Rents rising again....

RenovationMan

Percy1983 wrote: »

My business doesn't involve squeezing every last penny out of families based on something they need to feed my own greed.

My business offers a cheap service and an excellent product to which they won't be left homeless if they don't buy.

Ethical business is for me.

Your business offers a cheap service because it has to. It's non-essential and so if it were too expensive then you would not have any customers.

I dare say that if you were making pop videos for viewing on MTV your prices would be a lot more expensive than what you charge mums and dads to tape their kid's birthday parties, even if the working hours were the same.

You'd be pricing your time and effort in line with the price expectations of your client base and their ability to pay. Is it greedy to charge a rich pop star more than you'd charge a poor single mum for the same amount of your time/effort and your expertise?

DELLBOY_2

So i take a chance and buy 3 properties ,if it all goes wrong like a spike in the interest rates (remember the overnight rises ) i cannot put up my rent i have to use my accumalated profit if it really goes wrong and they are empty or not self funding they are repode ..
Surely you work your business expenses over a shorter period of time than 365 days allowing for illness no work etc .
Obviously your household income is sufficient for your needs but what are your provisions for bad health or retirement ,mine are 3 (more if i can) btl properties but it is my gamble no one else will give me a pat on the back and a wadd of cash if it fails .
Do you really think BTL are a easy way to make a nasty profit ?
what do you think the % return is to the property value I do think you would be suprised .
Still everyone has there own choices and good luck to you in your career but please dont think landlords are raking it in or the devil in disguise .

Percy1983

RenovationMan wrote: »

Your business offers a cheap service because it has to. It's non-essential and so if it were too expensive then you would not have any customers.

I dare say that if you were making pop videos for viewing on MTV your prices would be a lot more expensive than what you charge mums and dads to tape their kid's birthday parties, even if the working hours were the same.

You'd be pricing your time and effort in line with the price expectations of your client base and their ability to pay. Is it greedy to charge a rich pop star more than you'd charge a poor single mum for the same amount of your time/effort and your expertise?

Interesting point, I can honestly say I am currently cheaper than I need to be, but I will say thats to blow competition out of the water.

I have been thinking actually about some corporate work I might be getting soon and how much to charge. Here is the plan if it goes ahead, charge a couple of hundred more and then buy a nice camcorder with it and just before christmas announce a customers raffle, as it is every DVD has a unique serial number so I could use that as a surprise.

DELLBOY wrote: »

So i take a chance and buy 3 properties ,if it all goes wrong like a spike in the interest rates (remember the overnight rises ) i cannot put up my rent i have to use my accumalated profit if it really goes wrong and they are empty or not self funding they are repode ..
Surely you work your business expenses over a shorter period of time than 365 days allowing for illness no work etc .
Obviously your household income is sufficient for your needs but what are your provisions for bad health or retirement ,mine are 3 (more if i can) btl properties but it is my gamble no one else will give me a pat on the back and a wadd of cash if it fails .
Do you really think BTL are a easy way to make a nasty profit ?
what do you think the % return is to the property value I do think you would be suprised .
Still everyone has there own choices and good luck to you in your career but please dont think landlords are raking it in or the devil in disguise .

Now I agree there is risks, but it would take a massive interesting spike which lasts a long time to wipe out you entire profit, at worse you end up paying towards the asset you gain at the end so the house isn't 100% free.

I really do believe the reward outweighs the risk by quite a margin which is the problem.

Out of interest I have manufactured 24 dvds tonight, 24 happy children tomorrow!

IveSeenTheLight

Percy1983 wrote: »

I question the ethics/morals of the BTL business

BTL is not unethical or immoral.
BTL did not replace the percentage of overall property that was sold off through the right to buy scheme.

In essence BTL has only partly replaced the coucil house sell off.

Indeed, without BTL filling that gap, there would be even less properties available to rent for those that want that option.

Mix in that statistically it can be shown that the quality of rental properties has improved as BTL has increased, then it points to BTL is 1) Providing more options for tenants and 2) improving the quality of properties for tenants.

