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Becoming A Landlord? The Outlook Is Promising

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Despite recent fluctuations in the market, purchasing property is still regarded as one of the safest ways you can future-proof your savings

More than 14 million people in the UK own their home, either through a mortgage arrangement or outright. While the number is slightly down from a decade ago, bricks and mortar are still seen as a safe investment. The housing market is subject to peaks and troughs, but in the long-term, residential property prices will rise. Indeed, forecasters predict a 30pc increase in key areas over the next five years.

Demand for rental properties in the right areas also remains high. In the three months to September 2014, average rental values for new tenancies in the UK were 8.2pc higher than the same period last year, with seven tenants chasing each property.

For thirtysomethings stepping on to the property ladder, the argument for hanging on to a first flat or starter home is compelling as it can provide a regular rental income and a long-term investment with an almost guaranteed return.

[Reads like a paid advert for BTL landlordism :rolleyes: ]

http://www.telegraph.co.uk/sponsored/finance/future-proofing-finances/thirties/11298783/benefits-becoming-landlord-buy-to-let.html?WT.mc_id=e_3791791&WT.tsrc=email&etype=frontpage&utm_source=email&utm_medium=Edi_FAM_New_TEST_V2_2014_12_27&utm_campaign=3791791

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[Reads like a paid advert for BTL landlordism :rolleyes: ]

The clue is the fact that it's sponsored contents at the Torygraph.

Not journalism. Not editorial. Sponsored contents.

It's probably the price we pay for the absence of a Times-style paywall, and serves to fund the Torygraph's continued existence.

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The clue is the fact that it's sponsored contents at the Torygraph.

Not journalism. Not editorial. Sponsored contents.

It's probably the price we pay for the absence of a Times-style paywall, and serves to fund the Torygraph's continued existence.

Duh, sorry didn't notice, must be the after effects of christmas drinky-poos! :D

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I know many people who thought that at the peak in Northern Ireland. Just hold onto starter homes and let them out HPI will be your friend. Then a year later prices started dropping and didn't stop till they had dropped 50%. Now the mortgage didn't look too good on a home worth only 50% of the purchase price. Voids were a nightmare.

It's only the lowest rates in history that are keeping these people afloat.

The falls in NI was a short sharp drop. It hurts people but the current mindset is still 'if I can hang on, in 10, 20 years time the property will be worth more'. Sharp drops are just buying oppituries more cash rich people. We need yields to drop on BTL and we need 20-30 years of real prices falls for this mindset to change.

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The falls in NI was a short sharp drop. It hurts people but the current mindset is still 'if I can hang on, in 10, 20 years time the property will be worth more'. Sharp drops are just buying oppituries more cash rich people. We need yields to drop on BTL and we need 20-30 years of real prices falls for this mindset to change.

Ten years have past around my neck of the woods with no hpi in sight (prices @04/05 not far of peak mind you) ) for everything below the upper middle of the market ,the leveraged I.O BTL brigade can now see the writing on the wall l(no HPI = 1-1.5K a year before cost using LHA rates based on 80% LTV @ 04/05 prices)

There was a significant attempt to exit the game last year the ones who could afford too managed to of load, the kite flyers (late entrants to the game ) failed and the places were back up for rent

The only problem is there are still to many greater fools out there that read the crap in the OP`s link and soak it up like a sponge, the only silver lining is the new lending criteria concerning I.O mortgages and this will be the end game with a bit of luck ,although im sure the new pension rules were put in place in an attempt to take up some of the slack

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I know many people who thought that at the peak in Northern Ireland. Just hold onto starter homes and let them out HPI will be your friend. Then a year later prices started dropping and didn't stop

till they had dropped 50%. Now the mortgage didn't look too good on a home worth only 50% of the purchase price. Voids were a nightmare.

It's only the lowest rates in history that are keeping these people afloat.

Talking to friends during Christmas two who have been renters have been told by there landlords they are selling up and to expect a new landlord or eviction in the new year.

Both say the owners have only had the houses for a few years,so much for a long term investment.

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Talking to friends during Christmas two who have been renters have been told by there landlords they are selling up and to expect a new landlord or eviction in the new year.

Both say the owners have only had the houses for a few years,so much for a long term investment.

Advise your friends that as long as they continue to pay the rent, it is very difficult to evict them, even if they are given notice.

