UK house price to crash as global asset prices unravel

[sgtkate]

This in a nutshell.

 

People make point and decry BTL as scum of the earth.

But in reality they have stepped into the gaping housing hole left by councils all over the country.

 

Council housing is a joke in many parts of the country, it was all sold off and nothing new was built.

 

People need places to live, thats never going to change so alot of people have gone to the BTL market to find accomodation.

 

The bad landlords are the scum of the earth, but most are either accidental landlords who do their best or ones who actually give a toss about their tenants. My dad is about to sell a house he rents to the tenants. He needs to sell but they've lived there for years and he doesn't want them to lose their home, so he's offered to help them cover the deposit for the place. His attitude is that they've effectively paid his mortgage for years and they deserve better than losing their home. It's also far less hassle for him to sell to them than to either serve notice on them or try to sell with sitting tenants. Proud of my Dad

[Anna B]

The bad landlords are the scum of the earth, but most are either accidental landlords who do their best or ones who actually give a toss about their tenants. My dad is about to sell a house he rents to the tenants. He needs to sell but they've lived there for years and he doesn't want them to lose their home, so he's offered to help them cover the deposit for the place. His attitude is that they've effectively paid his mortgage for years and they deserve better than losing their home. It's also far less hassle for him to sell to them than to either serve notice on them or try to sell with sitting tenants. Proud of my Dad

 

That's good to hear.

[geared]

Bad landlords are bad landlords, but on the whole with BTL:

 

The person has sunk alot of money into the property as an investment, it's in their best interests to keep that property in good condition.

 

If they don't keep up with maintenance and such they're shooting themselves in the foot, if/when the property is sold it'll take a big hit on it's value should the place be falling apart.

 

---------- Post added 11-01-2016 at 13:12 ----------

 

Don't forget, a landlord is obliged to offer the property to the sitting tenet first, so if they can afford to buy, they can.

 

Are you sure?

 

Not heard that one before?

[Penistone999]

Can I ask what the benefit for you is of investing in property instead of equities/stocks?

 

Quite simply the returns.

 

 

Property is low risk as long as you do your homework before you buy .Buy the right properties in the right areas at the right price and you cant lose. There will always be a massive private rental market ,and there will always be a massive market for student lets.

 

My property portfolio gives me a far higher yield than leaving my money in the bank, and they will give me a good pension.

 

---------- Post added 11-01-2016 at 13:20 ----------

 

You're taking a 3 bed family home and turning it into a student house. Well done you for ruining Crookes a little bit more.

 

A student HMO will return almost double the yield that a three bed family house will do . Thats why i split them into seperate rooms .

 

---------- Post added 11-01-2016 at 13:22 ----------

 

They won't end up homeless though. Firstly, selling a house doesn't make it easy to kick out a sitting tenant.

Secondly, if house prices crash because of this, then people can move out of the rental market and become house owners.

And of course as prices drop, landlords will become less keen to sell, which will put a brake on the decline.

And large landlords are excluded from the attack by the government, so they will buy out small landlords and keep creaming off the profit. All part of the Tory plan to help the rich.

 

Many people cannot get a mortgage to buy , so they will always rely on the rental market.

[WiseOwl182]

That is 100% correct.

No home owner gains anything on increase of their house price.

Those cause rent prices to rise so poorest are screwed.

You need more money to upgrade so property ladder becomes steeper.

And first time buyers see first step of that ladder become higher and higher.

Major crash would ruin some peoples lives but would be beneficial for most in long run.

 

 

Not correct. Rising house prices still carry advantages even if not selling up:

 

- Increased LTV leading to much more favourable mortgage rates

- Increased protection from any future price drops

- Option to borrow against equity if required

[Berberis]

A student HMO will return almost double the yield that a three bed family house will do . Thats why i split them into seperate rooms .

 

Profit over community. Well done, very parasitic of you.

 

Fingers crossed the Uni continues to build student accommodation so people like you are put out of business.

[truman]

Profit over community. Well done.

 

Fingers crossed the Uni continues to build student accommodation so people like you are put out of business.

 

Won't the council have the last say on whether or not a HMO is given permission..maybe you'd have more luck by lobbying them..

[Cyclone]

Not correct. Rising house prices still carry advantages even if not selling up:

 

- Increased LTV leading to much more favourable mortgage rates

Irrelevant once you've paid down a large portion of the mortgage, so beneficial to only a minority of borrowers.

- Increased protection from any future price drops

On the contrary, the cause of future price drops.

- Option to borrow against equity if required

The cause of boom and bust cycles as people borrow when they shouldn't.

 

The disadvantages clearly outweigh these dubious benefits that you've listed.

 

Which are;

 

More expensive to buy in the first place, out of reach of many younger people today

More expensive to move up the ladder if you want/need a larger house

Encourages reckless borrowing in some people (Both to buy in the first place, and in the form of equity release)

Forces people into the rental market, which then further distorts house prices from what is realistic.

Edited January 11, 2016 by Cyclone

[WiseOwl182]

Irrelevant once you've paid down a large portion of the mortgage, so beneficial to only a minority of borrowers.

On the contrary, the cause of future price drops.

The cause of boom and bust cycles as people borrow when they shouldn't.

 

The disadvantages clearly outweigh these dubious benefits that you've listed.

 

Which are;

 

More expensive to buy in the first place, out of reach of many younger people today

More expensive to move up the ladder if you want/need a larger house

Encourages reckless borrowing in some people (Both to buy in the first place, and in the form of equity release)

Forces people into the rental market, which then further distorts house prices from what is realistic.

 

 

We can agree to disagree as its subjective. What you have ignored though is the whole premise of this thread and my main point that doubling stamp duty for BTL actually has very little impact and at some price points still works out cheaper than just 15 months ago.

[Cyclone]

I thought that was quite interesting actually. I didn't ignore it, I filed it away in my brain.