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The Preacherman

What You Should Know Before You Become A Landlord…

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oh boo hoo...landlord butt hurt because he forgot to protect the deposit.

If he cant even abide by well publicized regulations, what are the chances he's paying tax.

And landlords would be the first to claim if the mortgage company forgot a regulation and the LL could claim compo, even if no loss occured.

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Yes I noticed that. complaining about a tenant wanting his deposit protected.. apparently demanding this is blackmail/harassment?

But, no mention of WHY? they have this onerous duty with someone elses money...Its because before they were required to protect it, they spent it, and never returned it, and then demanded the tenant sued back for it after replacing the 10 year old landlord quality 1/10th inch carpet because there was a foot mark worn in the doorway.

not sure why all the vaginal references...

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It's worrying that somebody with this mentality is in charge of other people's housing. The guy is constantly posting about his inner desire to violently attack his tenants. He thinks of his tenants as "adult-sized children". He doesn't seem to think it's necessary for "decent landlords" to comply with deposit protection laws.

The guy's a living caricature of the sh1t British landlord: irresponsible, something-for-nothing, and zero respect for tenants as fellow human beings.

Edited by Dorkins

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Off we go.

'I got suckered into the game, probably after watching one too many episodes of Sarah Beeny’s Property Ladder. If you remember the programme, you’ll recollect how excruciatingly painful it was watching the world’s biggest idiots making a killing from their restoration projects. To me, that made property seem like a viable option.'

I watched Property Ladder. It was only til series 3 I noticed that it involved houses.

From memory - baps exlcuded - the sequence went: I'll sell it for x+100K, sale fails, I'll rent it out.

Hardly aspirational. More idiots out of their depth.

'Sure, if those idiots can do it, why can’t I? But I didn’t have the time or testosterone to develop, so buying properties in ready-to-let condition seemed like the natural entry point.'

Hello, is that <insert scam company> here's my 5k tell me how to become a properyt millionaite.

'But at the time, it looked fabulously easy. And there lays the problem, being a landlord just looks too damn easy. How difficult is to put down a deposit and then get a conveyor belt of 9-to-5 sweatshop monkeys paying off the mortgage over the course of 20 odd years? We’re really onto something here. Rinse and repeat. Easy.'

Oh dear. Done his research here.

'I’m not just talking about letting agents here, although they seem like the obvious target. We all know what they’re capable of- everything you’ve heard about them is true. They’re mostly a bunch of unscrupulous tossors that create imaginative ways of swindling money out of landlords and tenants (those of you agents that read my blog are OK though, I swear! You guys are slick!).'

Oh dear.

'A good example is the tenancy deposit scheme, because it comes attached with ******** laws/penalties that unconscionable tenants take advantage of. Many dip-shit tenants needlessly prosecute/threaten decent landlords to make an extra buck just because their deposit wasn’t protected. It’s shameless. The landlord SHOULD have protected the deposit, yes, but prosecuting for the sake of profiting even though they’ve been a good landlord is an asshole move.'

A laws are only for LLs. Tenants can spin. A good LL would use the deposit scheme. What reason is there not to use the scheme, other than the LL spending the cash.

'The average landlord won’t get rich from being a landlord, they’ll most likely secure a cosy pension and make a comfortable living by the end of the cycle if they’ve been relatively successful. But even reaching that stage is a slow grind. Very slow.'

So he acknowledges a cycle. But does not recognise hes bought at the top of the top of the top.

'The average rental return typically isn’t that great, you’ll be lucky to achieve a 7% yield, so you’re not really making any real money for the first decade. You may buy and sell at the right time, but that definitely won’t happen overnight.'

Gross or net? Gross I think.

I would gues this bloke is borrowing money. How much is a BTL mortgage - 5-6% percentage? Whats his net yield - 2-3%

That's his and other post 2002 LLs problem - BTL is cash negative. Its a hope that the price will go up faster.

'I hate researching. Always have, always will. If you’re relatively normal/cool, you feel the same as I do.

Off the top of my head, I can’t think of anything that can knock it off the top spot for being the most tedious shit on the planet. I really don’t have the patience for it. Much like Golf. Don’t even get me started.

But as much as I despise it, I know some times it’s not optional.'

Good to know he's thoughtful and not impatient. Or an idiot in a hurry.

'One of the reasons that BTL isn’t a get rich scheme is because it’s like every other business- there are continuous outgoings, many of which are unexpected. Being a landlord is literally a money-pitt; it’s often expensive as hell, and forecasting costs is incredibly difficult, so you can’t even prepare for it. You will continually have to throw money at problems, mainly repairs and maintenance issues.'