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Advise your friends that as long as they continue to pay the rent, it is very difficult to evict them, even if they are given notice.

It's not difficult for the new landlord to evict them, it just takes time. The outcome is not in doubt, the evicting landlord will win eventually.

Although it is the tenant's legal right to stay beyond the notice given them by the landlord, if they actually do it and it comes up in future tenant referencing it is likely that other landlords will refuse to rent to them.

Plus what's the point of engaging in legal trench warfare that you are guaranteed to lose? All that hassle and emotional drain, and then you have to move at the end of it anyway. Better just to bite the bullet and move.

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Despite recent fluctuations in the market, purchasing property is still regarded as one of the safest ways you can future-proof your savings

More than 14 million people in the UK own their home, either through a mortgage arrangement or outright. While the number is slightly down from a decade ago, bricks and mortar are still seen as a safe investment. The housing market is subject to peaks and troughs, but in the long-term, residential property prices will rise. Indeed, forecasters predict a 30pc increase in key areas over the next five years.

Demand for rental properties in the right areas also remains high. In the three months to September 2014, average rental values for new tenancies in the UK were 8.2pc higher than the same period last year, with seven tenants chasing each property.

For thirtysomethings stepping on to the property ladder, the argument for hanging on to a first flat or starter home is compelling as it can provide a regular rental income and a long-term investment with an almost guaranteed return.

[Reads like a paid advert for BTL landlordism :rolleyes: ]

http://www.telegraph.co.uk/sponsored/finance/future-proofing-finances/thirties/11298783/benefits-becoming-landlord-buy-to-let.html?WT.mc_id=e_3791791&WT.tsrc=email&etype=frontpage&utm_source=email&utm_medium=Edi_FAM_New_TEST_V2_2014_12_27&utm_campaign=3791791

3% gross profit in Prime London - can these business men use even a calculator ???

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It's not difficult for the new landlord to evict them, it just takes time. The outcome is not in doubt, the evicting landlord will win eventually.

Although it is the tenant's legal right to stay beyond the notice given them by the landlord, if they actually do it and it comes up in future tenant referencing it is likely that other landlords will refuse to rent to them.

Plus what's the point of engaging in legal trench warfare that you are guaranteed to lose? All that hassle and emotional drain, and then you have to move at the end of it anyway. Better just to bite the bullet and move.

Isn't there some merit in attempting to stay beyond your notice period in terms of your housing status in the eyes of the local council? Or is that just a recent urban myth?

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Isn't there some merit in attempting to stay beyond your notice period in terms of your housing status in the eyes of the local council? Or is that just a recent urban myth?

Depends on circumstance if the tenant has no savings (job maybe) and they are evicted they will move to the top tier on the council/HA housing waiting lists

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At least the link to this sponsored puffy piece takes you to private bank... can only hope it's to rope in last of the dumb complacent money.

To take advantage of our service you will need to have at least £250,000 in savings or investments, or a sole annual income of at least £100,000.

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The falls in NI was a short sharp drop. It hurts people but the current mindset is still 'if I can hang on, in 10, 20 years time the property will be worth more'. Sharp drops are just buying oppituries more cash rich people. We need yields to drop on BTL and we need 20-30 years of real prices falls for this mindset to change.

The drops in NI took a few years but still the 'hang on in there' attitude prevails. Quick example of a NI LL in distress. Bought 2008 (mortgage with a sub prime lender indicating either lack of deposit or own bad credit history). Prices had stagnated so LL thought they had bought a bargain. The valuation rent was never a reality so LL has been subsidising the rent since purchase. Mortgage now in arrears and the house is in substantial negative equity.

This LL can not afford the mortgage, house insurance, a letting agent or to do any works to the house. LL was fined for not registering as a LL and for not protecting the tenants deposit. These council fines were not paid so the LL has received a summons to court – potential £20,000 fine (won’t be paid as LL can’t pay it). Essential works requested by EHO not completed in full yet the house will be re-let as soon as current tenants leave. The tenants are contracted to 12 months and still have to pay full rent.

The only thing that will stop this LL is the house being repossessed, everything else is geared in their favour. Mindset of LL’s could be changed with adequate regulation and publicised court cases with severe outcomes.

Edited by little fish

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At least the link to this sponsored puffy piece takes you to private bank... can only hope it's to rope in last of the dumb complacent money.

