Something to cheer the renters up

eco-friendly_2

the_bread_baron wrote: »

at the end of the day, you selfishly loaded up on housing when you thought you would make money. (kids is an excuse.) now your losing your own cash its kinda like crying milk tears.

im sad that you are going to lose money, but im also sad for the 3 families you also priced out. its a case of comes around-goes around. this bust is going to hurt a lot of uk citizens. the real money people either got in before the rush at the right price, or got out before the rush to sell. you did neither. your certainly a victim in some ways, but its your baby.

theres no easy answer. do you sell now, cut your losses ? or hang on,
get into even more debt and hope the housing market suddenly bounces back without any reason or logic.

it short. you lost. id get out, unless you see something on the house market horizon i dont.
and dont believe the same media that talked you into btl to tell you a turn around is just round the corner.

its not. its over. deal with it.

You! yes you, at the back of the class, PAY ATTENTION.

ONE! ONE! ONE! ONE! property bought.

owitemisermusa

I posted in this thread twice yesterday but they have disappeared!

Has anyone else had this happen?

There was no bile or offense in either of my posts so I doubt if it could have been deleted.

Whattagwan?

johnny_storm

eco-friendly wrote: »

Imagine! if the HPC-ers got their wish and all Landlords {around 1,000,000} went burst.

We can but dream.

scorpio_princess

johnny_storm wrote: »

We can but dream.

That is never going to happen. There will always be capitalists and entrepreneurs and chancers in life, and I for one are happy to let them continue. I have absolutely no desire to become one of them as i'm really not that fussed about being rich (yes really - i'm on a low income but i'm happy). Anything for an easy life, me! I think all the animosity and bitterness towards people who have made a few bob (or attempted to) is borne out of nothing more than jealousy - so typical of this country. We can't ever seem to congratulate anyone for trying to better themselves, but we sure as hell know how to stamp on them when they're down and bellow 'I told you so'. Sometimes the attitude of people in this country really upsets me - what is it about money that turns people into monsters when they might otherwise be quite nice people?

guyrulius

scorpio_princess wrote: »

That is never going to happen. There will always be capitalists and entrepreneurs and chancers in life, and I for one are happy to let them continue. I have absolutely no desire to become one of them as i'm really not that fussed about being rich (yes really - i'm on a low income but i'm happy). Anything for an easy life, me! I think all the animosity and bitterness towards people who have made a few bob (or attempted to) is borne out of nothing more than jealousy - so typical of this country. We can't ever seem to congratulate anyone for trying to better themselves, but we sure as hell know how to stamp on them when they're down and bellow 'I told you so'. Sometimes the attitude of people in this country really upsets me - what is it about money that turns people into monsters when they might otherwise be quite nice people?

I have no real desire to be rich. However, I would like to be able to afford a two-bed semi with a a small garden and a garage without having to risk committing financial suicide. It's not such a big ambition to want to buy a small house rather than be stuffed into a box that was designed to meet speculators' demand for profits which is what the average BTL flat is.

As an 33 year old Engineer, earning just short of 50k a year, I don't think that should be too much to ask and yet because of the recent stupidity, my 'dream home' is 250 grand or ten times the average local salary.

Whilst I won't condemn the OP I have little sympathy at the moment for amateur landlords who haven't done their sums, or anybody else who expected me and thousands like me, to support their lifestyle and continue to do so (BTL landlords, Northern Crock shareholders etc).

artherfouxache

kazd wrote: »

The first question I asked our agent was what price should we put the house up for to sell quickly. I was told that nothing at all is selling and that we should try and find another way round it ie re-mortgage. We have been offered another possible mortgage which has arrg fee but would save £100 per month but we would be tied in for three years.

The tennants we have in the house currently are very happy there and are looking to stay for the long term by that I think they mean at least a year or so and we do not want to sell the house from under them, we also are reluctant to increase the rent because whilst it might be a bit on the low side I don't think I could justify hiking up their rent to what a neighbour is asking.

So on one hand I want to just get shot but on the other we have a duty to our tennants.

