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Buy-to-let landlords at more risk of negative equity

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  • Buy-to-let landlords at more risk of negative equity

    Ratings agency Standard & Poor’s has estimated that between 20% and 40% of landlords could be in negative equity next year if the prices of property fall by up to 30%, as predicted. If this happens, they will owe more on their property than it is worth. Landlords who entered the market in the past two [...]

    More: Buy-to-let landlords at more risk of negative equity

  • #2
    Who cares as long as you still have tennants paying on time and are generating a positive income from the rental payments against the mortgage?

    If thats the case then you dont need to sell and cash in that negative equity

    Prices will recover its just a matter of when.
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    • #3
      Still, something the short-term opportunists won't be happy about, especially if they have problems keeping up with payments.

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      • #4
        Thats true, property developers are the ones who will lose out the biggest.

        However, if you are a property investor who has done good research before buying, stacking the property to ensure a good positive cashflow, ensuring there is a good rental demand for the type of property in that area then you shouldnt be finding problems with repayments.

        In my view buy-to-let should never be seen as a short term opportunity.
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        • #5
          Definately, alot of people i know don't even have an exit strategy, as their aim is to continue to build a fairly passive income.

          Even if you were investing 5 years ago you should be thinking of property as a 3-5 year investment at a minimum, 10 years if you can stretch that far

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          • #6
            Definately, if your trying to do a quick flip, the more it drags on the more money your loosing.



            Originally posted by Paul_MN View Post
            Thats true, property developers are the ones who will lose out the biggest.

            However, if you are a property investor who has done good research before buying, stacking the property to ensure a good positive cashflow, ensuring there is a good rental demand for the type of property in that area then you shouldnt be finding problems with repayments.

            In my view buy-to-let should never be seen as a short term opportunity.

            Comment

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