BTLs face a difficult year in 2010

wageslave

the_ash_and_the_oak wrote: »

Well he only decides if I have this particular roof?

(but I guess...collectively...they decide if I have a roof!)

When you are trying to provide a secure home for your child(ren) having the same roof for a longish period of time takes on a suprising amount of importance. Rugrats dont like change.

Private tenants in this country have very little security of tenure. It makes for a very inequal relationship.

Whilst I will aknowledge that there are good landlords out there, a large number only feel a responsibility towards their mortgage provider.

the_ash_and_the_oak

wageslave wrote: »

When you are trying to provide a secure home for your child(ren) having the same roof for a longish period of time takes on a suprising amount of importance. Rugrats dont like change.

Private tenants in this country have very little security of tenure. It makes for a very inequal relationship.

Whilst I will aknowledge that there are good landlords out there, a large number only feel a responsibility towards their mortgage provider.

No I do know where you are coming from tbf - have to admit as much as possible I prefer to rent something from a landlord that has owned 10+ years (as I do now) - nothing against recent landlords or BTL but ones that have been in the game for serious time tend to be less pressured by the whole thing imo

chucknorris

Graham_Devon wrote: »

I think we know BTL investors are stuck at the moment.

.

Stuck? Profitability has never been higher, in my case rental income is down only on average 3.5% but my interest payments are down over 80%. By the time mortgage rates on low margin trackers climb back up to around 6% the rental market problems will be history.

If we could isolate the HPI and the mortgage rates from the rest of the economy I would actually prefer things to stay as they are now, you could keep your HPI and I would accept the capital losses if I could keep the low mortgage rates. Obviously though that wouldn't quite work out in reality as you cannot islotate this from the economy and we would end up in a depression if things didn't pick up. If it was possible however the extra rental profit would only take less than 8 years to pay for the capital losses (gross).

Ok not everyone is on low margin trackers, but quite a lot are, and those that are not most will be enjoying to some extent lower mortgage interest. I think the ones that are 'stuck' are probably speculators who bought for the wrong reason (HPI) and didn't know what they were doing (just jumping on what they thought was a bandwagon), I do not think these people will be a high percentage of the market.

carolt

macaque wrote: »

http://www.residentiallandlord.co.uk/news2045.html

Macaque's advice for troubled landlords:

Reduce the rent. Lower rents make for happy tenants and reduced chance of arrears.

Or.....

Sell the property to your tenant at a knock down price. The tenant will kiss you and you can forget about rent arrears, local authority inspections, gas inspection certificates, building repairs, negative equity, capital loss, interest rates, boundary disputes etc etc.

Interesting.

How much worse will the situation get once interest rates go up, if they're struggling now!

Such a shame. Such lovely people, landlords.

Couldn't happen to a nicer bunch.

silvercar

wageslave wrote:

When you are trying to provide a secure home for your child(ren) having the same roof for a longish period of time takes on a suprising amount of importance.

A home is where you make it, a house is a building. Moving home is a hassle but it shouldn't impact on the security you provide your children.

When you sign an AST, you read and know how long you are guaranteed to be able to live there.

Choosing to rent because it is cheaper or you are waiting for the clever moment to buy carries with it the risk that you may have to move every year. It should all be built into the buy or rent decision process.

ess0two

carolt wrote: »

Interesting.

How much worse will the situation get once interest rates go up, if they're struggling now!

Such a shame. Such lovely people, landlords.

Couldn't happen to a nicer bunch.

Yawn,getting boring now,get buying if LL's !!!! you off that much.

Wookster

wageslave wrote: »

Private tenants in this country have very little security of tenure. It makes for a very inequal relationship.

I'd have to disagree. Most landlords will have a mortgage outstanding on the property.

Its easy to find a flat to rent but finding good tenants is only 50/50 and every month empty is a month of lost rent. Not to mention the damage a miscreant tenant can do to a flat!

Pobby

StiflersMom wrote: »

Do you specialise in talking through your bottom Grim_devon?

I bought my first flat a few months ago - and counsel anyone who will listen to buy before the next big price rises in Spring 2010.

Your increasingly desperate posts really exude envy that others have done well in this market, while you have sat back (in your rental accomodation) and criticised from the sidelines.

Time to get in and buy Grom before it gets any worse for you (because it will ... it will...)

That`s interesting. What is exactly behind the HPI ( big, your words ). Ah I have spotted it. More places getting repo`d, rising unemployment and of course interest rates that have to return to some degree of normality.

Oh almost forgot, yes the inevitable tax rises to pay for the last housing ponzi. Yep, it`s all there, the perfect time for house prices to go through the roof.;)

StiflersMom

carolt wrote: »

Interesting.

How much worse will the situation get once interest rates go up, if they're struggling now!

Such a shame. Such lovely people, landlords.

Couldn't happen to a nicer bunch.

So why do you choose to continue to subsidise their monthly mortgage payments by renting from them?

dopester

the_ash_and_the_oak wrote: »

No I do know where you are coming from tbf - have to admit as much as possible I prefer to rent something from a landlord that has owned 10+ years (as I do now) - nothing against recent landlords or BTL but ones that have been in the game for serious time tend to be less pressured by the whole thing imo

It isn't a game, even for professional landlords. Anyone referring to it that way (landlord or investor or speculator) I usually have my doubts about whether they have the necessary levels of intelligence and wisdom.... even though under Labour lots of weak-minds have struck it lucky in BTL.

They might not be less pressurised if they've been continually adding to their property portfolios, from a decade back and longer. Thinking of one particular women I saw on HUTH with about 12 houses. Perhaps even the Wilsons now.

Can you name any other arena of money investment / exchange.. apart from 'on the game'? A stupid way to refer to property investing given all of the complexities... normally anyway, except for glorious credit expansion and Gordon's tripartite.

BTW.. is Chucky a girl? The 'weak-men' reference confused me.