Landlords NOT selling up

[Brendan Burgess]

Too big to fail?

That is a different concept completely. "Too big to fail" refers to banks which won't fail because the government will bail them out.

Coyote is pointing out that if 10% of tenants are problems, and you own only one property, you face a 10% chance of a serious problem and a 90% chance of no problem.

If you own 10 properties, the chances of no rent is .1^10.
In practice, it's a bit higher than this as they are not independent events, a diversified portfolio of 10 properties is better than one property.

Brendan

 

[Always Learning]

I can see exactly where the bank is coming from, You have the funds to purchase , but want the bank to take a risk on you with your investing agenda.

Your investing in property, and maybe other avenues to maximise your return, but these are funds you have, and are willing to risk it..

Your not employed, and if things go belly up with any of this, bottom line is, you don't have a job for continued income in which to service your loan.

A certain well know multi millionaire also had a very much funded deep well of money, made some bad investments/choices, and it all came crumbling down, you are no different. As far as the bank should be concerned, there would be nothing to stop you taking a punt on crypto or some other no-brainer and end up in a bad situation.

There is a risk here in what you want to achieve, having a proven ongoing employment record, would see them lay out the red carpet for you.

I'm practically zero risk to the bank though. I'd have debt of 300K spread across ten properties generating an income of 160K per annum. There is no chance that town houses will not be occupied over the coming years. The rents may drop somewhat, even they dropped significantly I'm still in a very comfortable position to repay.

I dunno, I think I will get it in the end but I'd like to have access to speak with a sensible business manager in the bank who could see the bigger picture put a plan in place around that, rather than treating each request as an individual mortgage.

 

[LS400]

I'd like to have access to speak with a sensible business manager in the bank who could see the bigger picture

I say good luck with that, because common sense has gone completely out the window to a large extent.

In my case, on a much smaller scale, I walked into the bank with with 3 investment properties loan free, Family home, loan free looking to purchase holiday/investment property,

Employed, good salary, looking for €175k on a property valued at €380k. It was torture TBH. Got there in the end.