Rents fall at fastest rate on record

harryhound

Blimey, where about in the country is the 125K now 85K house. It will be back to the 50K they bought it for in 1989 soon.

novazombie

Thrugelmir wrote: »

I would guess that a lot of people aren't even registered as being landlords with the HMIT.

As you point out I don't think that people realise the penalities involved for tax evasion.

The assumption I hear constantly seems to be that "I not making a profit if the rent covers the mortgage". Totally different to whether there is a taxable profit or not.

In the USA now the way they are dealing with the crisis is to put up taxes and get tough with inspectors. Im sure it will happen here.

"Obama is proposing raisng taxes, he has already hired more IRS agent and they have been trained to enforce tax collection"

taken from free ebook only can be read for another 2 weeks.

http://conspiracyoftherich.com/read/current

A very good read, what happens in the USA can give very good indication about what will happen in the UK.

novazombie

harryhound wrote: »

Blimey, where about in the country is the 125K now 85K house. It will be back to the 50K they bought it for in 1989 soon.

There are loads of places. I dont know hwere this one was, but I do know about S,Wales.

It wasnt that long ago just before the HPI that you could buy a house for 50K then the graph just shot up, and these were selling for over 150K.

Now sellers cant get half that.

MissMoneypenny

RDB wrote: »

Yes and rents cant go down


Its interesting in other crisis like this one about 0.2% of income goes to rent.

I wonder how long it be before the government starts dropping the housing benefit area payments?

Nylontokyo

MissMoneypenny wrote: »

I wonder how long it be before the government starts dropping the housing benefit area payments?

Its a good point, I am shocked to hear about a couple living near me with a baby. He lost his job and I asked how can you pay your rent? I live down the road in NW11.

He said the Gov pay 100% of his rent which is 325 week and give him 15 quid tax free on top of his other benefits.

crazygaijin

Nylontokyo wrote: »

Its a good point, I am shocked to hear about a couple living near me with a baby. He lost his job and I asked how can you pay your rent? I live down the road in NW11.

He said the Gov pay 100% of his rent which is 325 week and give him 15 quid tax free on top of his other benefits.

325 a week? and they pay 100% of it???????

Tell me thats not true, I have never paid that much rent in my life.

What kind of house is it, a palace?

Many people are living on that much money, they pay rent out of it and live off the rest, are you saying he gets that much rent paid and bens on top?

DaddyBear

Gorgeous_George wrote: »

When interest rates rise, the pressure on rents will be upwards. Increased costs will necessarily mean increased rents.


GG

Absolute rubbish. Its not the tennant's responsibility to pay the mortgage, its the landlord's. The tennant will pay what he/she can afford irresoective of the mortgage. With unemployment and wage deflation rents are only going down. When interest rates rise its going to be hell for the "get-rich-quick" BTL landlords who had no idea of yield. The result will be repossession and the second leg in the house price crash. The landlords who bought sensibly and didn't overleverage themselves will be fine as they have a large buffer.