How does Buy to Let END!

[One percent]

Just now, Wight Flight said:

Or fewer, depending on how much you care for our language.

Less so these days i guess. 

[TheCountOfNowhere]

How does btl end.... Slowly at first.... 

 

https://www.rightmove.co.uk/property-for-sale/property-81160079.html

 

That's the least expensive flat I've seen in Northampton since 2012.

 

That's a prime btl purchase. 

 

Thought it was shared ownership for a mp but doesn't look to be 

 

Something is hopefully afoot. 

[TheCountOfNowhere]

1 minute ago, Tdog said:

Thats not a HPC, this is a HPC.

https://www.bbc.co.uk/news/stories-51412328

In both situations its a price issue, or failure to accept the reality what you paid for is not at the same level so one else is willing to pay. 

The cladding is unfortunate. The owners of the property can pay to have it changed. 

 

[BoSon]

On 10/02/2020 at 10:58, Loki said:

There might be a lot less Chinese students needing digs very soon.

I don't think they're going to be rushing home at the end of term. Those digs may turn out to be home. Maybe some will stay and do a masters/PhD to keep the student visa rolling over for a few more years.

BTL will end when they make BTL mortgages interest rates more expensive than the typical yield percentage after taxes. Maybe they already are. 

[BoSon]

Just now, Tdog said:

2.46 fixed for a decade.  They can leverage up and fill their BTL boots.

Is that for a BTL mortgage or a normal one for accidental landlords hoping not to get caught?

[Wight Flight]

7 hours ago, Tdog said:

2.46 fixed for a decade.  They can leverage up and fill their BTL boots.

I am assuming it has a massive arrangement fee hence the overall 3.9% aprc?

To get that to break even you would need a 5% yield. And that is ignoring the loss of return from your 40% deposit.

Without capital appreciation, that is a shit investment.

[Wight Flight]

3 minutes ago, Tdog said:

2k for a 10 year at 2.46 ... or 1k for a 10 year at 2.59.. or you can get a 5 year fee free at 2.1%

A good deal if you ask me.

Maybe. But you are ignoring the loss of return on the 40% so more like 4% in reality. So you still need at least a 5% yield to break even. More if you have some repair bills / voids.

Plenty of places rent at less than that. Mine is at 2.1%. Very happy for my landlord to lose money every month I live here.

 

 

[Wight Flight]

1 minute ago, Tdog said:

I wouldnt be arsed to deal with tenants, but if you're of the mindset id imagine they could find yield.

With your LL it all depends on what price he paid for it, If he bought pre 2005 then he'll be doing very well out of that house. If i was a LL id use that price to calculate yield.

He bought for £100k 20+ years ago.

But that is irrelevant. It is the return on the capital he could get if he sold that is important to him, and the return on my capital I can get by not buying (or the cost of borrowing that capital) that is important to me.

Currently that is tipped very much in my favour.

[Wight Flight]

Just now, Tdog said:

Must be a lot of house for 100k pre 2000 ... but a safe 2.1% isnt to be sniffed at in this day and age.

Not so sure about safe. He has had maintenance bills of best part of £5k in the last 12 months, and I estimate the house has dropped about £20k in value.

Against £10.5k in rent.

 

[spygirl]

15 hours ago, Tdog said:

2.46 fixed for a decade.  They can leverage up and fill their BTL boots.

Max lTV 60%.

This is for ma n pa 'Lets get a rental, cashing intheir pension and a 2nd mortgage.

The IO BTL horde are on LTVs 80%+

[spygirl]

6 hours ago, Tdog said:

I wouldnt be arsed to deal with tenants, but if you're of the mindset id imagine they could find yield.

With your LL it all depends on what price he paid for it, If he bought pre 2005 then he'll be doing very well out of that house. If i was a LL id use that price to calculate yield.

No.

At least 75% of IO BTL are i nthe North, where the face little or no capital appreciation. Or are looking at a hefty loss.

The only LL 'up' are those in London/SE.

And those face exting with MMR in place.

 

 

[Wight Flight]

Petition to crack down on short term lets.

https://you.38degrees.org.uk/petitions/homes-not-hotels-demand-mandatory-data-sharing-by-short-term-lets-companies

[spygirl]

On 01/04/2019 at 17:57, spygirl said:

Lets take Mr Cokernay slumlord, who owns 20 IO BTL ins [Stoke| MIddlesbrough | Hull]

He leverages up, spending 20 x 50k = ~1m.

Now Slumlords first mistake is hes bought houses that noone would have bought.

Still , hes bought them so they yield him ~100/m above LHA - say 500/m x 20 = 10k/ ~120k/y

What could go wrong?

Well .. thers not a shortage of social housing in these areas, so they only people he'll get are scum, who'll wreck the place, givng slumlord very long voids and a very high maintenance bill.

That 100/m skim now turned int oa a few 100 loss. Still slumlord is in it for capital gains ...

Well, S24 fucks that over. That rental income of ~20 x LHA suddenly is vut by 50%, requiing slumlord to hand over ~40k a month in tax.

Oh fuck, I better get rid, Ill be ruined ....

However .... there are no buyers. LL needs to issue 50 x S21 notices to quit, to tenants stop paying rents instantly and dont move. slulord now needs to get a court eviction noice, with bailiffs etc etc, costing ~6k/house.

Then, when th house is finally empty, it sits there, for the money slum lord paid for it 10 years ago. Then eventually he tries selling if fr 50% of what he paid.

Slum lord ends up selling his own house to pay for his daft venture.

