I Had To Smile To Myself

[cardiffone]

Really, were most rental houses bought over ten years ago?

I only pay my own bills. Electricity, gas, rates, rent for a roof over my head, and it's a darn site cheaper than buying .

scanning through zoopla, most houses where last sold before the "boom", but you can correct me if you have the figures

Aren't most rental properties student lets anyway, most of those areas have been established quite a while.....

[Bruce Banner]

scanning through zoopla, most houses where last sold before the "boom", but you can correct me if you have the figures

Aren't most rental properties student lets anyway, most of those areas have been established quite a while.....

Whatever, it matters not.

Profit figures on a rental house are all based on yield, and to be meaningful, yield should be calculated on present day market value, not what the house cost ten or twenty years ago.

[Darkman]

What's a parasite living off a parasite called ?

A parashite?

[Number79]

Never, ever again sign a contract consenting to quarterly visits. That is seriously detrimental to your entitlement to quiet enjoyment of YOUR home

If they ever come around and try and let themselves in again, write them a letter immediately the next day threatening legal action if they so much as look through a window without your consent in the future

You are well within your rights to change the locks so they can't let themselves in.

I know but at the time it wasnt worth arguing as there was nothing else available.

I have always wanted to write them a snotty letter about them telling me that they will let themselves in, every quarter in fact , but it is not worth the hassle. It is a small village with few alternatives.

The locks are changed though. I even used their name at the hardware shop to get extra keys cut free

[cardiffone]

Whatever, it matters not.

Profit figures on a rental house are all based on yield, and to be meaningful, yield should be calculated on present day market value, not what the house cost ten or twenty years ago.

na real profit is based on what you pay, and how much you make.

[Bruce Banner]

na real profit is based on what you pay, and how much you make.

We're talking about rental profit, not capital gains.

If you paid £100K for a house and it's now worth £150K, you could sell it and bank the £150K making £50K capital gain, you've made that, it's yours. If you decide to keep it, you should base your rental profit calculations on yield at current market value.

[cardiffone]

We're talking about rental profit, not capital gains.

If you paid £100K for a house and it's now worth £150K, you could sell it and bank the £150K making £50K capital gain, you've made that, it's yours. If you decide to keep it, you should base your rental profit calculations on yield at current market value.

I'm talking about both.

potential yield is just used for selling to potential landlords....

[Johnny Storm]

You have to ask yourself. If renting is such a happy cheap prospect, why are you wasting your time on a website devoted to house prices dropping so you can afford to buy.

My landlord replaces my washing machine. Yeah he puts the cheapest nastiest noisiest model in, that breaks every 3 months. Great.

My neighbours make the place smell of curry, I can hear a baby crying, the car parked next to mine is 12 year old and he parks like sht. Yeah its great renting isnt it.

[Bruce Banner]

I'm talking about both.

potential yield is just used for selling to potential landlords....

I give up, have it your own way .

[Si1]

We're talking about rental profit, not capital gains.

If you paid £100K for a house and it's now worth £150K, you could sell it and bank the £150K making £50K capital gain, you've made that, it's yours. If you decide to keep it, you should base your rental profit calculations on yield at current market value.

keep up the good work mate

[Bruce Banner]

You have to ask yourself. If renting is such a happy cheap prospect, why are you wasting your time on a website devoted to house prices dropping so you can afford to buy.

My landlord replaces my washing machine. Yeah he puts the cheapest nastiest noisiest model in, that breaks every 3 months. Great.

My neighbours make the place smell of curry, I can hear a baby crying, the car parked next to mine is 12 year old and he parks like sht. Yeah its great renting isnt it.

I like posting here.

I could afford to buy now, cash, if I wished. I choose not to and yes, I'm very happy renting.

I don't care if my landlord buys cheap appliances, he just has to replace them more frequently, although, having said that, my landlord buys decent stuff that lasts.

I've yet to smell a neighbours curry and there are no babies nearby.

