Friday, Jan 09, 2009
Buy 12 get 1 Free
Times Online: Lettings agents adopt supermarket tactics
“Pay for 12 - get one free”: this is not an offer for tins of beans at the supermarket but the latest in creative marketing from lettings agents. A glut of rental property on the market has forced agents to adopt supermarket-style selling tactics to win over potential renters.
“Free” months are one of many incentives that tenants can now choose from. As house prices fall, the increasing number of homeowners who are opting to let rather than sell has given bargaining power back to people who are choosing to sit out the downturn by renting rather than buying.
Posted by sold out @ 12:26 PM (534 views) Add Comment
5 Comments
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1. crunchy said...
We should be grateful for these BTL fools!
They are providing a respite home for those that sit and wait.
2. mark wadsworth said...
Sweet!
I was arguing with a rabid LVT supporter who thought it was distinctly unfair that property owners claimed an ever rising share of GDP when things are going well - I pointed out that the quid pro quo is that property owners, once you factor in actual rents, imputed rents, mortgage repayments and capital losses will make huge negative returns in the five year period from 2007 onwards,
i.e. at peak house value = £200,000
imputed or actual rental income = £10,000
mortgage (say) = £5,000 (average mortgage 50% LTV)
Capital losses = £80,000
Income = £50,000
Expenses/capital loss = £105,000
Overall loss £55,000
Maybe after another five or ten years they'll have broken even again?
3. rm96696 said...
You often hear estate agents, builders and politicians raving about pent up demand. But isn't there also an awful lot of pent up supply?
4. You_talkin_to_me? said...
Would the free month be considered a gift for tax purposes?
5. Old_traveller said...
What I love about these supermarketlike discounts is the fact they presupose the price is not negotiable (we do not usually bargain too much at the Tesco counter (although that may come to pass at some point ...), hence the discounted month offered on it.
This is still big time denial as most wouldbe renters will bargain down the rent hard anyways.