Lander Posted August 10, 2009 Share Posted August 10, 2009 Sounds like a few tenants are in for a rent hike. nah "average cost of a rented house down seven per cent, and the average apartment nine per cent, according to new research from the Association of Residential Letting Agents" link Quote Link to comment Share on other sites More sharing options...
Flying Dutchman Posted August 10, 2009 Share Posted August 10, 2009 This is the case for the chap we rented from a while back. However, as it seems fairly likely that prices will return to a general downward trend after the current rally most people will still be left with the decision of whether to take the loss or continue to hope that inflation or growth in property prices will bail them out.Remember that for many of these people the gap is between their unrealistic expectation of "profit" on their sale and the overpayment they made on their purchase. I do genuinely find it hard to muster much sympathy for people this stupid with such large sums of money relative to their income. Perfectly true, it has to be remembered as well that their hopes of "property generated equity" represents an expectation of previously impossible future dreams and aspirations. Many who brought and sold at the right time have generated huge sums of money in proportion to their incomes, a fact that the has not gone unmissed by the masses. They wanted to play the game but the music has stopped and the crushing realisation that the dream of a place in the sun or early retirement or the funds to start a little business is keeping them clutching at straws. Such is life, dreams are hard to let go of. A house should be a home not an investment vehicle. FD Quote Link to comment Share on other sites More sharing options...
tim123 Posted August 10, 2009 Share Posted August 10, 2009 (edited) Within 5 miles of Manchester city centre, I find 500+ properties to rent of two bedrooms or more for £400PCM or less.Whopping shortage there. Yeah, and I expect all of them are in places that you would't want to live. (Edit - I've just done the same search and I got 505 properties. But many of them are for a single rooms inside a shared house that is 2 beds or more. It's a fault of the RM search that there's no way to filter these out) tim Edited August 10, 2009 by tim123 Quote Link to comment Share on other sites More sharing options...
tim123 Posted August 10, 2009 Share Posted August 10, 2009 I cannot work out where the rental market is for certain places. Here in the south east I keep seeing the same large, expensive houses (previously in the £750,000-1.5m bracket) up for rent at ridiculous prices - £4,000 per month. The amount of these properties on for rent is increasing all the time. Many of these places are in the middle of nowhere, miles from a town or even a station to enable getting into London easily. Who wants to rent these places, where are the tenants, who has this sort of money to spend? After seeing many of these places advertised month after month these tenants obviously don't exist. But how long can these owners keep these properties on? What is the breaking point? Where have the owners gone? There is a very small demand for such properties. They are waiting to get lucky tim Quote Link to comment Share on other sites More sharing options...
eric pebble Posted August 10, 2009 Share Posted August 10, 2009 (edited) Perfectly true, it has to be remembered as well that their hopes of "property generated equity" represents an expectation of previously impossible future dreams and aspirations.Many who brought and sold at the right time have generated huge sums of money in proportion to their incomes, a fact that the has not gone unmissed by the masses. They wanted to play the game but the music has stopped and the crushing realisation that the dream of a place in the sun or early retirement or the funds to start a little business is keeping them clutching at straws. Such is life, dreams are hard to let go of. A house should be a home not an investment vehicle. FD Yup - and all they would have had to do was just look at this graph: It tells you EVERYTHING you want to know. EVERYTHING. AND - if you also look at this graph, in 2 graphs you have the entire explanation of the world of house prices at your fingertips. With one addendum: That red line has to come down, considerably, indicating that it is time to smell the coffee and get real... Edited August 10, 2009 by eric pebble Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted August 10, 2009 Share Posted August 10, 2009 (edited) Like where? It's not as though the rental market's been flooded with cheap properties recently. Ummm ... a categorical no! Berkshire has just seen falls in excess of 10%. I got 12% off the rent of my place and I hardly even tried! It held that 2 other flats in the same block (also rather nice ones) came up/had up to 2 months of void on them already. And a 3rd flat was to be sold for 240k only to have the chain bail out ... so that's soon to be up for rent too (rumours around the water-cooler, anyway). The LA/LL wrote a clause of 4% - 9% increase into our rental agreement (terminologically, at least, this was utterly unenforcaeble) because 'rents, like house prices only ever go up' ... lol ... so we shall see (I look forward to a good laugh there!). Aidanapword Edited August 10, 2009 by Aidan Ap Word Quote Link to comment Share on other sites More sharing options...
