Friday, 5 December 2008

Buy-to-let starting to look interesting

I was never tempted by the buy-to-let market in the boom; it always seemed to be too good to be true. Now this whole first wave of small scale landlords are going bust; rents have fallen sharply as have property values. Looking through the latest Allsops auction catalogue and at the letting agents' websites, the numbers are starting to swing enough to get me interested. Not quite enough yet, but turning that way. I'd hate to buy at anything but the absolute bottom of the market, and the rental market is still volatile. But worth watching closely. A decent two double bed terraced house close to the hospital is a good bet; nurses are always going to need somewhere to live. Hmmm.


Blue Eyes said...

People keep on about falling rents, but rents are still considerably higher than the mortgage interest on a comparable loan.

BenefitScroungingScum said...

Rents are falling? I certainly hope so as in my local area already unaffordable rents have risen in the last few months.
Bendy Girl

Nick von Mises said...

The bottom will be long and flat, like the last time. There's no hurry. Also have you actually factored in the total economic meltdown into the numbers. Rents will continue to fall as unemployment rises and public sentiment becomes increasingly negative.

Trying to get into the public sector rental market is asking for trouble if you think the government is gonna cut spending either now, or when the Tories get in

Prices still need to drop another 30%. Otherwise you're just handing a BTLer your parachute.

Nick Drew said...

exactly what NvM said

I watched the last one with intent, hoping to catch the bottom then too: didn't have the readies when it first looked interesting '91-2; eventually waited until '95 to make my move & was v. gratified !

beware trying to catch a falling knife, comme on dit

Raedwald said...

Yep, bought my present home in '95 and aren't I just glad I did. Thanks both for the tips - I'm going to set a little tracking database up and keep watching.