What value do landlords add/provide?

HAMISH_MCTAVISH

Crashy_Time wrote: »

Landlords have provided me with very cheap rentals for many years, and done all the repairs. Thanks.

And in return, you have bought them a house.

Thanks.

dinkylink

What about 3-10 years as a category?

Graham_Devon

cells wrote: »

If it did not exist the groups that make use of them would need to

1: find a place to buy
2: arrange a mortgage
3: get a solicitor and pay them ~£1k
4: Pay valuation fees ~£0.5k (seems high)
5: Arrange a mortgage and pay the £2k product fee (not all mortgages have fees)
6: Find the 10-20% deposit (more on this later)
7: Exchange and complete

I've put a couple of notes above.

However, you seems to have missed a trick as you are just stating the costs of buying a home.

You may aswell state "Someone buying a ford Fiesta has to pay Road Tax, Insurance and fill it with fuel".

What you are missing is that you have to do that regardless of the make and model you buy. And it's the same in this instance......you've got comparable costs as above as a renter has to....

1. Find a place to rent
2. Pay the letting agent fees £300
3. Pay the tenancy check (per tenant - variable but around £100 per person)
4. Pay the rent in adavnce (one months rent, say £600)
5. Pay the deposit, on the above rent about £900
6. Complete and move in

Costs are not just associated with buying a house. You need to pay costs for shelter even if renting does exist, which kind of nullifies your list IMHO.

antrobus

Generali wrote: »

The main things they bring are capital and a willingness to take on risk.

Which would be the correct answer.

Graham_Devon wrote: »

...Costs are not just associated with buying a house. You need to pay costs for shelter even if renting does exist, which kind of nullifies your list IMHO.

I don't think anyone would say otherwise.

However it is always going to be cheaper to rent a house rather than buy one.

PasturesNew

antrobus wrote: »

However it is always going to be cheaper to rent a house rather than buy one.

I would disagree ... I watch (too much) Homes Under the Hammer and am surprised by the difference between rents and purchase price. Anticipated returns on capital can vary between 2% and 12-15%.

In my road, say, a house will cost you £210-230k for a 2-bed; to rent one it'll cost £750/month. I'm sure within 5-10 miles I could find a 1-bed that costs £120k to buy yet returns £500-600/month.

Each house, each area, is different.

BobQ

I do not see what the point of this thread is. Landlords provide a service for a profit. Their customers use it or not as they choose. If overpriced the service does not sell.

You may as well ask why people buy/hire cars, boats, pneumatic drills, freezers or combine harvesters.

System

Essentially a landlord is a form of expensive credit mixed with insurance, and only exist because people don't have contracts/don't save a deposit before they move out/ want a more expensive property right now rather than saving/ are short term, they make a prophet which means generally the Tennant wont

I think renting makes more sense with static caravans where ownership is a dubious investment, minor sense with leasehold and no sense with freehold.
BTW, shared ownership= monopoly

PasturesNew

BobQ wrote: »

I do not see what the point of this thread is. Landlords provide a service for a profit. Their customers use it or not as they choose. If overpriced the service does not sell.

You may as well ask why people buy/hire cars, boats, pneumatic drills, freezers or combine harvesters.

Not true. If overpriced you're forced into it anyway if there are no alternatives. For some, the choice is: take this, at this price, or doss on a bench. So you take it, because you have to, not because it's been a 100% choice.

It's nothing like those. NEVER in my life have I ever needed to hire a boat, drill, freezer or combine harvester. I don't NEED any of those. Everybody NEEDS a roof over their head.

System

And the government will cough up almost any housing benefit asked of it, or at least historically that was the case - if it didn't and rents couldn't rise then house prices could stall and negative equity could cause banks to collapse. Also a lot of politicians are landlords

CLAPTON

PasturesNew wrote: »

Not true. If overpriced you're forced into it anyway if there are no alternatives. For some, the choice is: take this, at this price, or doss on a bench. So you take it, because you have to, not because it's been a 100% choice.

It's nothing like those. NEVER in my life have I ever needed to hire a boat, drill, freezer or combine harvester. I don't NEED any of those. Everybody NEEDS a roof over their head.

in general there are alternatives and supply and demand determine price