Why do people resent buy-to-letters so much?

michaels

HENRY78 wrote: »

It is universally accepted that BTL landlords are pushing up prices. I use the example of flats because where I live in Hertfordshire the new build flats are ridiculously expensive for what they are, out of reach for their targeted occupants (young single working people and couples) So instead the vast majority are purchased by Landlords who rent a single Bed flat for £800 and a 2 bed flat for £1200. Absolute madness.

A colleague of mine and her boyfriend on below average graduate starting salaries have just bought a 2 bed flat in Hemel.

BTL landlords pay more for their mortgags than the equivalent residential mortgage so if a BTL landlord can afford to buy and rent out for 1200 pcm then a ftb should be able to buy and pay considerably less per month.

Except that the govt has decided to stop OO buying IO whereas there is nothing preventing them from paying more per month on rent.

Plus landlord has almost certainly lived longer and thus had more time to save up capital for a deposit...sadly this is a fact of nature, the longer someone works the more they can save up - is there any way to address this unfairness without confiscating savings which is then a pretty strong disincentive to save?

And no housing shortage? Funny that those 2 bed flats are 200k in Hemel and not the 65k it costs to build them, if that doesn't suggest there is a hosing shortage then I don't know what would?

Crashy_Time

chucknorris wrote: »

That's why I said that all degrees were not equal in value, and then specifically asked you about a quantity surveying degree (the degree course that I teach on).

You don't need a building boom to justify the number of QS graduates, either currently or looking at the period back to 1990 when I graduated.

Ok, so it is a decent degree to have under your belt. Can the graduates afford London property prices though?

chucknorris

michaels wrote: »

And no housing shortage? Funny that those 2 bed flats are 200k in Hemel and not the 65k it costs to build them, if that doesn't suggest there is a hosing shortage then I don't know what would?

You are forgetting that the land value is a significant cost.

michaels

chucknorris wrote: »

You are forgetting that the land value is a significant cost.

Yep - land without planning permission is worth such a lot of money for a flat sized plot....not.

chucknorris

Crashy_Time wrote: »

Ok, so it is a decent degree to have under your belt. Can the graduates afford London property prices though?

That wouldn't tell you anything about the value of doing the degree, the test for that would be comparing their lifetime career earnings with and without the degree.

HENRY78

Know Hemel well.


Loads of newly built flats there that are on the market for anything up to £450k for a two bed flat. Cheapest 1 bed flat for around £180k. Ridiculous.


They have done very well to buy there so young. My brother bough his first house in Boxmoor,Hemel in 2001 for £90,000. large 2 bed house end of terrace house with a lovely garden. Now worth £350k!!!! Wages haven't gone up that much in 14 years sadly. Crazy times.

chucknorris

michaels wrote: »

Yep - land without planning permission is worth such a lot of money for a flat sized plot....not.

I'm not sure what you mean? It has to have planning permission to build flats on it.

Crashy_Time

michaels wrote: »

A colleague of mine and her boyfriend on below average graduate starting salaries have just bought a 2 bed flat in Hemel.

BTL landlords pay more for their mortgags than the equivalent residential mortgage so if a BTL landlord can afford to buy and rent out for 1200 pcm then a ftb should be able to buy and pay considerably less per month.

Except that the govt has decided to stop OO buying IO whereas there is nothing preventing them from paying more per month on rent.

Plus landlord has almost certainly lived longer and thus had more time to save up capital for a deposit...sadly this is a fact of nature, the longer someone works the more they can save up - is there any way to address this unfairness without confiscating savings which is then a pretty strong disincentive to save?

And no housing shortage? Funny that those 2 bed flats are 200k in Hemel and not the 65k it costs to build them, if that doesn't suggest there is a hosing shortage then I don't know what would?[/QUOTE]


Sometimes supermarkets sell big bars of dairy milk chocolate for a pound, other times they chance their arm and make it two quid, or even 2.50, people want to buy it for various reasons but it doesn`t follow that there is a shortage?

michaels

And if the corner shop is selling it for £2.50 you can go next door to Lidl and get one for a quid....whereas with housing there is a clear market, you can see what all the prices are and buy the best valeu one. By all means someone can try and sell their flat for 500k when the neighbours is on sale for 200k but I kind of doubt there would be many buyers.

Crashy_Time

chucknorris wrote: »

That wouldn't tell you anything about the value of doing the degree, the test for that would be comparing their lifetime career earnings with and without the degree.

The problem is that "snapping up" a BTL or three (with debt) has become the substitute for doing more productive things IMO, and as a result people who are earning "good" money can barely get by it seems, in London anyway.