Buy To Let landlords are squealing.
- Thread starter RigidRaider
- Start date
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Soggy_weetabix
he he 
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They do now... somebody has already sanitised the list.
not for long
D
Deleted member 105431
Buy to let landlords only have themselves to blame, they are just as responsible as the banks for this credit crunch. I have no pity for those now going bankrupt, it's their own greed that they have to blame.
Please explain how buy-to-let landlords are responsible.
Please explain why you class all those facing bankruptcy as greedy.
Please explain why you revel in the misfortune of others.
Buy to let landlords only have themselves to blame, they are just as responsible as the banks for this credit crunch. I have no pity for those now going bankrupt, it's their own greed that they have to blame.
Ok, picture this. middle aged couple realise that putting into a pension is not going to provide for them when they retire. So, buy another property as an investment and let it out.
How are they greedy, responsible or to blame.
I feel sorry for them. And before you ask no, I'm not a buy to let landlord, but have frieds who are. They're not greedy, just trying to make a living like the rest of us.
I'm not a sympathetic person, but I've been asking myself for some time "can the price of any asset continually increase by more than inflation plus economic growth, so that it reaches infinity?"
The answer I came up with was "No, sooner or later the price rise will stop"
Some investors in domestic property either came up with a different answer, or didn't ask themselves that question.
As we are talking about investors here (not people buying a house to live in) I see no problem in expecting investors to live with the results of their choices. Just as i would if they chose to invest their pension fund in gold bars, or oil futures, or Bank shares.
The answer I came up with was "No, sooner or later the price rise will stop"
Some investors in domestic property either came up with a different answer, or didn't ask themselves that question.
As we are talking about investors here (not people buying a house to live in) I see no problem in expecting investors to live with the results of their choices. Just as i would if they chose to invest their pension fund in gold bars, or oil futures, or Bank shares.
It is a hard fact that this country is suffering a chronic housing shortage, and its getting worse, daily. Therefore, in the long term, the core value of all homes will increase in a free market. However, the money available to lend to home buyers nearly ran out and the reins have been pulled in. Therefore, buying power has reduced and home prices (not value) have fallen to match the limited mortgages available. Potential house buyers cannot now get mortgages, but they should have the monthly income to pay back the mortgage that they cannot now have. Houses are not now being built due to the lack of credit available to the builders to build and the buyers to buy.
The only answer to 1st time buyers, with reasonable income, is to rent. Buy To Let landlords should not be adversely affected by this credit crunch unless their tenants are not paying the rent. In fact, their mortgages should reduce while the rental income remains constant (or even increases). The landlords should sit tight; potential home buyers will take up short assured tenancies.
However, the government will now restore most of the lending power (with restrictions) and I foresee, in the new year, house prices climbing again until the housing stock meets the demand. This is the core problem that needs to be addressed. It caused the credit crunch.
The only answer to 1st time buyers, with reasonable income, is to rent. Buy To Let landlords should not be adversely affected by this credit crunch unless their tenants are not paying the rent. In fact, their mortgages should reduce while the rental income remains constant (or even increases). The landlords should sit tight; potential home buyers will take up short assured tenancies.
However, the government will now restore most of the lending power (with restrictions) and I foresee, in the new year, house prices climbing again until the housing stock meets the demand. This is the core problem that needs to be addressed. It caused the credit crunch.
but not to limitless levels.
If the average starter home rises to a million pounds, will it be two million pounds five years later? And five million after that?
No, it will not.
So the idea that buying houses is a fantastic investment, and that their prices will always go up, for ever, is not true. It is this idea that led prices going up to unreasonable levels.
As ever, a bubble is followed by a pr1ck.
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