We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Rents to Fall 50% real terms over next Five years

More bad news for those for those BTLers, Rents to Rise only 20% nominally over next Five years

If inflation keeps going up from 5% like it is, it will be around a 50% real fall in rents.

http://www.guardian.co.uk/business/2011/nov/11/mortgage-famine-creates-rental-boom

Comments

  • robmatic
    robmatic Posts: 1,217 Forumite
    Your maths is either terrible or you're assuming inflation of over 20% a year?
  • More bad news for those for those BTLers, Rents to Rise only 20% nominally over next Five years

    If inflation keeps going up from 5% like it is, it will be around a 50% real fall in rents.

    http://www.guardian.co.uk/business/2011/nov/11/mortgage-famine-creates-rental-boom

    But surely if house prices rise as we are told they will they will see a return on their investment at someone else's expense?
    Dont wait for your boat to come in 'Swim out and meet the bloody thing' ;)
  • MrRee_2
    MrRee_2 Posts: 2,393 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    And, in FIVE years, the Renters will STILL be buying someone else's house for them!

    Whilst buyers have paid 5 years off their Mortgages ... maybe just another 10 years until debt free.

    And the renters still rent ....


    ... you know what you must do.
    Bringing Happiness where there is Gloom!
  • Jimmy_31
    Jimmy_31 Posts: 2,170 Forumite
    MrRee wrote: »
    And, in FIVE years, the Renters will STILL be buying someone else's house for them!

    Whilst buyers have paid 5 years off their Mortgages ... maybe just another 10 years until debt free.

    And the renters still rent ....


    ... you know what you must do.

    Buy at the bottom ?
  • More bad news for those for those BTLers, Rents to Rise only 20% nominally over next Five years

    If inflation keeps going up from 5% like it is, it will be around a 50% real fall in rents.

    http://www.guardian.co.uk/business/2011/nov/11/mortgage-famine-creates-rental-boom


    Quick question.

    If there are nominal rent increase whilst the debt / morgage interest remains the same / decreases, what is the net result for the landlord?
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Quick question.

    If there are nominal rent increase whilst the debt / morgage interest remains the same / decreases, what is the net result for the landlord?

    The tenants still pays his mortgage?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.