why dont landlords never sell up

Pixie5740

Private rentals fill a gap in the housing market. A gap made all the bigger by RTB. People have to live somewhere and not everyone can afford to buy as soon as they fly the nest so they rent. It's not rocket science.

chucknorris

stu12345 wrote: »

why would any landlord give up an income for life only to sell and run out of capital, thats not sound advice. have i stumbled on to something so simple that noone else sees it.

First of all what makes you think I am so stupid that I will run out of capital? But it does need managing, there isn't any point in being the richest person in the graveyard, we have £?? equity to spend before we die (no children to leave it to). You seem to think that the best plan is to hang on to it and leave it to the Government (never heard of an exit strategy?) rather than plan to spend most of it and enjoy it, really? Why?


Secondly I don't want to be managing tenants when I'm past my mid 70's.


Does that answer your question?

fishpond

theartfullodger wrote: »

Most B2L mortgages end at age 65 or 70. I remortgaged one property 2 years ago to end age 80: It was hard to find a lender.

18 month ago I didn't find that at all, finishes in my 90's.
Really wasn't difficult.

stu12345_2

maybe, but an interest only loan is effectively using the tenants wages to buy the landlord a home, if it was a repayment loan, then the landlord would prob keep the home and use the income after the loan has finished

so why does warren buffet own 61 billion dollars aged 85, and live off the dividends,
surely he could have sold up aged 40 and have a whale of a time with his fewer millions back then

so basically rent of someone young landlord who has just started a 25 yr btl loan, rather than a 70 yr old with loan repaid as there is less chance they are going to sell up.

Pixie5740

stu12345 wrote: »

maybe, but an interest only loan is effectively using the tenants wages to buy the landlord a home, if it was a repayment loan, then the landlord would prob keep the home and use the income after the loan has finished

????

With an interest only mortgage only the interest is paid, not the capital. The clue is in the name.

Tenants exchange money for a roof over their heads. There are a number of reasons why tenants can't, or don't want, to buy.

stu12345_2

chucknorris wrote: »

First of all what makes you think I am so stupid that I will run out of capital? But it does need managing, there isn't any point in being the richest person in the graveyard, we have £?? equity to spend before we die (no children to leave it to). You seem to think that the best plan is to hang on to it and leave it to the Government (never heard of an exit strategy?) rather than plan to spend most of it and enjoy it, really? Why?


Secondly I don't want to be managing tenants when I'm past my mid 70's.


Does that answer your question?

what about your own home chuck, if you own, you will be leaving it to the gov, unless you plan to sell up and rent at a very late ages and make sure ur last penny runs out the day you die.

so why do folk expect thousands of pensioners to get into btl with new pension freedoms, surely they dont want to die the richest pensioners in the graveyard

chucknorris

stu12345 wrote: »

what about your own home chuck, if you own, you will be leaving it to the gov

so why do folk expect thousands of pensioners to get into btl with new pension freedoms, surely they dont want to die the richest pensioners in the graveyard

We could sell it to a company that gives you the right to live in it until you die, but that's very unlikely, its value is a small part of our overall wealth. We obviously don't know when we will die, so leaving something behind is almost inevitable, that isn't important, what is important is that you enjoy your life.


I don't know and TBH I don't care what pensioners do with their newly found pension freedom.

stu12345_2

maybe as individuals we shouldnt be landlords, but as an organisation we should, i read that maybe we will be renting from places from john lewis if they get into renting homes, in future and they wont be selling up for fear of being richest person in graveyard

chucknorris

stu12345 wrote: »

maybe as individuals we shouldnt be landlords, but as an organisation we should, i read that maybe we will be renting from places from john lewis if they get into renting homes, in future and they wont be selling up for fear of being richest person in graveyard

Fear? There isn't any fear involved! Its about planning to enjoy your life.

stu12345_2

chuck do you advise me exersisng my right tobuy then, and hence leaving my asset to the gov or care home or continue renting and having cash in the bank its made me think why folk like richard branson, warren buffettt dont just sell up and have a wicked time

or why folks buy big homes in the country when retired eg escape to the country, only for the gov to take them when they die, maybe they be best renting a big home with their cash until they die until the cash is gone