Hundreds of flats in Canary Wharf development sell in hours - half to foreign investors

[mauvais]

Disgusted of Tunbridge Wells and vast hordes of UKIP, Labour and Tory voters sadly do believe it's down to immigrants rather than a generation of piss taking by those in charge.

And the people in charge are happy to make them believe that is the case.

Yes in general, sure, but not - as above - the particular problem as was being described by the media.

That is, whilst that lot may believe that house prices are primarily affected by immigration, noone believes that immigration is behind what's described in the OP.

 

[SpookyFrank]

People are losing homes or losing the chance of having a London home because, partly, of overseas investment inflating the bubble. Id rather stop that and be called racist etc. Fuck them. I don't want people who don't live here grabbing homes that my kids could one day live in.

You've got the same thing on a smaller scale with second homes in the countryside. Twats from London buy up properties in rural areas and then don't live in them, and people working in the local economy can't compete with their buying power. And of course the more empty houses, the less of a local economy there will be for people to earn money from.

That said, in London the blame has to be placed with developers and local authorities. There will always be someone, whether from China or from down the road, who will exploit a rigged market to get free money just as there will always be flies on dog shit. It's the people building and signing off on these ridiculous luxury flats in a city where the workers have nowhere to live who are ultimately responsible.

 

[Athos]

How in the ever-living fuck are rentier scum "wealth creators"?

They are wealth creators. Just that they create wealth at the expense of others, and keep it to themselves!

 

[Jeff Robinson]

They are wealth creators. Just that they create wealth at the expense of others, and keep it to themselves!

They are no more wealth creators than bank robbers are.

 

[Athos]

They are no more wealth creators than bank robbers are.

I know. I wasn't entirely serious.

 

[teqniq]

Britain has reached 'peak property'

The housing bubble is finally bursting. Here's what that means for you

 

[editor]

Britain has reached 'peak property'

The housing bubble is finally bursting. Here's what that means for you

Would I buy a home today? Yes – but I wouldn’t invest in one. That’s good news for those who have waited a generation for a home, but bad news for those who thought property would fund their retirement.

If only if were true. Fuck exploitative landlord scum. When the crash comes, I hope they get even more fucked over than their tenants.

 

[ViolentPanda]

If only if were true. Fuck exploitative landlord scum. When the crash comes, I hope they get even more fucked over than their tenants.

Me, I'm hoping this has a meaningful impact on local authority "regeneration" projects.

 

[mauvais]

If only if were true. Fuck exploitative landlord scum. When the crash comes, I hope they get even more fucked over than their tenants.

BtLers will all go bust if the music stops whilst they're still playing. That's the magic of leveraged, interest-only mortgages.

What it'll do to housing supply and tenancies, I have no idea.

 

[mauvais]

It's probably worth being clear about that.

You might think of landlords as rich enough to buy property outright and milk it, but you would mostly be wrong.

If you were buying a house for the first time, to live in, and you were a sane person, you would take out a capital repayment mortgage, putting down a deposit but borrowing most of the money. Then you would pay off the cost of the house and the interest over the next 25-35 years.

Example 25 year capital repayment mortgage on £160k towards a £200k house: £632 a month.

If you're becoming a BTLer, you don't do that - at least, the majority don't. You take out an interest only mortgage over a shorter term.

Example 5 year interest-only mortgage on £160k towards a £200k house: £385 a month.

When your 25 year CR mortgage comes to an end, you owe £0. If your house price is £100k rather than £200k now, well whoops, you paid over the odds. But that's all.

When your 5 year IO mortgage comes to an end, you owe £160k, which you hope to be able to recoup if necessary by selling the house. But if your house price is £100k now, you're fucked.

The interest-only timebomb: How to get your mortgage debt cleared before it's too late

 

[bi0boy]

Most landlords would have 25 year interest only mortgages though, and would frequently remortgage onto new 25 year deals to get the best rates, so would continually be resetting the clock.

Also, unlike owner occupier IO mortgages, BTL ones when going into default will likely just see a change of landlord on repossession rather than a family made homeless. That's why banks insist on capital repayments if it's the mortgagee's home.

 

[mauvais]

Most landlords would have 25 year interest only mortgages though, and would frequently remortgage onto new 25 year deals to get the best rates, so would continually be resetting the clock.

You can't mortgage hop if you haven't got any security behind it any more. And you can't borrow money past your own secure timeline, no more than a first time buyer can take out a 100 year one. And even if you're on 25 years, the music will still stop eventually, you just have more time to recover. That's without getting into things like the mortgage terms where e.g. you agreed it based on rent payments that were >125% of the mortgage payment.

Also, unlike owner occupier IO mortgages, BTL ones when going into default will likely just see a change of landlord on repossession rather than a family made homeless. That's why banks insist on capital repayments if it's the mortgagee's home.

In the short term, due to tenant protections. But in the longer term, someone has to be willing to own that asset (or the liability on it anyway).

 

[bi0boy]

London housing: are high prices really the fault of rich foreigners?