It is a common stat. But this stat has nothing to do with cat food or a jimmy car comedy show. This is to with what every buy to let investor fears:
THE FIRST TIME BUYER
And the 8 out of 10 stat relates to:
The number of approvals for mortgages.
Can you believe it? 80% of first time buyers are getting approved for mortgages! The problem is, so the banks report, is that there are not enough first time buyers applying.
Mortgage costs for the FTB has reduced from 50% of take home pay to 28% of take home pay and with rent on the rise even the not so smart renter is going to think:
Hmmm, may be I could buy instead of rent
This light bulb moment will be happening around the country and there will be conversations like:
“Darling I saw this house on the internet – do you like it?”
“Dear, shall we go house hunting”
“Honey, did you know we could afford to buy a flat bigger than this and will cost us less than what we are paying in rent”
Another thing that caught my eye was that the major TV channels were playing repeats of property programmes during PRIME times. Very weird. And on the satellite TV channels you could find a property programme to watch every half hour till midnight.
All we need now are some fresh new property programmes to stimulate the FTB and then they will hit the market in their herds.
So are you going to passively sit there and let the FTB rob you of your property dreams? They are a real threat. You will never win against a FTB. They can pay better prices. Simple.
If you want to start then request a callback.
Ajay
Posted on: 25th Aug 2010
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