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Utter Disbelief

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Maybe an anecdotal but worth leaving here for an evening (pretty please, robo-mods). Just read this on another forum

Hi guys,

I am looking to invest in a buy-2-let. With most of my money tied up in the stock market i am thinking of alternative ways to raise capital,

I have 150k of equity tied up in a house i own. How difficult is it to raise the necessary deposit on a house by re-mortgaging an existing property...

Rental income should be around £1,500 a month....already booked a meeting with the mortgage bloke down the Halifax...

Thanks

Very true advice regarding reasons not to rent etc.

I'm looking at investing in student 6-bed house. Pack them in and pay of the mortgage...etc..

The wife already has one, and having looked into it. If you dot the i's and cross the T's then it can be a savvy investment. I'm just thinking i'd better start thinking about our future etc. Equity is currently justs sitting in the other house doing nothing...

Once i sell a few shares, I'll look to pay of the remaining mortgage....well thats the plan hopefully!!!!!!!!!!!!!1

As I am currently want to say, the darkest hour comes just before the dawn.

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I wouldnt mind, but for the fact that when it (inevitably) goes wrong theyll be on the local BBC/ITV news, reporter championing their cause - they only wanted to plan for their retirement (by taking on more debt), Local MP will be getting the bank to give them mortgage holidays, taxpayer will bail the bank out in turn, rates will be allowed to be held to help save them and the other million BTL morons who cant work out how to use a calculator.

Course, if their student tenants missed a single payment, they would throw them out on the streets in no time. Except the BBC and politicians wont be championing their cause.

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Wonder if the fees will put a stop to this though. My student house (2005) was cheap (£38 ppw) but filthy. Some students would spend £120ppw though, for a nice bathroom suite and kitchen.

Hopefully more money on tuition = less money for students to spend on paying landlords.

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Maybe an anecdotal but worth leaving here for an evening (pretty please, robo-mods). Just read this on another forum

As I am currently want to say, the darkest hour comes just before the dawn.

Is this the ultimate contra signal and time to dump BTL? If you think its the darkest hour it must be the lightest--or so some on here would say. :lol:

The demand for rentals around my way is HUGE--hardly anything available and you have to pay £1k a month for a 2 bedroom bungalow that could do with modernization.

A local EA I have got to know hates BTL and believes it has ruined the market for buyers and sellers who are just interested in finding a place to live or who need to sell to move etc. Speculators need to be taxed heavily and its a pity the Koalishon have proven to be pro HPI who will continue to do all they can to keep HPI moving as we saw with the 28% token CGT when they could have gone for top rate at 50% on gains.

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Is this the ultimate contra signal and time to dump BTL? If you think its the darkest hour it must be the lightest--or so some on here would say. :lol:

The demand for rentals around my way is HUGE--hardly anything available and you have to pay £1k a month for a 2 bedroom bungalow that could do with modernization.

A local EA I have got to know hates BTL and believes it has ruined the market for buyers and sellers who are just interested in finding a place to live or who need to sell to move etc. Speculators need to be taxed heavily and its a pity the Koalishon have proven to be pro HPI who will continue to do all they can to keep HPI moving as we saw with the 28% token CGT when they could have gone for top rate at 50% on gains.

I believe they don't taper the new CGT for inflation, though. So it's not as generous as it looks. I.e. if your BTL house goes up for 100k to 200k and you sell you incur a 28k tax bill - even if general prices have also increased by 100% (so you make a big loss after tax).

Agree with your point on rentals, though. I rent in London. It's become a nightmare in the last year. Terraced house in zone 2/3, nice area, south London. Used to be 5-600 per month per bedroom for a few years until 2009. Seems to have rocketed to over £800 now, I looked at loads of places when I moved a few months ago. Really expensive. Anyone owning this sort of place to let out must be raking it in, esp. as their mortgages have probably dropped in the period too.

Edited by gimble

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Is this the ultimate contra signal and time to dump BTL? If you think its the darkest hour it must be the lightest--or so some on here would say. :lol:

The demand for rentals around my way is HUGE--hardly anything available and you have to pay £1k a month for a 2 bedroom bungalow that could do with modernization.

A local EA I have got to know hates BTL and believes it has ruined the market for buyers and sellers who are just interested in finding a place to live or who need to sell to move etc. Speculators need to be taxed heavily and its a pity the Koalishon have proven to be pro HPI who will continue to do all they can to keep HPI moving as we saw with the 28% token CGT when they could have gone for top rate at 50% on gains.

I certainly think more needs to be done to tax BTL

ie council tax paid by the OWNER not tenants, so its unavoidable, no interest relief given so as to benefit BTLers over FTBs, and far greater scrutiny to aviodance and evasion.

However, i think higher CGT would just result in BTLers never selling up. Theyre already hesistent enough to sell if they cant bank a profit.

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I'm not sure what astonishes me the most, given the preponderance of stories about tightening lending criteria and the unlikeliness of prices going anywhere for a while or the fact students are about to be rinsed for the best part of £20K for fees (£6K per year as I don't (yet) believe the £9K will be widespread). And of top of that the clear attitude that students are there to be exploited :blink:

Still, as long as a nationalised bank is funding it, it party like its 1999.

