longtomsilver Posted May 29, 2013 Share Posted May 29, 2013 (edited) Should we all have a property empire for our pension, yes all 70million of us to rent to each other. That'll drive GDP. Edit: even a handy calculator so the DM now offer financial advice. So you are struggling to sell your overinflated asset worry no more, leverage some more and buy another house to live in. Now you are an empire builder, stick that on your CV and get a better job to boot. Edited May 29, 2013 by longtomsilver Quote Link to comment Share on other sites More sharing options...
Oh Well :( Posted May 29, 2013 Share Posted May 29, 2013 Why not buy and rent to yourself? That way you could get tax relief on your mortgage. While you are about it buy a holiday home, oh and maybe a pad in London. After all what have you got to lose? Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted May 29, 2013 Author Share Posted May 29, 2013 [quote name=Oh Well ' timestamp='1369817482' post='909331201] Why not buy and rent to yourself? That way you could get tax relief on your mortgage. While you are about it buy a holiday home, oh and maybe a pad in London. After all what have you got to lose? Lol, if only. All BTL mortgages have clauses in them to stop this. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted May 29, 2013 Share Posted May 29, 2013 (edited) Should we all have a property empire for our pension, yes all 70million of us to rent to each other. That'll drive GDP. Edit: even a handy calculator so the DM now offer financial advice. So you are struggling to sell your overinflated asset worry no more, leverage some more and buy another house to live in. Now you are an empire builder, stick that on your CV and get a better job to boot. On the contrary, it seems the Government prefers as many owner-occupiers as possible as it allows the fantasy 'imputed rent', a contributer to GDP which corresponds to no transaction or flow of money, to be massaged without any recourse to reality. Owner-occupied 'imputed rents' have grown by around 40% since 2007, in nominal terms, on a housing stock which is near identical in size and despite private sector rents (which imputed rents are supposedly related to) not even coming close to matching that sort of performance. This rise has accounted for approximately a quarter ofthe total UK nominal GDP growth in the period. Edited May 29, 2013 by cheeznbreed Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted May 29, 2013 Share Posted May 29, 2013 On the contrary, it seems the Government prefers as many owner-occupiers as possible as it allows the fantasy 'imputed rent', a contributer to GDP which corresponds to no transaction or flow of money, to be massaged without any recourse to reality. Owner-occupied 'imputed rents' have grown by around 40% since 2007, in nominal terms, on a housing stock which is near identical in size and despite private sector rents (which imputed rents are supposedly related to) not even coming close to matching that sort of performance. Something in the ft today about the ONS (dont think its complimentary). Someone has to come knocking on the door of imputed rent soon. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted May 29, 2013 Share Posted May 29, 2013 (edited) Something in the ft today about the ONS (dont think its complimentary). Someone has to come knocking on the door of imputed rent soon. Indeed they do, but who will do it and when? Will it be subject to a revision like the inflation numbers were a few years ago, when the ONS fessed up to clothing price errors and said "oh well, we've got it wrong for 12 years, no harm done eh?" http://www.bbc.co.uk/news/business-12509488 This is a much bigger one though, given it now accounts for over 8% of our national economy (as far as GDP is concerned). Edited May 29, 2013 by cheeznbreed Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted May 29, 2013 Share Posted May 29, 2013 Indeed they do, but who will do it and when? Will it be subject to a revision like the inflation numbers were a few years ago, when the ONS fessed up to clothing price errors and said "oh well, we've got it wrong for 12 years, no harm done eh?" http://www.bbc.co.uk/news/business-12509488 This is a much bigger one though, given it now accounts for over 8% of our national economy (as far as GDP is concerned). Cheez, do you recall the thread that looked at it in some depth? Presumably freetrader was involved. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted May 29, 2013 Share Posted May 29, 2013 Cheez, do you recall the thread that looked at it in some depth? Presumably freetrader was involved. Yes, Free Trader is the one who raised it as an issue, I just mention it whenever possible to keep it in people's minds. Here's a few threads, in reverse order (just posting them as I find them) September 2012, post #13 has a chart: http://www.housepricecrash.co.uk/forum/index.php?showtopic=183250&pid=909148176&st=0entry909148176. Here's a post from later on in the thread which demonstrates the absurdity well: The rationale behind imputed rent is a reasonable one I think – without it comparisons between countries might be distorted, for example with Germany where owner occupation is lower. My beef is that the measure is open to abuse, and I can see no logic behind the sharp rise in imputed rents over the past few years (well, I can think of some cynical reasons). Based on imputed rent alone and without any of us getting out of bed in the morning, the UK would still rank in the top 50 economies in the world. May 2012 thread started by Democorruptcy, which Free Trader also posts in and links back to his original thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=173300&st=0&p=3214701entry3214701 Dec 2011 original thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=178116 Quote Link to comment Share on other sites More sharing options...
koala_bear Posted May 29, 2013 Share Posted May 29, 2013 Imputed rent: When I last had a look it appeared that imputed rent was assumed to be the same as previously in initial GDP estimate then changed for the 2nd or 3rd release (only ever upwards). Quote Link to comment Share on other sites More sharing options...
dryrot Posted May 29, 2013 Share Posted May 29, 2013 Edit: even a handy calculator so the DM now offer financial advice. So you are struggling to sell your overinflated asset worry no more, leverage some more and buy another house to live in. Now you are an empire builder, stick that on your CV and get a better job to boot. The DMs "Ten Tips for BTL" are equally informative http://www.dailymail.co.uk/money/mortgageshome/article-1596759/Ten-tips-buy-let.html "Rent should be the key return for buy-to-let. Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time. If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash. " Priceless insider information, shared with savvy-DM-readers alone. (and now hpc of course!) Quote Link to comment Share on other sites More sharing options...
Tonkers Posted May 29, 2013 Share Posted May 29, 2013 The DMs "Ten Tips for BTL" are equally informative http://www.dailymail.co.uk/money/mortgageshome/article-1596759/Ten-tips-buy-let.html "Rent should be the key return for buy-to-let. Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time. If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash. " Priceless insider information, shared with savvy-DM-readers alone. (and now hpc of course!) I am dumb, but why wouldn't you buy the house with the extra cash? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted May 29, 2013 Share Posted May 29, 2013 I am dumb, but why wouldn't you buy the house with the extra cash? Increase your indebtedness and spend to get the economy moving..... you know it makes sense . Quote Link to comment Share on other sites More sharing options...
Tonkers Posted May 29, 2013 Share Posted May 29, 2013 Increase your indebtedness and spend to get the economy moving..... you know it makes sense . Yeah! In that article buying the thing isn't even considered. It's weird. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 29, 2013 Share Posted May 29, 2013 There are people that will PAY YOU to care for their investment.......there are people that will let you live FREE in their investment.....there are people that will charge you what it COSTS THEM to enjoy their investment....there are people that will MAKE A KILLING and charge you as much are they can possibly get to live in their investment. Quote Link to comment Share on other sites More sharing options...
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