The buy-to-let market is very different in each part of the country and profitability varies across the country.
Buy-to-let returns on investments are improving, with a five year geared investor almost breaking even, according to The Model Works’ latest index.
The Model Works buy-to-let profitability index shows that returns on investments are improving with a five year geared investor almost breaking even and the opportunity of profits next quarter.
The Model Works buy-to-let profitability index shows returns improving, with a five year geared investor breaking even. Investors may return a profit next quarter.
Given the huge costs to those excluded and to the taxpayer, maybe someone could explain how they think geared buy-to-let investors (who borrow funds to buy properties when there is a supply problem) actually help the economy.
Promoting initiatives like Help to Buy and the Funding for Lending Scheme that cause property prices to rise is symptomatic of this Government’s attitude and priorities – so I have some blunt advice for my children.
The Model Works, say it’s important to fix the system first before getting carried away with schemes like Help to Buy.
Five year geared buy-to-let investors are still making losses, The Model Works claims.
The Model Works buy-to-let profitability index shows five year geared investors are still making losses, but these are falling as rates fall and property prices rise.
The Model Works indicates the returns from investing the savings made on buying a home at 24, as opposed to 37, could amount to £240,000 over a person’s life.
Delays in getting on the housing ladder will cost the average first-time buyer over £270,000 over their lifetime, or twice the cost of a typical first time buyer home, but those forced to rent into their retirement could pay even more dearly driving up housing benefits and state long term care costs to truly unsustainable levels.
Delays in getting on the housing ladder will cost the average first-time buyer over £270,000 over their lifetime, or twice the cost of a typical first time buyer home, according to independent research by The Model Works.
Older first-time buyers who spend their twenties renting could have lost out on more than £270,000, according to analysis by The Model Works.
In the 1960s the average first time buyer was 24. Now, ‘unassisted’ first time buyers are 37. The Model Works examines the resulting costs for prospective homeowners.
Speaking to the Institute of Economic Affairs last week, Fox said he would like to see CGT suspended and then ‘reintroduced at a more sensible level’.
The Model Works’ Brian Hall challenges over-optimistic buy-to-let profitability indices in a discussion with Ian Potter from ARLA on the BBC’s Money Box programme.
The Model Works claim geared investors are making a loss and cash buyers are making no profit at all
We are living in crazy times. The Bank of England is talking about negative interest rates, Liverpool Council is selling houses for £1 and buy-to-let is booming…
Landlords who entered the buy-to-let market five years ago are unlikely to have made any money at all and could be counting their losses.
Buy-to-let borrowers are making a loss on their investment while cash buyers are unlikely to see profit.
About the Author
Brian Hall is a UK management consultant with 30 years experience of the financial services sector with banks, building societies, centralised lenders, distributors, technology providers and regulators.
About The Model Works
The Model Works is a side-project to explore the potential commercial value of Dynamics and this website is a repository for the deliverables.
Research has focused on homebuying first time buyer exclusion and the buy-to-let boom as these are complex issues that have enormous and far-reaching consequences.
Unlike analysis which breaks things down into their component parts, Dynamics models the behaviour of the whole thing. It provides accurate and often unexpected results that offer insights, facilitate communication and deliver results.
Dynamics models are quick and easy to build. They are interactive and quantitative and can be used iteratively to allow solutions to the widest range of problem scenarios to be evaluated and unintended consequences to be identified.