http: / /diaryofapropertybear .blogspot .com /2008 /06 /loss -of -wealth -calculator .html

Explained far better than I could have done, about how the figures we read about in the papers are sooo misleading.

Consider the national average LTV is 30% (that figure doesnt include home owner loans - just mortgages), and it is why this crash is going to hurt the overleveraged BTL invester harder than most. If you have 70% or more LTV then you should be VERY afraid. Its those people who dont understand the above - the foolish BTL'er that will lose their shirt - and why the smart BTL'er has already sold up.

It will be at least 5 yrs until prices reach 2007 levels once more ..... can you / should you hold on to a 0% performing or worse investment (considering prices will eventually rebound) for 5 yrs in a time of increasing taxes and bills - in a time of recession as people lose their jobs ..... rents will have to fall (in real terms taking into account inflation - as the value of money falls, that £700 rent you get is worth less).

Rents have already started to fall ("not in my area" I hear you protest - not yet maybe) ..... 7-9% the most recent figures suggest. So the myth that rents go up during crash times has been exploded. Thus BTL owners will sell up adding to the house price crash.

Its all about the amount of debt this time around.

WAKE UP!!!

Check out that table on the link above.

Now run along and redo your calcuations.

Richard

Im rather aghast, Im sure you could make that post somewhat more patronising, conceited, condescending than that!

Come on fella, come back and try harder once your mums got your coco pops ready for you!

The result of being ignored and patronised by BTL investors who think they are invincible. A year ago - two years, I posted out of concern for my fellow investors but time has worn me down, Ive had to put up for it for several years now.

Also ... my ability to help anyone is erroding by the hour - as house prices fall.

So ive gone from concern ........ to - damn shame about that ..... but you would put your head in the sand ....

and finally - (I hope i never get this far) - HA! serves them right!.

Sure, I sold my house and moved back into the family home ........ you should have too if you could have.

sounds like the story of the kid bullied at school who now needs to go through therapy...!

seriously Richard... I think youd get much more respect for your posts if you werent so patronising and demeaning within them

Its good to get the slant of an economic know all on this forum so keep them coming, but please dont insult everyones intelligence by being so belligerent and condascending with it

No matter how I present it the facts remain ....... but I will make more of a effort if I post again.

Please understand - I started posting with good intentions .... but as people ignored and told me I was wrong over and over .......

Please if you read this now ..... consider the facts presented. Not my method of delivery.

I am sad - so sad that so many will suffer and it could all have been prevented - not because I said it was so - but rather the evidence was there for everybody to see but people decided to ignore it, sheeple - following the herd off a cliff. I hope you understand my fustration.

Keep it coming Richard. I've agreed with your comments for 2 years now and am in the process of deleveraging myself.

Your style is all the things that James says it is but the points are well made and well backed up.