BTL Anecdote - prices plumeting

Benefits_Blagger

Dylanwing wrote: »

Some of us have rented from them, and I have nothing but loathing and contempt for the bas**rd who was my Landlord. I think it does not help when a lot of the BTL articles concentrate on returns and capital gains and never mention providing a service to the tenant.

just goto singing pig and you will threads such as "what excuses can i use to withold the deposit?" or when the deposit scheme was coming in "how do we circumvent this?"

that was especially disgusting when the tenacy deposit scheme was coming in, the vermin on singing pig made it sound like a stealth tax as they already counted that money as their own.

pickles110564

Benefits_Blagger wrote: »

just goto singing pig and you will threads such as "what excuses can i use to withold the deposit?" or when the deposit scheme was coming in "how do we circumvent this?"

that was especially disgusting when the tenacy deposit scheme was coming in, the vermin on singing pig made it sound like a stealth tax as they already counted that money as their own.

If you all kept the place rent in good condition i.e. clean every so often, you would get your deposit back, but when you live like pigs what do you expect.

PasturesNew

chappers wrote: »

a mortgage shortfall that has risen to nearly £800 pcm.

So you have a property, that is rented out at market rate.
And the rent is £800/month less than the IO mortgage?
Did I read that right?

That's stopped me in my tracks... I never thought there could be that much difference in one property. And am gobsmacked by these figures.

I hope you sleep well at night. Where shall I send the cocoa?

PasturesNew

pickles110564 wrote: »

If you all kept the place rent in good condition i.e. clean every so often, you would get your deposit back, but when you live like pigs what do you expect.

pfffffffffft

WTF?_2

dolcevita wrote: »

Liquidity?

When will people realise, banks are not experiencing cashlow problems - they are insolvent.

Well not all of them obviously but yes, I have no doubt that without the unprecedented amounts of cash that are being given out by the Central Banks against all sorts of less than prime collateral (even CDOs apparently in the case of the Fed) there would probably be a complete collapse of our Western banking system.

Even the banks that are in relatively good shape would be taken down in the ensuing chaos.

We almost should be thankful that the general public are too ill-informed to actually understand the seriousness of the massive crisis that is underway. If they did, there would be a run on the banks tomorrow. Thank goodness for dumbed-down telly, football on Sky and celebrity worship for keeping the masses in ignorance.

OnePound

mystic_trev wrote: »

I'm going to take it off the market and rent it again. I've just spent nearly £8,000 doing it up so they'll to problem finding tenants. In the 10 years I've rented it i've only had a couple of weeks voids.

I have rented out a property on the south coast for a few years to students. Each year I get about 4/5 calls in total during the summer to enquire about renting out. This year I had the property up for one week and recieved over 20 calls. I can only think this is due to less rental properties on the market. I am unsure how to proceed myself as I could sell now or continue with higher demand and lower interest rates (well for now anyway).

chappers

Generali wrote: »

Fair point. OOI, what timescale are you looking at to hold the property(ies)?

One we intend to dispose of almost immediately to cover the build costs and mortgage shortfall whilst renting, the other two I intend to hold onto long term, whilst also retaining the freehold on all three.

Bf109 wrote:

Perhaps its not just those "without investment properties" but those who have been priced out of the property market entirely, those whose only choice now is to abandon hope of ever having a family or emmigrating.

Those who have borrowed large sums from their family or seriously overstreched themselves just to get a foot on the "property ladder" in the form of some disgusting pokey box above a kebab shop.

Those mothers who have to work all day and put their kids into child care at great expense rather than stay home and bring up their children.

Those children who never see a parent other than at weekends because their mother and father must work to pay the mortgage or their slumlord's rents.

These are the people who might view speculators like yourself as worse than rats, the scum that are destroying the very fabric of our society. To be stompped on like the plague ridden avaricuous vermin that you are

That may be your opinion but the whole world runs on investment, we could all go back to being equal and subsistence farming.
It's tiers in society and particularly financial society, that allow us to develop and improve society as a whole, having goals is what drives society forward. Yes some will always have more than others but that has always been the case, one tribe fighting another because they have all the best hunting ground etc.
If there was nothing better to strive for why would anyone bother doing anything.

Now I am not from any priviliged back ground I have got where I am from hard work, first working and saving hard to get a decent deposit together and buy ahouse, ok I was very fortunate that my house rose considerably in value, but when I first bought it I was one of those people struggling to pay my mortgage, both me and my wife worked 6 days a week at the start, (and even then we ran up debts) until our incomes increased.
We then worked hard to pay off our debts and then took the calculated risk of using some of the equity in our property and have bought an investment property.I have built up a succesful building company from scratch and funnily enough this didn't just happen by chance but through hard work not only grafting during the day but also after hours as well.
Life is what you make it and owes you nothing I have in the past struggled lived on nothing but plain pasta and apples scrumped from the neighbours garden, I have never asked for anything from anyone else apart from the occaisional loan from the parents obviously.
As I said I said I come from nowhere special and although I appreciate there are people out there struggling through no fault of their own and that there also scrounging theiving scum too, why do you think that providing for my family and it's future makes me plague ridden avaricuous vermin.
I usually find that those who moan loudest have the least right to moan

PasturesNew wrote:

So you have a property, that is rented out at market rate.
And the rent is £800/month less than the IO mortgage?
Did I read that right?

That's stopped me in my tracks... I never thought there could be that much difference in one property. And am gobsmacked by these figures.

I hope you sleep well at night. Where shall I send the cocoa

Unfortunately yes you read that right though the shortfall is actually split between me and my business partner.
Due to the nature of the property we ended up having to take a fairly unconventional loan(fairly nasty interest rate) based upon the 3 month Libor. Originally in November 2006 there was no shortfall as we bought the property with an existing contract with a homeless charity they were paying over market value and responsible for maintanece.
The problem was that we had a problem with planning and the lease expired when the charity finished building their own purpose built accommodation, we then had to rent on the open market that left us with a shortfall of around £300 a month the rise in the 3 month libor has done the damage since.
However even though we have had a long delay in getting our planning approval(a whole story in it's self)and therefore made several more mortgage payments than anticipated we are still within our original limits.
We budgeted for the possibility that we wouldn't be ready when the original lease ran out and budgeted for a possible increase of 2%(actual rise has been 1% at its worse) over a possible 6 month void period, and whilst we have been subsidising the mortgage we haven't had the property void at all.
We have used pretty much all of our mortgage shortfall, contingency but are now ready to go as soon as our tenants leave in June.
It has cost us quite bit but hey ho thats what reasearch and contingencies are for.
Can't wait to get stuck in, get finished and convert the mortgage to something a bit more conventional, that will be more than covered by the rental.

bobby-boy_2

I agree with Chappers not all BTLs are bad. It makes sense to do repairs on time and to keep good relations with the tenants. Rental property is a long term investment and should be vied as such. The idea is to make a profit as like he said we would rent the properties out for free. Even your local authority or social landlord/ housing association as we have in Scotland makes a profit which theu then re-invest in the property.