The British buy-2-let Bloodbath............(Mega rubbs hands with glee)

[Mega]

http://blogs.telegraph.co.uk/finance...t-can-it-last/

Some background:-

Britan is not a nation of shopkeepers, but Buy-2-let landlords. Back in the very late 90's Labour had come to power, they needed a way of ramping house prices to get year on year grownth. So "Buy to let" was born......before this if you wanted to be a landlord you needed MONEY, the bank would demand 30-40% despoit & you had high rates..............thus only those with money played this game.

However from 1998 on ANY F*cker with No credit history or even a VERY bad one could simply roll up to the bank & get 100% zero mortage for said projects. This helped ramp house prices that drove the econemy & made Labour/Blair very popluar.

Instread of seeing the danger greed took off & they thought:-
If some is good, more is better & too much is just right!

So the scum bought more houses, driving honest people into Mega debt if they wanted a nice home for forced to live in crappy inn-city free fire zones. The "Spivs" meantime were borrowing cash from the houses they "owned" via the banks "Home ATM".....with this "wealth" they began swaning about in large lease hired cars & it was "Coke & Hookers" time for them.

Now we have the crash, sure paniced goverments are keeping rates low & printing trying to fend off the day of rekoning.....but its coming
)
Mike

[Slimprofits]

Re: The British buy-2-let Bloodbath............(Mega rubbs hands with glee)

interesting comment:

British banks are already swamped with the buy to let disasters from Ireland. They just ignore that because the British tax payer is quietly picking up the tab.

Within 12 months the same will start happening here and when the losses unfold and the keys are handed back there will be a glut of empty property and all this nonsense about building on green belts will be shown for the bunkum it is. The next round of handing back keys that will happen will dwarf anything seen in the eighties. Why? Banking crisis, unemployment crisis, and government cut backs, Euro collapse with Germany going it alone. China is concealing a huge property bubble for anyone that cares to look. America's failure to climb out of recession. The BTL is really a formulae of Buy To Loose. They build them and if it was such a good idea, let them find buyers. Why become a middle man or woman and loose your shirt in the middle of an ongoing existential financial crisis.

[llanlad2]

Re: The British buy-2-let Bloodbath............(Mega rubbs hands with glee)

interesting comment:

But there isn't a glut. There are not acres of fields full of empty houses like in Ireland. Supply is tight. The planning restrictions in the UK are too severe for it to happen.
The UK had a house price boom based on cheap credit but did NOT result in a massive buildout/oversupply of new property as land is still locked up by landowners..
RENTS HAVE GONE UP 20 PERECNT SINCE 2007.Buy to let market is not crashing.