Buy to Let with Uncertain Future

I am considering a buy to let property in the South Yorkshire Area. With all the talk of house prices going down. Is it a very bad idea to think about
buy to let at a time like this?
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On Sun, 10 Aug 2003 04:23:11 +0100, "Harry Grimshaw"
wrote:

yes
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all

No, so long as you are not using borrowed money, can take a long term view, and have sufficient other resources to deal with unexpected capital expenditure and void periods.
Even then you have to find the right property.
--
Doug Ramage



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and the right tenant!
--
Patrick (Durham UK)
ICQ 178818890
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wrote:

That seems to be the difficult part. I was thinking of properties around 17K to 25K in South Yorks area. You can see lots of them on www.rightmove.com

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wrote:

Still kicking myself (proverbially) for not buying a 1 bed-room flat south of Norwich a few years back. Asking price was 19,500, IIRC. Minimum rent should be about 50 pw = a gross yield of 10%, based on 80% pa occupancy. Probably doubled in value too. :(
I was "persuaded" a new car was the better option.
However, the bandwagon may well have rolled on.
--
Doug Ramage



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about

view,

So if we used our own capital then you would say it is not a "risk". I am considering some of the lower end properties, in the South Yorkshire Area, where small terraces are availabe from 17K and upwards. I was hoping that if there was a price deflation, these types of properties would be spared at least due to their low original price.
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Yes, but the area I think he is thinking of is influenced by increases or decreases. It has a low correlation to house prices generally.
My personal view is that BTL investments should be considered solely for the purposes of rental yield NOT capital appreciation. If you can buy right, with the right tenant, then income and cash is king.
--
john boyle

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I agree with everything except not using borrowed money.
--
john boyle

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wrote:

the market in London has been falling - there is no indication that the fall has been arrested since properties there are still hard to shift......which points to further likely falls.
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The land registry are in an ivory-tower of abstraction and so-called 'averages'..... as most at the sharp end who have been trying to sell - as distinct from the nerds who are wallowing in their 'valuation' - will attest.
Down and going lower.
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Glad to see you have day-to-day experience of buying and selling in London that puts such figures in perspective. I bow to your superior knowledge.
--
David Lawson

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I wouldn't argue with the experience conveyed by my local estate agents or the head man at Winkworths come to that (70 branches) - on news-24 last friday he told us prices are 10% down in the south this year. Locally here it's far worse. You need to understand that all 'perspectives' are informed by a 'pick and mix' approach to a deluge of vastly differing reports - reports incidentally to which we ALL have access, and those who have an agenda, as I suspect do you, will pick whatever bears out their particular prejudice. By all means ignore or deny those who say they can't sell their houses (at the price they want!) but don't expect to be taken seriously if you do.
(I see a rise in inflation has caught the BoE by surprise today - what fun we'll have with interest rates)

But if this is how you normally greet your betters, when would you ever enjoy the opportunity to straighten your back?
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wrote:

the head man at

prices are 10%

mix' approach

ALL have

whatever bears out

they can't sell

seriously if you do.

we'll have with

This man is talking *The Biz*.
Correct me if I am wrong ginger, but is not the proof of the pudding of what you are saying demonstrated for example in such things as the "halifax price index"?
On the surface it looks interesting, but surely their houses are made up of a "certain type of house", and it does not take into effect what could in fact be a complex housing market made up of many micro economies?
Another perfect illustration is the election system.....we can theoretically ellect a party who has one less overall votes than rival parties.
I think this subject and htis particular topic is far deeper than people imagine, at the essence of what Ginger is talking about is how people can manipulate apparant facts, scientific facts even, to suit their agenda......
If you ever see conspiracy theoriest, sometimes they manage to produce the most amazing amount of data, evidence etc. to support their claims?

enjoy the

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Nor me, when I have to rely on them to do my job.

As you say, Simon was talking about the South. If asked, he would happily tell you about the areas in London where Winkworth branches are recording increases.

And locally here, it is not far worse.

My perspectives come from 30 years of experience and everyday contact with the industry. I also read all those reports, whereas I suspect most people rely on media snippets.

Why do you presume I have an agenda just because I disagree with you?

I don't ignore them. I try to point out the flaws in sweeping generalisations. And I'm taken seriously enough to make a living.

Irony is such a difficult concept.
--
David Lawson

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But are more accurate.
--
David Lawson

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As the dying pilot mused "that altimeter was more accurate than most - pity its readings were subect to a 10 second lag"
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writes

figures

pity its readings

Good point...goodpoint.

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The LR completion figures don't pretend to predict what's happening now. Anyone who uses them for this is stupid.
Daytona
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If you keep on posting things like this, you might actually end up teaching people a thing or two.

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