Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Buy-to-let Landlords - filling a need or evil capitalists?

1356716

Comments

  • Mistermeaner
    Mistermeaner Posts: 2,989 Forumite
    Tenth Anniversary 1,000 Posts
    Wait until Mortgage interest is 15%, it will be again and see if its a good investment then.

    Yes it would be prudent to reevaluate your investments should key aspects of their fundamentals change
    Left is never right but I always am.
  • BobQ
    BobQ Posts: 11,181 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Wait until Mortgage interest is 15%, it will be again and see if its a good investment then.

    Would not bother those BTL owners who really do own the property. But I agree it would affect those that have large mortgages.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • cells
    cells Posts: 5,246 Forumite
    Some renters don't like landlords because rent is perhaps the biggest single cost they have and they don't see why they should pay £500-5000 per month (depending on location and property) when all the landlord does is change a lightbulb and paint a wall once every other year.
  • cells wrote: »
    Some renters don't like landlords because rent is perhaps the biggest single cost they have and they don't see why they should pay £500-5000 per month (depending on location and property) when all the landlord does is change a lightbulb and paint a wall once every other year.

    Thanks for your comments. Who would they prefer to pay the rent to?
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • cells
    cells Posts: 5,246 Forumite
    Thanks for your comments. Who would they prefer to pay the rent to?

    They would prefer that the rent be a fair sum for the changing of one bulb and painting of one wall. So maybe £1000 per year rather than £1000 per month
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 9 April 2016 pm30 5:56PM
    Anyway....isn't changing a light bulb the tenant's responsibility? :)

    So you are saying the rents are too high. is that it? And that it should be more like £20a week instead of £200?

    (My flat rents at £550 pcm).
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • cells
    cells Posts: 5,246 Forumite
    Anyway....isn't changing a light bulb the tenant's responsibility? :)

    So you are saying the rents are too high. is that it? And that it should be more like £20a week instead of £200?

    (My flat rents at £550 pcm).


    I don't think rents are too high I think thy are good value especially in London.

    I think tenants feel rents are too high because they don't appreciate what they are paying for isn't the light bulb change or the repainting of an odd wall every few years. They are paying for the huge capital tied up in the building.
  • Absolutely correct. So maybe they would prefer that the money was tied up in an offshore account in the Virgin Islands and not provide anyone with a home. :)

    Ah! They probably would prefer that the landlord did not have the capital at all!
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • cells
    cells Posts: 5,246 Forumite
    I think the idea is that if landlords sold up and put the capital into something else like the stock market then they would be able to buy the home for pennies on the pound. The problem with that fantasy is that if it happened if the value of homes plummeted then new builds would crash to zero. With the population growing and demographic dictating more need for the existing population that would result on true disaster.

    Some people and some renters would do very well in that fantasy buying up the homes for cheap. However a few million would literally have nowhere to love but under Bridges. That would be a disaster and either the government would have to reverse the fantasy or the government itslef would have to go out and build council homes for millions.

    So what started out as a fatacy of millions of renters becoming owners turned into the nightmare of millions of private renters bow forced into cheap quickly built council estates on the edge of town.
  • mumps
    mumps Posts: 6,285 Forumite
    Home Insurance Hacker!
    cells wrote: »
    They would prefer that the rent be a fair sum for the changing of one bulb and painting of one wall. So maybe £1000 per year rather than £1000 per month

    That isn't very realistic, if I have 150,000 invested in a property I would expect to see some return on the investment, I would if it was invested in savings bonds or something. Then I have insurance to pay, just like they would if they owned the property, I have to have gas and electric certificates so that all has to be paid for. Any maintenance that needs to be done which might be alot more than a bulb being changed and a wall painted. Last year I spent about £10k on my houses installing a new kitchen in one, changing some old radiators, upgrading electrics to new standards as well as some decorating. Couldn't have done it on £1k for the year. Oh and of course the tax man wants his 20% as well so you £1k would actually turn into £800.

    Thinking about it my BTL houses have better fire and carbon monoxide detectors than my house, mine are just battery jobs there's are hardwired with repeaters upstairs, and one has a newer kitchen than I do. I think you will find that not all landlords are robbing people.
    Sell £1500

    2831.00/£1500
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.2K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.