Told you its cash negative.

Its possible to keep maintenance to the minimum but event then you are talking ~100/month over the medium to long term.

If you pack tenants in like an Indian train and, lets say, not be too selective then you can expect the house to be trashed.

He does not say how many hosues he has. Reading between the lines, it sounds like he's turning over too many tenants.

'I can’t say I’m familiar with many sector specific laws, but I’m going to go out on a limb and say that landlord law is probably the dumbest shit out of them all.

To sum up the state of the system: good landlords with bad tenants don’t stand a chance. They really don’t, they’re cannon fodder. We’re basically paralyzed from exercising any resistance when tenants screw us over.'

There are not many laws and they are easy to work out.

Shame he did not try.

Does our potty mouthed LL think that a Porsche car-hire to LHA tenants or people on low wages is a good business? If not why does he think leasing a house, costing mutliples of the Porsche, to someone with very little incoming money is a good bet?

The post is missing how much debt he's carrying on each property.

As far as I can work out there is no such thing as a high-LTV BTL mortgage anymore.

BTL mortgages need a big deposit and a securiry on the LL house.

The average person will be lucky to get a single BTL mortgage these days, which is a blessing in disguise.

I would guess he's a 2002-2008 BTL LL.

Does the fact that the majority of BTL mortgage providers of that era: NR, WB, BB, etc are all bust not strike him as strange?

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LL that take the piss should have some prison time. Ones that put their tennants up in illegal sheds and uninhabitable conditions, The fines handed out are less than the tax free money they are making so never dissuades them.

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Landlording hasn't been cash flow positive for 10+ years, its hilarious that only some have even spotted that by now. That situation creates a stupidity filter, only dumb people get into it now, the likes of that clown.

It was always going to end like this. Houses get bid up to the point where only stupid people are continuing to bid, so over time the proportion of utter idiots providing housing for those under 40 increases. It won't be long before the general publics image of landlords changes from the lucky few who got out at the right time and made some actual money to general maintenance monkeys in never ending servitude working for their younger more savvy tenants.

The cap doffing roles are swapping, and quite rightly too.

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Landlording hasn't been cash flow positive for 10+ years, its hilarious that only some have even spotted that by now. That situation creates a stupidity filter, only dumb people get into it now, the likes of that clown.

It was always going to end like this. Houses get bid up to the point where only stupid people are continuing to bid, so over time the proportion of utter idiots providing housing for those under 40 increases. It won't be long before the general publics image of landlords changes from the lucky few who got out at the right time and made some actual money to general maintenance monkeys in never ending servitude working for their younger more savvy tenants.

The cap doffing roles are swapping, and quite rightly too.

Nice! They won`t agree with that over on MSE though I`m sure.

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An excellent example of why renting is such a piss poor option in the UK. Here you have a product provider actively promoting an approach in which minimisation of the clients enjoyment of the product is first and foremost. Skimping on repairs, dodging legislation that protects the client.

Is it written by a BTL MP by any chance?

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An excellent example of why renting is such a piss poor option in the UK. Here you have a product provider actively promoting an approach in which minimisation of the clients enjoyment of the product is first and foremost. Skimping on repairs, dodging legislation that protects the client.

Is it written by a BTL MP by any chance?

This landlord clearly doesn't see himself as a product provider or his tenants as clients.

He is very much in infantile consumer mode: "gimme gimme gimme, waa waa waa, why should I have to do anything mean and hard like fix boilers or protect deposits?" He paid his money (the deposit) and now he wants somebody else to provide the service (trouble-free HPI). In this worldview the tenants are just some nuisance infestation sponging off his hard-earned cash, not paying customers he has to compete for by providing a good level of service.

When I see this kind of attitude it makes me quite hopeful for the future of Generation Y. This generation is used to working for things, living with the consequences of their actions and not expecting somebody else to make it all better.

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This landlord clearly doesn't see himself as a product provider or his tenants as clients.

He isn't a product provider. His tenants aren't clients.

Landlording isn't a business, it's a state run protection racket.

Gangsters don't provide protection from threats, they are the threat.

Landlords don't stop people from being homeless, they make people homeless. For money.

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I would guess he's a 2002-2008 BTL LL.

Does the fact that the majority of BTL mortgage providers of that era: NR, WB, BB, etc are all bust not strike him as strange?

2006.... going from his first blog entry.