 

 

 

 

 

**********************************************************

******************** LISTEN TO THIS *********************

***********************************************************

https://www.bbc.co.uk/programmes/m000gdt0

Fucking idiot,s the lot, includign he hartlepool LL, the fucking gormless southern presenters who just cannot grasp the losses.

What goes for hartlepool now - prices less than 2000.

The slumification is starting o happen in large areas fo the South too.

Will go for the rst of the country esp .after the corina virus and the economic fallout.

 

 

[spygirl]

And the old bint trying to sell what was a nice house for 500k and think shes losing out.

Its gone.

'You dont want to let it go for nothing'

Says the woman trying to sell a place for 500k in Hartelpool

 

 

[spygirl]

The Southern presenters agasp at the donutification of Hartlepool is coming to London soon.

 

[spygirl]

It becoems more n more expensive as the APR raises to reflect the risk and extra funding costs.

Non-bank lenders push for access to emergency state funding

Lobby groups led by UK Finance warn there is likelihood of ‘severe’ impact to borrowers

https://www.ft.com/content/51340b70-6d28-11ea-89df-41bea055720b

At least 750,000 UK borrowers have around £82bn of home loans with specialists such as Belmont’s Vida Homeloans, Together, and Blackstone-owned Kensington Mortgages, according to estimates from UK Finance.

Non-bank mortgage lenders tend to cater to customers who are turned down by mainstream banks, such as buy-to-let landlords, people with impaired credit histories, and self-employed and contract workers with unpredictable or irregular income streams.

[Sugarlips]

https://www.afr.com/companies/financial-services/loan-bans-bluestone-says-no-to-tourism-and-hospitality-workers-20200324-p54dfo

Oz but relevant:

Tourism, hospitality, entertainment and retail workers are being banned from borrowing and having limits placed on credit by Bluestone, a specialist residential home loan bank, triggering fears other banks will follow in a bid to lower any risk of loan defaults and protect margins.

The bank is increasing interest rates across all products, lifting loan-to-value ratios by 35 basis points, imposing a 50 basis point loading on investment loans, and withdrawing a 10 basis point discount on fixed rate loans.

Mortgage brokers expect other lenders to follow as unemployment soars, economic growth falls and prospects for recovery remain uncertain because of the coronavirus pandemic.

“The first domino has fallen,” said a mortgage broker, who declined to be identified. “Others will quickly follow."

Bluestone, which has operations in Australia and New Zealand, manages more than $9 billion in home loans and claims to have loaned to 48,000 Australians and 11,000 New Zealanders.

A memo being sent to staff and mortgage brokers claiming “unprecedented events” are forcing the interest rate changes and tightening of credit policy.

[spygirl]

Theres that word again - specialist 

 

All that happened is that regulated banks cranked down and the specialist lenders cranked up.

 

[Noallegiance]

Anecdotal from SE England:

Lengthy conversation with my managing agent today over our renting situation. The quote I liked was:

"Because of the changes affecting investors, the number of investors buying has dried up compared to two years ago".

Add that to people unable to attend EA offices and view homes to rent or buy and we have an enforced drying up of OOs with less salary coming in for the foreseeable as well.

Lully.

[Green Devil]

Some hilarious threads of pwapertee 118.

https://www.property118.com/blogger-says-tenants-with-coronavirus-should-get-3-months-rent-free/

The scumbags are reeling in your own self righteousness. Comedy Gold.

[Wight Flight]

1 hour ago, Green Devil said:

Some hilarious threads of pwapertee 118.

https://www.property118.com/blogger-says-tenants-with-coronavirus-should-get-3-months-rent-free/

The scumbags are reeling in your own self righteousness. Comedy Gold.

I love the one that wants to go through his tenants bin to see if they have been able to afford a can of beer. No forbearance if they have.

C*nts.

 

[Andersen]

London flooded by new rentals available (previously air bnb). It must be a quiet news day. Wonder how they're managing the social distancing & no f2f viewings? https://www.wired.co.uk/article/airbnb-coronavirus-london

[spygirl]

9 minutes ago, Andersen said:

London flooded by new rentals available (previously air bnb). It must be a quiet news day. Wonder how they're managing the social distancing & no f2f viewings? https://www.wired.co.uk/article/airbnb-coronavirus-london

I'll put it in 11.

[Wight Flight]

This cheered me up today

https://www.property118.com/government-have-created-chaos-in-the-prs/#comments

[spygirl]

51 minutes ago, Wight Flight said:

This cheered me up today

https://www.property118.com/government-have-created-chaos-in-the-prs/#comments

Banging on about tenant not paying and not getting a mortgage holiday.

Have these morons not gone thru the S24 tax changes yet?

They are bust, fucked, insolvent.

 

I have had two tenants on an HMO
Saying they can’t pay and a empty room in same house. So making a loss of over £1000 a month.
Still have to pay council tax, water, gas and electric and this is going up and up because the tenants are in all day but don’t worry I wanted another 3 children to look after.
It is a absolute joke because they do not offer to pay anything!
The problem is that letting agents and government have just made it perfectly except-able to not pay rent and they can still stay in house.
Brighton has 55% more properties on rightmove so you have no chance in letting your flat or house if it comes empty.
This business was already in the gutter and now this will be the final nail in coffin.
It just does not work. People have contracts and can just break them.
If you went into Tesco and stole
Your weekly show the police would be called and you would get a criminal record.
Landlords have no rights, no help etc etc.
Sorry for rant but I know many do us are in some boat but I feel that the unfairness is unbelievably when most of us tenants and landlords start in same place ! With nothing ! And have to hussle and work years to build assets to avoid this but it is a complete waste of time.