Landlords NOT selling up

ClubMan said:
Too big to fail?
Click to expand...

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
 

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.
 
Always Learning said:
I'd like to have access to speak with a sensible business manager in the bank who could see the bigger picture
Click to expand...

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.
 
You must log in or register to reply here.
Menu
Log in
Register