Increasing the rent - tenants angry.

marathonic

sabretoothtigger wrote: »

Alot of people are not living near a 65k house or flat even, thats your real problem.

Whilst this is true, people on the market for a £65k house, in general, don't have the same ties as people on the market for a £300,000 house.

The latter will usually be in a high paid job and jobs in that profession are probably confined to within particular regions where the house prices are high anyway.

Someone on the market for a £65k house is in a lower paid job and such jobs should be available in a wider geographic area and, therefore, the potential buyer of the property could consider moving.

sabretoothtigger wrote: »

rides a bike instead of spending money on transport could do it

This is me I'm on an above average salary for my region but cannot comprehend why someone would want to spend, for example, £350 per month on petrol/maintenance/depreciation/insurance/tax.

I have no intention or desire to get a car. I'd much rather move to a more desirable area or fancier house and pay that extra £350 per month towards a higher mortgage.

Sampong

marathonic wrote: »

I would say yes, and at a lower risk.

In the absence of capital growth and in a flat market, income reigns king.

Buying your first BTL will be as difficult as it's always been as you still have to save that initial deposit.

When you have your first, you start working on the second. Instead of equity release through capital appreciation, you save just like you did for the first but with an additional, for example, £300 per month income.

Then, when you have the second, you save in the same way but with a salary and £600 per month rental income.

Each one should get easier and it's a more sustainable model than building a portfolio through equity release.

When capital appreciation does return, you'd hopefully have a lot of properties bought towards the bottom of the market.

That is a very good point and well put.

Conrad wrote: »

I do and I'm putting my money where my mouth is.

Thing is I recall naysayers telling be in the mid nineties the time to have got into B2L was the 1980's.
Tis human nature to always say yesterday was better than tomorrow, be they discussing B2L, films, music or freindly local bobbies clipping lads round tut ear.

As a mortgage advisor do you see many people teaming up into a partnership, pooling their resources to raise deposits faster and thus being able to build their portfolios quicker?

armour

chewmylegoff wrote: »

Good luck getting a 4x mortgage on 14k, I'm sure saving up £6,500 on that sort of salary will be child's play too!

Twenty odd years ago on a (good for the time) salary of 16k, I saved a (10%) deposit of 7k in two years. I lived in a shared house and economised.
I'm sure it is perfectly possible today.

marathonic

armour wrote: »

Twenty odd years ago on a (good for the time) salary of 16k, I saved a (10%) deposit of 7k in two years. I lived in a shared house and economised.
I'm sure it is perfectly possible today.

I'm 30 years old so wasn't in any way, shape or form interested in the property market 20 years ago.

Regardless, I'm not stupid enough to think that people 2, 3, 4 or even 5 decades ago had an easy time getting onto the ladder. Why do the youth of today think that it should require no effort?

sabretoothtigger

My sisters first house was 30k. My old landlord bought an ancient run down coalminers house for 10k and did it up herself, wont find many of those now

John_Pierpoint

Own_My_Own wrote: »

What has the landlord being Lithuanian got to do with anything ?

Do you know any Lithuanians ? I don't, but perhaps unfairly, I get an image of someone lacking in empathy with their tenants.

J.K. Galbraith has some interesting insights into the internal machinations of large corporations deciding to increase prices.
Basically they are looking for an excuse and someone else to blame for what is a perfectly justifiable action. As most manager are incentivised to sales not profits, they are scared of increasing prices. As a customer, you might be able to see it coming, and stock up.

With products such as mortgages (renting money) and property, these are long term transactions, where the customer is initially keen to make the purchase but comes to resent what they see as ongoing exploitation. It is difficult to pretend that the product has been enhanced and thus is worth the higher price.

This is the time when good personal relations with the tenants help and where some little kindness might help to cushion the hit. Expectation is a much more powerful emotion than gratitude.

marathonic

sabretoothtigger wrote: »

My sisters first house was 30k. My old landlord bought an ancient run down coalminers house for 10k and did it up herself, wont find many of those now

There's plenty of run down houses in my area for 25-30k. Also, 30k was probably worth alot more then than it is now.

Anyway, my point isn't the price - ask yourself "was it easy for your sister to buy that house or did she have to make sacrafices in her lifestyle?".

Of course she did. A lot of the youth today seem to think that people 30 or 40 years ago just got their first job and, that week, headed to pick up the keys of their first house.

saverbuyer

marathonic wrote: »

There's plenty of run down houses in my area for 25-30k. Also, 30k was probably worth alot more then than it is now.

Anyway, my point isn't the price - ask yourself "was it easy for your sister to buy that house or did she have to make sacrafices in her lifestyle?".

Of course she did. A lot of the youth today seem to think that people 30 or 40 years ago just got their first job and, that week, headed to pick up the keys of their first house.

The difference being, people 30 years ago bought the house with one salary and probably 2 times earnings. The deposit wouldn't have been such an issue.

I'd say you'll be seeing a lot more of those 25-30k houses in Derry in the months and years to come, it’s likely the region is is a state of permanent decline. After all it has the most unemployed people in the N.I., a large public sector, and staggering levels of social deprivation. Oh and it's in the middle of nowhere with no motorway access and the only viable airport subsidised by the ratepayer.

marathonic

saverbuyer wrote: »

The difference being, people 30 years ago bought the house with one salary and probably 2 times earnings. The deposit wouldn't have been such an issue.

I'd say you'll be seeing a lot more of those 25-30k houses in Derry in the months and years to come, it’s likely the region is is a state of permanent decline. After all it has the most unemployed people in the N.I., a large public sector, and staggering levels of social deprivation. Oh and it's in the middle of nowhere with no motorway access and the only viable airport subsidised by the ratepayer.

Well, obviously you're a bear and I'm a bull and in a few years, we'll know who was right.

I'd have to have been extremely lucky to have timed the bottom exactly and I don't think I have done so. However, I do think that prices, on average, will be higher in 5 years time - so I don't care what they are next year.

The Northern Ireland Property Price Index is out on Wednesday and runs up until December 2012 (when I bought my house).

Therefore, I can use this as a baseline for judging whether or not my timing was good.

Conrad

Sampong wrote: »

As a mortgage advisor do you see many people teaming up into a partnership, pooling their resources to raise deposits faster and thus being able to build their portfolios quicker?

The Asian (by which I mean of broadly Indian sub - continent ethnicity) community I have found very much go in for this.