Landlords Benefitting From Our Economic Woes

[DrMartinSanchez]

The state of the economy is hardly something to sing and dance about, but there is one group that may feel like they have gained an advantage from the unprecedented turmoil of the past few years — buy-to-let investors.

Indeed, even in 2011 when household budgets are being squeezed, redundancies are rising and Government spending cuts starting to bite, the prospects for landlords look pretty rosy.

Are they really benefiting from the misery being heaped on the rest of us?

Rubbish V I article, but you might be interested.

http://uk.finance.yahoo.com/news/Landlords-benefitting-yahoofinanceuk-3494099014.html

[A_Landlord]

Rubbish V I article, but you might be interested.

http://uk.finance.yahoo.com/news/Landlords-benefitting-yahoofinanceuk-3494099014.html

Sorry to disappoint, but in my experience it is mostly true. The only bit I would disagree with is that rents are increasing. They are not and I have dropped my rents (£5/week) on a couple of 3bed terraced properties. But my profits are good with the low interest payments and very low voids.

[silver surfer]

Sorry to disappoint, but in my experience it is mostly true. The only bit I would disagree with is that rents are increasing.

That's like saying the only bit of christianity that you'd disagree with is the bit about christ. The central point of the article was that rents are increasing, so if you're falling behind the performance of your fellow landlords what does that say about your landlording skills?

[cica]

Yep, it is all in favour of the landlord at the moment but the whole booming-rents thing is suspicious and the data I have seen is mixed. Landlords will still be king for the short term but I remained convinced that the medium term holds many problems for them.

Edited April 5, 2011 by cica

[A_Landlord]

That's like saying the only bit of christianity that you'd disagree with is the bit about christ. The central point of the article was that rents are increasing, so if you're falling behind the performance of your fellow landlords what does that say about your landlording skills?

Landlording skills = having good tenants with no voids. A minor reduction in rent to have the same family stay for 3 or 4 years saves on voids (= no income) and saves on decorating/modernising costs.

My point was that for the last 2 years I have made more increased profit/month due to being on variable rate mortgages (even with static or slightly reduced rent) when compared to +4 years ago.

The properties I have are in a working class town which is characterised by the 3 points the article mentions so I cannot see rental demand dropping while house prices are propped up and their is no job security/high unemployment in the town.

[silver surfer]

My point was that for the last 2 years I have made more increased profit/month due to being on variable rate mortgages (even with static or slightly reduced rent) when compared to +4 years ago.

And you'd have made even more money if you could have bumped up your rents in line with the market. Hang your head in shame you market lagging, underperforming entrepreneur. If Alan Sugar we're her he'd fix you with a steely gaze and say, "You're fired!"

[skomer]

Sorry to disappoint, but in my experience it is mostly true. The only bit I would disagree with is that rents are increasing. They are not and I have dropped my rents (£5/week) on a couple of 3bed terraced properties. But my profits are good with the low interest payments and very low voids.

Where abouts are you in the country?

Just anecdotal chat from my office but people i work with who rent in inner-london (boroughs of Soutwark &Wandsworth) are complaining of rising rents on renewal on their small 1 bed flats

[tim123]

Sorry to disappoint, but in my experience it is mostly true. The only bit I would disagree with is that rents are increasing.

They certainly are when I have been looking to move.

tim

[exiges]

Rubbish V I article, but you might be interested.

I'd agree with the article. With people unable to get a mortgage, rent demand has gone up. ZIRP has meant that even landlords who overpaid massively at the peak are still coining it in.

[porca misèria]

That's like saying the only bit of christianity that you'd disagree with is the bit about christ. The central point of the article was that rents are increasing, so if you're falling behind the performance of your fellow landlords what does that say about your landlording skills?

Nothing inconsistent about it.

Average rents rise, as more higher-value property comes on the market.

Individual rents fall, as there is less money sloshing around.

Profit margins rise, as landlords costs have been slashed.

[NEO72]

Almost a third of landlords (32%) have already raised their rents this year, according to a survey published by Paragon Mortgages [in their own words - "One of the UK's leading provider of residential BTL mortgages"] this week.

And, according to LSL Property Services, rents rose by 0.2% in February to £684, an annual increase of 3.9%

Never used the 'roll eyes' emoticon before - think now could be the time..

[Timm]

rents aren't increasing.

no need to be so rude either to someone who has a different perpective to most of us.I think the key comparison he should be making is with returns from a wider portfolio of investments.as such,he sounds like he's doing a sensible job of not chasing short term gains for long term losses.hardly worthy of the insults you pile on.

Amen to all that.

[Injin]

Emopty houses + 10 to a filled house = higher rents.

Just like the old days.