UK Landlord Forum / Life

Quote

Investing in buy-to-let property is now a "rich man's game", inaccessible to the average person, the Royal Institution of Chartered Surveyors (RICS) said today.

A rise in the size of the deposit people need to put down, as well as higher interest rates making mortgages more expensive, means only the wealthy can afford to become landlords, the group said.

Prospective landlords must show mortgage lenders that the rent on an investment property they want to buy exceeds 125 per cent of the monthly mortgage repayments on the loan they are applying for.

The group said in the current lending climate and as a result of five interest rate rises since the summer of 2006, this meant a would-be buy-to-let investor would have to put down a deposit of 30 per cent of an investment property's value, an average of £65,600.

Source: http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=492396&in_page_id=1770&ito=newsnow

I'm not sure I agree with that. I don't think you need to be rich or put down a 30% deposit in order to make the figures stack. I'm not rich by any stretch of the imagination. I think you can make the figures stack with a 12-15% deposit if you get the right deals.

I agree it's getting a lot tougher to get into buy-to-let with the rocketing prices, but i'm not convinced you need a 30% deposit.

Its the old saying 'money makes money' !

cheers

simhar

Web: Properite Landlord Software - http://www.properite.co.uk

To be honest the housing market and all the hype and fall is the same as the healthy eating market,
You get experts here there and evrywhere saying one thing then in a couple of months another, i think in this day and age you have to do what feels right at the time of doing, not when a statastitioittiton says so !.

Wasnt it only in Sept this year that buy to lets where said to be dead, please

Personally - i love receiving the positive press alerts to counter the negative crap out there, - I dont think buy to let is a rich mans game, I think you need to eb a bit more savvy than you used to - to make your money work smarter for you

Buy-to-let investors 'overtaking FTBs'

Posted: 08 Dec 2007 05:00 PM CST

Buy-to-let investors have seen their share of the mortgage market rise sharply over the past decade, and new figures now suggest that they could now be approaching a major landmark.

According to the Council of Mortgage Lenders (CML), the number of buy-to-let mortgages issued in the third quarter of 2007 rose to 94,300.

This is just 2,000 behind the number of mortgages issued to first-time buyers (96,300), Inside Housing has revealed, showing just how crucial the buy-to-let property <BLOCKED::http://www.ticltd.com/why-invest/buy-to-let/> sector now is to the wider market.

The CML had previously revealed that there were some 171,800 buy-to-let mortgages taken out in the first half of the year, equivalent to 85,900 each quarter.

Earlier this week research by Mortgage Trust found that landlords themselves still view couples as the most reliable tenants, with some 52 per cent of landlords in the buy-to-let property  sector revealing that they targeted this demographic when letting their

I'm not surprised by those figures at all. In fact, I always assumed that investors were catching up with FTB.

BTL investors are holding the market right now!

What this also doesn't investigate is whether the FTBs are actually buying BTLs. I know a couple of people who have used their deposit to dive right in to the investment market while still renting.


V

I did exactly that, V.

Well, I didn't rent. My first purchase was a BTL while I still lived at home!

Cunning ! like it !!

cheers

simhar

Web: Properite Landlord Software - http://www.properite.co.uk

So come on 1mth on, is it a rich mans game or not

Smart man's (and V) game!

LOL. Its nice to be special 


V

Average landlord deposit now 65K

cheers

simhar

Web: Properite Landlord Software - http://www.properite.co.uk

That's crazy!!!! Where did you get that figure from?

That figure was on bbc.co.uk a few months ago!

cheers

simhar

Web: Properite Landlord Software - http://www.properite.co.uk