First Time 'Accidental' Landlord

Crashy_Time

Cakeguts wrote: »

I am a landlord and we let properties in the Greater Manchester area and I would not consider buying anything costing as little as £50k because the area would be so bad that no one would want to live there. You would never get any decent tenants they would all be the ones who couldn't live anywhere else because they had been evicted from all the decent areas so you could expect to have the flat vacant for a lot of the time and when not vacant being wrecked by the tenant.



To get good tenants who look after your property and who stay there (everytime a property is vacant you lose money) you have to pay a lot more for your property than £50k. I would guess that a £50k flat would be an ex local authority one in a really bad area?

But people always seem to be living there though? Not everyone renting in a "bad" area is going to trash your flat, but the OP`s idea is not very sensible or workable IMO, the last thing they want when caring for a relative is the stress of voids a (maybe) trashed flat, rising BTL taxes and repairs?

Crashy_Time

I would imagine that BTL tax allowances and HB will be up for review in the coming budget, now that Labour are dictating the pace on the housing mess?

BlackBird75

Crashy_Time wrote: »

I would imagine that BTL tax allowances and HB will be up for review in the coming budget, now that Labour are dictating the pace on the housing mess?

I think BTL is going to continue to attract attention from the govt whichever party is in power.

The Tories didn't even give that much warning of Section 24 tax changes.

BlackBird75

Crashy_Time wrote: »

But people always seem to be living there though? Not everyone renting in a "bad" area is going to trash your flat, but the OP`s idea is not very sensible or workable IMO, the last thing they want when caring for a relative is the stress of voids a (maybe) trashed flat, rising BTL taxes and repairs?

I agree.
Cakeguts seems to have quite a prejudiced view.
I'm not a landlord, but I know a few. Some of their best tenants are the poorest and living in "rough" areas.
These areas may seem frightening to a molly coddled middle class landlord, who has rarely left the leafy suburbs. But in fact, if the tenant is part of an established community, things can work out fine.
But I agree. The OP appears to be the type of naive amateur landlord who often ends up in trouble...

Crashy_Time

BlackBird75 wrote: »

I think BTL is going to continue to attract attention from the govt whichever party is in power.

The Tories didn't even give that much warning of Section 24 tax changes.

Yep, there is a big shift in voting power now to people who have been priced out completely by the big scam that got people to believe that an average pile of bricks was worth decades worth of debt to live in, things are definitely changing on the housing front.

BlackBird75

Crashy_Time wrote: »

Yep, there is a big shift in voting power now to people who have been priced out completely by the big scam that got people to believe that an average pile of bricks was worth decades worth of debt to live in, things are definitely changing on the housing front.

If I was a residential landlord, my fear would be rent control and increased tenancy rights.
I wouldn't be surprised if this had an effect on the mortgage lenders policies.
If Labour win, even extending RTB to the private sector wouldn't be that unbelievable. Certainly popular and cost free to the government.

It's interesting that up until now, pension funds etc have steered clear of residential letting investment and focused on commercial. I've read that the fund managers are nervous about the political risks involved (i.e. rent control, new private sector RTB etc).

Teamocil

You clearly wouldn't be an accidental landlord at all.

Crashy_Time

BlackBird75 wrote: »

If I was a residential landlord, my fear would be rent control and increased tenancy rights.
I wouldn't be surprised if this had an effect on the mortgage lenders policies.
If Labour win, even extending RTB to the private sector wouldn't be that unbelievable. Certainly popular and cost free to the government.

It's interesting that up until now, pension funds etc have steered clear of residential letting investment and focused on commercial. I've read that the fund managers are nervous about the political risks involved (i.e. rent control, new private sector RTB etc).

That would be something to behold, maybe a step too far even for Corbyn though IMO.

BlackBird75

Crashy_Time wrote: »

That would be something to behold, maybe a step too far even for Corbyn though IMO.

The Tories did it for Housing Associations.

Leaseholders have long had the RTB their freehold. Just because the freeholder is a private individual or company, doesn't mean they can refuse to sell.

It would be a bold step though, I agree.

Speaking to people who recall the rental market in the 1960s, 1970s etc. Although there was no official RTB for private tenants, the strong tenancy rights meant that many landlords would usually sell to their tenants at a reduced price.

buglawton

MystArch89 wrote: »

Someone else might correct me but if not mistaken the help to buy ISA would not be valid as u have a BTL mortgage, thus essentially u already have a property and it is not your first one?

Correct, and additionaly you'd have to pay the extra 3% 2nd property stamp duty. The whole idea is a non starter.