Buy to let set to further worsen renters' lives : The Groaner

marathonic

In my area, a 5-year fixed rate mortgage on a capital repayment basis over 20 years more than covers the monthly mortgage repayment.

Given that the general advice is to spend no more than 30% of your income on housing, it doesn't take a financial whizz-kid to realise that if, over 20 years, you pay off 3 BTL's and your own principal residence mortgage, you could live very comfortably indeed without the standard, 9-5 job.

Turnbull2000

Aye, do it right then you can enjoy someone else (a tenant) working to pay you a wage (rent).

No wonder BTL continues to surge in popularity.

chewmylegoff

ruggedtoast wrote: »

http://www.guardian.co.uk/money/2013/feb/04/buy-to-let-landlords-more-homes?INTCMP=SRCH



When will this end? How far will it go before young renters just snap and refuse to continue shovelling their wages into the corrupt and self serving pockets of the house price plutocrats?

How long will these parasites be allowed to feed like bloody vampires from the necks of those who actually work for a living?

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

Count yourself lucky you've bought your own place. My landlord keeps turning up on my doorstep calling me an "STR muppet" and then tries to put my rent up 10%. Happens every week.

What's more, the place I rent teleports itself randomly around London. Last Tuesday it moved from Clapham Junction to Hounslow and he tried to put the rent up, which I thought was a bit off as Hounslow's even more of a dump.

System

chewmylegoff wrote: »

What's more, the place I rent teleports itself randomly around London. Last Tuesday it moved from Clapham Junction to Hounslow and he tried to put the rent up, which I thought was a bit off as Hounslow's even more of a dump.

You know, whether I believe nollag or not I don't know, but his back story has never changed that I've seen, Ealing in 2009 and Clapham in 2010 or 11, can't remember.

Hounslow is brit's territory where nollag likes to point out the rises, not that he owns there.

I could be totally wrong and am happy to be shown otherwise.

ruggedtoast

Conrad wrote: »

I'd be better with a pension that I can't leave to my kids and being at the behest of the annuities market when I retire would I?:rotfl:

Yield on entry level flats round here is now 8%. I'm planning buying more. I'm currently buying one with a 10.66% gross yield. It's a studio, costs and maintenance are minimal.

Everytime I buy one I effectively replace one months earned income with the additional annual rent profit.

If I don't take care of myself, no one else will. What should I do?

You should hang your head in shame.

ruggedtoast

BobQ wrote: »

Buying a house is a risk, its a choice you make, you could choose to buy any on the market, or to rent any on the market.

The issue is not cement mixers but assets you can choose to buy or hire. You can buy a cement mixer for £500 or you can hire it for £20 a day. Its your choice. Same argument for a car.

All I am saying is why "expose landlords" when all they have done is take a risk to buy something that others want to rent in a market regulated by the Government.

Yes, why worry about doing the right thing as long as the government say its ok.

moneyinmypocket

BTL is a great business model for savvy men and women, someone else is paying your mortgage and you get to keep the house at the end of it - seriously repeat that back to yourself, I just did and I wet myself.

marathonic

What I'd love to see, although such information isn't available, is statistics on how many people in the, for example, 30-35 year old bracket fall into each of the following categories:

1. Homeowner through gift/inheritence;
2. Homeowner through personal sacrifice;
3. Non-Homeowner through splurging on gadgets/entertainment
4. Non-Homeowner through genuinely living somewhere unaffordable like London
5. Etc

I'd imagine that the vast majority of people in the UK fall into the second and third categories above.

At the end of the day, if it's cheaper to buy than rent in a lot of places, then by sacrificing early, you can buy and reduce your housing costs as soon as possible. In doing this, you increase your ability to save and, by sacrificing a little longer, could, if you desired, end up with a BTL.

Whilst it continues to remain cheaper for a mortgage when compared to rent, BTL'ers will find it easier and easier to save for the deposit for each purchase as they are banking the difference in costs for more and more properties as they build their portfolio.

BobQ

ruggedtoast wrote: »

Yes, why worry about doing the right thing as long as the government say its ok.

And your point is? That doing the right thing is to keep money in a bank and what? In the short term let house prices drop so that you can afford to buy one presumably. Rely on the building industry to continue replenishing the housing stock when its less profitable to do so? Then what?

You still ignore my point. What is wrong with someone buying an asset and gaining an income from lending it to another. The alternative is to save and allow others like you to borrow the money, with the bank taking their cut. What is the difference?

marathonic

BobQ wrote: »

That doing the right thing is to keep money in a bank and what?

The right thing to do is keep your money in the bank until house prices come down to a level where everyone can afford them - but please, leave it in the bank for at least 10 years because we all need our iPhones, iPads and nights out in town which, obviously, take priority over a house!!!!!