can you increase rent if interest rates go up?

realwildone

I would just like to say to all you greedy BTL's. Judgment days arriving.

This is just one IR rise. I expect it to be one of many over the next 2 years.

It's your turn to suffer like you have inflicted the pain on so many low income families and first time buyers.

Put these interest rate rises together with Martins comments on house prices on national radio where he said prices WILL come down and you lot are in trouble.

But oh now 'house prices only ever go up' and 'interest rates won't go much higher'.

Oh dear, If you have remortgaged to buy a BTL, you need to start getting really worried.

realwildone

Landlords who own small 2 bedroomed terraced houses, can, pretty well nation wide, expect to get £100 per month profit from such a property.

Thats just gone down to £75.00. How many rises before it's costing you.

Jim_B_3

BobProperty wrote:

Would you like to think of a business where you hand over a £x00,000 asset to someone else, and can't re-gain possession of it without a court order (i.e. ignore the borrowing money bit)?

Gee, I'm stumped. No, wait, how about the house rental business? Is there any danger of a point turning up soon?

Dan29

realwildone wrote:

I would just like to say to all you greedy BTL's. Judgment days arriving.

Why is buying a house to rent out to someone who needs somewhere to live any more "greedy" than running any other sort of business that makes money for providing a product or service?

Iso

BobProperty wrote:

Would you like to think of a business where you hand over a £x00,000 asset to someone else, and can't re-gain possession of it without a court order (i.e. ignore the borrowing money bit)?

A car on HP? Home furnishings? A fitted kitchen? GNER and the rail track they've just paid x billion pounds for being sole operator and being told that a cheaper competitor can use the same track? Thames Water? A mortgage? Money paid to bail out Rover?

Kaminari_2

bap you clearly aren't a LL. There is very little cash flow in BTL. And with house prices the way they are at the moment i imagine a lot are negatively geared too.

BobProperty

ISO that's 6 figures there, you must have some fancy car, kitchen, home furnishings. Even a top of the range Christiansens kitchen runs out at about £65k.
My point is that, as a landlord, you hand over a hugely valuable asset to someone, who the law says, has most of the rights. There are few similar business transactions. HP on your Bentley may be one, but miss a few payments and the HP company doesn't have to wait 6 months and need a court order to get it back.

Iso

I think you'll find that they do.

Iso

BobProperty wrote:

ISO that's 6 figures there, you must have some fancy car, kitchen, home furnishings. Even a top of the range Christiansens kitchen runs out at about £65k.
My point is that, as a landlord, you hand over a hugely valuable asset to someone, who the law says, has most of the rights. There are few similar business tranactions. HP on your Bentley may be one, but miss a few payments and the HP company doesn't have to wait 6 months and need a court order to get it back.

Come on Bob - please don't tell me that Christiansens is the be all and end all of bespoke kitchens, you know that isn't true. Last time I heard a nice big gas hob and double oven comes in at 25K +, how much you spend on the units depends on what materials you're using, tiles, worksurfaces, lighting, sound system, tv, the cost of a kitchen is as long as a piece of string.

I've read ads for cars that cost well over £100K that are available on HP - the mind boggles but it seems that people do it!

As for home furnishings - it's hardly unknown. Look at contents insurance.

Tassotti

cuummooon. All the negative posters are renters..living in Lls property for a fraction of the price....

Its your home..but..I can sell it at any time and buy myself a second 911, or maybe another Ferrari.

Some people do, some people don't!!!!!