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

lynzpower

vishpatel wrote:

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.

or would BTL landlords be able to take a greater share of the lower end of the market?

vishpatel

lynzpower wrote:

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.

yep - I do. If there wasn't so many of these external factors skewing the market (ie. parents providing financial help, shared ownership etc..) it would NATURALLY CORRECT.

If you don't mind me asking, why couldn't you afford to pay the deposit & solicitors fees yourself?

vishpatel

lynzpower wrote:

or would BTL landlords be able to take a greater share of the lower end of the market?

If thats the case - then so be it. BTL'ing will eventually subside because of the sheer over-speculation during the low interest rate environment. Rate rises are good for FTB! And they're coming...

PoorDave

vishpatel wrote:

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.

What is ridiculous and impractical? Please expand on this.

By the way, i have no vested interest, not being a BTL'er myself, although i have looked into the figures over the pasa few years, and seen a worsening situation in my local area.

PoorDave

vishpatel wrote:

If thats the case - then so be it. BTL'ing will eventually subside because of the sheer over-speculation during the low interest rate environment. Rate rises are good for FTB! And they're coming...

Who says rate rises are coming?

[Deleted User]

Average deposit 1996: 5,000
Average deposit 2006: 33,000
Source: http://money.guardian.co.uk/news_/story/0,1456,1521865,00.html

Do you think people are earning 6 times more now compared to 10 years ago? Where do you think this massive deposit money is coming from.

I'm 26, lived away from home since leaving uni and have worked my balls off to save up 11 grand and pay off my debts (overdraft and student loan are now gone). 11 grand is nothing towards buying a house at the moment, so i've gone to my grandparents and parents for some extra dosh. Grandparents agreed they'd rather see me spend 20k now than we pay 40% inheritance tax on it. I could probably save another 10k, but it would take me 2 years and i would spend 12-15k in rent in that time.

Even after all this we're gonna have a 180-190K mortgage. To buy a flipping 2 bedroom terrace.

Personally, i blame the BTL brigade. I'd like to see those !!!!!!s paying a huge tax on rental income, something like 40-50%. I bet most of it's cash in hand, and the taxman doesn't see it. Council tax on 2nd properties should be upped to 150%.

I see the increase of the average age or FTBer as a dangerous sign in our society. People settle down later, have less children. We've already got a reducing birth rate. The pension system is going to go even more belly up in 30 years time as the number of claimants outstrips the number of people paying in. Same with the NHS.

We're all doomed, doomed i tell ya </rant>

lynzpower

Personally, i blame the BTL brigade. I'd like to see those !!!!!!s paying a huge tax on rental income, something like 40-50%. I bet most of it's cash in hand, and the taxman doesn't see it. Council tax on 2nd properties should be upped to 150%

interesting. Where do you think this money will come from then? INcrease to HB ( ie the taxpayer pays it) increase in rents ( so students, those already on a too low income to buy will pay for it? Usually renters pay thier own council tax- certainly more would if these increases are there) or CTB pays it.

clutton_2

i have several btl properties, bought over the last 5 years, and i feel no guilt whatsoever. i house families and single parents who otherwise would have nowhere decent to live. Most of my tenants simply do not WANT to own a house, they see it as too much of a responsibility, and are too afraid to do it. i make a very small amount of profit each month on the rentals, and if i have to replace a boiler, thats probably 6 months profit gone. I am not asking for sympathy here, far from it, i am building up capital growth in my properties so that i will have assets to sell to improve my state pension.

But lets not forget that the government (central and local) in effect abrogated their responsibilities for providing housing when the Right To Buy came in. Private rental landlords like myself provide a basic need - the need for shelter. Sadly this new 2005 Housing Act will make it more and more difficult for anyone to run a profitable and successful BTL business - and the folks that will suffer will be tenants who cannot find decent homes. there are already many HMO's on the market as landlords get away from the latest round of inept beureaucratic overkill.

I never pay over the odds for a property - in fact most professionals look to buy below the current market value, so, we cannot be altogether the only culprits for rising house prices.

Lady_S

seabiscuit wrote:

Now you see, I would put a lot of the blame on property developers and BTL who buy the houses that FTB would normally buy, they are then pushing the price up as fast

After all there arent that many parents who can afford to buy houses for their offspring

I completely agree, my mum winds me up with this amazingly. Neither myself or my sister can afford to move out, and all she talks about is buying a BTL. She keeps saying this is for a solid future for myself and my sister, but won't understand that its people who buy these properties who are pricing us out of the housing market in the first place.

PoorDave

clutton wrote:

i have several btl properties, bought over the last 5 years, and i feel no guilt whatsoever. i house families and single parents who otherwise would have nowhere decent to live. Most of my tenants simply do not WANT to own a house, they see it as too much of a responsibility, and are too afraid to do it. i make a very small amount of profit each month on the rentals, and if i have to replace a boiler, thats probably 6 months profit gone. I am not asking for sympathy here, far from it, i am building up capital growth in my properties so that i will have assets to sell to improve my state pension.

But lets not forget that the government (central and local) in effect abrogated their responsibilities for providing housing when the Right To Buy came in. Private rental landlords like myself provide a basic need - the need for shelter. Sadly this new 2005 Housing Act will make it more and more difficult for anyone to run a profitable and successful BTL business - and the folks that will suffer will be tenants who cannot find decent homes. there are already many HMO's on the market as landlords get away from the latest round of inept beureaucratic overkill.

I never pay over the odds for a property - in fact most professionals look to buy below the current market value, so, we cannot be altogether the only culprits for rising house prices.

I agree with the last paragraph completely. Why would a BTL LL pay over the odds for something? It's not like they'd have the "fall in love factor" you get when buying a house to live in, which sometimes makes people pay over the odds. The LL isn't going to be living there!