buy to let

[henrys]

my pal has 40 buy to let properties
in the event of a house crash
what would happen
thanks

[ummmm2]

As in prices dropping?

Probably nothing.....loads of people will lose their houses and need somewhere to rent.....

[henrys]

ok
but they all have a mortgage

[noxlumos]

Well so do some of mine, depends on how he has them financed.

[ummmm2]

As long as the rent covers the mortgage he'll be fine....with 40 houses I'm sure he's making enough money to cover himself if that should happen.

[-Z-]

If hes renting them then he isnt selling them so it wont affect him.

However if he is heavily debted to the bank then they may question his debt to equity ratio.

If his rental income covers the mortgage payments then it should be ok.

Its what happens with the interest rates which may affect him as a result of the crash.

[redcrx]

Im sure that if your friend has 40 properties then hes fully aware of what could happen should house prices crash. If hes got them all mortgaged then as long as his rental incomes still covered the mortgages then nothing would happen, he might just have negative equity.

[zigzag]

i'm quite amazed at your contrast of questions henrys'
your last one was,
:-how many metres
in a piece of carpet
10X17&1/2 feet
incredible contrast to say the least.
stay out of this one ms squires lol

[henrys]

zigzag
sometimes you ask a question
you get a silly answer
any how
you do not have ti answer it

[-Z-]

have you got a cat

[henrys]

why
z

[-Z-]

.......

http://www.henryscat.com/

[rugeleyboy]

pmsl @ zorro!!!!