Base rates held (what's new?)

Bantex_2

Generali wrote: »

Did rents fall as interest rates fell? I believe the answer is no.

If that is true, why would rents rise with interest rates? If interest rates rose and my LL wanted to put up my rent as a result I'd tell her to f off

Fair point, but where i am buying there is a massive demand for rental propereties beyond supply. Most places go within a day without making it to Rightmove. Inner London boroughs are now shifting tenants to the area.

Thrugelmir

Bantex wrote: »

No plans for a "portfolio" just something which seems to offer sigificantly better returns than cash with a bit of inflation proofing built in.

Where does the inflation proofing come from? A BTL has no correlation to commodity prices, consumer goods for example.

Bantex_2

Yet to see rents in greater London fall much behind general inflation.
May all go horrible wrong but I feel i have a little more control than giving my life savings to a fund manager.

Thrugelmir

Bantex wrote: »

Yet to see rents in greater London fall much behind general inflation.

Given there's no direct correlation. Then it's coincidence. Market demand is usually the key driver at a local level.

MFW_ASAP

Bantex wrote: »

Yet to see rents in greater London fall much behind general inflation.
May all go horrible wrong but I feel i have a little more control than giving my life savings to a fund manager.

If you don't trust fund managers, then don't buy funds. Just buy the individual shares yourself.

Your risk is, as already mentioned by generali, is putting all your money into a single illiquid investment. Hope you don't get a tenant who moves in and refuses to pay rent, they can cost a fortune to remove. You may look more kindly on the fund managers 1% commission in comparison to what a solicitor fleeces you for.....

Let's also not forget the utility checks, letting agency fees, buildings insurance, general maintenance and possible tenant hassles, all things I don't get with holding shares.

lisyloo

Can someone explain what is immoral about this business per se.
I'm sure that there are bad landlords, but I'm a voluntary renter in London at the moment with a good landlord who hasn't charged me top dollar.
This suits my circs at the moment until business plans are more established.
What is immoral about this situation?
I don't want to or can't buy at the moment and I'm being charged a rent I think is fair.

wotsthat

lisyloo wrote: »

Can someone explain what is immoral about this business per se.

Nothing as far as I can see either. People buy services every single day - not sure why some make a distinction for housing.

Generali

wotsthat wrote: »

Nothing as far as I can see either. People buy services every single day - not sure why some make a distinction for housing.

The difference is that housing is an essential item as opposed to luxuries like food, water and heating which are provided by the private sector.

lisyloo

shelter is essential. Owning is not.
Not everyone wants to own all of the time.

kabayiri

lisyloo wrote: »

shelter is essential. Owning is not.
Not everyone wants to own all of the time.

There are other reasons for renting out.

My family rents out some property abroad, mostly Canada.

Not everyone wants to own a place they can only use for a few weeks or months. Renting out shares the costs. It's certainly not a profit centre.