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Guest Absolutely Fabulous

Bad News For Btls...

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When the bough breaks......

The government will hire a large team of £40k per year infantile suspension consultants to gather underneath the cradle and blow upwards very hard, with instructions to keep blowing till next may?

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"There's been a lot of talk about the Homeowner Mortgage Support scheme of late but as far as I can see, tenants are being forgotten completely. That's inexcusable in a climate such as this."

nice to see a VI on renters side at long last.

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Latest ARLA Review:

http://www.arla.co.uk/uploads/news/Arla%20...%2009%20web.pdf

Classic - they are still assuming 6.66% (mark of the devil again) average capital appreciation to calculate Landlord investment returns.

EDIT: I like the turn of phrase...it sounds like you're being farmed.

Overall, the supply of rented residential properties is currently outstripping the availability of tenants, particularly

for members managing properties in Prime Central London where 79% now say there are more properties than

there are tenants to fill them

EDIT2: I like this....

The vast majority of ARLA members’ offices (93%) say that they have seen an increase in tenants haggling with

landlords over rents in the last six months

yeah right...my place....value around 400K rent 900 gives 2.7%

less one months finders fee and other costs: gives 2.475%

he'd put in new carpets (crappy, but still a big cost bearing in mind the large size),

5 months voids last year

new boiler timer.

replaced broken floor panel.

so for the last 12 months hes made..1.35% less repairs and carpets.

and thats on a £400K property!!!

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I'm not sure, but I swear I've spotted no less than 3 young adults living in a studio flat around here.

Surely not very comfortable.

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yeah right...my place....value around 400K rent 900 gives 2.7%

less one months finders fee and other costs: gives 2.475%

he'd put in new carpets (crappy, but still a big cost bearing in mind the large size),

5 months voids last year

new boiler timer.

replaced broken floor panel.

so for the last 12 months hes made..1.35% less repairs and carpets.

and thats on a £400K property!!!

That's sounds like a good rental deal you have there.

Is that the going rate, or are you a long-termer that your LL trusts hence tha rate?

I'm paying about £250 PM more for a £350k house and got a reduction on mine so they didn't have a void.

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That's sounds like a good rental deal you have there.

Is that the going rate, or are you a long-termer that your LL trusts hence tha rate?

I'm paying about £250 PM more for a £350k house and got a reduction on mine so they didn't have a void.

I was 10 years in the last place, EA told landlord to put rent up from 815 to 940.

I said no and EA got a PAL to move in at 875.

my place was void since October...I moved end April...the advert said £1200 pcm, but the agent ( another one) said he might deal as we were good tenants...he did. the old plot would fit on our current driveway....all for £10 per week more...tee hee (I was prepared to go to £850 at the other place but the EA didnt pass the offer on, telling the LL that we WANTED to move out. lying b'stards)

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Apologies if this has already been posted. :unsure:

A report from the Association of Residential Letting Agents says that more tenants are struggling to meet their rental payments.

http://www.24dash.com/news/Housing/2009-07...g-agents-report

When the bough breaks......

Not only bad news for BTL landlords but also for taxpayers... those who are struggling to earn will struggle to pay their rent and in turn they'll get chucked out..... thats when the good old taxpayer steps in and pays their rent for them.... under the new regime where this is paid directly to the tenant rather than the landlord the tenants seem to be spending the money on essentials like boose, fags and lottery tickets rather than as it should be on the rent..... inevitably what will happen is that tenants who are not under DSS support will be charged less than DSS tenants eventually so the taxpayer will get a larger bill.... these kind of events are never any good for anyone really.

In the past when I have had tenants who haven't paid I have always pursued them legally and ensured I registered the debt to them.... that way at least I knew others wouldn't get caught out by them and they'd be effectively forced into social housing.... these days if I take a new tenant on I am looking for an entirely clear credit check... no missed payments, no ccj's , nothing.. and if they haven't got it I just step away as its just not worth it... then again I am renting out at the higher end of the market and would probably be doing it differently if I was looking at tenants paying say sub £1,000 per month. I tend to keep tenants long term though and have not had recent problems... my longest servers have been with me five years and I have yet to put the rent up... its swings and roundabouts as I see it... I would have lost out for a few years but am probably gaining now and haven't had any voids.. too many are too greedy and as a result get voids .

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Not only bad news for BTL landlords but also for taxpayers... those who are struggling to earn will struggle to pay their rent and in turn they'll get chucked out..... thats when the good old taxpayer steps in and pays their rent for them.... under the new regime where this is paid directly to the tenant rather than the landlord the tenants seem to be spending the money on essentials like boose, fags and lottery tickets rather than as it should be on the rent..... inevitably what will happen is that tenants who are not under DSS support will be charged less than DSS tenants eventually so the taxpayer will get a larger bill.... these kind of events are never any good for anyone really.

In the past when I have had tenants who haven't paid I have always pursued them legally and ensured I registered the debt to them.... that way at least I knew others wouldn't get caught out by them and they'd be effectively forced into social housing.... these days if I take a new tenant on I am looking for an entirely clear credit check... no missed payments, no ccj's , nothing.. and if they haven't got it I just step away as its just not worth it... then again I am renting out at the higher end of the market and would probably be doing it differently if I was looking at tenants paying say sub £1,000 per month. I tend to keep tenants long term though and have not had recent problems... my longest servers have been with me five years and I have yet to put the rent up... its swings and roundabouts as I see it... I would have lost out for a few years but am probably gaining now and haven't had any voids.. too many are too greedy and as a result get voids .

Seems you're a landlord? <_<

You seem a smart guy from your posts else where too ;)

Why do you stick with it given the outlook? :o

Is it the CGT hit from selling? :unsure:

Looks like a lot of work for a relatively low yield and a lot of capital risk to me?

I don't ask this of the BTLs I know cause I always get the usual platitudes... ;)

Edited by Neverland

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Page 7 - Geared Investment Example

Mortage Interest £5,360 p.a. = 2.5% of £214,386 (Note 8 says BOE rate + 2%)

Show me a current BTL at that rate and I'll bite your hand off!

More spin.

BTW, I'm not against BTL meself. Just waiting for prices to hit bottom before deciding if the maths add up. Currently they don't. Especially with idiots like this allowed to roam the earth.

Edited by 888

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