wrote:
On Nov 8, 12:36 pm, Phil Gardner wrote:
I know this is a bit OT but
I am about to exchange contracts on my firstbuytoletproperty in
the next 3 weeks and im getting cold feet.

I have re-mortgaged my house to release the equity to pay for this its
something I have always wanted to do.

Due to the turmoil in the housing and finance market I am beginning to
question my judgment and timing
Is anyone on this forum in this business that could offer advice.

Yes the housing market is a bit shaky at the moment but buying an
investment property is exactly the same as any other investments -
they rise and they fall. On average, house prices double every 7.5
years - but past performance is no indicator for the future. Providing
you have done your due dilligence and buying as a long-term investment
(and not to make a quick buck) then you should be OK. Local
Authorities are crying out for private landlords and they pay the
market rent so if you can't find a private tenant then this is an
option.
Also if it is at the lower end of the rental market you will also find
tenants easier than the luxury ones because you will be capturing all
those who would otherwise be first-time buyers.

As a nation we have a huge influx of immigrants and expect another
million over the next 10 years - these people all need to live
somewhere!

Finally, the current climate is due to the callapse of the US market
and not like the one we had back in the early 1990. Yes, property
prices will dip - possibly by up to 10% but I doubt we will have a
crash because the BOE is monitoring things closely - remember the BOE
hasn't raised interest rates, it's the lenders' SVR which have gone up
and that has been purely down to the fact that they can't buy in money
to lend back out so they are raising their rates because there is more
demand than supply.

One of my clients phoned me in a panic because he had heard that
property prices would drop by around 40% - I don't have a crystal ball
but if that was to happen the the country will be bankrupt because the
knock-on effect on other industries will be huge - people love to
create headline news which cause panic - as happened with Northern
Rock - someone had it in for NR because other banks did the same but
they didn;t receive the same media exposure.

The other angle is. If property prices do dip (say by 10%) then 1st
time buyers will not want to buy - but they need to live somewhere.
This again will have "supply and demand" on the rental market - more
demand pushes the rents up.

In a nutshell - don't let one single article persuade you one way or
the other, do your homework and make an educated decision. You are
either an invester and as such take measured risks or you are not - in
which case keep your money in the bank.

Hope this helps

I notice the OP didnt respond regarding percentage return. This
really is the key to deciding whether it can be made to work or not.
Of course I'm not denying the other skills aslo needed, both general
business and the property & landlord specific ones.

Return wise, a key real q is can the buyer make it through a patch
of high interest rates and mediocre returns. Buying a house is a long
term deal, one has to be able to stick with it long term, else there
isnt going to be a gain, just a lot of costs. Its very hard to make
btl
add up today.


NT