How does Buy to Let END!

[Wight Flight]

I have seen 5 rentals reduced in price this week.

It isn't that there are a shortage of renters - there are hundreds desperate for somewhere to live - but they just cannot afford to pay the prices being asked. We have finally run out of those with money to burn

Landlords that think they can 'bang the rents up' are in for a rude awakening. The stone has run out of blood.

[Frank Hovis]

20 minutes ago, Wight Flight said:

I have seen 5 rentals reduced in price this week.

It isn't that there are a shortage of renters - there are hundreds desperate for somewhere to live - but they just cannot afford to pay the prices being asked. We have finally run out of those with money to burn

Landlords that think they can 'bang the rents up' are in for a rude awakening. The stone has run out of blood.

 

This is purely anecdotal but I saw an old building, about the size of two small semis but with only the first floor usable so it would have been converted to two flats, that was sold to a BtLer about maybe twelve years ago.  Converted and rented out.

I saw this week that it is now up for sale; so they're getting out .

[spygirl]

5 hours ago, MightyTharg said:

So where can I buy these £40,000 houses? With work-from-home meaning local salaries have gone from £500 a week to £500 a day, that has to be a good deal.

https://www.home.co.uk/search/results.htm?high=&low=&minbeds=&maxbeds=&lat=54.5719&long=1.23921&location=ts1&TOWN_SEARCH=1&MAP_SEARCH=&radius=1&sort=PRICE&found_since=&inc_sold=0&loose=1&showmap=0

[spygirl]

20 hours ago, MightyTharg said:

So where can I buy these £40,000 houses? With work-from-home meaning local salaries have gone from £500 a week to £500 a day, that has to be a good deal.

\

 

			Address: 14 Co Operative Street, Shildon, DL4 1DA Type: Terrace Tenure: Freehold New build: No Links: Price map (Shildon) Transaction type: Additional price paid transaction Registered sales: Date Sold Price Paid Nominal change Real change 15 Jul 2022 £55,000 -24.7% -54.8% 27 Jul 2007 £73,000 * 23.2% 14.9% 08 Jun 2005 £59,250 * n/a n/a

			Address: 30 Bramcote Way, Thornaby, Stockton-On-Tees, TS17 0LS Type: Flat Tenure: Leasehold New build: No Links: Price map (Stockton-On-Tees) Transaction type: Standard price paid transaction Registered sales: Date Sold Price Paid Nominal change Real change 08 Jul 2022 £63,500 -15.3% -49.1% 25 May 2007 £75,000 188.5% 131.1% 30 Apr 1999 £26,000 129.3% 107.9% 06 Nov 1995 £11,340 * n/a n/a

[spygirl]

The biggest falls are when you can see a property network buying then flipping 6-12 months later.

These sales happened 2007+

Typically the property network puts another 20k on the price.

Then. ~10y later, house sold for 40k+ less.

 

[leonardratso]

4 hours ago, spygirl said:

The biggest falls are when you can see a property network buying then flipping 6-12 months later.

These sales happened 2007+

Typically the property network puts another 20k on the price.

Then. ~10y later, house sold for 40k+ less.

 

what do you mean property network?  a bulk buyer/seller?

[spygirl]

1 hour ago, leonardratso said:

what do you mean property network?  a bulk buyer/seller?

Io BTLing started in 2002ish.

After a few years, a number of We create your io btl portfolios companies started.

I used to see several shithole houses being bought in a short period. These would be sold 6-12 months later, when they'd flipped them as a bundle to some fuckwit.

I cant fund any. 

I sort of regret not found it - relieving some southern fkwits of 300k.

 

[spygirl]

How does it end?

Buying on sub 4% when IO BTL SVR head rapidly towards 10%

The cheapest resi, repayment resi mortgage SVRs are rapidly heading towards 5%.

https://tradingeconomics.com/united-kingdom/mortgage-rate

Sadly, IO BTL being a specialist products, there arent easy go to sites showing the real SVRs.

However .. being specialist, that means the SVR will be far far far higher - 4% spread over resi soon.

And just in time for the first batch of IO BTL to fail to pay back the loan, causing banks to mark down the loans and icnrease capital.

IO BTL will rapidly be priced at what it is - a non amortising commercial bridging loan. ~3%/month, compounding.

