Buy-to-let now 'rich man's game'

[Taf]

Just as another dozen or more Czech and Polish families are evicted as their buy-to-let landlords default on mortgage payments in Cardiff....


The buy-to-let market is too expensive for the average investor, according to the Royal Institution of Chartered Surveyors (RICS).

Borrowers have faced five interest rates rises since August 2006. RICS says they are now also being asked to produce a 30% deposit, costing an average of £65,600.

That has shot up since 2002, when a 8% deposit was common, an average of £10,100.

In addition, many lenders now require that the rent on any prospective buy-to-let property equates to more than 125% of the monthly mortgage payment.

http://news.bbc.co.uk/1/hi/business/7083446.stm

May these vultures rot..... and the banks that set the rents....

[Spite]

May these vultures rot..... and the banks that set the rents....

  Amen to that, Larry.  The Council housing system, with all it's flaws, was, at one time, the best system of ensuring folk could both rent a home that was at least half decent, and get essential maintenance done on it.

[Lisa]

hope the market collapses on the bastards, shame about the families that rent with them though

[Mojo]

Second, third or even fourth "Investment Properties" are very popular here at present. The market is facing a pre-87 crash type scenario of people borrowing 110% of the property value. When the bubble bursts mortgagee sales will be through the roof.

[Taf]

One of the biggest buy-to-let investment companies in Wales has gone into administration.

Cardiff-based A & A Property had more than 250 houses and flats on its books in different areas throughout Wales.

http://news.bbc.co.uk/1/hi/wales/7267670.stm