Rent to Rent, dubbed the new property get rich scheme

N1AK

Mr._Pricklepants wrote: »

Another one who got 'lucky'?

It amuses that you're sufficiently unable to understand sound business acumen that they can't see the difference between the two examples

This guy is clearly taking risks but I've see no evidence so far that he isn't taking them knowingly. Given that his model is based on renting there is considerably less risk of a total collapse than in a model based on a high leverage property portfolio; not sure why I'm trying to explain that to you though :rotfl:

wotsthat

http://spncjuly2013.eventbrite.co.uk/

Only £20 for a ticket to discover the 'secrets'.

He must be pinching himself with the publicity the Guardian have given him.

HAMISH_MCTAVISH

N1AK wrote: »

Given that his model is based on renting there is considerably less risk of a total collapse than in a model based on a high leverage property portfolio;

Different risks, perhaps.

But I don't think less risk.

What scuppered the Wilsons (temporarily) was a cashflow crisis caused by the recession hitting and resulting in a big increase in unemployment (and hence arrears) from their tenants.

In this model the risk is still there that you could take out long term commercial leases on the properties, and a sudden recession, increasing unemployment, or even changes to housing benefits, could result in big increases in arrears from your tenants.

Leaving you to service the balance for 'head landlord' rent payments, just as you would for mortgage payments.

No less risk.

Just different risk.

Delara

Graham_Devon wrote: »

Who'd have thought you could make money renting to rent!?

Anyway....the only question I would have is how are they converting rooms within a house they don't own?

Surely this also breaks mortgage rules for the landlords renting to the rent-to-rent landlord? if they have mortgages that is?

It just shows how messed up the market is, this just causes distortions and messes everything up.

Flashmanchop

It's far from illegal, but the property owners must take advice, to ensure they are legal.

Its a form of option agreeemnts, for people who can see the possibilities in a property.

Delara

The best thing is for someone to rent out a room or two in their rented flats. It should not only be the landlords that benefit from the boom.

Couch surfing is popular in the cities now, so renters can benefit from the boom as well as the landlords. But renters do not have the high risks that the landords do when interest rates shoot up and the property market collapses again.

chucknorris

Delara wrote: »

The best thing is for someone to rent out a room or two in their rented flats. It should not only be the landlords that benefit from the boom.

Couch surfing is popular in the cities now, so renters can benefit from the boom as well as the landlords. But renters do not have the high risks that the landords do when interest rates shoot up and the property market collapses again.

The base rate isn't going anywhere fast, I can't see the base rate reaching 6% in the next 5 years and we have already had over 4 years of super low rates bringing super high profits. I really can't see another property market crash for about another 10-15 years.

ILW

You can make good money if you have a spare council place or two (especially in London).It is pretty common.

ging84

this guy sounds like a chancer and a bit of a scum bag
i wouldn't want to rent a room from someone like that
if/when it ends badly it'll be his tenants that suffer not him, he'll get to just give up and walk away

padington

It's going to be a big business, I work with a London homless charity and this is exactly the sort of solution that is required to re-house homeless people with complex needs given the ridiculously difficult funding environment. There literally is not really any other financially viable solution.

The charity takes on a set agreed level of responsibilities and gets the houses a bit cheaper than the individual rents without any capital outlay.

Welcome to the future of social housing.

It's another factor that will push the prices up of houses and leave normal families even more squeezed and it certainly won't be ideal but from where I'm standing its definatly got a lot of legs with big institutions throwing their weight behind it, partly in desperation of what else to do.

A house with one door bell will become a thing of the past.