 

 

[spygirl]

Now putting aide that IO BTL is a pure Labour creation, part n parcel of that cretins biggest credit boom ever seen.

Sir Lord King Kier -

He said he wants 70% of the population to be homeowners - offering new mortgage guarantees and a clampdown on buy-to-let landlords

Nice to see BTL being talked about in the same way as starving children and infectious disease ...

The reality is, as IR continue well past 4%, IO BTL are fucked.

They can try and put rents up. But that only increase the voids and increase the tax paid on the rental income.

 

[No One]

10 minutes ago, spygirl said:

Now putting aide that IO BTL is a pure Labour creation, part n parcel of that cretins biggest credit boom ever seen.

Sir Lord King Kier -

He said he wants 70% of the population to be homeowners - offering new mortgage guarantees and a clampdown on buy-to-let landlords

Nice to see BTL being talked about in the same way as starving children and infectious disease ...

The reality is, as IR continue well past 4%, IO BTL are fucked.

They can try and put rents up. But that only increase the voids and increase the tax paid on the rental income.

 

If Labour became smart like the socialists in Denmark, and went against woke and immigration, but kept all other policies the same they would win by a landslide.

 

I still wouldnt vote for Sir Kier Starmer as he is one of the key architects of defending Paki rapists in Rotherham

[spygirl]

28 minutes ago, No One said:

If Labour became smart like the socialists in Denmark, and went against woke and immigration, but kept all other policies the same they would win by a landslide.

 

I still wouldnt vote for Sir Kier Starmer as he is one of the key architects of defending Paki rapists in Rotherham

I have seen and heard the following said about Labour -  If they reversed the immigration then Id vote for them.

People know who let the millions in.

Thing is, for the Labour core voter - which includes migrants - immigration is a really bad thing.

 

[No One]

Ok I'm brining this thread back on track.

From the s0-called BBC

Mortgage rates: 'If we can't afford higher payments, we lose our home' - BBC News

 

[sarahbell]

Spotted some locally looking like they'd cost too much to improve the EPC of.

 

[GTM]

I am viewing a rental today. There would be nothing remarkable about that in normal times. But everything we've enquired about over the past few months has gone in no time at all. They sent links to a virtual viewing out on Monday and the agent was urging me to act fast as they had sent out the virtual viewing to lots of people. My wife wants to check a couple of things in person before we pull the trigger. So here we are on Thursday and I've just had a call to confirm the viewing.

It's in a decent location, looks OK from the virtual viewing and they are asking £50 a month less than the place we are renting at the moment. Unless there is something major I'm missing, things seem to have changed dramatically almost overnight.

Edited September 29, 2022 by GTM
Missing word

[Boglet]

24 minutes ago, GTM said:

They sent links to a virtual viewing out on Monday and the agent was urging me to act fast as they had sent out the virtual viewing to lots of people. My wife wants to check a couple of things in person before we pull the trigger. So here we are on Thursday and I've just had a call to confirm the viewing.

 

I never understand the 'act fast, we'll sell out quickly' sales tactic, it seems completely pointless.

Unless you're telling me specifically as a preferred customer so that I can get in before others who you're not telling, then it makes no sense.

If you're going to sell out anyway, you may as well just do/say nothing.

[dnb24]

1 hour ago, GTM said:

I am viewing a rental today. There would be nothing remarkable about that in normal times. But everything we've enquired about over the past few months has gone in no time at all. They sent links to a virtual viewing out on Monday and the agent was urging me to act fast as they had sent out the virtual viewing to lots of people. My wife wants to check a couple of things in person before we pull the trigger. So here we are on Thursday and I've just had a call to confirm the viewing.

It's in a decent location, looks OK from the virtual viewing and they are asking £50 a month less than the place we are renting at the moment. Unless there is something major I'm missing, things seem to have changed dramatically almost overnight.

It has changed very quickly, last March in our area roughly 50-60 rentals- nice places- March 2022- 1-2 rentals available all horrendous- this lasted until around 6-8weeks ago- yesterday 60 rentals in our area and probably nicer places than March 2021

[Ash4781b]

On 27/09/2022 at 15:42, spygirl said:

Now putting aide that IO BTL is a pure Labour creation, part n parcel of that cretins biggest credit boom ever seen.