Regulation has started.
In Scotland all landlords are required to be registered.

Out of interest, did you respond to my below post?

IveSeenTheLight wrote: »

I have three BTL's, therefore I guess you could describe me as greedy.

On the other hand, I've looked at the data and decided to secure my families future. Therefore I've secured property now as opposed to the price it may cost my children in the future.

I'm not preventing people from buying, I've just secured propertiesfor them now as opposed to them adding to the demand in the future.

Is this greed or is it now good planning?

Out,_Vile_Jelly

I just got a letter saying my rent will not be going up "due to the current market". I live in a nice part of London so that's interesting.

IveSeenTheLight

DELLBOY wrote: »

So i take a chance and buy 3 properties ,if it all goes wrong like a spike in the interest rates (remember the overnight rises ).

To be fair, you have an option to fix those rates and mitigate the risks of interest rate rises.

Of course it's a gamble as tracker / variable mortgages are benefitting at the moment against fixed options.

I'm not expecting overnight BOE rate rises to 15% from the current level of 0.5%

We've had circa three years of extremely low rates.
The signs are this is set to continue for a few more years and will start to rise when the economy is stronger.

for me, that will be the time to fix after capitilising on the low rates for a number of years.

Percy1983

IveSeenTheLight wrote: »

I have three BTL's, therefore I guess you could describe me as greedy.

On the other hand, I've looked at the data and decided to secure my families future. Therefore I've secured property now as opposed to the price it may cost my children in the future.

I'm not preventing people from buying, I've just secured propertiesfor them now as opposed to them adding to the demand in the future.

Is this greed or is it now good planning?

But in securing your families future you are jepodising other families futures.

The problem is every BTL bought does equal one less for sale, every one less for sale equals more demand for remaining stock, more demand for remaining stock pushes prices up, prices going up prices more people out, more people priced out equals more people needing to rent, more people needing to rent pushes rents up, rents going up makes BTL more attractive, BTL being more attractive causes more people to buy for BTL... and so the cycle continues.

Surely you can see the problem and can see why the loop needs to stop, fair enough if you have a vested interest and you don't want it to stop, but surely you can see the damage.

RenovationMan

Percy1983 wrote: »

Interesting point, I can honestly say I am currently cheaper than I need to be, but I will say thats to blow competition out of the water.

Once you have 'blown the competition out of the water', then what is the plan? Will you maintain low prices, regardless, or will you raise them to where you 'need them to be'?

If you raise your rates once you have gotten rid of the competition, are you not using lack of competition to exploit and extort your clients?

Percy1983 wrote: »

I have been thinking actually about some corporate work I might be getting soon and how much to charge. Here is the plan if it goes ahead, charge a couple of hundred more....

So you're saying that even though you'll be using the same equipment and spending the same amount of your time doing video work, you're going to charge a corporation more than you'd charge a family for doing videos?

Is that not greed, within your own definition of the word?

JonnyBravo

RenovationMan wrote: »

Once you have 'blown the competition out of the water', then what is the plan? Will you maintain low prices, regardless, or will you raise them to where you 'need them to be'?

Great point. :T
Sounds to me like he's trying to jeopardise the future of another family.
He's getting by on what he currently earns, has bought a house and anything extra is obviously going to be simple greed which is presumably depriving another family of their income.

Percy1983

RenovationMan wrote: »

Once you have 'blown the competition out of the water', then what is the plan? Will you maintain low prices, regardless, or will you raise them to where you 'need them to be'?



So you're saying that even though you'll be using the same equipment and spending the same amount of your time doing video work, you're going to charge a corporation more than you'd charge a family for doing videos?

Is that not greed, within your own definition of the word?

There is an interesting point here, if you are too cheap corporations can actually see it as a lower quality product.

Anyway, If I charge a family more they either don't have it or little jimmy doesn't get anything for his birthday.

If I charge a corporation more the sharholders get 0.00001% less that year (figure may not be accurate), as mentioned the higher profit can then be given back to the local families through further reductions in price or competitions etc. More Robinhood than greed