Orbital Posted August 10, 2009 Share Posted August 10, 2009 Let us know if you do this...it would make me laugh for several months....:-) Of course it could back fire, they are forced to sell and you lose your home ! But maybe that isn't a problem, some people like moving ! Quote Link to comment Share on other sites More sharing options...
I want a house! Posted August 10, 2009 Share Posted August 10, 2009 I was already contacted by one of the bank stooges. The landlord told me not to phone. I've been fight to protect my deposit by DPS with same Landlord and he even accused me of not paying once, when it was his bad accounting that he lost my money paid to him. So I phone the stooge and sang like a fish. (My deposit current is protected by DPS) I hate Landlords but they are a necessary evil. Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted August 10, 2009 Share Posted August 10, 2009 Of course it could back fire, if they are forced try to to sell and you could lose your home ! But maybe that isn't a problem, some people like moving ! And if they fail to sell, then I am asked to leave by the repossessing agent (however unpleasantly) ... but only after suitable warning (as legally required on the act of repossession). Unless of course the guy does NOT have a BTL mortgage in place. In which case, I am not renting from the guy in the first place. I confess to a Minor fix to your comment. A significant number of BTLers rely on over-inflated rental figures to keep afloat. Caveat emptor (do the research!). Also: if they are renting out *that close* to the forced sale margin then they should have sold ages ago ... and at an honest price. If they messed up and over-extended and didn't do the mathematics and weren't reasonable about their rental income expectations then they shouldn't have BTL-ed in the first place. Besides ... ... house prices only ever go up ... so the BTL LL needs only wait it out until the HPI juggernaut (?!?!?!?!) bails him out and he can sell at a massive profit he has done nothing to earn. Aidanapword Quote Link to comment Share on other sites More sharing options...
Umiapik Posted August 10, 2009 Share Posted August 10, 2009 Like where? It's not as though the rental market's been flooded with cheap properties recently. It has here! (Edinburgh). Where i live there are loads of houses for rent. They have all been on the market for months. Yes, plenty of properties for rent in my area too (Middlesborough and N Yorks).Where is theis land barren of rentals that you speak of, Umiapik? I suspect you're telling porkies... I must stop using sarcasm in my posts! It just seems to confuse everyone. I go over the heads of people on this board... a bit like an aeroplane. Quote Link to comment Share on other sites More sharing options...
REP013 Posted August 10, 2009 Share Posted August 10, 2009 What about fear?I know people who bought, because they could only just afford to and were scared at the time that the prices would go higher and be unaffordable to them since houses were rising in price quicker than their salaries. Yes, the housing crash happened, but before it happened, most people saw 10 years of continual growth, and got scared they'd never get a place. Like in all situations like this, it's the average guy who pays the price in the end... Arguably, couldn't you say all these 'evil' STR people were the greedy ones and took the profits at the cost of the poor mugs who bought the properties off them??? - I mean, who are the people holding the cash now??? Fear, stupidity, it was still their decision to borrow. People need to take responsibility as do the banks, FSA and Gordon! None are innocent in this charade. Quote Link to comment Share on other sites More sharing options...
mikeymadman Posted August 11, 2009 Share Posted August 11, 2009 (edited) Sounds like a few tenants are in for a rent hike. My ex LL's void is now at 5 1/2 months. I moved out into a better cheaper place when they tried to put the rent up. I tried to explain to them that rents were falling, but they didn't want to listen. They just kept telling me that their bills were going up so I was going to have to pay more too. It very quickly turned out that I didn't have to pay more too. They've dropped trying to get what they wanted off me, and are now advertising it for what I was paying. The way things are they won't get that either Trying to get relatively little extra for the property has been quite a mistake for them; they've ended up with *a lot* less. Edited August 11, 2009 by mikeymadman Quote Link to comment Share on other sites More sharing options...
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