Debate House Prices


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

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Comments

  • Absolutely mumps, my BTL flat is immaculate.
    (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
  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    I don't think many are anywhere near intelligent enough to see that the real investors and money players could be setting theses BTL smallfries up for a big bonus pay day.
    With a BTL in negative equity, Housing benefits slashed, which they will be in the next few budgets the big lending banks will have their eyes on the main prize.
    The equity these small players used in their main homes and residencies.


    I doubt it has even crossed their minds they could end up homeless themselves.

    The risks of this variable and volatile market given the mediocre returns are simply huge.

    Property is seriously over inflated, if it should burst, the BTL investors are going to get seriously burned.
    I do Contracts, all day every day.
  • I don't think many are anywhere near intelligent enough to see that the real investors and money players could be setting theses BTL smallfries up for a big bonus pay day.
    With a BTL in negative equity, Housing benefits slashed, which they will be in the next few budgets the big lending banks will have their eyes on the main prize.
    The equity these small players used in their main homes and residencies.


    I doubt it has even crossed their minds they could end up homeless themselves.

    The risks of this variable and volatile market given the mediocre returns are simply huge.

    Property is seriously over inflated, if it should burst, the BTL investors are going to get seriously burned.

    Only those that have over-committed themselves. I personally would never have put my main home at risk.
    (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
  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    Only those that have over-committed themselves. I personally would never have put my main home at risk.


    Many many have, that is the risk, gambling in a market that is dependent on housing benefits is not a wise investment.
    I do Contracts, all day every day.
  • missbiggles1
    missbiggles1 Posts: 17,481 Forumite
    10,000 Posts Combo Breaker
    I think many private sector tenants feel very vulnerable with so little security or control over rent rises and this creates bad feeling. A degree of rent control and more security of tenure would make for a more balanced relationship between tenant and landlord.
  • Old_Git
    Old_Git Posts: 4,751 Forumite
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Cashback Cashier
    I went to view a property today .It was a 2 bed bungalow and had an offer on it for £10,000 over the asking price .
    Ever person who viewed it (including me ) was a BTL landlord .
    I didnt put an offer in .
    "Do not regret growing older, it's a privilege denied to many"
  • Mrs_pbradley936
    Mrs_pbradley936 Posts: 14,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    This is how and why it used to work (it is my post from an older thread):

    Very low interest rates combined with the introduction of Buy to Let mortgages and Assured Short Hold tenancies changed property from housing into a sound investment.

    So if you have say 10K to invest, rather than putting into the Building Society or bank you might have been advised (quite legitimately I might add) to buy a flat to rent out. Your £10K was the deposit, the rent pays the mortgage and after a few years you have a property paid for by someone else as well as a huge capital gain. Makes me want to cry when I think that in many cases Housing Benefit is buying private landlords their portfolio. All perfectly legal and a cracking investment at the tax payers expense!

    If having bought the first one things go smoothly then people would logically think of buying another one (or another few). If you have your own house and a BTL it will not be long before you have sufficient equity for additional properties. That is how it currently works and if it becomes an unsound investment the BTL landlords will take their profits and invest in something else that pays more.
  • cells
    cells Posts: 5,246 Forumite
    mumps wrote: »
    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.


    I dont care about any of that, I just want to pay close to nothing because most of the time the landlord does nothing...
  • cells
    cells Posts: 5,246 Forumite
    I don't think many are anywhere near intelligent enough to see that the real investors and money players could be setting theses BTL smallfries up for a big bonus pay day.
    With a BTL in negative equity, Housing benefits slashed, which they will be in the next few budgets the big lending banks will have their eyes on the main prize.
    The equity these small players used in their main homes and residencies.


    I doubt it has even crossed their minds they could end up homeless themselves.

    The risks of this variable and volatile market given the mediocre returns are simply huge.

    Property is seriously over inflated, if it should burst, the BTL investors are going to get seriously burned.


    maybe, but likely not

    they could fill the pension with a million for creditor risk free savings

    they could keep busband and wife separate with much lower risk assets held by one than the other


    but mostly, the world isnt out to screw anyone not even landlords especially when their investment is the same as the homes of everyone else so you cant crash one without the other
  • Mrs_pbradley936
    Mrs_pbradley936 Posts: 14,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The government have introduced changes which might make Buy to Let less profitable depending upon your personal circumstances. Such as Stamp Duty changes, no longer being able to claim for the cost of the mortgage etc. If you are older and do not have a mortgage and do not plan to buy or sell any more you might not see any changes.

    It will no longer be possible for people in their 30s and 40s to run their portfolios as people have in the past. You will be taxed on turnover rather than profit.
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