can you increase rent if interest rates go up?

mando_2

Tassotti wrote:

I think it should be mandatory that rents rise annually in relation to inflation (like all incomes do).

My hubby's wage hasn't increased at all (including inflation) in 3 years. Inflation increases for wages are not mandatory.

BobProperty

Iso wrote:

I think you'll find that they do.

Really, can you point me to the law that says a HP company has to wait until the end of the initial hire period before they can have their property back?

realwildone

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?

Maybe because the btl brigade are taking away the dreams of the future generation and renting it back to them. You have become lucky because you were in the right place at the right time.

But now you seem to have invented a new class system.

Upper class
Middle Class
Working class with BTL (or chav)
Working class renting

I own my home outright, its my home and I understand that other people have the same rights. Thats why I leave other homes for other people.

Kaminari_2

I am offended at the above post. I was not in the right place at the right time, i worked long and hard for my BTL's and have bought them because i know that i can't afford a property in London on my average wage. Instead of whinging about it and cursing it all i decided to do something about it, buy some BTL's and use whatever capital it makes to one day buy a property in the capital.

I also don't know how you can draw the conclusion that a working class with a BTL is a CHAV. On Wikipedia a chav is described as:

It refers to a subcultural stereotype of people fixated on fashions such as flashy "bling" jewelery, and genuine or knock-off designer clothing with the beige Burberry pattern (most famously the baseball cap which has since been discontinued by the company), and such brands as Adidas and Nike. Musically chavs also tend to have a different taste mainly involving garage,and hip hop. Response to the term has ranged from amusement to criticism that it is a new manifestation of classism.

Like other BTL i have gone without high cost items that a Chav would adorn themselves with to afford property. Actually there is next to no similarity between a Chav and the majority of BTL investors.

There are also many people that do not want to buy their own house, that find it easier, cheaper or more conveinent to rent or are never willing to save for a deposit and go without luxuries to buy. There will always be a market for rental properties.

Everyone has a right to buy their own property but some would rather instant gratification than saving for a deposit.

Saving for a property is very hard work and not everyone is going to choose that.

meanmachine_2

Kaminari wrote:

I am offended at the above post. I was not in the right place at the right time, i worked long and hard for my BTL's and have bought them because i know that i can't afford a property in London on my average wage. .

Alternatively don't hoover up other FTBers' properties, save for a deposit and buy a house as a home not an investment.

Bring on the day when property returns to being basic shelter, not an overbought asset class.

I suspect that day is fast approaching.

Kaminari_2

As the government over the last 30 year has sold off most of it's housing stock that was used for people that would never be in the position to buy it has left a need for social housing. The Govt has turned to the private sector to fill this need. If the private sector did not step in then the govt would have a lot larger problem then it does now.

Everyone has the capability to buy their own house, unfortunately it takes a lot of hard work and you have to be willing to do this.

I rent my flat in London because it suits me and i am very gratful to the LL for providing affordable housing (Mortgage would be double what i pay in rent). As i came to this country 6 years ago on a one way ticket and £200 in my pocket i would have been at a loss if there were no places to rent, if people did not have any BTL's. Who was going to lend any money to a new arrival with no credit record or even a bank account? And in the last few years i am not the only one coming here with nothing.

I had nothing six years ago, less than most FTB, but i have been willing to work my butt off and have since bought a house in my home country and 4 properties here. I aim to buy my own home in London in the next 10 years. I earnt well below the average wage for the first five year here and only in the last year has my wage almost reached "average".

I think if you want a house bad enough you will be willing to work very very hard for it and you will get it. If i can do it from nothing in six years then i don't really follow the whole - i can't do it - mentality.

Also, i know that many think differently about prices going up but LL do not have near as much influence on this as good old "Supply and Demand" and as the population keeps increasing the demand for housing increases i believe that much awaited for crash is never going to happen.

realwildone

Kaminari

You were in the right place at the right time. A monkey could have done what you have done. But a monkey would probably of had more morals.

All this work my butt of business is a load of balony. You didn't need to work. It came knocking on your door.

What is a fact that the few houses you have mean fewer less for the families you have now priced out.

Get lost giving me that worker business.

realwildone

I think if you want a house bad enough you will be willing to work very very hard for it and you will get it. If i can do it from nothing in six years then i don't really follow the whole - i can't do it - mentality.

and that statement really does cheese me off. If some of these low income families worked from dusk to dawn they couldn't afford the homes you have stolen from them.

Your nothing more than a money collector, preying from the needy to build up a fat pension for yourself.

You really want to lord it over people, pullng up outside peoples rented houses in your mondeo with leather seats. Youv'e invented another class as far as I am concerned.

meanmachine_2

Kaminari wrote:

Also, i know that many think differently about prices going up but LL do not have near as much influence on this as good old "Supply and Demand" and as the population keeps increasing the demand for housing increases i believe that much awaited for crash is never going to happen.

Clearly you weren't in Britain during the last housing crash from 1989 to 1996.

It was caused, as you say, by the population halving in 1989 due to the ebola virus.

Oh no, wait a second. It was the economic cycle that corrected things. My bad.

Cycles have a nasty habit of coming back round again - hence the name.

Kaminari_2

Realwildone, i don't have a car, i have gone without a lot to have what i do. And the properties i have are in the hands of a charity that provide housing for people on DSS that suffer from social inflictions that prevent them from working. There are parts of the community that need housing and the govt do not have the housing stock any more to provide it.

I'm sorry that you feel people like me have stolen housing from people that do not have it or you feel that that LL's have priced you out of the market but it is a business that has existed for hundreds of years and it will continue to exist no matter what you feel about it. I'm sorry for you that you feel that you may never own your own property or are not capable of looking at things differently like i have done. I hope one day you change your perspective and work towards owning your own home, just remember that is does take time, sacrifice and hard work. Don't worry, you'll get there!

And without knowing my circumstances you do not know if i was in the right place at the right time. I spent 5 years working more than 60 hours a week, sharing a room in a sharehouse to keep my outgoings to a minimum, i rarely ate out and only bought clothes i need. I haven't owned a car since 1999 and it was a 1979 toyota corolla. I researched and researched and researched in what little time i had left over to find suitable property for my needs. I bought all four properties October 2005 (that right, less than a year ago) at what a lot of people said was the peak of the growth. If you call this right place right time and not hard work than so be it.

Meanmachine, i know everyone talks of the crash and i am fully aware of it as any LL should be. I do not feel that it will happen and if for some reason it does i have things set up to survive it, my investments can ride a huge jump in interest rates and i plan on holding the properties for a very long time so if a year or two of crash comes it is not muh of an issue for me. Good luck with waiting it out and buying your own place!