What you posted is the legal definition of being a "high net worth individual". Seems slightly bizarre that you can qualify (as I do now) without being rich enough to buy a mid-priced house. But being a high net worth individual changes the legal rules on what you can invest in. Or, more accurately, on what kinds of investment can be marketed to you. To what extent that includes what you see in a newspaper or on a website is not entirely clear, so they add these kind of caveats.

For what it's worth, the rules about qualifying for certain investments are kind-of designed to protect the gullible from being ripped off by boiler rooms selling "investments" like land banking, storage containers, fine wine. The well-meaning idea is, they make it a criminal offence to market unregulated investments (to mugs) and it becomes easier to prosecute when they catch someone.

It inevitably catches some valid investments too. If you want to invest in some such there's a second way to qualify: if you can demonstrate you're a "sophisticated investor" you qualify. And since one of the criteria for being a sophisticated investor is to have invested in two (or more) unlisted companies, you can nowadays qualify just by signing up to a crowdfunding platform and invest a tenner into a couple of ventures that way.

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It's not difficult for the new landlord to evict them, it just takes time. The outcome is not in doubt, the evicting landlord will win eventually.

Although it is the tenant's legal right to stay beyond the notice given them by the landlord, if they actually do it and it comes up in future tenant referencing it is likely that other landlords will refuse to rent to them.

Plus what's the point of engaging in legal trench warfare that you are guaranteed to lose? All that hassle and emotional drain, and then you have to move at the end of it anyway. Better just to bite the bullet and move.

The reality of "tenant choice"

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What you posted is the legal definition of being a "high net worth individual". Seems slightly bizarre that you can qualify (as I do now) without being rich enough to buy a mid-priced house. But being a high net worth individual changes the legal rules on what you can invest in. Or, more accurately, on what kinds of investment can be marketed to you. To what extent that includes what you see in a newspaper or on a website is not entirely clear, so they add these kind of caveats.

Agreed to the first part. That's because we're in a house price bubble, imo.

I know something of that from commercial litigation solicitors in my family.. with their own young families (all renting, all unwilling to pay £300K+ for a basic semi-detached... £400K+ for something half-decent) and their work in taking action for SMEs who entered IRSAs (interest rate swap agreements... structured collars etc).

2011/2012 the FSA Scheme set out criteria for non sophisticated vs sophisticated businesses, with SMEs who met 2 of 3 criteria allowed to apply directly to the FSA's scheme for compensation without requiring a solicitor (although from my view, in many instances, claims, both non-sophisticated and sophisticated [the FSA's criteria didn't rule out claims from larger SMEs], at a better advantage for their claim with a good solicitor).

Sunday night there was a radio piece, with some expert on who had reviewed cases of many who had approached him, having lost money in everything from fine wine investments, to shipping container investments offering 30% yields. He was pointing to fact people have to be wary, and 'if it looks too good to be true' etc. The radio presenter though claimed that no one can know for certain if some of the unregulated offers would not actually pay off. It's the choice of the individual.

I know that I, for one, have had more than enough carry everyone else for reckless and greedy decisions. x4 what I think it's worth, and spreadsheet calculating how wealthy they will be with future HPI... market softens, and the softhearts try to make out that the individual is innocent and calls for stimulus to make market react 'as it should have' for such VI.

However, BTL, well it would concern me your average HPI lover BTL entrant, today, and from recent years, go on to claim they've been missold BTL finance/finance, when markets turn. ("I wanted forever hpi, but markets turned, and I don't want to pay, so it's unfair.. "me non sophisticated innit."). Their choice to enter the landlording business. non-sophisticated. There has to be personal responsibility. (Although I do recall one landlord with multiple properties who did have IRSAs and went for compensation.. can't recall the result).

Let them invest away into BTL.

http://forums.moneysavingexpert.com/showthread.php?t=5142953

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"My partner owns a house in Dover, the tenant who was there destroyed the place and it now needs a lot of work doing to it. To add to the situation the tenant was evicted owing approx £12,000.00 in rent, with the extent of work required my partner would need £15,000.00 to bring it to lettable standard."

Whats 12k - 2 years rent?

