Would this ever happen?

dannyjebb

After speaking with a friend last night who is an estate agent I wondered if anyone thinks there should be a law limiting the number of properties a person/business can own?

He was telling me he has a few people who have bank details on file and any property that comes up for sale that is suitable for renting then they will pay cash for! So how is a FTB supposed to compete with this? If you're a seller and a cash buyer offers the price you're selling for then it's a no Brainer!

If the govt are serious about helping people get on the ladder then surely they need to look at investors just buying up all the affordable housing?

Interested what others think

mije1983

At what figure would you limit it though? 5? 10? 20? And what about large chain businesses who own hundreds of stores? It just wouldn't work to do that.

The government did try and do something about it with the additional stamp duty but if investors have the money and the return is good enough, they will buy them anyway.

dannyjebb

Exactly, an investor buying a house with a 600pcm income for 100k which Is a common figure in my area, even if they are buying for a little extra and therefore paying stamp duty doesn't really matter to them when they are going to earn that back in a matter of months! To a FTB that stamp duty could be a massive amount to them.

I'm not talking about stores, I am talking about private homes. 10 homes is enough for someone to earn enough for a living in a time when 1000s are struggling to get their first house! We are looking to move but looking at new builds so luckily aren't up against these people! But I would be annoyed if every house we looked at was taken as soon as it came on the market without us having a chance

agrinnall

BTL investors are rarely looking to pay top price for any property as their yield is based on the price paid. I simply don't believe that they are all paying the asking price (unless there is a rash of properties coming on at below market prices). This is where you can have an advantage by outbidding them if you think a property is worth the extra cost to you.

glasgowdan

I'm not sure people would agree with their potential to succeed in business being restricted like this.

Maybe first time buyers need to accept they have to save up more before getting a house of their own. We bought well within oir means to get on the ladder

KRB2725

Where do they have their bank details on file? It would be odd to file them with an estate agent as it's not them you would pay anyway.

I'm sure there's buy to let investors that agents consider to be a guaranteed purchaser of certain properties,therefore an agent will call them immediately they have something they think suitable. However, I think it is somewhat of an exaggeration to say they hold their bank details!

dannyjebb

Thinking about it the estate agent holding bank details would be weird, this is what my friend says though.

I'm not sure owning properties should be allowed to be a business if you're affecting other people's chance of buying somewhere to live!

I don't understand people saying that BTL investors won't pay top price..... They are making a handsom amount from renting out if you say 600pcm on a 100k property thats a decent return considering after 10 years you will have nearly earnt back the initial cost and then be able to sell the house at most likely a higher price

gettingtheresometime

When I was a student , back in the 80s, our landlord had so many properties he had his own team of maintenance men & the only way he could work out which properties needed repainting was to colour the front doors one of five colours and each year a particular colour front door was done.

So it's not a new thing.

dc197

In Soviet Russia, government tell me how many properties I buy, da?

mije1983

dannyjebb wrote: »

I'm not talking about stores, I am talking about private homes.

Fair enough. You're post indicated otherwise though.

dannyjebb wrote: »

limiting the number of properties a person/business can own?

As said above, BTL investors are not snapping up every property though. They want to make money so there will be houses that don't add up for them. You are buying a home not a money making machine. If may mean you have to work a bit harder but there are houses out there for FTB. Talk to agents, don't just wait for properties to appear on Rightmove etc as if it's anything like where I live, that extra day or 2 could well mean you miss out.

Good luck in your hunt.

Thrugelmir

dannyjebb wrote: »

They are making a handsom amount from renting out if you say 600pcm on a 100k property thats a decent return considering after 10 years you will have nearly earnt back the initial cost and then be able to sell the house at most likely a higher price

For starters don't over look the impact of tax and when empty property provides a negative return. Then there's the issue of errant tenants and property maintenance. If it was that attractive an investment. Then everyone would be buying up property. Easy to over simplify.