MSE News: Rents surge through £700 barrier
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you would be lucky to have any income from it,
after all the expenses.
The thing is, if we get into hyper-inflation, the house will keep its value, and the guy holding cash will be burnt.
Caveat mortgager, our rent hasn't gone up in real terms in the 7 years we have rented this property either. But it's a double edged sword, because the property no longer meets our needs. Buying is out of the question - it's far cheaper to rent our flat than to buy an equivalent quality flat. We are reluctant to move to a more suitable rental property because, while our rent hasn't skyrocketed, ....yet, fingers crossed - the population has soared and with it rents around here in general.
It's a "barrier" to me, because I can't bloody well afford it! :rotfl:
I'm lucky enough for my rent to have only risen once... and the the LL wanted £50 a month extra, the agent negotiated it down to £25 extra.
£625-650 has always been stretching it for me, saving has been extremely difficult and usually impossible.
But it's not so much rising rents that are hitting me, it's having a major cut in my income. It means that I simply can no longer afford to live here at all. I could look for somewhere cheaper, but that would mean living in a shoe box in an undesirable area (sorry to be snobish).
Luckily for me, I have the option, which I am taking, to move back in with the parents. Rent free, (paying my share of the bills of course and providing my own food) and the bonus here is that at least I will be able to save money to put towards my mortgage deposit.
Offer accepted: £107'000
Deposit: £23'000
Mortgage approved for: £84'000
Exchanged: 2/3/16
:T ... complete on 9/3/16 ... :T
Depends on your mortgage rate. At 5% you would struggle to make a profitin the south. Up north where properties are more affordable, you could make a decdent return.
On the other hand, if you can borrow at around 1.5% it is esy to make a profit.
As it is, rents are rising at less than the rate of inflation. The fact that wages are not keeping up with inflation isn't relevant, Landlords will set the rent at whatever the market will stand. If tenants want lower rents, stop agreeing to pay higher ones.
GG
Might be a good idea to say which area you are referring to.
Renting is more expensive than mortgage interest payments in 80% of the UK.
Rents are at record highs, rising in 9/12 regions, and it's inevitable this trend will continue for quite some time.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
My mortgage interest has fallen by over 60% in the last 4 years so potentially landlords will not be affected by rent falling by 23% in real terms.
Yep, typical journalistic hype!