"The house has been identified as needing: new damp course, new bathroom (floor, walls, suite), kitchen (floor, walls, units, ceiling), flooring (boards need replacing) and decorating throughout, windows (all in different states of repair and some only single glaze), new external stair case to front of property to access basement level entrance, boiler repairs (probably new boiler as this is an ancient back boiler), and this is probably not everything. We had two quotes about 9 months ago in the region of £15,000.00 for all work. This is simply out of range for us to afford."

Of the work listed, only decoration could be leveled at the tenant. The rest is poor maintenance (or no maintenance) by the LL.

To me, it sounds like LL bought a sh1thole, tenant moved out or stopped paying because it was a sh1thole.

"We have looked at loans to cover the costs and to then rent out to recoup the money but both of us have cars on finance, and credit cards owing approx £12,000 - mainly due to money lost on keeping the house current."

Current???? Not the rental.

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"My partner owns a house in Dover, the tenant who was there destroyed the place and it now needs a lot of work doing to it. To add to the situation the tenant was evicted owing approx £12,000.00 in rent, with the extent of work required my partner would need £15,000.00 to bring it to lettable standard."

Whats 12k - 2 years rent?

"The house has been identified as needing: new damp course, new bathroom (floor, walls, suite), kitchen (floor, walls, units, ceiling), flooring (boards need replacing) and decorating throughout, windows (all in different states of repair and some only single glaze), new external stair case to front of property to access basement level entrance, boiler repairs (probably new boiler as this is an ancient back boiler), and this is probably not everything. We had two quotes about 9 months ago in the region of £15,000.00 for all work. This is simply out of range for us to afford."

Of the work listed, only decoration could be leveled at the tenant. The rest is poor maintenance (or no maintenance) by the LL.

To me, it sounds like LL bought a sh1thole, tenant moved out or stopped paying because it was a sh1thole.

"We have looked at loans to cover the costs and to then rent out to recoup the money but both of us have cars on finance, and credit cards owing approx £12,000 - mainly due to money lost on keeping the house current."

Current???? Not the rental.

I don't know what to do anymore, can anyone offer some advice, are there any grants we can apply for?

The self entitlement is astounding

I am seeing an ever increasing number of ex/BTL places like this (totally run down) on the market and and can only see that trend increasing as there is not enough yield to maintain 80-100 year old terrace houses in the long run if they are playing the IO+HPI game more and more are realising they have been sold a pup

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What do we recon it is really worth, considering it provably needs what 40k to make it habitable. 10k?

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Despite recent fluctuations in the market, purchasing property is still regarded as one of the safest ways you can future-proof your savings

More than 14 million people in the UK own their home, either through a mortgage arrangement or outright. While the number is slightly down from a decade ago, bricks and mortar are still seen as a safe investment. The housing market is subject to peaks and troughs, but in the long-term, residential property prices will rise. Indeed, forecasters predict a 30pc increase in key areas over the next five years.

Demand for rental properties in the right areas also remains high. In the three months to September 2014, average rental values for new tenancies in the UK were 8.2pc higher than the same period last year, with seven tenants chasing each property.

For thirtysomethings stepping on to the property ladder, the argument for hanging on to a first flat or starter home is compelling as it can provide a regular rental income and a long-term investment with an almost guaranteed return.

[Reads like a paid advert for BTL landlordism :rolleyes: ]

http://www.telegraph.co.uk/sponsored/finance/future-proofing-finances/thirties/11298783/benefits-becoming-landlord-buy-to-let.html?WT.mc_id=e_3791791&WT.tsrc=email&etype=frontpage&utm_source=email&utm_medium=Edi_FAM_New_TEST_V2_2014_12_27&utm_campaign=3791791

Well, since Labour during their 10 years in power completely failed to live up to their social obligations regarding housing someone else has to take up the slack.

The reason we're where we are now is because the Labour party morphed itself into the Tories.

Otherwise 2000-2010 would have seen the largest social building program ever as the Labour party sought to undo "the damage" created by Fachters selling off of the council houses, right ?

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There was nothing wrong with selling off the council houses - so long as they deregulated planning as well at some point.

I suspect the latter wasn't even noticeable as a problem in Fatcher's time, after all, the real boom happened on Bliar's/Browns watch.

Under Blair/Brown they should've either built a bunch of council houses or encouraged the private sector- by which I mean proles, not Barratts - to build. They did neither.

Booms and busts, well, I expect those, that's the way it is. Financial repression on this scale though, I don't expect that.

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