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

CLAPTON

There are some that would prefer that millions died of cold in muddy fields rather than unpleasant evil persons built homes for them and charged rent.

The former is 'fair and moral' the latter is naked exploitation.

Thrugelmir

moneyinmypocket wrote: »

I have a number of friends who are into BTL. They rent the house out for £250 more a month than what mortgage costs - one of them calls his house that he rents the cash cow and sqeels like a banshee when the money goes into his account

HMRC will be on the case soon.

All that back tax, penalties and interest. Yummy!

Boost to the Treasurys coffers.

Generali

BobQ wrote: »

BTL is a risk freely entered into. Why are people calling landlords parasites? Would you call a car dealer a parasite for buying and selling cars? Would you call a storage firm parasitical for letting out its asset? Or a tool hire shop for letting a cement mixer?

As usual it comes down to the idea that profit is the difference between what something costs and what it should cost.

Someone can only be making a profit in a parsitical way on society if they have a monopoly or partial monopoly. Examples are banks and pharmaceutical companies and even they they sometimes choose not to exercise their power (e.g. Big pharma giving away drugs to the very poor).

Housing is a very competitive market in almost all places (the Wilsons not withstanding). If you don't like your landlord get a new one or buy somewhere. Most people that pay their own housing costs can buy if they want.

ruggedtoast

BobQ wrote: »

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?

No thats fine. Why dont you go and invest in manufacturers of land mines, North Korean government bonds, entities that exploit child labour. As long as it makes you 3% profit it must be fine because it makes a profit which is apparently the only thing that matters to you and the point exactly where your moral compass ceases functioning.

Good day.

ILW

CLAPTON wrote: »

There are some that would prefer that millions died of cold in muddy fields rather than unpleasant evil persons built homes for them and charged rent.

The former is 'fair and moral' the latter is naked exploitation.

I think the problem in the UK is that housing is a limited resource and most BTL landlords are not building properties, but rather buying up existing stock. Bit like a limited bunch of people buying up all the UKs water and then selling it on to the highest bidder.

Harry_Boyle

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?

I'm afraid your pension information is out of date. You don't have to buy an annuity and you can leave it to your wife and kids. You put the pension into drawdown and it remains invested with the gains (and some capital) being withdrawn to pay an income.Pensions should form a part of most people's retirement planning, especially those who are higher rate taxpayers and so benefit from higher rate tax relief while investing into the pension and yet pay lower rate tax when the pension is in payment. As with all investments it's prudent to diversify, with ISA savings, NSANDI and BTL being good partners to accompany the pension investment.

marathonic

Generali wrote: »

Someone can only be making a profit in a parsitical way on society if they have a monopoly or partial monopoly. Examples are banks and pharmaceutical companies and even they they sometimes choose not to exercise their power (e.g. Big pharma giving away drugs to the very poor).

I agree entirely. It's not parasitical unless the barriers to entry are out of the reach of the average person. The fact is, the only barrier to entry to buying a house is managing your credit history effectively and making sacrifices now so you can benefit later. Delayed gratification is the name of the game.

A lot of people don't think about a house in the days when saving for a house is easiest. They leave it until they reach an age where they feel they need to move out of the parents home or meet a partner and have children. For the average person, simply postponing saving until these things happen will SIGNIFICANTLY increase the time to save a deposit.

Personally, I still own an old Nokia, don't own a car and earn a salary that is probably about 10% above average for my area. Sure, that extra 10% made it easier to save a deposit but the sacrifice of doing without a car was the primary factor in me being able to purchase a house.

Too many people in my position are of the mindset "If I earn an above average salary, then I am entitled to a car, an annual iPhone upgrade and a house". The world doesn't work that way so these people need to stop complaining and get their priorities straight.

ruggedtoast

marathonic wrote: »

I agree entirely. It's not parasitical unless the barriers to entry are out of the reach of the average person. The fact is, the only barrier to entry to buying a house is managing your credit history effectively and making sacrifices now so you can benefit later. Delayed gratification is the name of the game.

A lot of people don't think about a house in the days when saving for a house is easiest. They leave it until they reach an age where they feel they need to move out of the parents home or meet a partner and have children. For the average person, simply postponing saving until these things happen will SIGNIFICANTLY increase the time to save a deposit.

Personally, I still own an old Nokia, don't own a car and earn a salary that is probably about 10% above average for my area. Sure, that extra 10% made it easier to save a deposit but the sacrifice of doing without a car was the primary factor in me being able to purchase a house.

Too many people in my position are of the mindset "If I earn an above average salary, then I am entitled to a car, an annual iPhone upgrade and a house". The world doesn't work that way so these people need to stop complaining and get their priorities straight.

Yes, they're being shafted so they should just bend over further.

Its been demonstrated ad infinitum that many people have no hope of ever being able to afford to buy a house, regardless of how hard they save, rendering your tedious iPhone argument null.

marathonic

ruggedtoast wrote: »

Yes, they're being shafted so they should just bend over further.

At the end of the day, when I buy a BTL, if I charge a market rent for a clean house and respond to any requests for repairs and maintenance from my tenant in a timely manner, there is nothing that should give me any reason to not sleep well at night.

grizzly1911

ruggedtoast wrote: »

Yes, they're being shafted so they should just bend over further.

Its been demonstrated ad infinitum that many people have no hope of ever being able to afford to buy a house, regardless of how hard they save, rendering your tedious iPhone argument null.

The iphone is merely an example of discretionary spend that isn't necessary. Could just as easily be an extra take away or meal out a month or 2 extra pints or whatever.

I agree that some will never have a hope because they don't have the vision or the hunger for it. If you want something badly enough you will get it.

Things don't just drop into your lap they have to be earned and worked for sometimes for many years.

Yes high rents may be part of the problem but if you want out there are always ways out depends if you want to take the pain to make the gain.