Better to buy than rent!!

Batchy

nembot wrote: »

I've just moved to a new rented property, current value 360k - monthly rent £650.

So at least in my case, buying is a lot more expensive than renting.

Thats cheap, and you need a pat on the back for that! friend of a friend or is the house subsiding etc?

In 2005 i was living in a 250k property and only paying 625 pm ...

To say that id achieve that now, would be optimistic.

I have seen some 210k propertys earning £950 pm.

Some flats also only 130k getting £795 pm service charges were included that were high as there was a swimming pool included too. lol

System

chucknorris wrote: »

Your LL is only earning a 2.17% yield, that is unusually low is there something strange about this rental?

Possibly because it's fictional? Regardless, even if true, freak occurances like this don't change much.

abaxas

Batchy wrote: »

Thats cheap, and you need a pat on the back for that! friend of a friend or is the house subsiding etc?

In 2005 i was living in a 250k property and only paying 625 pm ...

To say that id achieve that now, would be optimistic.

I have seen some 210k propertys earning £950 pm.

Some flats also only 130k getting £795 pm service charges were included that were high as there was a swimming pool included too. lol

Not cheap at all.

Market forces at work. (don't tell chucknorris, he doesn't believe in them)

Batchy

I can see there is not a pure maths formula for working out rents, and at the end of the day one desperate landlord, can influence a market slightly, but it would take more than one to really dent the market.

I assume your landlords flexibility to drop so low is because his 0.49% (or around that) base rate tracker is less than the rent you pay at the moment. I hope he doesnt shock you into moving when or if the rates go up in the medium term?

But enjoy it, im sure its a lovely house too.

chucknorris

abaxas wrote: »

Not cheap at all.

Market forces at work. (don't tell chucknorris, he doesn't believe in them)

It's a gross yield of only 2.17% and you say it's not cheap. You obviously don't know what you are talking about!

chucknorris

Batchy wrote: »

I can see there is not a pure maths formula for working out rents, and at the end of the day one desperate landlord, can influence a market slightly, but it would take more than one to really dent the market.

I assume your landlords flexibility to drop so low is because his 0.49% (or around that) base rate tracker is less than the rent you pay at the moment. I hope he doesnt shock you into moving when or if the rates go up in the medium term?

But enjoy it, im sure its a lovely house too.

Mine are achieving about 5.25-5.5% (and there are plenty LL's earning a higher yield than me) so 2.17% is cheap by a magnitude of about 2.5 tiimes cheaper compared to mine.

There could be reasons why it would be cheaper for example an accidental LL renting out a property that is not in an ideal rental location but that is some magnitude of cheapness!

abaxas

chucknorris wrote: »

It's a gross yield of only 2.17% and you say it's not cheap. You obviously don't know what you are talking about!

Lots of cheaper about, infact I live in one (1.74% yield if the price the house was marketed for is correct).

As I keep saying, it's about the market, not what price a LL wants to charge.

nembot

No subsidising at all Batchy, it's just what properties in rural North Wales go for - not a bad price to be fair for a barn conversion with beautiful views and a nice garden.






I believe this property and a few others are owned outright by the landlord, so they're after decent tenants in the most part. Obviously in another location, the rent would be much closer to market rate.

[edit] it's an extra 5 miles from work, have 12 miles each way now - but at least most of the roads are 60mph.

chucknorris

abaxas wrote: »

Lots of cheaper about, infact I live in one (1.74% yield if the price the house was marketed for is correct).

As I keep saying, it's about the market, not what price a LL wants to charge.

There isn't lots cheaper about. What are the figures and location of your rental?

benb76

I love these threads, there are always so many unsubstantiated anecdotes of rental bargains costing the equivalent of 2% or less! I used to rent my place out, and the annual rent was around 5% of the value and I never had any voids in the 3.5 years I was letting it. I must have been lucky seeing as I seemed to have been charging twice the going rate if you believe what you read on here!