I live in an up market neighbourhood with Porsches and Ferraris parked in the courtyard.

Yes, renting is great if you rent the right house.

[Dorkins]

Yes, renting is great if you rent the right house are far enough up the market.

Corrected for you.

At the bottom rents are held up by the LHA glass floor. Yields are higher and value for money is worse. Landlords often look down their noses at their (younger, poorer) tenants and treat them like dirt. Watch any episode of Homes Under the Hammer, at least once somebody will say that something is 'aimed at the rental market' i.e. it has all been done as cheaply as possible.

[cybernoid]

You have to ask yourself. If renting is such a happy cheap prospect, why are you wasting your time on a website devoted to house prices dropping so you can afford to buy.

My landlord replaces my washing machine. Yeah he puts the cheapest nastiest noisiest model in, that breaks every 3 months. Great.

My neighbours make the place smell of curry, I can hear a baby crying, the car parked next to mine is 12 year old and he parks like sht. Yeah its great renting isnt it.

If you're unlucky with your neighbours you can move. Imagine making a poor buying decision and being in negative equity not able to afford to move surrounded by neighbours you want to get away from.

The renting experience isn't brilliant but it's better than the buying experience you would have had if you bought within the last few years.

It's living in the uk thats the problem. And as renters we can solve that pretty quickly too if it comes to it.

[Meat Puppet]

Among all the dross you can occasionally find some interesting research by the government. Here is one that looks at the attitudes of private landlords. It focuses on attitudes to LHA, but also offers some other interesting information about the business in general.

http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep689.pdf

I like this one in the introduction.

Starting a tenancy

Respondents most commonly said that they followed the market when setting their rents. Others

simply used the LHA rates to set their rents, either viewing these as good indicators of market rents,

or because they were largely operating within the HB sub-market. Landlords often also took into

account their running costs when setting rent levels. Some respondents were rent maximisers,

charging as much rent as they felt the market, or the HB sub-market could bear; whilst others were

turn-over minimisers, undercutting the market or the HB sub-market slightly. Deposits and rent in

advance were not always charged of HB tenants, because they were often thought to be unable to

afford such items. The charging of deposits, perhaps of just a small amount, was often thought to

be of symbolic importance in showing that a tenant had the ‘right attitude’.

Seems that some, maybe even most, of these future property billionaires actually do consider their costs.

And this about their short term intentions.

The main impact of the current economic climate appeared to be that landlords were postponing

decisions about increasing or reducing the size of their portfolios. A number of landlords - with both

small and large portfolios - stated that ideally they would like to expand what they had, but that the

current mortgage market precluded this option for those who relied on loan finance. For example,

one landlord noted that her plans to expand had been stymied by her lender, who had withdrawn

the financial backing that had been previously agreed prior to the economic downturn.

Looks like most of them also consider it a good business to be in, but the nasty bankers are holding them back.

[Bloo Loo]

Among all the dross you can occasionally find some interesting research by the government. Here is one that looks at the attitudes of private landlords. It focuses on attitudes to LHA, but also offers some other interesting information about the business in general.

http://research.dwp....010/rrep689.pdf

I like this one in the introduction.

Seems that some, maybe even most, of these future property billionaires actually do consider their costs.

And this about their short term intentions.

Looks like most of them also consider it a good business to be in, but the nasty bankers are holding them back.

the words were.."Landlords OFTEN also took into account"

so many dont. they wing it and hope.

[cybernoid]

Among all the dross you can occasionally find some interesting research by the government. Here is one that looks at the attitudes of private landlords. It focuses on attitudes to LHA, but also offers some other interesting information about the business in general.

http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep689.pdf

I like this one in the introduction.

Seems that some, maybe even most, of these future property billionaires actually do consider their costs.

And this about their short term intentions.

Looks like most of them also consider it a good business to be in, but the nasty bankers are holding them back.

