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BTL, vile lowlife business, nobody wants to be living under their roofs
Comments
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!!!!!!_face wrote: »EDIT: OK just read your latest post which puts it all in context. I'm a bit flitty with this forum thing so can miss posts to people's backgrounds. We sound pretty similar to be fair. Sort of. Merry Christmas mate!
No we're not similar. I'm an ex-landlord and don't think BTL is evil. Therefore I'm scum and you're amazing. Right?
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As a sign of goodwill I'm willing to share my stock of Pear Cider........................But just this once:D.
Don't expect it next year, apparently the price of Pears are set to increase by around 50% .....So ive invested my entire savings (house deposit) in an Irish Pear orchard.
This Irish guy in the pub said my return would be far more than if I'd invested in Gold, but keep it under your hats and mums the word.
Happy Days :beer:0 -
My point is if I buy a car and rent it out in will devalue but of course the overall sum is the income form the rental will cover that so I will have a pile of money and a knackered car by the end of it which overall lead to a profit.
But a house generally doesn't loose value through use to which rent should either be cheaper than a mortgage or it should taxed so the LL gets less than the mortgage, basically there should only be profit to be made once the asset is paid for as tere is no depreciation on a house (generally).
The house / car comparison is not the bast for me, what about if you purchase a vintage car that appreciates in value?
Rent should in all intensive purposes be more expensive than to buy, otherwise why would investors rent them out.
Whay business in their right mind would make a loss i.e. rent less than mortgage
Rent allows short term benefits than committing to a long term mortgage and as such costs more.
Going back to your car comparison;
how much is it to rent an average size car for a week?
What's that extrapolated over a year?
Looking at Avis, a Vauxhall Insignia comes in at £883.92 for 4 weeks.
Multiplying that by 13 (for a year) would meake it £11,490.96
You could buy that outright in a year rather than rent, but the rent option allows you to take it ober a shorter timeframe.The biggest problem I have seen locally is the BTL landlords have been going for the same properties as the FTB's to which that has to push prices up at the bottom end of the market.
In short the BTL cash cow shouldn't be as attractive as it is, to be honest I can't blame people the people milking that cow right now if I was born 5 years earlier I may have made the same choices.
The crux of this problem is that there are not enough properties.
This pushes up purchase prices and increases the market for rental properties, hence investors are attracted by the gap in the market.
I've shown before that the rental market is a shrinking percentage of the total housing market, so the problem is not investors, it's the lack of propertiesAs for saying there is people in there 20's with multiple properties, of course there is as there is high flyers in every generation, my point is any boomer who bought there house in the early 90's (or before) had a massive equity from nothing during the boom which meant nearly any of them could have bought a second property with said equity (thank go they didn't all realise that) where as now the average 25 year old on average wage doesn't have that same opportunity.
I know average mid 20's who have bough, iyt depends on area and expectations.
When I bought my first property at 27, it wasn;t an average house, it was a 2 bed flat.
The friend I'm referring to is not a high flier, yes he's applied himself and done well, but not that far above the local average wage.
The thing is as I see it there is a housing shortage propblem and that it affects different areas vastly.
Making the assumption that one are is bad therefore it must bee the same throughout is pure folly:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
leveller2911 wrote: »As a sign of goodwill I'm willing to share my stock of Pear Cider........................But just this once:D.
Don't expect it next year, apparently the price of Pears are set to increase by around 50% .....So ive invested my entire savings (house deposit) in an Irish Pear orchard.
This Irish guy in the pub said my return would be far more than if I'd invested in Gold, but keep it under your hats and mums the word.
Happy Days :beer:
I'll join you I have a bottle of Finlandia, Spirytus and Belvedere as well as some dodgy Glenfiddich Malt Liqueur.
Oh I have already invested in gold, gold wasser very tasty I might say you should try it ;o)))))))0 -
IveSeenTheLight wrote: »The house / car comparison is not the bast for me, what about if you purchase a vintage car that appreciates in value?
Rent should in all intensive purposes be more expensive than to buy, otherwise why would investors rent them out.
Whay business in their right mind would make a loss i.e. rent less than mortgage
Rent allows short term benefits than committing to a long term mortgage and as such costs more.
Going back to your car comparison;
how much is it to rent an average size car for a week?
What's that extrapolated over a year?
Looking at Avis, a Vauxhall Insignia comes in at £883.92 for 4 weeks.
Multiplying that by 13 (for a year) would meake it £11,490.96
You could buy that outright in a year rather than rent, but the rent option allows you to take it ober a shorter timeframe.
The crux of this problem is that there are not enough properties.
This pushes up purchase prices and increases the market for rental properties, hence investors are attracted by the gap in the market.
I've shown before that the rental market is a shrinking percentage of the total housing market, so the problem is not investors, it's the lack of properties
I know average mid 20's who have bough, iyt depends on area and expectations.
When I bought my first property at 27, it wasn;t an average house, it was a 2 bed flat.
The friend I'm referring to is not a high flier, yes he's applied himself and done well, but not that far above the local average wage.
The thing is as I see it there is a housing shortage propblem and that it affects different areas vastly.
Making the assumption that one are is bad therefore it must bee the same throughout is pure folly
Don't you start, ;o)))))))))0 -
I will add that all the social housing which has sold off went to the occupants to which it shrunk the rental market but also shrunk the demand for rent.
Thatmay be the short term view, but long term, when people moved on from the social housing, the stock was available for the next generation of renters.
I know my grandmother in law bought under the right to buy, after 40+ years of renting. Why? because the council would not allow the property to be modernised to suit her aging needs.
So that property was lost to the social housing stock, sold and then used to fund her care home fees.
That example is as you described short term reduction in rentqal demand of 1, but also long term reduced the social housing stock also by one.
In that scenario, ultimately there would be no social housing stock if it's not replaced as it hasn't been:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
leveller2911 wrote: »
I would be interesting to know what percentage of them bought with next to no deposit ,on an interest only mortgage and with no repayment vehicle in place.
none.
They all worked their deposit and are on repayment products as far as I'm informed.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
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!!!!!!_face wrote: »OK, OK. We'll play it your way. You're Juliet and I'm Romeo.
and I fancy you ...........
I think your keyboard has gone all funny...........0
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