Generation Landlord

[Cyclone 10]

Thats right, and it was propped up by BTL, second time buyers are the people usually selling the first time buyer house, without a first time buyer they can't sell so can't buy, BTL stepped in and bought the first time buyer houses and that allowed the market to continue overheating until it crashed, the market overheated until first time buyer could no longer afford to enter the market, traditionally at that point the bubble stops inflating and prices fall, they didn't because investors continued to buy houses in the full knowledge that young people would have no choice but to rent and the government would help them pay the rent.

They did though.

The inflation stopped and if it hadn't been for incredibly low interest rates it would have been a crash. Instead it was a bit of a soft landing.

 

 

 

 

 

 

 

 

 

And in 5 years will the £80K house still be £80K and will they be the only person trying to buy it or will there be several BTL bidders trying to buy it.

 

Inflation is still taking place, but not driven by BTL at all.

[firemanbob 10]

They did though.

The inflation stopped and if it hadn't been for incredibly low interest rates it would have been a crash. Instead it was a bit of a soft landing.

 

Inflation is still taking place, but not driven by BTL at all.

 

So you don't think that increased demand for something of limited supply will increase its price.

[poppet2 13]

 

Inflation is still taking place..

 

Not according to the coalition it isn't, well not on the essentials, the things we all buy.

[Cyclone 10]

You can remind me of it but it doesn't change the fact that a global property bubble which was caused by property speculators caused the crash.

You can keep repeating this, but it doesn't make it true. The crash was precipitated by relaxed lending criteria.

 

If there is a limited supply of something that everyone needs and government policy allows the wealthy to own as many as they want, it will inevitably lead to a shortage for the poorest members of that society.

 

That's true if the wealthy want the thing for it's own sake. But you can't live in more than one house, so it's not true of housing.

 

---------- Post added 28-07-2014 at 13:56 ----------

 

So you don't think that increased demand for something of limited supply will increase its price.

 

I didn't say that at all, I said it's not driven by BTL.

 

BTL buying is very constrained now, it is not providing significant demand.

 

---------- Post added 28-07-2014 at 13:57 ----------

 

Not according to the coalition it isn't, well not on the essentials, the things we all buy.

 

And if you'd like to stay on topic, we're talking about houses.

[firemanbob 10]

You can keep repeating this, but it doesn't make it true. The crash was precipitated by relaxed lending criteria.

 

That's true if the wealthy want the thing for it's own sake. But you can't live in more than one house, so it's not true of housing.

 

And if millions of people hadn't used that money to invest in property, there wouldn't have been a property bubble or a crash.

[tzijlstra 11]

And if millions of people hadn't used that money to invest in property, there wouldn't have been a property bubble or a crash.

 

You are saying that BTL investors caused the crash, they didn't.

 

You are saying BTL investors are responsible for pushing out first time buyers, they didn't.

 

The way you are arguing I am beginning to think that in your ideal world we would all be given a nice free house to live in, got our shopping paid for through magic fairy dust (it wouldn't be called shopping, it would be called taking) and people don't have a responsibility to manage their own finances.

 

I hate to burst your bubble bob, but that isn't the world we live in. We do however live in a world with opportunities for everybody prepared to put in the effort and planning to get them, including buying a house.

 

You keep referring to some mythical person that got duped because a BTL investor offered more, I can refer to actual people, on or around the national living wage (whatever that means) that didn't get pipped to the post and did make it onto the ladder, not with ease, but with planning. It really doesn't take all that much.

[poppet2 13]

 

And if you'd like to stay on topic, we're talking about houses.

 

They did though.

The inflation stopped

 

Inflation is still taking place

 

Er, a case of biter bit.

[firemanbob 10]

I didn't say that at all, I said it's not driven by BTL.

 

BTL buying is very constrained now, it is not providing significant demand.

 

Yet they are still competing and out bidding first time buyers.

[Cyclone 10]

Are they? I take it you have some evidence?

 

---------- Post added 28-07-2014 at 15:02 ----------

 

Er, a case of biter bit.

 

No, a case of you not understanding.

 

The inflation stopped.

This is past tense, it's historical, it had a clear date associated with it.

 

Inflation is still taking place.

This is current tense, it means today.

 

Do try to keep up.

[tzijlstra 11]

No, he doesn't, just some circumstantial spouting. When you point out there are 200+ homes under 80K listed as for sale in Sheffield it goes eerily quiet. But if you keep repeating the fallacy, it might become a prophecy.

[firemanbob 10]

You are saying that BTL investors caused the crash, they didn't.

They played a significant part in it.

 

 

 

You are saying BTL investors are responsible for pushing out first time buyers, they didn't.

They did and they still do.

 

 

 

The way you are arguing I am beginning to think that in your ideal world we would all be given a nice free house to live in, got our shopping paid for through magic fairy dust (it wouldn't be called shopping, it would be called taking) and people don't have a responsibility to manage their own finances.

 

 

 

I hate to burst your bubble bob, but that isn't the world we live in. We do however live in a world with opportunities for everybody prepared to put in the effort and planning to get them, including buying a house.

 

 

 

You keep referring to some mythical person that got duped because a BTL investor offered more, I can refer to actual people, on or around the national living wage (whatever that means) that didn't get pipped to the post and did make it onto the ladder, not with ease, but with planning. It really doesn't take all that much.

 

You are obviously reading something that I haven't posted, and the people I am talking about are quite real and were gazumped by BTL investors, so houses that were up for sale, with young couples wanting to buy, were eventually sold to investors and then put up for rent.

 

---------- Post added 28-07-2014 at 15:08 ----------

 

Are they? I take it you have some evidence?

 

Yes there is a very large amount of evidence.

 

---------- Post added 28-07-2014 at 15:11 ----------

 

No, he doesn't, just some circumstantial spouting. When you point out there are 200+ homes under 80K listed as for sale in Sheffield it goes eerily quiet. But if you keep repeating the fallacy, it might become a prophecy.

 

How does the number of houses for sale in Sheffield change the fact that BTL investors have forced prices out of the reach of many, how many people are currently trying to buy them? how many are first time buyers? how many are Investors?

[geared 321]

80k really isn't out of the reach of many.