Buy to let market...

[boomshanka2525]

Hello all,

I keep reading about the "property crash" that appears certain in the UK....

i own a few buy to lets in the South east and feel quite comfortable about them at the mo...Am i being slighly naive considering what is going in the prime and sub prime lenders in the US and the large pull backs we have seen in Spain........My theory is that our great land is a small one there arent enough homes and basically we dont have the huge space US and Spain has........i think when the housing markets pulls back,if it ever does,that these are buying opportunities........

Please give me reinsurances.....................

Regards

gg

[Editor]

I'm inclinded to agree boomshanka2525, but this is not to deny the possibility of economic recession leading to a bit of a crash any time soon. This would affect property prices very quickly, especially commercial property.
The thing is, property investment is a long-term moneymaker and should not been seen as a means to make a quick buck - speculating now is, in my opinion, highly dangerous.
If you bought the property right, you're not too highly geared, there's good tenant demand in the area and the property is producing a good income, what does it matter what the value is over the short-term? Long-term it will always increase.
On the other hand, if you paid too much, if you are in an area which is oversupplied, and/or you are geared up to the hilt with debt, then perhaps you should worry.

[Brit1234]

Property prices are widely expected to go down by a large number of sources. What is unknown is if it will be a crash. Its just London and Northern Ireland keeping the prices at a slight national increase. However London prices are slowing and falling in a number of London borough where in many cities prices have been coming down in the last couple of months ie Manchester, Leeds etc (mainly new builds)

The market is at the ceiling of affordability, higher interest rates and tighter credit will mean prices are unlikely to rise for a while.

Companies such as Paragon keep projecting increasing BTL stories however they have to be taken with a pinch of salt due to there self interest in talking the market up.