The model relies on capital appreciation, without that they are a charity that provides housing for tenants. Any idiot can consider themselves a financial genius in a bull market, they can consider it to be a good business all they like, misguided opinions don't turn a profit.

And setting their rent level dependent on costs is an approach that says 'if I charge it they will pay it', and much like most sellers at the moment are discovering, it is bull.

The report is summarizing the opinions of people who lucked out in a bull market, these opinions aren't worth much.

[GinAndPlatonic]

They are all minor - nothing major.

1. The toilet seat is broken. I have tried to remove it to put a new one on but can't undo the nuts. So I mentioned that to her.

2. The light bulb has gone on the landing and we haven't been able to fit a new light bulb in - I don't know why. I don't have tools or ladders and stuff. Anyway it's dark on the landing not too bad a problem and definately for me to put a bulb in but I just can't do it. Nor can my son and we have managed to change other bulbs.

3. The shower is broken as in the plastic holder for the shower head has broken.

My advice to you is rent forever. You`re just not cut out to own a house, even at 50% of todays perceived values...

[caparn]

There's no responsibility being a tennant it's lovely.

I have been in a rented house about 18months. I have just had my 2nd estate agent visit. I should have an estate agent check every 6 months and so they're a bit behind schedule.

Anyway, she told me that I had to clean the house lol. I suppose that told me.

I felt very tennantish and just about stopped myself from saying whatever.

One of my favourite things about renting is that if the boiler or shower breaks, I have to make one phone call and it's sorted for free.

My favourite bit is smashing the place up the night before I leave

So your landlord is losing money and doing you a favour? Or maybe you are all landlords in disguise? hahaha

[Bloo Loo]

I've been through the house buying process recently and met a number of people in the process ... estate agents, building society valuers, vendors, mortgage brokers and other such deluded souls.

I was surprised at the number of people who suddenly confessed they had a property portfolio. Most of them seemed as pleased as punch. All of them were looking to expand their portfolio. Nutters eh?

Personally, I'd call them nasty sods, but they do not appear to be nutters as far as I can see. Still, each to their own.

Rents seem to be going up at the moment. To rent a similar house to the one I used to rent would have cost me an extra £400 a month.

The thing I most disliked about being a tenant (as opposed to a lager) was having to allow the agency to inspect the premises. These were pretty regular - every 4 months or so. They were very thorough, bloke walked around with a little laptop and made copious notes about the house which was in a pretty poor state when we moved in. This made me feel like a serf. Still, it was okay when the money in the bank used to pay the rent.

But once the money in the bank wasn't covering the rent and, faced with the prospect of having to pay £400 more for a similar house, I gave in and bought another house.

Struggled up the road for a walk in the snow this morning. Blow me, 2 little houses up the end of the road have got Sold signs outside. Didn't even see the For Sale signs. It's very regional this 'crash' and very little evidence of it here.

over a million BTL mortgages out there.

many are IO. some are defaulting.

Ive noticed the few Sales that seem to complete around here end up with a white van and builders in...for sale weeks later with a markup...except, they arent able to sell the done up place...

the price paid was the price the market will tolerate...adding a cheap kitchen and some magnolia doesnt justify an extra 30K anymore. So another rental hits the market.

[Bruce Banner]

On the other hand, when you could buy a property and get enough rent to pay a repayment mortgage for 25 years, you didn't need capital appreciation, you had tenants buying you a property.

Must be why so many landlords are as happy as Larry. The only ones who must be worrying are the ones who piled in at the end. The rest of the barstewards are laughing.

The way rents are going up at the moment, I'm sure many landlords are repaying capital or, of course, expanding their bloody portfolios.

My landlord's happy, he hasn't cottoned on to the fact that he would have been a lot better off if he'd sold the house a few years ago for £400K and stuck the money in the bank. The house is now only worth about £350K, if he finds the right buyer, and he's only getting £11K a year off me. Out of that £11k, he has to pay about £2.5K a year in estate maintenance fees plus all the house maintenance, so in a good year he may pocket £8K, giving a pre tax net yield of about 2.3% and the house is still depreciating.

