Rents to "Rise Sharply"

nollag2006

chucknorris wrote: »

I think property is still a good investment, but it's no good looking at the early years, it's a long term investment.

...

I can't answer for the foolish speculators that bought merely for capital growth in the short term, that was never my main aim.

All good points chuck.

Too many folks on here look at the immediate rental yield, and dismiss property investment out of hand.

In terms of cash flow, it usually is pretty tight in the first couple of years, but I've found it to become increasingly lucrative as the years go on.

I've never had to offer a rent reduction, tbh, as I usually just leave tenants alone once they are in-situ, and only put the rent up as the tenants change, or unless I've got a whinger on my hands, in which case they get a six monthly review !!


:rotfl::rotfl:

The other aspect is of course the large capital gain that accrues over time. As long as you are prepared to ride out the storms (such as that from Q4 2007 to Q1 2009) then property investment can pay off hansomely

chucknorris

nollag2006 wrote: »

I've never had to offer a rent reduction, tbh, as I usually just leave tenants alone once they are in-situ, and only put the rent up as the tenants change, or unless I've got a whinger on my hands, in which case they get a six monthly review !!

I reduced some rents a few months ago, existing tenants that have been there for over 3 years asked for a reduction, so I reduced their rent by about 4%. Also last summer when re-renting a property I reduced the rent by approx 10% to ensure that I didn't have a void. Luckily we (this one is half owned with my wife) were about to reduce the rent on another property by about 10% but we got a call from an agent who offered us tenants for the same rent as the outgoing tenants, they only charged £500 (£300 net of tax) so that too was only a small drop. But as I have tracker mortgages I'm still much better off than last year, so no complaints here.

IveSeenTheLight

chucknorris wrote: »

I reduced some rents a few months ago, existing tenants that have been there for over 3 years asked for a reduction, so I reduced their rent by about 4%. Also last summer when re-renting a property I reduced the rent by approx 10% to ensure that I didn't have a void. Luckily we (this one is half owned with my wife) were about to reduce the rent on another property by about 10% but we got a call from an agent who offered us tenants for the same rent as the outgoing tenants, they only charged £500 (£300 net of tax) so that too was only a small drop. But as I have tracker mortgages I'm still much better off than last year, so no complaints here.

I have not had to reduce my rents.
Mostly down to my market strategy of leasing under the average market rate.
This is to ensure I have a low void rate (currently 0.77% or 2.82 days per year for the last 3 years).
I've also not had a void period in just over 2 years.

Locally, I have seen the average rental rate drop by 2% in the last year, but this is now rising again, so I don't foresee a need to reduce my rents.

In the summer, I did have new tenants ask if I would accept a lower rent, but when I refused they still wanted to go again and said they just wanted to try their hand.
Fair play to the for trying but I had to be careful I didn't get an injury from them snapping my hand after I said I would not drop the rate.

the_ash_and_the_oak

IveSeenTheLight wrote: »

I have not had to reduce my rents.
Mostly down to my market strategy of leasing under the average market rate.
This is to ensure I have a low void rate (currently 0.77% or 2.82 days per year for the last 3 years).
I've also not had a void period in just over 2 years.

Locally, I have seen the average rental rate drop by 2% in the last year, but this is now rising again, so I don't foresee a need to reduce my rents.

In the summer, I did have new tenants ask if I would accept a lower rent, but when I refused they still wanted to go again and said they just wanted to try their hand.
Fair play to the for trying but I had to be careful I didn't get an injury from them snapping my hand after I said I would not drop the rate.

Where do you have your flats/houses (if you don't mind me asking!)

IveSeenTheLight

the_ash_and_the_oak wrote: »

Where do you have your flats/houses (if you don't mind me asking!)

I lease out a 4 bed house and a 2 bed flat in Aberdeen.
The only void I have had was on the flat for 16 days.
This was because a mid month lease changed to a start of the month lease.
Since then, all tenancies have run consecutively

the_ash_and_the_oak

IveSeenTheLight wrote: »

I lease out a 4 bed house and a 2 bed flat in Aberdeen.
The only void I have had was on the flat for 16 days.
This was because a mid month lease changed to a start of the month lease.
Since then, all tenancies have run consecutively

Ah well! I saw the stats someone (you?) posted re:aberdeen rates and prices. Certainly stack up rather differently to London!

IveSeenTheLight

the_ash_and_the_oak wrote: »

Ah well! I saw the stats someone (you?) posted re:aberdeen rates and prices. Certainly stack up rather differently to London!

You have to look very closely at each area.
I do not know the London market very well, although my sister in law has done well down there I believe.

The whole country is not dictated by what happens in London and or the South East.

I've always advocated for people to do their own specialised local market research.

the_ash_and_the_oak

its why I asked where they were!

tbf most people are implicitly talking about their local area imo - can cause talking at cross purposes on occasion)

IveSeenTheLight

the_ash_and_the_oak wrote: »

its why I asked where they were!

tbf most people are implicitly talking about their local area imo - can cause talking at cross purposes on occasion)

I always take people as talking about the UK in general unless they state the locality specifically.

LR, Nationwide, Halifax, CML, ONS etc etc are all taken as UK average unless you break down into the local figures.

the_ash_and_the_oak

IveSeenTheLight wrote: »

I always take people as talking about the UK in general unless they state the locality specifically.

LR, Nationwide, Halifax, CML, ONS etc etc are all taken as UK average unless you break down into the local figures.

w most its probably a bit of both..people taking their own areas to be representative of the UK as a whole - and kind of understandable,, altho imo there are specific differences (the aberdeen against london one a good example, and the effects of 2nd home ownership in the SW) price direction across the UK throughout the bubble has been broadly similar (unlike the US for example where the boom was concentrated in certain states and other states never had any kind of boom + lending practices and laws varied in different states - non-recourse a good example! none of these variances present in the UK in same way imo)