Your duty to your tenants will cost you dear.

Do you know how they used to catch monkeys?

A coconut would be tied to a tree. A hole was cut in the coconut just big enough for a monkey to get its hand. The trap was set by placing bate in the coconut.
Unfortunately for the monkey, the hole was not big enough to allow removal while the hand was grasping it 'reward'.

All those who have advised you to let go of the house are correct.

I would suggest putting it up with as many EAs as possible with instruction to reduce the price by £5000 per month 'til sold. You could try say £2000 per month but you risk following the market down.

£5000 per month reduction will get REAL interest from potential buyers.

Do not trust EAs who are trying to con you this tactic won't work....... IT WILL. It did for me last time round.

confused_landlord

guyrulius wrote: »

I'm sorry but that is a spectacularly poor suggestion.

It could get easier, it could get very much worse.

Where is the evidence to suggest the UK will experience wage inflation?

People should deal with what they do know and not idle speculation.

We know the OP has a shortfall between her btl mortgage and the rent.
We know that at the moment her credit rating is intact.
We know that the market has experienced some falls in house prices.

General inflation is rising but so far wage inflation is not and for the time being there is no indication that will change.

I do agree with you that the best option is to sell, In fact, it is such an obvious solution (and most possibly the OP's first thought), I did not think it was necessary to even post the suggestion. But in the current climate that odds of being able to sell are slim and the chances of the OP recouping her money and not jeapordising her credit rating is further unlikely. Throwing in the towel is also a very obvious suggestion. I was merely trying to point out the less obvious aspects of her situation ie that it could be very difficult, but over time it could get easier.

I do admit to speculating. Everyone here is speculating, unless you have a crystal ball worthy of note. I dont think my implication that wages may go up is spectacular in anyway. The Govt is as indebted as the individual is and I can see them choosing to take the easy route out.

VeryMeanReversion

Another HPC'r but trying to be helpful.

My Uncle does BTL but avoids the big agent fees you are paying, he pays half or 1 month rent as a fee and then manages them himself. This should save you £350 per year, more if the tenant stays.

It's not clear from your posts whether you can afford the extra £420 per month. If you can't, there is little option but to sell, making up any losses from the equity in your main house.

If you can afford it and still think you want to keep it for your kids then realise it's not likely to be a profitable investment for a very long time. However:

(1) If you have equity in your main house, move enough to your BTL to be able to get a decent mortgage rate. I think this is your best change to reduce monthly payment by £100's.

(2) I wouldn't put the rent up until the tenant changes or they have been there for more than a couple of years. The risk of a void is too high.

(3) Make sure you are claiming every cost of managing your BTL as a tax deduction (especially your motoring costs).

Finally, can you sell the main house to live in the BTL?

VMR.

RecoveringAlcoholic

Sell the second car?

johnny_storm

scorpio_princess wrote: »

That is never going to happen. There will always be capitalists and entrepreneurs and chancers in life, and I for one are happy to let them continue. I have absolutely no desire to become one of them as i'm really not that fussed about being rich (yes really - i'm on a low income but i'm happy). Anything for an easy life, me! I think all the animosity and bitterness towards people who have made a few bob (or attempted to) is borne out of nothing more than jealousy - so typical of this country. We can't ever seem to congratulate anyone for trying to better themselves, but we sure as hell know how to stamp on them when they're down and bellow 'I told you so'. Sometimes the attitude of people in this country really upsets me - what is it about money that turns people into monsters when they might otherwise be quite nice people?

What a load of nonsense. This is not about capitalism or entrepreneurism. This is about greedy pigs in a trough trying to grab someone elses share.

Well it worked, and for 5 years people have actually been priced out of buying a house without sadling themselves with a ridicously large lifetime debt.

The fact that people have dived in thinking they too could make money off the suffering of others does not inspire sympathy, well except maybe a type of pity for the very stupid.

I for one will be enjoying taking their "investments" from them (and I use the term loosely) at 50% off. The price it would have stayed if not for such terrible greed. Payback is a b*tch isnt it.