I don’t know if my flat is a good investment anymore- mortgage deal ending

Sebo027

If I have £30k in cash where do I get the best return on my investment, over a particular period of time. For me that period of time should always be long term (15+ years). Trying to understand that question for property, I would consider:

• Cash flow - mortgage vs rental income.
• Property value - equity you stand to gain by renting long term.
• Asset appreciation/depreciation.
• Management/maintenance costs. 

Work out all that out and see what the number looks like. 

Sarah1Mitty2

_Penny_Dreadful said:

Sebo027 said:

• I'm not familiar with the reform bill in 2025, but, are there grants available to insulate homes? 

It’s the Renters’ Reform Bill which Shelter have been campaigning for although it’s not a done deal. It seeks, amongst other things, to abolish Section 21 notices, allow tenants to have pets and require rental properties to meet at least an EPC C. Under current proposals landlords are expected to spend up to £10,000 trying to get the property to a C. If after spending £10,000 the property still doesn’t achieve a C the landlord can apply for an exemption. I haven’t heard of any grants being available for landlords. 

I suspect that as the majority of landlords are 55+ selling up to fund retirement is being accelerated due to the possibility of this bill becoming a reality. At least that’s what the tea leaves told me today. 

https://www.gov.uk/government/news/new-deal-for-private-renters-published-today

Can`t see much wrong there really, why would that panic someone into selling up?

mi-key

There are a lot less buyers around now because monthly mortgage debt costs have risen quite a lot, and if we enter a recession there may be less tenants to choose from as younger people sit it out back home at parents, don`t scare the tenant away with trying to hike the rent too much. No one can predict interest rates but if you go for the tracker and rates have to keep rising you could end up in a real mess, a better mindset might be to fix and just accept that present borrowing costs are still very low by historical standards.

Mortgage rates have DROPPED and that is AFTER the BoE interest rate rise. They are now under 4% if you hunt around.  Seems like the lenders are fairly confident

mi-key

newsgroupmonkey_ said:

Schwarzwald said:

While there is obv correlation and causality between interest rates and property prices, it's also not as simple as Sarah1Mitty2 wants to make it look .... not sure what her agenda is with every fear mongering post ....

A bit of history for you. Was previously known as "crashy time" and banned I believe. Has been back since under a couple of other user names.

Sold their house in (IIRC) the mid 2000s predicting a house price crash (They may or may not be involved in the HPC site too).

Moved into rented accomodation awaiting said crash which never really happened (although clearly there was a dive in 2008 which quickly resolved itself). Never been able to get out since, so sit here all day trolling the forum telling people that their house isn't worth what they think it is, bringing doom and gloom.

Ah that explains a lot ! I bet they are loads of fun at dinner parties ( if they ever get invited to any... ) 

_Penny_Dreadful

Sarah1Mitty2 said:

_Penny_Dreadful said:

Sebo027 said:

• I'm not familiar with the reform bill in 2025, but, are there grants available to insulate homes? 

It’s the Renters’ Reform Bill which Shelter have been campaigning for although it’s not a done deal. It seeks, amongst other things, to abolish Section 21 notices, allow tenants to have pets and require rental properties to meet at least an EPC C. Under current proposals landlords are expected to spend up to £10,000 trying to get the property to a C. If after spending £10,000 the property still doesn’t achieve a C the landlord can apply for an exemption. I haven’t heard of any grants being available for landlords. 

I suspect that as the majority of landlords are 55+ selling up to fund retirement is being accelerated due to the possibility of this bill becoming a reality. At least that’s what the tea leaves told me today. 

https://www.gov.uk/government/news/new-deal-for-private-renters-published-today

Can`t see much wrong there really, why would that panic someone into selling up?

You wouldn’t and I never said anything about panic selling. 

mi-key

_Penny_Dreadful said:

Sarah1Mitty2 said:

_Penny_Dreadful said:

Sebo027 said:

• I'm not familiar with the reform bill in 2025, but, are there grants available to insulate homes? 

It’s the Renters’ Reform Bill which Shelter have been campaigning for although it’s not a done deal. It seeks, amongst other things, to abolish Section 21 notices, allow tenants to have pets and require rental properties to meet at least an EPC C. Under current proposals landlords are expected to spend up to £10,000 trying to get the property to a C. If after spending £10,000 the property still doesn’t achieve a C the landlord can apply for an exemption. I haven’t heard of any grants being available for landlords. 

I suspect that as the majority of landlords are 55+ selling up to fund retirement is being accelerated due to the possibility of this bill becoming a reality. At least that’s what the tea leaves told me today. 

https://www.gov.uk/government/news/new-deal-for-private-renters-published-today

Can`t see much wrong there really, why would that panic someone into selling up?

You wouldn’t and I never said anything about panic selling. 

Crashy will worry when the landlord sells their rented bedsit and they cant afford to rent anywhere else. Well at least until house prices drop 50% and they can afford to buy somewhere...

Gycraig

I was looking at renting my house out to buy a new one. 

Like yourself I would have made a nice profit each month out of it while property went up in value. 

With these interest rates I would barely break even after expenses taxes not including void periods, a lot of landlords are selling up because these house prices + interest rates + rent rates aren’t an attractive prospect anymore. 

Personally I would just sell it and move on with your life, barely breaking even then getting a tenant who doesn’t pay would be heart breaking 

[Deleted User]

Sebo027 said:

If I have £30k in cash where do I get the best return on my investment, over a particular period of time. For me that period of time should always be long term (15+ years). Trying to understand that question for property, I would consider:

• Cash flow - mortgage vs rental income.
• Property value - equity you stand to gain by renting long term.
• Asset appreciation/depreciation.
• Management/maintenance costs. 

Work out all that out and see what the number looks like. 

Property might give you the best return, but only at the expense of other people's misery as they are unable to afford a home to live in.

There are plenty of other immoral things you can invest in, with high rates of return.

GDB2222

[Deleted User] said:

Sebo027 said:

If I have £30k in cash where do I get the best return on my investment, over a particular period of time. For me that period of time should always be long term (15+ years). Trying to understand that question for property, I would consider:

• Cash flow - mortgage vs rental income.
• Property value - equity you stand to gain by renting long term.
• Asset appreciation/depreciation.
• Management/maintenance costs. 

Work out all that out and see what the number looks like. 

Property might give you the best return, but only at the expense of other people's misery as they are unable to afford a home to live in.

There are plenty of other immoral things you can invest in, with high rates of return.

I'll rise to the bait. Supposing that I am totally devoid of morals, where is the best place to invest? 

[Deleted User]

GDB2222 said:

[Deleted User] said:

Sebo027 said:

If I have £30k in cash where do I get the best return on my investment, over a particular period of time. For me that period of time should always be long term (15+ years). Trying to understand that question for property, I would consider:

• Cash flow - mortgage vs rental income.
• Property value - equity you stand to gain by renting long term.
• Asset appreciation/depreciation.
• Management/maintenance costs. 

Work out all that out and see what the number looks like. 

Property might give you the best return, but only at the expense of other people's misery as they are unable to afford a home to live in.

There are plenty of other immoral things you can invest in, with high rates of return.

I'll rise to the bait. Supposing that I am totally devoid of morals, where is the best place to invest? 

Russia? I'm not an expert.