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Well with the trouble with northern Rock and rates increasing and possible over supply in the bousing market, are we looking at a crash?
Anyone on here worried? anyone on here selling? anyone on here with any predictions?
Me personally i think we are heading into a recession, the only thing that kept us out of one was low rates and people refinancing property and spending money, well the spending is almost over. whats left now? debts.
Now rates are going up people can no longer afford to repay debts and mortgages which rssults in repossession and a downward ecconomy.
Over supply of property, if we go into a recession and rates continue to rise as predicted then the housing market has to crash as people will not be able to afford to buy or have any confidence to buy.
Simple think, at this moment in time would you buy? personally, im currently buying 2 cheap one 70K and 75K and thats it im holding off till next year, i dont want to be caught out.
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I think we live in an "I read it in the Daily Mail so it must be true" panic ridden society. There is no reason at all why all those people needed to take there money out of Northern Rock and no reason at all why property prices should "crash" rather than soft land. It is only likely to happen though because the press and media are obsessed with predicting it.
Interest rates have hopefully peaked for now and if we start to go into recession the bank of england would lower them. The house price boom has been fuelled by easy cheap credit and if that is no longer available then it will take the pressure off inflation and thus allow interest rates to fall to the correct level.
We should all stay calm and look to the long term, not be greedy and hope for continued year on year affordable rises in house prices.
Just remember that if your property is rented out and someone else is paying your mortgage and prices were to fall slightly or temporarily then the simple answer is to ride it out and not sell. I am old enough to have seen this happen many times and it all comes round again and again. I remember the terrible house price crash and recession in the early 90's but if I could go back to 1990 and buy a house when prices peaked just before it I'd be a rich woman now!
Good luck everyone
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I agree with Linda.We all know Buy to Let is a long term plan.
Look on the bright side, the poor people that loose their houses will have to live some where.........ooh i sound like the bitch from hell! but you know what i mean! it might even push rents up.
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Totally agree lou if your in it for long term then your a winner all the way.
Short term then watch out as the market is defo slowing, no 2 ways on that as i know lots of estate aganets and there now starting to struggle. |
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Come on all in the buy to let market work it out - if you don't sell you can't lose equity. If you have bought sensibly and affordbly then market prices dropping can ony be a good thing - it allows us to buy more at a better yiled rate than before!!! Come on the daily mail talk down those prices! |
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Well said Paul - all this baloney about BTL investors bailing out because the market is stagnating and may fall slightly over the next 12 months is just rubbish. The only ones with a problem and over saturated city centre apartments who bought in the last 12 months!
Never sell in a stagnant or falling market unless forced to.
Buy buy BTL - I don't think so - hello opportunites and cheaper CGT! |
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Linda
Give me one reason they should lower interest rates ?
The BOE have a remit to keep inflation below 2% we
all know the BOE is just an extension of the new labour
party. So once are rates are slashed we should watch
our pound become worthless. Labour destroyed the economy in
the 70s and their just doing it again for those who
can remember.
I think the time is right to move all my hard earned cash
out of the UK.
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Where would you move it to Edward? Surely economies in other countries all over the world are messed up the same as ours?
Or is there some place that my money would be better off placed?
Interested to hear your views.
Cheers
Simon |
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Simon
Being an ex Colonial I have invested significant amounts
of my money in India - where I was born. A lot of the
civil servants who served in the days of the Raj knew
with time Indias growth was going to take over their Masters economy. While the other part of India that became
Pakistan serious laggs behind. My land outside Bombay
is worth in the region of 6 figures, which I am cutting into plots and selling to developers. This money is being used to buy Fixed deposits in India with a 20% growth pa. Could you get that kind of growth in the UK in property or finacial investment stock and shares. |
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Hi Edward,
Forgive my naivety, but what are "fixed deposits", 20% is certainly something to think about.
I am investing in property, but would like to branch out to other areas to diversify, any pointers would be appreciated.
Cheers
Simon |
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Simon
You need to diversify into the student property market.
Give me a ring, I have lots of properties with tenants and well below market value.
Tel: 01460 55593
teresa@rwproperties.co.uk |
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Teresa,
Thats not quite diversifying really is it?? Its still property at the end of the day!
I was interested to know what Edward meant with regards other investments as I do not want to risk all with property, although it will be my main business.
Cheers
Simon
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hi simon,
you might want to have a look at a few suggestions on the income monkey especially commercial property such as mapeley
http://incomemonkey.blogspot.com/ |
