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Debate House Prices
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Guardian: Tenants sitting pretty as rents fall.
Comments
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What do you do when your whole "investment" model - including mortgage repayments - is based on a minimum amount of rent per month/year, and circumstances change, forcing rents down?
What is this 'investment model' that you speak of?
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Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
PasturesNew wrote: »As a tenant I know my LL won't be reducing my rent. So the only way to rent cheaper would be to move. But moving requires about £200 in agent fees again for credit checks.
£200! I paid £30. Why don't you cut out the LA for your next move?RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
It is quite hard to find properties for rent because they're advertised all over the place and if you don't have the time to sit down and look full-time for 4-6 weeks it's pot luck.MissMoneypenny wrote: »£200! I paid £30. Why don't you cut out the LA for your next move?
I found a lot of agents sometimes couldn't even give you a viewing slot for 2 weeks - and the private landlords tended to be in the grottier areas.
I wanted a studio flat, so very limited choice of the number available and the locations can tend to be in the not so great areas. So I'd really just identified four blocks where I wanted to be. I had to have off road parking too and parking and studios don't tend to go together.
If I were looking for something common like a 2-bed house there'd have been more choice.0 -
Landlord wanted to put mine up 7% in London. So I moved out. Have moved in with 3 close friends (who I've lived with before), one of which owns the flat. No mates rates or anything, but I pay less than I would via the landlords increase, plus we share bills etc... and the whole thing is much more flexible.
Just need to see if the missus can move in then my rent is cheaper, and I can save even more. Was nice to be able to skip dealing with EA's."Boonowa tweepi, ha, ha."0 -
What is this 'investment model' that you speak of?
Hehe. Yes that one - MEW to buy on margin, yield not so great but thinking more of the capital appreciation.
In a downturn, the logic of boomerangs who've lost their jobs or had a pay-cut returning to live with their parents, or moving in to share with friends and lowering their overall living costs (like wolfman above), seems inescapable.
Mix in all the new landlords to the supply who've turned to letting their homes because they can't sell them. I think the nightmare for many landlords is really about to begin as they are less able to command the rent levels they desire.0 -
Let's say you have £80K to save/invest.
In the bank at 6% you will earn £3,840 after basic rate tax - every year. You will always have £80K in the bank assuming you draw the interest each year.
Now, what about BTL?
Buy a house for £80K and rent can be £5,700. Pay tax at the basic rate and you have £4,560.
Only a small premium of £720. There may be voids an dthere are costs but then, you don't pay tax on all of the rent. It's not important for the point I intend to make.
Rents will rise over the years. At a modest 3% per year the rent will have risen by more than 50%. It won't be worth any more than before because of inflation.
The interest will still be £3,840.
I know it is a very simple example but the concept works whatever figures you choose to use.
Saving is dead money (;)).
My tenant pays about a week's take home pay (based on my pay) to rent my house. I expect to still receive the equivalent of a week's pay when I retire in 10 - 15 years' time.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
rents appear to be going up
Slimming world start 28/01/2012 starting weight 21st 2.5lb current weight 17st 9-total loss 3st 7.5lb
Slimmer of the month February , March ,April
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im a tenant and the rents are going up for us
Slimming world start 28/01/2012 starting weight 21st 2.5lb current weight 17st 9-total loss 3st 7.5lb
Slimmer of the month February , March ,April
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To all those "LL's" claiming rents are not dropping, please be so good to provide postcode - then we can check PropertyBee. Not that we don't believe you of course!
You see, times have changed. In the good ole pre net days VI's could spout any old King Canute style rubbish, and people did not know who to believe. Now we have access to all the information.
So. Go on. PROVE IT!!!0
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