Rents rising again....

Percy1983

chucky wrote: »

Exactly, just like a rental property. The landlord isn't taking business away, he's offering a service which renters choose to take or not at market rates.

but in buying a btl you are causing the demand for your 'business' essentially backing your tenants into a corner. Its a shame you really can't see that.

The_J

Percy1983 wrote: »

but in buying a btl you are causing the demand for your 'business' essentially backing your tenants into a corner. Its a shame you really can't see that.

How? Someone else can just build another house and rent it out for less?

RenovationMan

Percy1983 wrote: »

but in buying a btl you are causing the demand for your 'business' essentially backing your tenants into a corner. Its a shame you really can't see that.

Plenty of FTB style houses up for sale near me, some of them have been for sale for a good while. Perhaps BTL isn't undermining FTBers chances of buying a house, it's just undermining FTBers chances of buying a house at a bargain price from a desperate seller?

Though to be fair, most FTBers just crack on and buy their home once they have the necessary deposit and finances in place. Only on here and other HPC websites do you have FTBers holding out for years and years for a crash and moaning about the 'props' preventing one.

Percy1983

The_J wrote: »

How? Someone else can just build another house and rent it out for less?

If only this was true, I wills ay building more houses would cure the problem.

RenovationMan wrote: »

Plenty of FTB style houses up for sale near me, some of them have been for sale for a good while. Perhaps BTL isn't undermining FTBers chances of buying a house, it's just undermining FTBers chances of buying a house at a bargain price from a desperate seller?

Though to be fair, most FTBers just crack on and buy their home once they have the necessary deposit and finances in place. Only on here and other HPC websites do you have FTBers holding out for years and years for a crash and moaning about the 'props' preventing one.

To quote one of the bulls, house prices are estimated as being 7% higher due to BTL, that is enough of a margin to cause many to not be able to buy who would have been able to.

I do agree its pointless waiting for the props to be pulled, yes there is props in place but life is too short to wait.

Now I really do ask this as a serious question, how many of you landlords on here would still be in the 'business' if you only broke even or made a slight loss every month? I ask as I would find it perfectly acceptable as I would still be getting a free house after 20-25 years.

RenovationMan

Percy1983 wrote: »

Now I really do ask this as a serious question, how many of you landlords on here would still be in the 'business' if you only broke even or made a slight loss every month? I ask as I would find it perfectly acceptable as I would still be getting a free house after 20-25 years.

I don't understand your point here. Do you have a BTL property? I thought you just had a home and as such how could you 'break even or make a loss' on the rental? Unless of course you plan to charge your wife and kids rent?

Percy1983

RenovationMan wrote: »

I don't understand your point here. Do you have a BTL property? I thought you just had a home and as such how could you 'break even or make a loss' on the rental? Unless of course you plan to charge your wife and kids rent?

I was asking a question not making a point, yes I only have one house its called home.

I was thinking more along the lines of rent caps, which may mean some landlords would actually have to contribute towards they asset they get at the end, would it still be acceptable or would you move your money elsewhere?

I am interested in what point BTL would no longer be attractive.

The_J

Why do you think the landlord would end up with a free house after 25 years?

A £250,000 mortgage at a low arbitrary rate of 5% would cost £1500 a month to pay off the mortgage in 25 years. There's no way rent on a property of that value would be £1500. More like £1000 which wouldn't pay the interest.

Percy1983

The_J wrote: »

Why do you think the landlord would end up with a free house after 25 years?

A £250,000 mortgage at a low arbitrary rate of 5% would cost £1500 a month to pay off the mortgage in 25 years. There's no way rent on a property of that value would be £1500. More like £1000 which wouldn't pay the interest.

Yes I suppose there is examples where it may need to go for longer etc.

I know in my case I could get more rent for my house than I am paying on a 25 year mortgage.

The question stills stands would a monthly loss be acceptable as the asset will eventually be yours.

The_J

I can't imagine there is much in that if it is true (you are probably discounting the deposit you put in, you cannot do that). It's worth bearing in mind that mortgage rates are very low at the moment, uncharacteristically so. You think they will stay like this for 25 years? Unlikely.

ilovecheese

Our LL tried to increase our rent from £770 to £810, she eventually agreed £795

We viewed a house on Saturday, and we have taken it.

Current house - 1 double bedroom, 1 small room not big enough for a single bed - cesspool and oil heating.

New house - 2 double bedrooms, 1 single, new doors, windows, kitchen, bathroom, re-decorated throughout.

To cover bills for current house £1230 per month - cover bills for new house £1300.

Plus I can walk to work from new house!

We would have stayed for many years in current house, but the rent increase made us look at what else we could get for our money.

We have been in current property for a year - we re-decorated, sorted out the gardens, and done simple maintenance and repair, we have paid £10,100 in rent and our landlord has paid out £258.00 for a boiler repair, she has had no other costs from us.

She is beeing greedy!! And I hope her new tenants cause her nothing but a huge headache!!