From: Mike .
Hi Folks,
I've been trawling a property investment forum on the UK Motley Fool site [ http://www.fool.co.uk/ ] and found this interesting post:
Hello MacDollar
None of this surprises me. I wrote a message about it a few months ago as the buy to let syndrome had all the classic bubble signs. People who a couple of years ago would never have contemplated doing so, and had no experience of property at all other than as owner occupiers, were suddenly doing this because they perceived it as such a good idea. I saw this amongst many of my clients.
It was fueled by some of the leading money lenders pushing buy to let mortgages. This was unthinkable until recently.
Many of these small investors will now get their fingers burned as in all bubbles as rents fall below the mortgage repayments. And if interest rates rise after the short term fixed deals most investors obtained run out.... The fun will really start.
Small investors are often a classic contra cyclical indicator, same with the stock market. When the shoe shine boy starts trading shares and making money, time to get out.
regards, pyad - 4/6/99
Mike: Did you find the bit that caught my eye? Shock!! Horror!! RENTS FALL BELOW MORTGAGE REPAYMENTS. Help!! The sky is falling!!
Folks, here we are being sold, via books and seminars, how wonderful Negative Gearing is and in the UK, with similar tax benefits for investment property, the Brits cringe at the thought. Surely they would think we're a bunch of mugs to smile at buying negative geared property.
To prove my point I'll post to the MF forum detailing the so-called wonderful benefits of Negative Gearing and post back their responses. I hope it doesn't get ugly.
Regards, Mike
Hi Folks,
I've been trawling a property investment forum on the UK Motley Fool site [ http://www.fool.co.uk/ ] and found this interesting post:
Hello MacDollar
None of this surprises me. I wrote a message about it a few months ago as the buy to let syndrome had all the classic bubble signs. People who a couple of years ago would never have contemplated doing so, and had no experience of property at all other than as owner occupiers, were suddenly doing this because they perceived it as such a good idea. I saw this amongst many of my clients.
It was fueled by some of the leading money lenders pushing buy to let mortgages. This was unthinkable until recently.
Many of these small investors will now get their fingers burned as in all bubbles as rents fall below the mortgage repayments. And if interest rates rise after the short term fixed deals most investors obtained run out.... The fun will really start.
Small investors are often a classic contra cyclical indicator, same with the stock market. When the shoe shine boy starts trading shares and making money, time to get out.
regards, pyad - 4/6/99
Mike: Did you find the bit that caught my eye? Shock!! Horror!! RENTS FALL BELOW MORTGAGE REPAYMENTS. Help!! The sky is falling!!
Folks, here we are being sold, via books and seminars, how wonderful Negative Gearing is and in the UK, with similar tax benefits for investment property, the Brits cringe at the thought. Surely they would think we're a bunch of mugs to smile at buying negative geared property.
To prove my point I'll post to the MF forum detailing the so-called wonderful benefits of Negative Gearing and post back their responses. I hope it doesn't get ugly.
Regards, Mike
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