Why do people think landlords are greedy

santashelper_2

Some people have a misconception that when someone does a buy to let they are just being greedy.

I know many people who are doing buy to let because they took out an endowment mortgage and have now found the shortfall will not pay their mortgage and they have had to look at alternatives to help them through life.

I think it is down to personal circumstances and sometimes people generalise to much before they know individual circumstances

brit1234

People hate Landlords due to what has happened over the last ten years. IE BTL buy up all the first time buyer properties with their tax advantages and gearing, increasing prices rapidly to the detriment of all.

How that I have been priced out of the market my tax payers money now has to bail out buy to let loans rather than hospitals, teachers, armed forces.

Thats why I think landlords are greedy. They sow what they will reap.:mad:

Rabiddog_2

Thats what you believe to be true , based on ?facts? rumours? hearsay? CML figures? Sarah beeny? you could be right...
Wont they reap what they sow

going2die_rich

Most of them are just first time buyers who are jealous at the BTL Landlords being able to afford things they can't.

I wouldn't worry about it, as FTB's failures in life are hardly your problem.

Its just a shame we have reached a point that because someone can't afford something they blame someone else from being able to afford it and as a result increase the price of the item.

Just think of how rich this country is and how many poor nations dont get the resources they need because our country outbids them! I dont see people in this country having a problem with that.

going2die_rich

brit1234 wrote: »

How that I have been priced out of the market my tax payers money now has to bail out buy to let loans rather than hospitals, teachers, armed forces.

Taxpayers are actually on the majority having to bail out the US market, which has impacted our own. Even then, they aren't bailing out individuals, but banks. The issue in the US isn't BTL, but lax lending policies which have lead to lending money to people who should never have gotten as much as they did. A bit like in the UK with FTB's.

BTL market is here to stay, just wait to see how it grows as soon as the market stables. It's a pension pot for many now.

brit1234

going2die_rich wrote: »

Most of them are just first time buyers who are jealous at the BTL Landlords being able to afford things they can't.

I wouldn't worry about it, as FTB's failures in life are hardly your problem.

Its just a shame we have reached a point that because someone can't afford something they blame someone else from being able to afford it and as a result increase the price of the item.

Just think of how rich this country is and how many poor nations dont get the resources they need because our country outbids them! I dont see people in this country having a problem with that.

Sorry but are you claiming then that buy to let (turning property into an investment rather than an a home) hasn't had the a significant effect creating the overvalued housing bubble.

Buy to Let is now finally being talked about as what it is, a Pyramid scheme. As house prices plumet it highlights why people over the years have called it the british sub prime.

brit1234

going2die_rich wrote: »

Taxpayers are actually on the majority having to bail out the US market, which has impacted our own. Even then, they aren't bailing out individuals, but banks. The issue in the US isn't BTL, but lax lending policies which have lead to lending money to people who should never have gotten as much as they did. A bit like in the UK with FTB's.

BTL market is here to stay, just wait to see how it grows as soon as the market stables. It's a pension pot for many now.

Sorry but people are constantly trying to shift the blame on the US for everything about this but this is wrong. Yes the US has some very bad loans to people who couldn'tr afford them and yes their homes are overvalued however this is the same as the western world. It was a world wide explosion of cheap credit that caused it, the US is unfairly getting the blame as they went down first but the UK housing market is far more overvalued than th USA.

A major reason for our housing market being so overvalued is speculators of which buy to let represents the most.

It has been proven buy doing the sums that buy to let represents poor value for pensions and is out preformed by shares.

As for buy to let here to stay I'd like to see where you will get the funding from. Birmingham Midshires, Mortgage Express, BM Solutions all gone. Paragon about to go and not lending, BOI looking for a buyer.

going2die_rich

brit1234 wrote: »

As for buy to let here to stay I'd like to see where you will get the funding from. Birmingham Midshires, Mortgage Express, BM Solutions all gone. Paragon about to go and not lending, BOI looking for a buyer.

I'm not a BTL The company I am at has a very generous pension matching scheme, else I would consider BTL as a pension pot instead.

I think in the market right now even the general homeowners will struggle to find the finances if they don't have the nice big deposits and good jobs, so dont think it's limited to BTL.

BTL mortgages will come racing back, fair enough they will tighten criteria so not everyone and their dog can get it, but their'll still be plenty getting it. After all, everything is just in a cycle, people/banks will either get greedy or forget given a few years. Then we will be back where we are right now say 20 years or so?

tbs624

brit1234 wrote: »

People hate Landlords due to what has happened over the last ten years.

Thats why I think landlords are greedy. .....:mad:

So where are you living at the moment brit1234? Under a private LL's roof or are you one of the dwindling number who have managed to get reasonable Social Housing provision?

Please outline your housing market Utopia for us.

Ian_Griffiths_Halifax

brit1234, I think you have a very tainted view of Buy to Lets. For your information somewhere in the region of 6 in 7 people rent in the rest of Europe, but something like 6 in 7 people own in the UK. Are you saying that in the rest of Europe greedy BTL Landlords have taken over? I think it's more a case of us in the UK who have become obsessed with buying!

Any house you buy, you are only 'borrowing' while you are alive! The house will (in most cases) be here a lot longer than the occupier so why not rent instead of buy?

The main reasons for the massive increase in BTL properties/mortgages here though is not through landlord greed, it's through the Governments taxation of pension funds and company pensions scheme failings over the last 15 years or so. People were encouraged to take out Pensions, either private or occupational, and some company pensions were raided by the companies while private pension funds have seen smaller growth than expected due to taxation of the funds and low returns on investment. People have been looking for an alternative way of funding their retirement.

I'm not a pensions or investments adviser so if I'm wrong, I'd gladly be corrected by one of the Investment guys who comes on here.

sooz

tbs624 wrote: »

So where are you living at the moment brit1234? Under a private LL's roof or are you one of the dwindling number who have managed to get reasonable Social Housing provision?

Please outline your housing market Utopia for us.

Wherever he is, he's reading a Dickensian version of renting in Britain.

My tenants earn a lot more than I do, but choose to rent as I am providing a service for them.

They don't want to be tied down with home ownership just at the moment, & are free to move or leave the country when they choose. In the meantime they rent beautiful quality period properties from me, & I am on call 24hours a day to deal with any maintenance issues, & to wait in for tradesmen.