Jester
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Posts posted by Jester
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With property, your tenant pays the mortgage for you. If your rent covers the mortgage, you pay little to nothing for an asset that you eventually fully own. HPI should be irrelevant, at best a nice little bonus.
But that's the whole point. The rent doesn't cover the mortgage. Nor does it cover other costs, that actually can be quite substantial, if you're going to run a nice BTL.
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Not in a short term way. But some who are smart were able to, and did give up their day jobs.
In addition to my comment above. If I had enough money to purchase the property without a mortgage I would invest my money elsewhere. Easier and more profitable. Yes?
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Not in a short term way. But some who are smart were able to, and did give up their day jobs.
Are you sure about that?
The figures really don't add up to me.
As I keep on saying possibly if you DON'T have a mortgage on the property and you do the maintenance etc yourself.
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I would have thought that if you can buy in an area where rents more or less cover the mortgage payments, then even without HPI, you'll still end up owning an asset free and clear 25 years later, that you have paid very little for (maintenance and a few void periods). At which point you can sell, or the rent becomes yours to keep instead of paying the mortgage with.
Isn't that the point?
No, I don't think so, because there are easier (and more ethical) ways of making more money.
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Evening all,
Agreed - in many instances, but not all.
Like the subject itself, my view on all of this is highly speculative, but in my opinion BTL landlordism often - but by no means not always of course - attracts a certain type of individual who is deeply sociopathic and subconsciously sadistic - the same creed of shitty individual who seem to always progress to middle-management roles - jobs that do nothing useful but offer ample opportunity to demean and belittle those below that threshold who actually do the "work", whatever that may entail.
I have no problem with student BTL as long as it doesn't take decent family property. I have no problem with commercial BTL, e.g office, warehouse premises etc. I do have a big problem with BTL on a mortgage that targets residential property. Another big problem is the crap tenancy laws we have over here.
To answer the O.P, BTL can be very attractive if you look at it with regard to yields. It was attractive when capital gains were high as well. I/O mortgages offer a degree of flexibility although I'd argue that these are only good if you have a yield north of 10%. But obviously I/O has many pitfalls as well if you can't sell above the principle sum originally taken out.
But this is not to excuse, or criticise it. I don't like residential BTL due to the many moral and social adverse affects it has.
Any thoughts?
My thoughts? For what they are worth are you can't make much money out of BTL if you have a mortgage on the property and if you don't do the maintenance yourself. it's neither an income or a pension.
BTL have kept house prices artificially high.
And housing benefit keeps rents artificially high.
The situation now appears that the housing bubble has burst for sales. But also people aren't prepared to rent properties at the higher rental prices.
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Renting out property never has been much of a money earner. Everyone on here knows that. It was always only about the capital gain. Now thats a loss anybody who gets into it now is crazy. Wait until property is at rock bottom to get back in. In the meantime let the taxpayer pay for the houses for the 5 million, and save your money.
Ahhhhhh ok thanks for that.
Even taking into consideration the capital gain it really was never much of an earner if ever.
It's a case of don't give up your day job.
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Where the f*ck do you live????????
Where I live, 80K to 100K one bed flats rent for between £400 and £500 per month. 2 bed flats rent for £800-ish. 3 bed semi/terrace sell for between 150K and 200K, and rent for between £800 and £1200. Proper detached houses can rent for as little as £1000, and as much as £3500.
4 bed detached £750 overpriced in my opinion. Personally I would sell it. But hey what do I know?
http://www.rightmove.co.uk/property-to-ren...summary23613263
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It all has been about equity release hasn't it. Property Watch on Thusday had that idiot woman with the 7 millionn debt - never once was rent mentioned in the story - her 'profits' were equity release (more debt).
I think Redcellar is correct I'm riff raff and I'll never understand.
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I'm not going to waste my time on riff raff like you. You'd never understand that buy-to-let makes me easy money. I just leverage the huge increase in my homes value to fund the deposit on a terrace or semi which I rent out at above or equal rate to the mortgage payments. That way fools like you (who rent) pay my mortage off for me, it's you 'dead' money. Whenever I chose I then sell the buy-to-let and make profit on it's new increased value and also on the mortgage payments that you made as my tennant. See it's that simple and absolutely fool proof.
If a recession were to happen and prices dropped, and rents too, then I would be right royally screwed. But then again the government would lower base rates and that would allow me get away with reduced interest payments to the banks until the value increases again. Banks always follow the base rate and they love me and don't want me to suffer by taking my property portfolio away from me. If they did I would have no pension and they know that would be a nasty thing to do to me and they know I'm different to everyone else and deserve special treatment. I'm not a business I'm a person.
That's the logic behind Bacon Lettuce and Tomato so go figure if it's going to make common folk money now.
