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  • FIRST POST
    • rentmekid
    • By rentmekid 13th Jun 17, 2:36 PM
    • 50Posts
    • 25Thanks
    rentmekid
    landlord bashing
    • #1
    • 13th Jun 17, 2:36 PM
    landlord bashing 13th Jun 17 at 2:36 PM
    After reading a number of posts/replies on this forum, I have noticed that many people hate the idea of someone owning more than 1 property and renting out.


    Frequent comments are: "people cant afford to buy one property, why should you have 2", or similar.


    At the end of the day, a private landlord is providing a similar service to the housing association, so why the hatred, or is it jealousy?


    Also, its not the Landlords fault that someone cant afford a house.


    Are my view justified?
Page 11
    • Financial_illiteracy
    • By Financial_illiteracy 17th Jun 17, 11:57 AM
    • 1 Posts
    • 0 Thanks
    Financial_illiteracy
    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.
    Originally posted by Spikey's mum
    So you have 52k in the bank that you're happy to put into this property (since you run at 270gbp negative net cash flow each month) to sell the property at 145k - assuming it doesn't appreciate - which will give you 93k profit which translates to 3.5%pa on the 52k over 16 years (excluding costs other than mortgage). Is this correct?
    • Crashy Time
    • By Crashy Time 17th Jun 17, 12:43 PM
    • 4,428 Posts
    • 2,028 Thanks
    Crashy Time
    And it very much depends on where you live. Even renting a room is more expensive than a mortgage payment in some places. On Rightmove, in my area, right now renting a room, the cheapest I can find is £490pcm without bills and £500pcm with bills. So the £500pcm seems like a better deal, but is it really when you have a room, not an entire property and very little protection?
    Originally posted by LadyL2013

    You find the best deals through word of mouth and with private landlords though, any long term renter knows this. Do you seriously think that most people renting "a room" are paying nearly 500 p.m to do so? If you could get 500 p.m for "a room" the property market wouldn`t be in crisis and central banks wouldn`t have had to co-ordinate the lowest interest rates in history to prop it all up Of course HMRC would be taxing it all to death as well, but that is another discussion. The "buying is cheaper than renting " meme is just something that people with loads of debt want to believe, the reality is that if you attach yourself to a massive property debt in this economic climate you run the real chance of being financially ruined for life.
    • hign10pines
    • By hign10pines 18th Jun 17, 10:22 AM
    • 333 Posts
    • 337 Thanks
    hign10pines
    £750/mo is £9k/year. Less the service charge/ground rent is £8,100. For a £135k property, that's about a 6% yield - right up there at the top-end.

    90% mortgage (£120k) is £540/mo, plus that service charge/ground rent - £75/mo - so that's £615/mo for the flat that your neighbour was paying £660/mo for.
    Originally posted by AdrianC
    How's about £750 a month on a £50k purchase valved now at £172k

    Surveys 2017: Opinion Outpost - £5 | Prolific - £20.55
    Debt: £8980 | 4937 @ 20.6% | 450 @ 49.9% | 1543 @ 42.9% | 550 @ 6.9% | 200 @ 30.6% | 100 @ 25.95 | 1250 @ 19.89
    • Cakeguts
    • By Cakeguts 18th Jun 17, 9:01 PM
    • 2,577 Posts
    • 3,536 Thanks
    Cakeguts
    My mortgage is 450 and a doctor has bought the house either side and is renting em out for 750 a month.

    Curious what I could need that would cost me an extra 3k a year every year to make it easier to rent than buy ?
    Originally posted by gycraig
    I know the answer to this.

    Car finance
    Fancy mobile phone contract
    Exotic foreign holidays at least twice a year.

    Not everyone wants to save.
    • katebl
    • By katebl 18th Jun 17, 9:36 PM
    • 586 Posts
    • 276 Thanks
    katebl
    What I want to know is how many people who can't afford to buy a property can afford car finance? I am only asking this because when I was younger I used to drive to work in a silver coloured car that had a green bonnet. The orignal bonnet had rusted so we got another one from a scrap yard but couldn't find one the same colour as the car. I don't see nearly as many cars now with odd coloured doors etc. The point with my car was that we considered buying a home much more important than having a new car or even a second hand newer one. If the old one still went you got a spare part from a scrap yard.
    Originally posted by Cakeguts

    Have you not seen on the news recently the articles referring to new car finance being a potential cause for concern?

    https://www.theguardian.com/commentisfree/2017/may/08/credit-car-crash-sub-prime-crisis-cause-next-financial-collapse
    • Crashy Time
    • By Crashy Time 19th Jun 17, 7:06 PM
    • 4,428 Posts
    • 2,028 Thanks
    Crashy Time
    Have you not seen on the news recently the articles referring to new car finance being a potential cause for concern?

    https://www.theguardian.com/commentisfree/2017/may/08/credit-car-crash-sub-prime-crisis-cause-next-financial-collapse
    Originally posted by katebl

    The tagged on begging letter for a fiver a month is a nice touch....
    Debt Ponzi a Go Go
    • Crashy Time
    • By Crashy Time 21st Jun 17, 10:55 AM
    • 4,428 Posts
    • 2,028 Thanks
    Crashy Time
    How's about £750 a month on a £50k purchase valved now at £172k
    Originally posted by hign10pines

    Got a link?
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