Comments on: Who is Left to Invest in Real Estate? http://www.biggerpockets.com/renewsblog/2008/10/09/who-is-left-to-invest/ Learn, Network, Invest Mon, 23 Nov 2009 07:23:11 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Lorraine http://www.biggerpockets.com/renewsblog/2008/10/09/who-is-left-to-invest/comment-page-1/#comment-60541 Lorraine Fri, 10 Oct 2008 10:12:14 +0000 http://www.biggerpockets.com/renewsblog/?p=1736#comment-60541 As a property investor based in the UK this post, as well as the rest of the blog in fact, makes for really interesting reading. Here in the UK getting a buy to let mortgage is tough. It's not the 75% loan to value that is the problem. It is the fact that lending is based on the lower of 75% of a surveyors valuation or 125% rental cover. Rental cover always comes out lowest, meaning you have to put quite a lot of your own money into the deal. Is this not a stipulation with buy to let mortgages in the US? As a property investor based in the UK this post, as well as the rest of the blog in fact, makes for really interesting reading.

Here in the UK getting a buy to let mortgage is tough. It’s not the 75% loan to value that is the problem. It is the fact that lending is based on the lower of 75% of a surveyors valuation or 125% rental cover. Rental cover always comes out lowest, meaning you have to put quite a lot of your own money into the deal.

Is this not a stipulation with buy to let mortgages in the US?

]]> By: Greg Swann http://www.biggerpockets.com/renewsblog/2008/10/09/who-is-left-to-invest/comment-page-1/#comment-60525 Greg Swann Thu, 09 Oct 2008 16:20:45 +0000 http://www.biggerpockets.com/renewsblog/?p=1736#comment-60525 > In Phoenix, Arizona you can buy some homes for less than what it cost to replace them. This indicates that the bottom is soon to come, just like other regions. That's actually an interesting proposition. Right now, we have a nice wave of investors snapping up lender-owned properties in Phoenix. An example: I have one closing Friday, 1524sf on the golf course at Coldwater Springs. Would have sold for $280K+ in 2005. Friday's price: $109,900, with about $6,000 more to bring it back to showroom condition. But: We are still issuing around 7,500 new foreclosure notices a month. Even if there are enough investors and owner-occupants to absorb the lender-owned homes in the pipeline, we could be looking at very low prices for two years or more. My admittedly self-interested take: This is a perfect storm for rental-home investors. > In Phoenix, Arizona you can buy some homes for less than what it cost to replace them. This indicates that the bottom is soon to come, just like other regions.

That’s actually an interesting proposition. Right now, we have a nice wave of investors snapping up lender-owned properties in Phoenix. An example: I have one closing Friday, 1524sf on the golf course at Coldwater Springs. Would have sold for $280K+ in 2005. Friday’s price: $109,900, with about $6,000 more to bring it back to showroom condition.

But: We are still issuing around 7,500 new foreclosure notices a month. Even if there are enough investors and owner-occupants to absorb the lender-owned homes in the pipeline, we could be looking at very low prices for two years or more.

My admittedly self-interested take: This is a perfect storm for rental-home investors.

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