Is there money to be made in renting?

Norman_Castle

[Deleted User] said:

Norman_Castle said:

Angela_D_3 said:

Norman_Castle said:

Crashy_Time said:

Getting_greyer said:

andy444 said:

Norman_Castle said:

[Deleted User] 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.

No they're not. There are countless people who have a lifetime in rented properties. There are also many owner occupiers with limited funds struggling to maintain their homes. Investing in property can work well over a lifetime but it is not the only viable option and can be a burden in ways renting isn't.

Getting_greyer

Crashy_Time said:

Getting_greyer said:

Sistergold said:

Slithery said:

[Deleted User] 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.

My post was about why BTL landlords are demonised.  I suggested they are demonised by those stuck in the position with very little viable option to recude there rent.  This will !!!!!! them off.  It was also those that feel stuck but blaming their LL is the easier option than taking co trip of their lives.  

It must be a nightmare for those stuck in the position you describe but not relevant to the point I made.

funnyvideo

Maintenance costs were my biggest concern when I bought a property but they're nothing when you consider how much more expensive renting is.

Round where I live a 1 bed flat costs around £275k to buy and £1,200 a month to rent. If you're in your early 20s and expect to live another 60 years then renting will cost you £864k if the prices stayed the same. The costs associated with home ownership won't come to anywhere near the £589k difference.

In reality the rent will go up over the years and you're looking at over £1 million on rent in your lifetime.

csgohan4

funnyvideo said:

Maintenance costs were my biggest concern when I bought a property but they're nothing when you consider how much more expensive renting is.

Round where I live a 1 bed flat costs around £275k to buy and £1,200 a month to rent. If you're in your early 20s and expect to live another 60 years then renting will cost you £864k if the prices stayed the same. The costs associated with home ownership won't come to anywhere near the £589k difference.

In reality the rent will go up over the years and you're looking at over £1 million on rent in your lifetime.

Not if you bought a flat with expensive service charges, repairs or worse having to rectify cladding.

You might not have expensive tickets item now, but inevitably boilers, roofer repair/re roof will come into play over the decades to come. Not cheap. Don't forget new bathoom/kitchen renovations, they are not pocket money

[Deleted User]

csgohan4 said:

[Deleted User] said:

Norman_Castle said:

Angela_D_3 said:

Norman_Castle said:

Crashy_Time said:

Getting_greyer said:

andy444 said:

Norman_Castle said:

[Deleted User] 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. 

In other words, some people are condemned to poverty and possibly homelessness in old age.

[Deleted User]

funnyvideo said:

Maintenance costs were my biggest concern when I bought a property but they're nothing when you consider how much more expensive renting is.

Round where I live a 1 bed flat costs around £275k to buy and £1,200 a month to rent. If you're in your early 20s and expect to live another 60 years then renting will cost you £864k if the prices stayed the same. The costs associated with home ownership won't come to anywhere near the £589k difference.

In reality the rent will go up over the years and you're looking at over £1 million on rent in your lifetime.

Then you hit retirement, haven't been able to save much for a pension because it all went on rent, which you can't afford anymore.

SpiderLegs

I think it’s time we made life fair for everybody by giving everyone a free house and paying the same salary regardless of job.

Thrugelmir

funnyvideo said:

 The costs associated with home ownership won't come to anywhere near the £589k difference.

Much will depend on the interest you'll pay over the lifetime of the mortgage. 

funnyvideo

I know maintenance isn't cheap. I've had a couple of expensive jobs that have cost thousands rather than hundreds. Doesn't amount to anywhere near the difference between renting and buying though.

Regarding service charges etc it's true that some flats just aren't worth it with the added extras you pay, but most of the flats I looked at when buying are share of freehold therefore no service charges.

Slithery

funnyvideo said:

Regarding service charges etc it's true that some flats just aren't worth it with the added extras you pay, but most of the flats I looked at when buying are share of freehold therefore no service charges.

Share of freehold flats do still have service charges.