Sir Lord King Kier -

He said he wants 70% of the population to be homeowners - offering new mortgage guarantees and a clampdown on buy-to-let landlords

Nice to see BTL being talked about in the same way as starving children and infectious disease ...

The reality is, as IR continue well past 4%, IO BTL are fucked.

They can try and put rents up. But that only increase the voids and increase the tax paid on the rental income.

 

Was a lot of IO BTL in personal name? The guides I read write that’s how get the low rates… no firewall to principal residence? Seems like a way to go spectacularly bankrupt. Oh well can’t see didn’t warn them.

Edited September 29, 2022 by Ash4781b

[Wight Flight]

12 minutes ago, Ash4781b said:

Was a lot of IO BTL in personal name? The guides I read write that’s how get the low rates… no firewall to principal residence? Seems like a way to go spectacularly bankrupt. Oh well can’t see didn’t warn them.

Yes.

I would also assume that even the loans in a company name will have a PG.

Leveraged investment is a risky game.

[spygirl]

7 hours ago, Ash4781b said:

Was a lot of IO BTL in personal name? The guides I read write that’s how get the low rates… no firewall to principal residence? Seems like a way to go spectacularly bankrupt. Oh well can’t see didn’t warn them.

All of it.

[Inque]

06:23 

Landlords urge action to stop tenants being forced out by soaring rents

Landlords have called on the chancellor to use up to £1.5bn from the levelling up budget to stop tenants being forced out by soaring rents.

https://news.sky.com/story/pound-slumps-live-news-mortgages-interest-rates-imf-12615118?postid=4554627#liveblog-body

[Ash4781b]

21 hours ago, Inque said:

06:23 

Landlords urge action to stop tenants being forced out by soaring rents

Landlords have called on the chancellor to use up to £1.5bn from the levelling up budget to stop tenants being forced out by soaring rents.

https://news.sky.com/story/pound-slumps-live-news-mortgages-interest-rates-imf-12615118?postid=4554627#liveblog-body

Blimey. Good find. 

I’m off to the museum of mini  violins today.

Edit:

”Writing to Kwasi Kwarteng, the National Residential Landlord Association (NRLA) warned landlords were facing ever growing costs because of rising interest rates on mortgages.”

 

Edited October 1, 2022 by Ash4781b

[One percent]

Oh dear

https://www.dailymail.co.uk/money/buytolet/article-11266657/Buy-let-mortgage-rates-pulled-return-higher-interest.html

Landlords needing new fixed mortgages may struggle to find them, as swathes of major lenders have pulled deals following a dramatic drop in the value of the pound this week.

There are also fears that the loans will return to the market at much higher interest rates, with figures seen by This is Money suggesting a near one per cent increase on available five year fixes in the last week. 

This is expected to prompt landlords to increase rents so they still make a profit. 

[spygirl]

13 hours ago, One percent said:

Oh dear

https://www.dailymail.co.uk/money/buytolet/article-11266657/Buy-let-mortgage-rates-pulled-return-higher-interest.html

Landlords needing new fixed mortgages may struggle to find them, as swathes of major lenders have pulled deals following a dramatic drop in the value of the pound this week.

There are also fears that the loans will return to the market at much higher interest rates, with figures seen by This is Money suggesting a near one per cent increase on available five year fixes in the last week. 

This is expected to prompt landlords to increase rents so they still make a profit. 

Resi repayment mortgages are rapidly approaching 6%

Io btl are going to be 10% .. if they can get a mortgage.

 

[One percent]

3 minutes ago, spygirl said:

Resi repayment mortgages are rapidly approaching 6%

Io btl are going to be 10% .. if they can get a mortgage.

 

Ah but it was our home, it’s still on a residential mortgage.  

[macca]

On 27/09/2022 at 16:23, spygirl said:

I have seen and heard the following said about Labour -  If they reversed the immigration then Id vote for them.

People know who let the millions in.

Thing is, for the Labour core voter - which includes migrants - immigration is a really bad thing.

 

Liz Truss has said she will increase immigration for the economy.. or more cheap slave labour for Corperations profits. Drive down living stadards..

2020 was record high immigration with Conservatives issuing 1 million Visa's plus illegal..

Why do people think Tory is anti immigration? They are run by Corperations that want slaves.