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Agreed - stiffer headwinds for new BTL purchases - esp in SE.
I just look at facts and my view is the old ways are gone
There is very good reason for PRA regs some folk just dont understand thats things have moved on
and PRA regs have bigger effect on the SE than any other area
not to mention stamp duty and S24
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
If we were to see higher growth rates it would need easier lending and inflation
I dont think Govt wants high property inflation as it helps only the ones that own property now
The Political situation is an odd one and we have not been here before
This is the very reason I have used my strategy only factoring in a low growth rate
I have opted for caution going for long term fixed rates and a good strong yield which I have to say is getting harder to find !
In nominal terms UK wage growth has halved in each decade since the peak in 1970s when wages rose by around 17% cagr - though today's mortgage rates are around 1/3rd of the average for the 30 yrs to 2000.
Mortgages remain constrained at an absolute max of around 4.5 x salary - and thus slow wage growth means prices are also constrained.
Nationally CML say FTBs borrow just 3.11 x salary (£38k) with a 17%/£24k deposit so pay average £142000.
Meanwhile the general hike in SDLT rates is persuading many home owners to extend rather than move - so there are then fewer of the smaller cheaper properties for others looking to trade up.
I have a reputation of being negative
If i was negative I would not be planning to buy more property !
I know I have changed my thinking on BTL
We have seen a Govt who has made things much harder now to make wealth
I'm still in the race just riding my horse in a different way
I know my Profits are rising year on year as my Tax Bills show so I am doing something right
BTL is changing and we have to change too ...
Risk The Govt have introduced PRA regs because of risk
I have noticed in my own personal property holdings that when I am doing a deal Lenders like to see around 60% LTV to play the game
I can fully understand new Landlords needing to leverage up to the Max but they are pushing the Risk too
when baby turtles are born not all make it to the sea
Your more vulnerable with the higher LTV
The NE Landlord will support what my view is because we have experience of low capital growth
its a lesson the SE landlord has yet to learn