That's hilariously funny. I'm so glad that I asked this question.Just to let you know that I don't rent out properties. I also own my properties but I don't have a mortgage doing so.
I get the bit about the rent paying the mortgage or just about paying the mortgage. Having said that where I live £300000 properties are being let out for about £700 per month and so those figures don't quite add up even at low interest rates. Cheaper properties, say £180000, still only bring a rent of about £400 per month. But there is also all those other costs. I'm sorry but I'm not sure that these landlords are capable of basic accounting principles. Even in good (normal) times I still can't see how it makes economical sense.
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Seriously though, my friend has a BTL. She spends loads and loads of money on maintenance ( like new kitchens and painting and decorating) Tenants seem to cause so much damage. She also has a mortgage on the property. And then there's insurance and other costs.
I could understand it (just about) if she didn't have a mortgage. Also it would help if she did the maintenance herself - but she doesn't.
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Do you have a BMW X5 and a fake tan?
If not, you're probably not sophisticated enough to understand.
No.....I have a Skoda and I'm allergic to fake tan!
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i thought one tried to Keep Up with the Joneses..
large mine up please. 30p
You're all so blooming silly
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BLT, think they are about £1.99, so even if you have a large mortgage, you could probably treat yourself once a month I reckon excuse my typo
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When you've paid for everything. Especially if you have a mortgage. How is BTL a sound investment? Am I missing something here?
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Lock and Loaded
Military slang for an M-16 rifle with magazine inserted and prepared for firing
Money in the bank and prepared to do a deal
Ahaa Cheers!
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my house is very friendly.
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and people want to look down on me in my social housing. The joke is on them.
How does one get social housing?
I want one!
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I've commented on this before.
There was a new development in my village. The build quality wasn't that good but I was interested in further investigations.
The prices were ridiculously high and so I said to the builder if you decide to reduce the price let me know.
Needless to say I heard nothing.
One by one these houses have come up for rent. There's about 8 on rightmove.com now.
Bearing in mind the revelations on the BBC that new houses are not suitable for housing associations to buy I now have to decide do I want to rent one of these sustandard boxes for £700 per month?
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I think it's a bit of an insult to drug dealers to compare them to MPs to be honest.
At least drug dealers provide value for money.
Here's are some pictures of a development in Bedminster in Bristol. Two bed flats in this were selling on the far side of £200k a couple of years ago. I'll leave it up to the reader to decide whether it's a block of flats or a prison, and indeed whether there's any real difference between the two:
Yes I've got it sussed - definitely a prison
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It's been a while since I posted one of these:
The future of affordable housing?
The thing I find most insulting is the fact that we're supposed to stump up £200,000 plus for one of these poxy 2 bed flats when they're so bad they can't even give them to homeless people.
Utterly sick.
Edit:
Curses! Beaten to it with the picture!
The rooms were so small in one of the places that I looked at. I commented on this to the builder. He said that he was going to take down some of the walls upstairs thus making fewer bedroom but at least the rooms would be larger. Nothing could be done about the downstairs by the way.
Incidently this particular house had slanting walls. So fitting a very small house on a tiny odd shaped piece of land. All for £200 000 - they must be joking>
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+1 Lock and Loaded
Thanks for that comment but I would love to know what it means.
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Yes to all of the above.
I have just sold my house (in a buyers market) in two weeks. Everyone told me that I had priced it too low. But no people were falling over themselves to buy my house because it's a beautiful house (even though it was in need of decorating etc.
Since selling my house I've been looking to buy. I've seen loads of house with small rooms, inadequate kitchens and poor sanitary arrangements. I'm not surprised that the housing associations are turning down so many properties. I have walked through numerous houses where I have had to say these rooms are just too small.
Merran said it all on Property watch. She said that it was ok to buy a house in this climate but make sure that it's a good one that you will have no problems selling when the time is right to sell.
I've come close to making an offer on a property that doesn't quite tick all the boxes but quite frankly I'm going to wait until the right property comes my way.
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Just showed a clip on BBC news where Margaret Beckett gets a roasting from a member of the audience angrily asking her if she was going to pay back £72,000. MB says no and everyone hisses and boos.
Reporter say`s the mood was one of anger in the recording tonight
Might be worth watching for once
Am I the only person to find her arrogant smirking face offensive?
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Utter claptrap!
NEVER attribute progress to any policy of government. Government policy has always a completely different effect to the 'stated' objective.
So you're saying that the fact that rents were reduced and affordable housing was provided (and other stuff like free healthcare) had no effect on the quality of people's lives then?
I Can't Work Out How Btl Makes Economical Sense
in House prices and the economy
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No it's not in your hands. It's market forces that decide how much your house is worth. House prices go up an they go down. Just like any other investment.