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Is there money to be made in renting?

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  • Angela_D_3
    Angela_D_3 Posts: 1,071 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 24 January at 5:58PM
    andy444 said:


    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.

    That assumes "someone else" could finance the mortgage and it remains cheaper than rent. It also ignores ongoing maintenance costs.
    How does letting properties reduce the number of available homes?

    At the end of the day you're making money from other people's hard work. I can understand why people do it but it's not the most moral pursuit.
    This is what most employers do. 
    And mortgage lenders.

    And Building Society savers.
    And pensioners benefiting from NI from the next generation 
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 24 January at 5:58PM
    andy444 said:


    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.

    That assumes "someone else" could finance the mortgage and it remains cheaper than rent. It also ignores ongoing maintenance costs.
    How does letting properties reduce the number of available homes?

    At the end of the day you're making money from other people's hard work. I can understand why people do it but it's not the most moral pursuit.
    This is what most employers do. 
    And mortgage lenders.

    And Building Society savers.
    And pensioners benefiting from NI from the next generation 
    Can't see the relevance to profiteering through property but pensioners are benefiting from a lifetime of contributions as younger generations will.

  • Angela_D_3
    Angela_D_3 Posts: 1,071 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 24 January at 5:58PM
    andy444 said:


    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.

    That assumes "someone else" could finance the mortgage and it remains cheaper than rent. It also ignores ongoing maintenance costs.
    How does letting properties reduce the number of available homes?

    At the end of the day you're making money from other people's hard work. I can understand why people do it but it's not the most moral pursuit.
    This is what most employers do. 
    And mortgage lenders.

    And Building Society savers.
    And pensioners benefiting from NI from the next generation 
    Can't see the relevance to profiteering through property but pensioners are benefiting from a lifetime of contributions as younger generations will.

    Not how the maths works Norman,  the maths hasn’t worked for a very long time.  
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    I think there might be some money to be made, but getting it wrong will mean a lot of money is lost, and there is a lot of red tape, tax and  other regulation now that is enforced more than previously. Best bet is to set a decent rent level and hope for a good long term tenant, anything else will just be an uber headache IMO.
  • Getting_greyer
    Getting_greyer Posts: 609 Forumite
    500 Posts Third Anniversary Name Dropper
    edited 24 January at 5:58PM
    Slithery said:
    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.
    What about the people that choose to rent? Not everyone wants to own their own property.
    Exactly. Why is it that buying to let is always so demonised? There are actually people who just want to rent and would love there to be more landlords. Most private/small time landlords leave you alone if you are paying your rent. It’s really a win win situation. Most landlords don’t always increase the rent if they have the same tenant. Whenever I have had a buy to let I only increase rent when I get a new tenant, I never need to ask tenant out. People who buy to let are not all bad neither are they the ones causing all problems. They are also part of the housing solution to an extent. 
    I imagine those stuck in low pay and highish rent are annoyed that they can't accumulate their own capital because most of it is siphoned off to the capital owners.  That said, extraction of wealth is not limited to housing market.  

    Some people are stuck in this situation and must be frustrating.  Some people could do something about it or just complain. 
  • Of those people who prefer to rent, how many would rather rent privately than rent a council house?

    My grandparents lived in the same council house their entire married life and it very much felt like their home. Nowhere I've rented privately has really felt like home. The one I lived in the longest was maybe starting to feel like home but then I was suddenly given 2 months notice to move out.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    edited 24 January at 5:58PM
    Slithery said:
    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.
    What about the people that choose to rent? Not everyone wants to own their own property.
    Exactly. Why is it that buying to let is always so demonised? There are actually people who just want to rent and would love there to be more landlords. Most private/small time landlords leave you alone if you are paying your rent. It’s really a win win situation. Most landlords don’t always increase the rent if they have the same tenant. Whenever I have had a buy to let I only increase rent when I get a new tenant, I never need to ask tenant out. People who buy to let are not all bad neither are they the ones causing all problems. They are also part of the housing solution to an extent. 
    I imagine those stuck in low pay and highish rent are annoyed that they can't accumulate their own capital because most of it is siphoned off to the capital owners.  That said, extraction of wealth is not limited to housing market.  

