Time to raise the rents. Posted August 4, 2005 Share Posted August 4, 2005 I just had a thought about STR's funding part of their rents with their deposits. The drop in IR's means you'll have to stump up more to pay the rent next month. I call that worse than a rent rise. I'd be interested in hearing what in means in % terms for some STR's if you don't mind? What would another .25% mean and another? Maybe your rent is going up faster than you realised. Quote Link to comment Share on other sites More sharing options...
Red Baron Posted August 4, 2005 Share Posted August 4, 2005 (edited) 1. Rents are not rising 2. The rent I pay is a fraction of the interest on my STR savings (from the sale of 3 houses). 3. Property values are falling; when (if) I buy back into property it will be much cheaper. If not I won't bother. 4. I am not tying up capital in a depreciating asset. I do not pay stamp duty, maintenance, insurance and all the other invisible costs of OO. 5. I am free to sweat my capital and employ it in things that do make money. 6. I am not tied to a house - I have total freedom about where I live. Anything else you would like to know about the liberation of thinking outside the box? Edited August 5, 2005 by Red Baron Quote Link to comment Share on other sites More sharing options...
Guest uberstuka Posted August 4, 2005 Share Posted August 4, 2005 1. Rents are not rising2. The rent I pay is a fraction of the interest on my STR savings (from the sale of 3 houses). 3. Property values are falling; when (if) I buy back into property it will be much cheaper. 4. I am not tying up capital in a depreciating asset. I do not pay stamp duty, maintenance, insurance and all the other invisible costs of OO. 5. I am free to sweat my capital and employ it in things that do make money. 6. I am not tied to a house - I have total freedom about where I live. Anything else you would like to know about the liberation of thinking outside the box? <{POST_SNAPBACK}> Harsh, but funny. I have to agree. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted August 4, 2005 Author Share Posted August 4, 2005 Anything else you would like to know about the liberation of thinking outside the box?<{POST_SNAPBACK}> Yes if you don't mind, what the reduced interest means versus your rent as a %? Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted August 4, 2005 Share Posted August 4, 2005 we own the semi we live in so it isnt a problem - waiting for prices to come down further so can buy the big house with minimal mortgage Quote Link to comment Share on other sites More sharing options...
sign_of_the_times Posted August 4, 2005 Share Posted August 4, 2005 Yes if you don't mind, what the reduced interest means versus your rent as a %?<{POST_SNAPBACK}> what reduced interest ? my bank are not cutting their savings rate and can you be sure your lender will pass on the full 0.25% to reduce your mortgage payments ? (they usually don't) Quote Link to comment Share on other sites More sharing options...
nodumsunreader Posted August 4, 2005 Share Posted August 4, 2005 we own the semi we live in so it isnt a problem - waiting for prices to come down further so can buy the big house with minimal mortgage<{POST_SNAPBACK}> Or a mid terrace in Grimsby (with big mortgage) if you get it wrong. Wait and see (but not too long). Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted August 4, 2005 Author Share Posted August 4, 2005 what reduced interest ? my bank are not cutting their savings rate and can you be sure your lender will pass on the full 0.25% to reduce your mortgage payments ? (they usually don't) <{POST_SNAPBACK}> Is that your Barclays account at 0.1%? I agree, as far as I know they're not reducing the rate. You're saved! And yes, they do in fact pass on the full cut, it has been one of my requirements since having a Bank of Scotland mortgage in the mid 90's & watching them fiddle their rate, in their favour of course. Quote Link to comment Share on other sites More sharing options...
Red Baron Posted August 4, 2005 Share Posted August 4, 2005 Yes if you don't mind, what the reduced interest means versus your rent as a %? Can't really be bothered to do the calculation. I guess the interest reduction on my equity is about the same as the interest reduction on your debt. Quote Link to comment Share on other sites More sharing options...
VacantPossession Posted August 4, 2005 Share Posted August 4, 2005 Another load of old rubbish from TTRTR. Rents are FALLING....everywhere. I know because I visit all the EA to buy and EA to rent sites everyday and they have been falling for three months. In my own area there have been flats and houses to rent for months which remain unlet. Today's pathetic "adjustment" in IR will not make the slightest difference. TTRTR well knows that the market is flooded with BTL's which cannot find tenants. Rather than issue cautions about rents rising TTRTR would be better off warning potential tenants to take up careful references on landlords (yes folks it makes sense to ask for a LANDLORD reference) because half of them are going to go under (I hope TTRTR will be included in the next "cull" too!) VP Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted August 4, 2005 Share Posted August 4, 2005 Or a mid terrace in Grimsby (with big mortgage) if you get it wrong. Wait and see (but not too long).<{POST_SNAPBACK}> this is twice today i've had to post this link Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted August 4, 2005 Share Posted August 4, 2005 I can rent a 3 bed detached in Swindon for £650 a month if I look around. Those houses cost around £170K at the moment - not bad I reckon in terms of rents! Quote Link to comment Share on other sites More sharing options...
Portent Posted August 4, 2005 Share Posted August 4, 2005 1. Rents are not rising2. The rent I pay is a fraction of the interest on my STR savings (from the sale of 3 houses). 3. Property values are falling; when (if) I buy back into property it will be much cheaper. 4. I am not tying up capital in a depreciating asset. I do not pay stamp duty, maintenance, insurance and all the other invisible costs of OO. 5. I am free to sweat my capital and employ it in things that do make money. 6. I am not tied to a house - I have total freedom about where I live. Anything else you would like to know about the liberation of thinking outside the box? <{POST_SNAPBACK}> I completely agree, particularly with point 6. SInce I STR'd we've started to realised that the only reason we were looking to buy back into the same area was simply becasue that's "where we lived". We've taken a long look at it and realised there are far nicer areas we can now afford. This is an opportunity we would never have taken if we'd bought when we sold. Quote Link to comment Share on other sites More sharing options...
