB getting squeezed further out of market - so int rates up againto try to slow prices - set up goes up - and we have a viscious circle until LL realises they have given huge chunks of euquity away to lender- over due price correction in most "areas" of market will create negative borrowing power forcing LL onto std variable rates -which are non viable for letting- so forcing sale or huge cash injection to hold on to prop................. Btl as stand alone on todays prices is pretty un realistic so "work smarter not harder" and look for props with scope for extension development etc to make sure GP's eclipse current )and future IR rises .......... Then sit down and choose which colour Ferrari you are having .............!lLLOLOL Simple ...............HAhaha Simon Link to comment Share on other sites More sharing options...
odecar Posted July 6, 2007 Report Share Posted July 6, 2007 Simon Go to bed earlier. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 6, 2007 Report Share Posted July 6, 2007 What and miss out on "the forum" !!!!!!!!!!!!!! never!!!!!! LOL Simon Link to comment Share on other sites More sharing options...
Melboy Posted July 6, 2007 Report Share Posted July 6, 2007 I have just found out a litttle Gem this Morning. I know this Guy very vaguely..... well, OK, I have heard of him........................... 9 years ago he bought a whole road of new build 3 bed semi's with garages attached off-plan......yes, that's all 12 of them!!!! He has had them rented out until now........and now he is selling them all off as they become vacant at 10k below current market value for a quick sale. Obviously cashing in his enormous gains. Guess who is the Mug who is looking at buying one of them now.......................... Mel. Link to comment Share on other sites More sharing options...
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