    Some people are stuck in this situation and must be frustrating.  Some people could do something about it or just complain. 
    They could always get a cheaper rent, imagine being stuck in a bubble priced mortgage for a new-build that you can`t sell due to fire regulations with the threat of large shared repair bills from an offshore company that owns the freehold....absolute nightmare.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 24 January at 5:58PM
    Slithery said:
    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.
    What about the people that choose to rent? Not everyone wants to own their own property.
    Exactly. Why is it that buying to let is always so demonised? There are actually people who just want to rent and would love there to be more landlords. Most private/small time landlords leave you alone if you are paying your rent. It’s really a win win situation. Most landlords don’t always increase the rent if they have the same tenant. Whenever I have had a buy to let I only increase rent when I get a new tenant, I never need to ask tenant out. People who buy to let are not all bad neither are they the ones causing all problems. They are also part of the housing solution to an extent. 
    I imagine those stuck in low pay and highish rent are annoyed that they can't accumulate their own capital because most of it is siphoned off to the capital owners.  That said, extraction of wealth is not limited to housing market.  

    Some people are stuck in this situation and must be frustrating.  Some people could do something about it or just complain. 
    They could always get a cheaper rent, imagine being stuck in a bubble priced mortgage for a new-build that you can`t sell due to fire regulations with the threat of large shared repair bills from an offshore company that owns the freehold....absolute nightmare.

    There are certainly benefits to renting in terms of controlled costs concerning big ticket repairs. You can easily see that those envious of apparently lowish monthly mortgage payments, are not factoring in the true cost of home ownership and the different risks that it involves in many cases.


  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Second Anniversary Name Dropper
    edited 24 January at 5:58PM
    andy444 said:


    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.

    That assumes "someone else" could finance the mortgage and it remains cheaper than rent. It also ignores ongoing maintenance costs.
    How does letting properties reduce the number of available homes?

    At the end of the day you're making money from other people's hard work. I can understand why people do it but it's not the most moral pursuit.
    This is what most employers do. 
    And mortgage lenders.

    And Building Society savers.
    And pensioners benefiting from NI from the next generation 
    Can't see the relevance to profiteering through property but pensioners are benefiting from a lifetime of contributions as younger generations will.

    Younger generations are heading towards a pensions black hole. All the money spent on rent and over priced houses, the only plan being to downsize when the time comes.

    If they can't get on the ladder they are really stuffed.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 24 January at 5:58PM
    andy444 said:


    It's also immoral as someone else could buy your house and pay much less on a mortgage than they will pay you in rent. There is a shortage of housing to live in and letting property makes it worse.

    That assumes "someone else" could finance the mortgage and it remains cheaper than rent. It also ignores ongoing maintenance costs.
    How does letting properties reduce the number of available homes?

    At the end of the day you're making money from other people's hard work. I can understand why people do it but it's not the most moral pursuit.
    This is what most employers do. 
    And mortgage lenders.

    And Building Society savers.
    And pensioners benefiting from NI from the next generation 
    Can't see the relevance to profiteering through property but pensioners are benefiting from a lifetime of contributions as younger generations will.

    Younger generations are heading towards a pensions black hole. All the money spent on rent and over priced houses, the only plan being to downsize when the time comes.

    If they can't get on the ladder they are really stuffed.
    this obsession being on the ladder and the cheaper than rent rhetoric. 

    Not everyone is able to earn enough to buy a house, nor able to save enough for a deposit. Not everyone will have a medium to high paying job 

    Owning a house has significant financial exposure as well. Ongoing Maintenance et.c guess who pays for a new boiler or roof? or up dated fire regulations from cladding? 

    The younger generation I am sure will know, there is no such thing as a free lunch and you have to work at advancing your career and financial self sustainability. Sadly some will want to do degrees which have no bearing on their career, simply it was a hobby, or just mess around at school and didn't get good enough grades to get into Uni and/or vocation training.

    House prices are defined by market forces, ergo capitalism. 

    The young who shun pensions for the now, only have themselves to blame. 

    You don't have to go to Uni to get a high paying job, construction, building trade earn a fair few as contractors. 
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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