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Comments
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AdrianC - thank you for taking the time to answer my post.
Yes the mortgage figure is correct. However it is split over 2 mortgages - a 50% BTL mortage secured on the rented property and a 50% residential mortgage secured on my own flat (previously owned outright). Thus the cost to me in total of buying the 145K flat is £920 per month. The mortgages are also over 16 years not 25.
I understand that yield from a property is defined by the rental income / property price x 100. In this case my yield is approx 5.5%. However I would say yield should be (rental income - costs)/property price. The only costs you would take into account are running costs ie insurance, gas inspections etc. You would not include the mortgage. Why?
We are working out the yield (money in) as a % of the money invested (145K).
The £920 per month is the cost to me of obtaining 145K. I don't actually have 145K.
If I had 145K in cash and bought the property outright it would be giving me a yield of 5.5%.
If I put that same cash in the bank I would be getting probably less.
You are calculating my profit (or in this case loss) not yield.
I think that was the whole point of my post to show that whilst my yield was decent I was not some rich nasty landlord.
If you know where to get a better return on 145K than 5% per annum I would be happy to hear about it. Honestly I would. Having spent years putting money into a pension I am happy this gives better odds. I can't see any banks bettering these rates but I am happy to be proven wrong.
Ah so landlords are charities when they are decent and horrible when they are not. Can't win then.
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Judges form precedents, especially in higher courts. Precedents determine interpretations.
Much of the detail of contract law is codified, built on top of basic common law principles. The one thing you forgot to mention about judges making common law... it happened over centuries.
Just saying that judges do make mistakes, whether it's bias or not I don't know. I wasn't there.
but:
http://www.landlordlawblog.co.uk/2016/05/24/judges-making-mistakes-possession-orders-massive-scale/0 -
Well yes, there is only one type of bread and your options are to have no bread at all, to borrow the bread off of me or buy your own bread, but if I buy your bread, you're left with only 2 choices. There are other breads, but you're likely to run into the same problem. - Am I? Why?
The law wouldn't be prohibiting landlords from buying property, far from it, it would just be saying that in X situation - and what is X situation. This is your policy, so expand upon it. with X type of property - what is x type of property? , FTB get first priority. It's no different to waiting lists for other things, it just means those who need it most, get first try (as long as that offer is reasonable) - whats reasonable? What if I don't want to sell to a FTB? . They don't get it for free, they still have to be financially suitable.
And... Where do these FTBs live before they buy?....0 -
I see what you're getting at and it's true that some live beyond their means and that's why they can't afford things, but there's also many people living within their means and they still can't afford a property. For example, the average price for a starter home where I live is 150k, let's assume, you've saved your average 10k deposit, hen you'd need to be earning at least 28k - what just a bit more than the average salary? between two of you? a year to get a mortgage for said property and that's being optimistic. The average wage for the UK last time I checked was about 25k. So even if you're earning about average and have saved a deposit, you're still out of luck in many areas.
Only if you're buying on your own. - I could equally say those doing that are being selfish, that home could be rented to a couple with a child instead...0 -
And... Where do these FTBs live before they buy?....
With parents, but it's better for the economy for people to be on the property ladder and the fact that no one particularly wants to live with their parents especially when you couple up or have a child.Only if you're buying on your own. - I could equally say those doing that are being selfish, that home could be rented to a couple with a child instead...
Well in social housing that IS how it's prioritised, but a couple with a child aren't likely to be looking at a 1 bed anyway.0 -
With parents - Hold on, since when is this a 'thing'? I don't want my kids living with me until their mid twenties, I certainly wouldn't want them buying a house without ever running a household, or getting financially linked to a person they've not lived with... How is any of that sensible? , but it's better for the economy for people to be on the property ladder and the fact that no one particularly wants to live with their parents especially when you couple up or have a child. - Why's it better for the economy for people to be on the property ladder? I'm just curious why you think this
Well in social housing that IS how it's prioritised - single people over families? I think not , but a couple with a child aren't likely to be looking at a 1 bed anyway.
neither are most FTBs.0 -
neither are most FTBs.
Well where else do you suppose people live if they can't afford to rent a place? Many choose to live with their parents rather than rent because renting means they are spending more and thus means they are likely to take longer to save for a mortgage. If you're not in a couple, you housing options are fairly limited in terms of a mortgage.
If people have more disposable income (mortgage payments being cheaper than rental payments in many cases), then that money will be spent in businesses etc and that is beneficial to the economy. What isn't beneficial is people not being able to afford to buy anything because they are spending most of it on rent.
No, I mean in social housing families will be placed above single people, that's done out of need, so it's not like it doesn't happen or isn't workable.
Well then if an FTB is shooting above what they can afford and is too snobby to live in a 1 bed, then that's their fault, but many 2 bed properties are way beyond affordable where I'm from. It's one bed or nothing unless you are earning a substantial wage.0 -
Well where else do you suppose people live if they can't afford to rent a place? - So you think they can afford to buy, but not to rent?? Many choose to live with their parents rather than rent because renting means they are spending more and thus means they are likely to take longer to save for a mortgage. - Yes I know, it's called growing up. If you're not in a couple, you housing options are fairly limited in terms of a mortgage. - but not it terms of renting. And most FTBs are couples
If people have more disposable income (mortgage payments being cheaper than rental payments in many cases) - Not really, a rented room is cheaper than a mortgage , then that money will be spent in businesses etc - 'in business' ? that's your logic. Well letting property is a business, so they'd be spending a lot more by renting... and that is beneficial to the economy. What isn't beneficial is people not being able to afford to buy anything because they are spending most of it on rent. - But they're spending it 'in business' if they rent? <im confused again>
No, I mean in social housing families will be placed above single people, that's done out of need, so it's not like it doesn't happen or isn't workable. - But families don't want 1 bedroom properties? That's what you said. I think most families would take that over the streets, but that's by the by.
Well then if an FTB is shooting above what they can afford and is too snobby to live in a 1 bed, then that's their fault, but many 2 bed properties are way beyond affordable where I'm from. It's one bed or nothing unless you are earning a substantial wage.- whats a substantial wage?
Can we go back to the criteria you mentioned?
When would people have to sell to FTBs? What's a reasonable offer? - this was your policy, can you please expand?0 -
They can rent a room in a shared property.
If they can't afford to rent a place, they certainly can't afford to own it.
I thought "owning" (monthly payments at the lowest rates since Fred Flintstone walked the earth) was supposed to be cheaper than renting, according to many a "Wise" Old Owl on here anyway...?0
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