[dances with sheeple]

I've been through the house buying process recently and met a number of people in the process ... estate agents, building society valuers, vendors, mortgage brokers and other such deluded souls.

I was surprised at the number of people who suddenly confessed they had a property portfolio. Most of them seemed as pleased as punch. All of them were looking to expand their portfolio. Nutters eh?

Personally, I'd call them nasty sods, but they do not appear to be nutters as far as I can see. Still, each to their own.

Rents seem to be going up at the moment. To rent a similar house to the one I used to rent would have cost me an extra £400 a month.

The thing I most disliked about being a tenant (as opposed to a lager) was having to allow the agency to inspect the premises. These were pretty regular - every 4 months or so. They were very thorough, bloke walked around with a little laptop and made copious notes about the house which was in a pretty poor state when we moved in. This made me feel like a serf. Still, it was okay when the money in the bank used to pay the rent.

But once the money in the bank wasn't covering the rent and, faced with the prospect of having to pay £400 more for a similar house, I gave in and bought another house.

Struggled up the road for a walk in the snow this morning. Blow me, 2 little houses up the end of the road have got Sold signs outside. Didn't even see the For Sale signs. It's very regional this 'crash' and very little evidence of it here.

You are sounding desperate now, can`t remember the last time I had a landlords inspection, certainly not in last five years, my rent at 450 p.m central Edinburgh is what I call market rate,that is a $100 increase in 13 years, not great for landlords, OK for me.

[dances with sheeple]

The model relies on capital appreciation, without that they are a charity that provides housing for tenants. Any idiot can consider themselves a financial genius in a bull market, they can consider it to be a good business all they like, misguided opinions don't turn a profit.

And setting their rent level dependent on costs is an approach that says 'if I charge it they will pay it', and much like most sellers at the moment are discovering, it is bull.

The report is summarizing the opinions of people who lucked out in a bull market, these opinions aren't worth much.

Good post.

[Meat Puppet]

You are sounding desperate now, can`t remember the last time I had a landlords inspection, certainly not in last five years, my rent at 450 p.m central Edinburgh is what I call market rate,that is a $100 increase in 13 years, not great for landlords, OK for me.

In the nearly four years I've been at my current place the only time anyone came around was when I was on holiday and a new bathroom suite was put in.

Last time I was in the UK about a decade or more ago, I rented a place for more than 2 years and again no one came round. My son was 1 when we left that place and had done some damage especially to the wallpaper, but when we left the landlord said nevermind, kids are kids, that we had been model tenants, and gave back the full deposit.

I love renting.

[dances with sheeple]

In the nearly four years I've been at my current place the only time anyone came around was when I was on holiday and a new bathroom suite was put in.

Last time I was in the UK about a decade or more ago, I rented a place for more than 2 years and again no one came round. My son was 1 when we left that place and had done some damage especially to the wallpaper, but when we left the landlord said nevermind, kids are kids, that we had been model tenants, and gave back the full deposit.

I love renting.

The best rental I have had so far here in Edinburgh was a coach house, massive private garden, Fred the shred lived in the same street although I didn`t know it at the time, the rent was $1000 p.m, landlady told me once she was "asset rich, cash poor", so telling, many property owners in the UK are now asset poorer and cash poor they will be glad to rent you their nice property if you are a good tenant, great deals ahead for renters IMO.

[Sibley's Love Child]

Cant see any real facts a figures here, though I'm sure you're right and a lot of recent landlords are losing out, at least short term.

But most houses were bought over 10 years ago...and the landlords who own those must be making a killing... and you will be paying all their bills....

Not mine, checked LR and my bought his in 2004. I moved in last February (2010); within the first three months he had to replace the combi boiler, electric shower and fuse-box all within the first three months. Still, I bet he's making a killing.

And what's with the 's' and 'z' mash-up; you're not Stuart Lawzzzz are you?