It was reformed on the 1st of April this year. The next change is the 25 year old single allowance changing to 35 year old, but they don't rent 3 bedroom houses. As for the tax payer getting value for money, I couldn't imagine any government building housing for social need efficiently. Any rent collected from those efficently built houses would be eaten up by a pyramind of administrators and managers in high paid jobs with unaffordable pensions, never mind the taxpayer shelling out bundles of money to a politican's mate to maintain the properties. Sounds like a good idea to me.
Totally agree it wouldn't be for everyone, but then your job may not be for everyone. To a professional landlord or someone who has the time and money, the returns are starting to look more worth the effort involved. Keep in mind the example of those houses sale agreed may have been sold for less then their advertised price pushing up the yield.
It always amazes me when people talk about how much hassle being a landlord would be, I've never made money easily, I've always had to work at it. What job do you do? If it's not a hassle sometimes I would think the pay aint to good. Your example of a house being stripped is interesting, however is an extreme example and extremes can be used for both sides in any discussion, interesting but pointless.
I dont think my point is at all pointless (but then I wouldn't). It may be extreme but it is a reality. Just like during the winter freeze last Christmas when plumbing bills must have been through the roof for private landlords.
As you have said, it is not for everyone. My points are as a result of hearing boastful comments from Landlords about the rental yields and how fantastic they are, and forgive me if I am wrong but I am pretty sure that I recall reading what could be taken as boastful comments from yourself a while back. They are not as good as they are made out to be taking all factors into consideration. Being a landlord (IMO) has plenty of drawbacks to make it unappealing - Maintenance fee's, insurance, tax, capital gains tax and potential Inheritance tax issues further down the line.
To be honest, it doesn't bother me if someone is using their own capital to build up a 'property empire'. Personally I think there are better ways to invest capital, but that's my opinion.These days they will most likely have to as the Lenders are generally not interested in loans for Investment properties.They too have woke up and realised that they made a lot of ppl rich while they took all the risk in the past. The market is down from where it was so of course it may seem appealing to some but at the end of the day the market is flooded with investment properties.
It depends how you look it, but personally I think it is a flawed business plan to be totally dependant on the state for the rental income. Figures of 70% of private landlords being dependant on Housing benefit confirms this. If its working for you then fair play. Many more benefit reforms have still to come with NI particularly focusing on reducing benefit fraud. If you don't think that this will have a knock on effect then more power to you. When the sh** hits the fan and you are unable to sell your lower ended property empire I hope your professional Landlord skills will serve you well.
Edited by tinbin, 03 November 2011 - 02:09 PM.