The insanity of house buying

BritRael

Quote:
Originally Posted by chucky
...those with a mortgage are BTL. it's quite simple really.

No.

I bought a second house around 8 years ago with the express intention of letting it; so, 'buy-to-let'. Right? But I bought it cash...[/QUOTE]

This is what I was referring to chucky. I didn't see the graphs, so maybe I missed the point. However, that is a clear statement which I am simply disagreeing with.

chucky

BritRael wrote: »

BritRael wrote: »

Quote:
Originally Posted by chucky
...those with a mortgage are BTL. it's quite simple really.

No.

I bought a second house around 8 years ago with the express intention of letting it; so, 'buy-to-let'. Right? But I bought it cash...

This is what I was referring to chucky. I didn't see the graphs, so maybe I missed the point. However, that is a clear statement which I am simply disagreeing with.

here you go - the blue line is private rentals.


http://news.bbc.co.uk/2/shared/spl/hi/guides/456900/456991/html/default.stm

Lotus-eater

Chucky points out that the number of privately rented houses hasn't gone up much up to 05 since the 90's crash. Yet anyone who has been around for the last year or two knows that the number of BTL mortgages has gone through the roof in the last few years, so where is the difference?
Has the traditional landlord been selling up and the newer BTL'rs been buying up at inflated prices?

chucky

Lotus-eater wrote: »

Chucky points out that the number of privately rented houses hasn't gone up much up to 05 since the 90's crash. Yet anyone who has been around for the last year or two knows that the number of BTL mortgages has gone through the roof in the last few years, so where is the difference?
Has the traditional landlord been selling up and the newer BTL'rs been buying up at inflated prices?

i don't people may have been selling up - but i do think there has been an inlux for 'speculators' or buyers without a plan that have excess cash to invest.

barnaby-bear

carolt wrote: »

I think many of those comenting on the virtues of BTL are not actually old enough to recall the changes to the market in 1996, and imagine that BTL as we have now is how it's always been.

It hasn't.

And before you ask - no, I never had a problem finding a suitable property to rent before 1996, or know anyone who did.

The difference then was that (a) there was far more council/social housing still available, so private renting really was a 'choice'. (b) house prices were far more affordable, so again, only those actively wanted to rent in preference to buying did so and (c) you didn't get all these greedy BTL idiots - you got professional landlords who'd actually put some thought into what they were doing.

Not claiming they were all angels - but you couldn't 'fall into' buying investment property then the way anyone could post 1996.

Also in Feb 1997 - ASTs became the normal tenancy prior to that tenants had far more security - all of a sudden it became 2 months notice making houses attractive liquidisable assets. Before this the property was the tenants home, older protected tenancies had rent control. When people moan about the UK property ownership expression and quote about Europeans being happy to rent - they usually forget it tends to be corporate (pension funds) in places like Germany/Switzerland who own and properly manage property and tenant protection and tenure is strong. The "flexibility" ASTs offer allowing people (Students/young people changing jobs) to move is difficult to find in these countries but if you are old/have kids/want to put down roots the stronger tenancies offer the opportunity.

barnaby-bear

PasturesNew wrote: »

Everybody wants to be "settled" at some point in their life. If you can't be sure where you'll be living this time next year then you stop making plans. You don't join groups, you don't get involved in the local community, you just stop doing things because you don't know if you'll be around.

I don't want to live in a street with large numbers of BTLs, I don't want my neighbours daughter and boyfriend shacked up at home in their 30s scrimping for a deposit ot get somewhere permanent. I don't want the constant turnover of people on 6/12 month contracts. I'd like my neighbours to have sufficient confidence in being there beyond 2months to do little repairs and plant a few flowers in their garden. I don't want tenant's kids having to change schools and have their education mucked around with because of lack of stability - or to be forbidden from having pets or their parents redecorating their rooms. I don't want to spend hours trying to track down the BTL LL fence owner, persuading them to fix their storm damaged fence who has no interest in the area where I live. I don't want to pay taxes for the services and courts that have to clean up the mess of errant LLs or provide emergency services to support tenants being evicted from a repo... due to BTLers poor financial gamble.

hethmar

At the moment those of us approaching retirement are seeing our plans for a secure future fade rapidly. Investments and pensions have disappeared before our eyes, some of us have just put our earnings into the bank where its earning virtually zilch. These baby boomers will be the next people to look round for somewhere secure to put their money, rightly or wrongly, many will choose bricks and mortar.

PasturesNew

skcollobcat10 wrote: »

And as for you well if it is 80% of take home pay, well live with relatives.

Idiot.

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tommy75

skcollobcat10 wrote: »

Anyway what is wrong with poorer people having to pay rent on a property that they cannot afford themselves.

Are you jealous of the landlord??

This is just life get over it!

Poor people don't rent, poor people live on benefits. You seem to be implying working class people in the UK shouldn't be able to afford a home as renting is pretty much the same cost as a mortgage on a house.

skcollobcat10 wrote: »

Know you mate, you need your head testing!!

People for generations, have rented houses/flats etc. There are always going to be peasants like yourself who require housing. Please do no pick on Buy to Let landlords otherwise you and your likes would be homeless!!

I'm not sure why you are calling people peasants but I guess this word gets branded around alot in Scotland