My Property Investment Adventure Begins

13 Nov 2006 / Project 1- Buy Property, Become A Landlord / 0 Comments

http://www.propertyinvestmentproject.co.uk/blog/popped-into-the-estate-agents/

I have read some of his stuff before - think he was a member here at one point - there have been exchanges of views

He's done some very funny cartoons too (re HPCers), and he obviously tracks the forum (hi). I remember the hpc post where a hpcer wrote to BoE, and this landlord's funny blog about it (which is probably the truth of it with the HPC-BoEcartoon).. he probably knew full well some would go over to his site and post a few comments in return. He's smart and intelligent on the whole, but we make our own decisions, and he has made his with property-investment.

http://www.propertyinvestmentproject.co.uk/blog/house-price-crash-hpc-website-mentality/

http://www.propertyinvestmentproject.co.uk/blog/house-price-crash-forum-member-writes-to-the-bank-of-england/

http://www.propertyinvestmentproject.co.uk/blog/house-price-crash-idiot-attacks-again/

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Comment on the blog post shows typical landlord mentality.

emma6 21st October, 2014 @ 08:54

I am currently going through new boilers like nobody's business. All the buggers have decided to die this year. If I see another diverter valve EVER, it will be too soon.

When I started out, I was warned that I would not make a profit in the first year. Perhaps that should be first FIVE years, cos I'm barely breaking even, even now. But it's not about making a profit, it's about making a LOSS. You will be funding these properties out of your own money for the first few years.

That's fine if you have another source of income, like a day job, but if that goes (like mine did, recently), you are SERIOUSLY STUFFED. Have a backup pot so you can still eat even if all your boilers die at once.

Your boilers are all failing because you're buying cheap Italian ones and then having installed by cowboys who don't clean the system as your a cheapskate landlord.

Then you admit you are making a loss. Why are you doing it then? Sounds like purely for capital appreciation but you'll not factor the costs of all those replacement boilers and voids properly into your profit. Its hardly get rich quick. Would have been better putting the money in an ISA.

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I would gues this bloke is borrowing money. How much is a BTL mortgage - 5-6% percentage? Whats his net yield - 2-3%

That's his and other post 2002 LLs problem - BTL is cash negative. Its a hope that the price will go up faster.

5-6%?

Do some reasearch please, as simple google will show you rates are much lower than this:

http://www.moneysupermarket.com/mortgages/buy-to-let/

7% Gross yield is more than enough to cover costs.

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5-6%?

Do some reasearch please, as simple google will show you rates are much lower than this:

http://www.moneysupermarket.com/mortgages/buy-to-let/

7% Gross yield is more than enough to cover costs.

did that and the opening page was:

  • 2 year fixed rate at 2.34% until 1 February 2017 then reverting to standard variable rate, currently 4.99%
  • The overall cost for comparison is 5.0% APR
  • 2.5% product fee. Other fees may apply

BTL...read the headline...forget the reality....you too can be beyond wealthy through ignorance.

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did that and the opening page was:

  • 2 year fixed rate at 2.34% until 1 February 2017 then reverting to standard variable rate, currently 4.99%
  • The overall cost for comparison is 5.0% APR
  • 2.5% product fee. Other fees may apply

BTL...read the headline...forget the reality....you too can be beyond wealthy through ignorance.

APR is completely meaningless. http://blog.moneysavingexpert.com/2014/02/25/ignore-mortgage-apr-rates-theyre-a-meaningless-load-of-baloney/?_ga=1.39197603.1690255633.1414329949

And so the the SVR - you would just move when the 2 year term expired.

So..2.34% is the appropriate rate. Glad we cleared that up!

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did that and the opening page was:

  • 2 year fixed rate at 2.34% until 1 February 2017 then reverting to standard variable rate, currently 4.99%
  • The overall cost for comparison is 5.0% APR
  • 2.5% product fee. Other fees may apply
BTL...read the headline...forget the reality....you too can be beyond wealthy through ignorance.
Please. Do. Not. Feed. The. Trolls.

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APR is completely meaningless. http://blog.moneysavingexpert.com/2014/02/25/ignore-mortgage-apr-rates-theyre-a-meaningless-load-of-baloney/?_ga=1.39197603.1690255633.1414329949

And so the the SVR - you would just move when the 2 year term expired.

So..2.34% is the appropriate rate. Glad we cleared that up!

plus the fee. Paid up front. usually added to the loan I hear.

And the new fee in 2 years.

and the insurance.

and no guarantee of a renewal at the teaser rate.

I stand by my statement.

Edited by Bloo Loo

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