UK Landlord Forum / Life

I read an interesting article by John Stepek on the moneyweek website- "How to get poor quick – invest in buy-to-let today"

Full article here

I didn't really get it. I didn't get it at all.

It didn't really explain why buy-to-let will make you poor; you'd think you'd get a clear explanation, since the title is what it is. From what I understood, the message was more like, "uneducated people made unwise purchases and are now getting burned". It wasn't really buy-to-let specific.

Quote
Sadly, the housing market has been propped up by a string of buy-to-let latecomers who have overstretched themselves, often to buy dubiously valued city centre flats, who will now find that they are in serious financial trouble.

Did I miss the point or something?

The rest of the article consisted of reasons why buy-to-let is a rich man's game, and very little about why buy-to-let will make you poor. I think the author got the title of the article all wrong, but that's besides the point anyways.

Quote
OK. So fewer people will be buying into the market. And unless you've got a lot of money, you won't be able to do so. In other words, demand is falling. Falling demand tends to lead to falling prices, and as prices are about the only thing a buy-to-let landlord cares about, falling prices in turn lead to falling demand.

Yes, but if demand for buying property is decreasing and repossessions is increasing- won't rental demand increase, hence a stronger buy-to-let market?


Hopefully I won't be the only one that "doesn't get it".