BTL lending Increasing, Rents Rising, Rates Falling..

IveSeenTheLight

PasturesNew wrote: »

I was looking yesterday to see if I could find/afford a 1-bed place in my county (that's a 50-70 mile radius) ... and I couldn't.

I thought you sold in 2007
If so, you sold in 2007 but cannot afford in 2010.
I'm wondering why as some places have returned to peak value while others are still below.
It seems strange you cannot afford, yet IIRC the property you sold was significantly larger than one bed and increased 40% between 2003 and 2007

Shakethedisease

Rents are way too unaffordable.

I'd definately agree with that !!

I thought you were self-employed though ? And made a bit off all your internet stuff ? Your hosting fee's ( you quoted them in a few posts).. etc are certainly a lot more than mine and we ( family of 6 ) live off my income and my webby stuff.

Just curious. Sorry for being nosey.

PasturesNew

IveSeenTheLight wrote: »

I thought you sold in 2007
If so, you sold in 2007 but cannot afford in 2010.
I'm wondering why as some places have returned to peak value while others are still below.
It seems strange you cannot afford, yet IIRC the property you sold was significantly larger than one bed and increased 40% between 2003 and 2007

I did sell, but I can't buy again until I know where, so I have to look at renting.... and as interest rates are so low I've lost all my income from interest and so can't afford rents.

My comments were re renting, not buying.

As for buying, I can afford to buy in the place I am looking at, but I've no job ... so until I have a job I can't buy or I might buy a house 100 miles away from where I end up getting a job.

PasturesNew

Shakethedisease wrote: »

I'd definately agree with that !!

I thought you were self-employed though ? And made a bit off all your internet stuff ? Your hosting fee's ( you quoted them in a few posts).. etc are certainly a lot more than mine and we ( family of 6 ) live off my income and my webby stuff.

Just curious. Sorry for being nosey.

I am self-employed, and make all my income from the internet stuff. But, I've lost the interest on savings and the internet stuff isn't really getting done as I've not got my own place (I need long long stretches of silence to crack on and sort out my stuff and I don't get that where I am).... so the internet stuff just comes in without me doing much (or anything).

Internet earnings are at about 65% of peak.

Overall, comparing all my incomes now, to 3 years ago, I was bringing in (from various sources) £35-40k/year, now it's more like £12k.

And I want to actually do my web stuff "as a business", which I am unable to do without a fixed abode as I feel unable to plan my space/days/time.

silvercar

Overall, comparing all my incomes now, to 3 years ago, I was bringing in (from various sources) £35-40k/year, now it's more like £12k.

So when you say there is nothing affordable on RM, is that based on your income of 35-40k when you are working properly or the £12k you are surviving on at the moment?

chucky

Generali wrote: »

Rents are rising in nominal terms and falling in real terms. Nominal rents are up 0.4% on the year according to the NSO.

which means that those renting saving for a deposit to buy a house are seeing their deposit money getting smaller and smaller each month in real terms.

by inflation eroding their spending power, rents rising and house prices increasing.

IveSeenTheLight

PasturesNew wrote: »

I did sell, but I can't buy again until I know where, so I have to look at renting.... and as interest rates are so low I've lost all my income from interest and so can't afford rents.

My comments were re renting, not buying.

As for buying, I can afford to buy in the place I am looking at, but I've no job ... so until I have a job I can't buy or I might buy a house 100 miles away from where I end up getting a job.

Ah, sorry, wasn't aware that your comment on being able to afford was linked to rent.

Given you've been in this situation for a while now, have you considered buying a modest place in the meantime effectively meaning you have no rent given that the interest you are receiving is so low.

If you needed to move when you found a job, then you could sell up.
At least you'd benefit from any house price increases

PasturesNew

IveSeenTheLight wrote: »

Ah, sorry, wasn't aware that your comment on being able to afford was linked to rent.

Given you've been in this situation for a while now, have you considered buying a modest place in the meantime effectively meaning you have no rent given that the interest you are receiving is so low.

If you needed to move when you found a job, then you could sell up.
At least you'd benefit from any house price increases

The way I see it is that's a short-term gain. Buying something that'll do for now, would mean I couldn't then buy "a lovely house" if one popped up as it'd require a mortgage. Also, if a job were too far from the temporary home I bought, it'd be a long, long day (and costly) getting there and back ... then there'd be all the uncertainty of being able to sell it again.

Overall, right now, it's not worth the risk.

I have been looking for a house in any case, on the basis that if I see one that'll do then I would just buy it and say that's where I live and so would settle for whatever jobs are in the area.... but there's nothing I like at the moment.

Maybe I should just move .... and claim WTC, some housing benefit and council tax ... and get a nice income top up from your taxes! Thanks for the idea!

PasturesNew

nollag2006 wrote: »

Here's a suggestion. Rather than coming on here wailing about how unfair it is that you can't buy a house on a variable £12k income, why not move to someplace where you can find a job that you feel is worthy of your skills and talents, and buy a house there?

Rather than spouting off at a tangent and taking one posting out of context, why don't you cut out all my postings and work out what's been going on.

If I knew where there'd be jobs I'd go there... but I have no idea where they might be.

nollag2006 wrote: »

Interesting that you have managed to lose money by STR'ing at the previous peak of the market. So much for all those bears gloating about how clever they were to have magicked up this no-risk formula.

I haven't lost. The house I sold would now be on the market for about £70-90k less than I sold it for. And I didn't STR for money, I STR'd because I didn't like the house and didn't have a decent job.

I'd rather be in the position I am in now, than stuck in that previous house. Selling was taking a risk and until you're in a situation you've no idea what new issues it will bring up. My problem is not knowing where jobs are so I can't move to them ... and not getting any replies when I do apply for jobs. So where are the jobs?

[Deleted User]

if as seems likely CGT is increased to bring it into line with personal tax rates(in the emergency budget)and this increase is delayed for a short period,then many btl landlords could flood the market with property hoping to avoid the tax rise.