if there was a house price crash would rental prices also be affected? i am looking to get a buy-to-let mortgage, how much should i borrow if i have £200,000 cash?
2007-03-12 04:37:25 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
demand and supply.to many houses for sale for whatever reason and nobody wanting to buy them.the rental market would benefit as more people would be renting instead of buying.i don't think this will happen on a large scale as the economy is relatively stable and not subject to the wild fluctuations of the past due to constantly rising interest rates
2007-03-12 05:00:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The last price crash was caused by ultra-high Interest rates.
This led to borrowers defaulting on their loans - the banks & Buliding Societies then repossessed the houses and sold them off 'cheap' ...
It is highly unlikely that house pricre 'crash' would have much impact on rental prices - Rental prices are driven by supply & demand - in fact rental prices might go up as 'buy to let' owners get out of the market (and sell to first time buyers) resulting in the stock of rental properties dropping, whilst at the same time home owners who have been repossessed end up looking for some-where to rent...
2007-03-12 05:11:21 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