Parents, you're just making it worse! Please STOP!

PoorDave

What about the point that every person who rents privately from a BTL landlord thinks they're doing the right thing (don't buy - wait for prices to fall), but actually, by putting a tenant in said property (themself), they are making sure the LL can afford to carry on. Spread this out across the whole country, and maybe that's why there's a "problem"!

BobProperty

nelly wrote:

The word for the legislation will be nu labours favourite word........Tax.

So, like I said, tell me how the legislation will be worded without ensuring that you alienate a large proportion of the electorate and guarantee losing the next election?

vishpatel

Property_Magnate wrote:

The government are already making things more difficult for BTL. HMO rules and Deposit schemes are set to come in.

The nail in the coffin though will be reform of the tax rules. Anyone with a BTL will know that the rules are too good to last ... the government knows it as well!

I doubt these will ever make it, but you never know. I would wager that most politicians have a vested interest in property. Just look at our PM!

skintchick

Hmmm, my situation encompasses both! My parents gave me 30k to help me buy my house eight years ago, for £82,000, as I couldnt; afford a bigger mortgage than £52,000.

I was up against a guy who wanted to buy to let (actually my EA) and offered the sellers £100,000!!! Thankfully they realised it was my only hope of ever owning a home and they sold it to me!!!

So...in that situation it would have ot have been one or the other. My parents helping me certainly didn;t push the price of anything up. Property in my area is on average £100,000 a bedroom now. I would not be able to buy my home today, even on a much better salary.

Greed is the problem, IMHO.

vishpatel

Tassotti wrote:

If you wan't to blame anyone for you not being able to afford a property, blame your employers for not paying you enough, blame yourself for not working hard enough throughout your life, but leave us poor Btletters and parents alone.

You say that BTLrs pay the top price for properties , nudging out FTBs. Where on earth do you get that from? Most of us BTL people are not stupid, and couldn't really give a monkeys if a FTB buys it or not. We are not against you, you poor little things.

I'm not blaming BTL's - I feel sorry for them. The majority are set to get burned big time IMO. Professional landlords were there at the start of the boom, and they're the ones who made all the money. They are few and far between. Those that are still BTL'ing now are getting much less in return, and future yields are likely to shrink/go negative.

Anyway - first & foremost I blame young FTB'er themselves for still allowing themselves to get sucked in by the hype. On a secondary note, I blame parents and people who advise young people that rent is dead money, and they should 'get on the ladder'. IMO, it's a game of snakes and ladders, and to make your move now would almost certainly result in you landing on a snake.

vishpatel

royalsteve wrote:

Problem is, how are people supposed to save for retirement? Pensions are useless, savings accounts offer meagre returns.....despite the tax hosuing at the moment still offers good returns...though like anything there is a risk, but in 20 years unless you are unlucky, housing should better returns.

I dont have a BTL property, not yet anyway.

Pensions are useless are they? They're only as useless as the person who picks one out. If you can't be bothered to do a little research then thats your problem. But I could pick a range of funds and investments that will probably outperform property in the coming years. The good thing about share type investments is you can change/tweak them much easier as the markets dictate. Property has a large entry/exit cost. The cost to purchase/sell some stock in a pension is about £10.

vishpatel

PoorDave wrote:

What about the point that every person who rents privately from a BTL landlord thinks they're doing the right thing (don't buy - wait for prices to fall), but actually, by putting a tenant in said property (themself), they are making sure the LL can afford to carry on. Spread this out across the whole country, and maybe that's why there's a "problem"!

Ridiculous and impractical. BTL'ers will get theirs sooner or later. It's just that the property market moves at a much slower rate than other markets. Remember, its always the last to party (i.e. the investors who choose to enter near the end of a boom) that get burnt.

lynzpower

My parents helped me out buying my Shared ownership place, by lending me 5k & paying my sols fees. Do you mean this?

I think its ridiculous to ask parents to stop doing what they THINK is best for thier kids, I can fully appreciate why they would want thier sons & daughters to a) life closer to work b) not live in a crack den area.

Most parents, like mopst people als subscribe to the "renting is thorwing money away" idea too, and Im wouldnt be the only person to have experienced pressure from my parents at some point in my life to buy.

lynzpower

Lots of BTLers are also first time buyers, we see quite a few on here.

We also see quite a few BTLers selling thier properties to thier tenants.

vishpatel

skintchick wrote:

Hmmm, my situation encompasses both! My parents gave me 30k to help me buy my house eight years ago, for £82,000, as I couldnt; afford a bigger mortgage than £52,000.

I was up against a guy who wanted to buy to let (actually my EA) and offered the sellers £100,000!!! Thankfully they realised it was my only hope of ever owning a home and they sold it to me!!!

So...in that situation it would have ot have been one or the other. My parents helping me certainly didn;t push the price of anything up. Property in my area is on average £100,000 a bedroom now. I would not be able to buy my home today, even on a much better salary.

Greed is the problem, IMHO.

What I'm saying is, parents who are providing deposits are allowing FTB'ers who wouldn't be able to afford to continue buying. If this wasn't the case, FTB'ers would begin to dry up and the rug would be pulled from under the greedy vendors.