Why Become a Landlord?

Cotta

dinkylink wrote: »

But in reality it won't play out like that for a lot of people.

There are people who would never be able to buy their own place regardless. In fact I would imagine this demographic makes up a substantial % of the private sector. They will be the ones who will be most affected by the various changes that have been bought in over the past few years and which is causing landlords to sell up.

As supply is reduced rental prices generally will rise more sharply. So it's the most vulnerable who will actually be worse of through the introduction of these various policies, the same policies that are supposed to be helping them...

So what's the solution and is it likely to happen?

onwards&upwards

dinkylink wrote: »

But in reality it won't play out like that for a lot of people.

There are people who would never be able to buy their own place regardless. In fact I would imagine this demographic makes up a substantial % of the private sector. They will be the ones who will be most affected by the various changes that have been bought in over the past few years and which is causing landlords to sell up.

As supply is reduced rental prices generally will rise more sharply. So it's the most vulnerable who will actually be worse of through the introduction of these various policies, the same policies that are supposed to be helping them...

Rent controls?

dinkylink

Cotta wrote: »

So what's the solution and is it likely to happen?

Go back in time 35 years and stop right to buy before it happens. Unless someone invents a time machine, pretty unlikely I'd say!

Or vastly increase the stock of social housing by undertaking a huge building programme over the next 35 years instead. That's probably even less likely to happen...

dinkylink

onwards&upwards wrote: »

Rent controls?

Trying to influence the market by rent control has shown to be counter-intuitive in the past. As per my other reply to Cotta, it's the stock of social housing that needs to be addressed.

tom9980

dinkylink wrote: »

Go back in time 35 years and stop right to buy before it happens. Unless someone invents a time machine, pretty unlikely I'd say!

Or vastly increase the stock of social housing by undertaking a huge building programme over the next 35 years instead. That's probably even less likely to happen...

I would suggest the discounts were too large and not using the money to build replacements were the short sighted part of the policy. Also allowing rents of social housing to drift too far behind private rates another issue that should have been sorted out 20 odd years ago.

markin

Comms69 wrote: »

The mortgage is an investment. It is paying off equity in the property, so it's not quite that simple; but broadly speaking yes that is correct.

Don't a lot of BTL use a interest only mortgage, pocket the rest and hope to make it big when they sell it?

Crashy_Time

markin wrote: »

Don't a lot of BTL use a interest only mortgage, pocket the rest and hope to make it big when they sell it?

They used to.

AdrianC

markin wrote: »

Don't a lot of BTL use a interest only mortgage, pocket the rest and hope to make it big when they sell it?

Probably.

Does that make it a good idea?