Red Baron Posted August 4, 2005 Share Posted August 4, 2005 To give you a clue TTRTR and to show how little a one point drop in IRs will help you, let's talk about champagne which we know you love. I recommend Joseph Perrier Fils - the 1985 vintage at around £80 a bottle. I have no idea what your debt is, but let's say £500K to keep the arithmetic simple. On that basis the drop in IRs will allow you the luxury of one bottle a month. One bottle, say 6 glasses per bottle, or 1.5 glasses a week. Enjoy! Quote Link to comment Share on other sites More sharing options...
Rapid Descent Posted August 4, 2005 Share Posted August 4, 2005 According to the ARLA buy-to-let survey, rents have been as flat as the proverbial pancake for the last two years (their survey doesn't go back before this). The survey is a slightly limited survey, but it has to be better than a sample of one. Incidentally, increasing your rent can reduce your yield if it increases your void periods. Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted August 4, 2005 Share Posted August 4, 2005 I just had a thought about STR's funding part of their rents with their deposits. The drop in IR's means you'll have to stump up more to pay the rent next month.I call that worse than a rent rise. I'd be interested in hearing what in means in % terms for some STR's if you don't mind? What would another .25% mean and another? Maybe your rent is going up faster than you realised. <{POST_SNAPBACK}> Er, you are ignoring the fact that many STRs have placed funds into the Stock market - up 10% over the last 2 months and much more than property over th elast 2 years. Sorry to pee on your parade! Hope that helps etc Quote Link to comment Share on other sites More sharing options...
Red Baron Posted August 5, 2005 Share Posted August 5, 2005 (edited) Or to paraphrase the comments on this thread, what is so compelling about investing in property as a landlord? Stereotyped behaviour, an inate inabilty to think creatively perhaps? There are far better places for money at the moment. And, really, who would want the hassle of property ownership in a dying market? Edited August 5, 2005 by Red Baron Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted August 5, 2005 Share Posted August 5, 2005 The loss of £20 per week interest is a minor irritation. The triumphal crowing of the bulls is a little annoying, but hey, it would be boring here without their two pennyworth . Quote Link to comment Share on other sites More sharing options...
Red Baron Posted August 5, 2005 Share Posted August 5, 2005 (edited) Agreed! This is a debating forum and all the better for the presence of intelligent bulls who fight their corner very well. Edited August 5, 2005 by Red Baron Quote Link to comment Share on other sites More sharing options...
Guest Riser Posted August 5, 2005 Share Posted August 5, 2005 (edited) 1. Rents are not rising2. The rent I pay is a fraction of the interest on my STR savings (from the sale of 3 houses). 3. Property values are falling; when (if) I buy back into property it will be much cheaper. If not I won't bother. 4. I am not tying up capital in a depreciating asset. I do not pay stamp duty, maintenance, insurance and all the other invisible costs of OO. 5. I am free to sweat my capital and employ it in things that do make money. 6. I am not tied to a house - I have total freedom about where I live. Anything else you would like to know about the liberation of thinking outside the box? <{POST_SNAPBACK}> Also 3b when (if) you buy back into property you will be chain free so able to secure a bigger discount, and gazunder if you really want to play that game. Edited August 5, 2005 by Riser Quote Link to comment Share on other sites More sharing options...
scaramanga Posted August 5, 2005 Share Posted August 5, 2005 I just had a thought about STR's funding part of their rents with their deposits. The drop in IR's means you'll have to stump up more to pay the rent next month.I call that worse than a rent rise. I'd be interested in hearing what in means in % terms for some STR's if you don't mind? What would another .25% mean and another? Maybe your rent is going up faster than you realised. <{POST_SNAPBACK}> well i am not a str but a renter all the same,i have just signed up with my landlord for 12 more months.rent last year for a four bedroom detatched vicarage(bit old and tatty round a few edges)£725 per month,new agreement negotiated£700 per month,where is the increase on my rent,oh there isnt one,a reduction instead because the landlord has a modicum of common sense and knows how many rental props are available in my area this scenario i am sure is being played out all over the country,raise the rents,not in the real world....... Quote Link to comment Share on other sites More sharing options...
justanewbie Posted August 5, 2005 Share Posted August 5, 2005 With a stagnant market, there are advantages to both holding on to BTLs and also to staying as an STR and also to renting as a potential FTB. The arguments can sway back and forth. But if the market is really falling, and falling badly, then STRs are gaining. Roll on August 8th and those Land Registry figures. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted August 5, 2005 Share Posted August 5, 2005 Yes if you don't mind, what the reduced interest means versus your rent as a %?<{POST_SNAPBACK}> Nothing for me, I'm dropping my rent! Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted August 5, 2005 Share Posted August 5, 2005 well its only a midget of a rise, but still. it goes to show you the backwards thinking of the government. when not reducing lending costs and pushing the housing market. im being hammered by property programs daytime AND evening. is this the ONLY topic of our economy and country - houses ? Quote Link to comment Share on other sites More sharing options...
Pink Flamingo Posted August 5, 2005 Share Posted August 5, 2005 Sorry - I'm a HPC virgin ..... what's an STR? Quote Link to comment Share on other sites More sharing options...
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