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.
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.
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.
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.
The land registry are in an ivory-tower of abstraction and so-called
most at the sharp end who have been trying to sell - as distinct from the nerds
wallowing in their 'valuation' - will attest.
Down and going lower.
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
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'
to a deluge of vastly differing reports - reports incidentally to which we ALL
access, and those who have an agenda, as I suspect do you, will pick whatever
their particular prejudice. By all means ignore or deny those who say they
their houses (at the price they want!) but don't expect to be taken seriously if
(I see a rise in inflation has caught the BoE by surprise today - what fun we'll
But if this is how you normally greet your betters, when would you ever enjoy
opportunity to straighten your back?
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
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?
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