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Folks. The 'elephant in the room' is the £1500 per month that it thinks it can get for rental. Students combined to pay that much. I doubt it.

The average weekly student rent now stands at £65.30

Edit - my thought is that it's asking the high end for a 6 bed share! You'd pay a lower than average to be crammed in.

http://www.guardian.co.uk/money/2010/aug/08/student-accommodation-rents-increase

Edited by Redcellar

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Folks. The 'elephant in the room' is the £1500 per month that it thinks it can get for rental. Students combined to pay that much. I doubt it.

Edit - my thought is that it's asking the high end for a 6 bed share! You'd pay a lower than average to be crammed in.

http://www.guardian.co.uk/money/2010/aug/08/student-accommodation-rents-increase

£65 per week is £280 a month each which is £1680 for 6 so not wildly optimistic. Although my understanding was student letting is based upon 11 monthly payments so there's a void but doing the sums that's equiv. to £1500 a month anyway. No idea on location so the sums might be right. My concern over rent levels would be th emoney students have to spend in future. But having watched house prices for so long, a market defying logic is nothing new.

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Depending on students for rental income at the moment seems short sighted, considering the recent trouble from the rise in tuition fees. I know the coalition plan to protect the poorest from the rises but I would be expecting student numbers to drop noticeably in the coming years. I'd also bet more students will be selecting universities closer to home (Mum and Dad) to save money. Could be wrong but it looks far from a guaranteed market, certainly in terms of numbers that we've seen over the past ten years, for the foreseeable.

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Depending on students for rental income at the moment seems short sighted, considering the recent trouble from the rise in tuition fees. I know the coalition plan to protect the poorest from the rises but I would be expecting student numbers to drop noticeably in the coming years. I'd also bet more students will be selecting universities closer to home (Mum and Dad) to save money. Could be wrong but it looks far from a guaranteed market, certainly in terms of numbers that we've seen over the past ten years, for the foreseeable.

The odd uni collapse/merger could throw a spanner in the works too.

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I'm looking at investing in student 6-bed house. Pack them in and pay of the mortgage...etc..

The wife already has one, and having looked into it. If you dot the i's and cross the T's then it can be a savvy investment.

The crippling rise in tuition fees means fewer people will go to university. So rents for student accommodation in uni towns are more likely to fall than rise.

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We have relatives looking to go to university, they were considering one university 'up north' but are now looking at one they can commute to in the south while living at home; not really the full university experience but a cheaper option overall.

this is pretty much the pattern, AFAIK, these days in many other countries - you go away to university if (1) the required course isn't available locally, or (2) you have exceptional ability and a sufficient standard is not available locally

Even then, an available option to save money is to commute for maybe the first year as, outside 'hard' subjects, this is usually a doss

also, major universities need to embrace distance learning more, via webcast lecturesand SKYPE tutorials

Edited by Si1

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The crippling rise in tuition fees means fewer people will go to university. So rents for student accommodation in uni towns are more likely to fall than rise.

at same time, will reduce disposable income of students, again pushing down rents

over recent years student houses have often been quite luxurious - a return to 'Young Ones' housing ...

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Depending on students for rental income at the moment seems short sighted, considering the recent trouble from the rise in tuition fees. I know the coalition plan to protect the poorest from the rises but I would be expecting student numbers to drop noticeably in the coming years. I'd also bet more students will be selecting universities closer to home (Mum and Dad) to save money. Could be wrong but it looks far from a guaranteed market, certainly in terms of numbers that we've seen over the past ten years, for the foreseeable.

My boss, a senior lecturer has two kids midway through secondary and he's already talking about stearing them further from home as in abroad. His logic is if you are going to be paying the premium you'd be as well getting the better education and have the foreign degree-life experience etc, rather than the bums on seats approach taken in the uk, to put on the cv.

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The crippling rise in tuition fees means fewer people will go to university.

And those that do will have probably less disposable (other than the highly privileged).

I only see a downward pressure on student accommodation pricing.

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Guest The Relaxation Suite

go not to Landlordzone.com saying this and you'll get banned.

1990 what 20% kids at uni

2010 and it's 42%.

can't see that trade ending up on BBC morning news sob story section.

I read somewhere that Oxford rents are falling faster than many other towns, as are Cambridge. Is this why?

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£42?

Luxury!

exactly in 1990 we paid 17 quid a week , which was a good chunk of the grant I got from the government , kids nowadays don't know who lucky they are with thier 120 quid a week ensuite luxury ...

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Friend of mine has just bought his 6th BTL.

This one was initially up for sale at £349K, he ended up getting it for sub-£300K (wouldn't tell me how much) and needs a good £10K spend on it for proper heating. It should rent for £900pcm so gross yield is around 3.5%.

I don't see how this is a viable investment unless his BTL rates is guaranteed to be sub 2% forever.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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