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btd1981

Landlords have values too

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At friend's house last night with a friend of theirs who 'dabbles in property'.

Seems quite happy to accept all money in the world from tenants as, in her words 'she is helping support a demand for rented accommodation'.

However, topic turned to her elderly mum and her care. Apparently her mum had suggested that she would be happy to pay her to look after her if she was to retire early.

Apparently that's 'not ethical' though.... Seems okay to me, provided it's what her mum wants? Better than leaving her at the mercy of the private care sector.

Just to be clear: buying up and hoarding limited housing stock and renting it out to those that could otherwise afford it is still perfectly fine.

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I have had similar discussions with people I know who are landlords.

The lengths they will go to in denying they are part of the problem is staggering sometimes. The conversation I remember best started with me being assured that the landlords in our area were in no way competing with FTBs for available properties because 'there are always plenty on the market'.

I suggested that the asking price of a 1 bed flat might be significantly less than the £300k that prevails in the area at the moment if landlords weren't in the market fell totally on deaf ears...

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On 03/01/2018 at 14:03, worried1 said:

I have had similar discussions with people I know who are landlords.

The lengths they will go to in denying they are part of the problem is staggering sometimes. The conversation I remember best started with me being assured that the landlords in our area were in no way competing with FTBs for available properties because 'there are always plenty on the market'.

I suggested that the asking price of a 1 bed flat might be significantly less than the £300k that prevails in the area at the moment if landlords weren't in the market fell totally on deaf ears...

Landlord are providing certain values in some situations. There are always people who could only stay in the area for no more than 1 -2 years. If people are committed to buy a place and keep selling every 1 -2 years for their jobs, this will only create values for the taxman (stamp duty), estate agents, surveyors and solicitors. There are always some 'landlords' who owns one property in an area, where they cannot stay (due to their new job) and unable to sell or unwilling to sell due to high cost of transaction. They opted to rent their former home out and use that to offset the rent they pay in another area. 

Buffett said, in one way or another, buying a home and taking out a 30 years mortgage is like betting against the fiat currencies that would continue to depreciate over time. It is a one way bet. The government would love you all to starting blaming one another for the high housing cost but ultimately, we know it is due to our fractional reserve banking system, quantitative easing, ridiculously low interest rate, a fiat currency that is backed by nothing and intrinsically, they are worthless. 

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11 hours ago, reginekierkegaard said:

Landlord are providing certain values in some situations. There are always people who could only stay in the area for no more than 1 -2 years. If people are committed to buy a place and keep selling every 1 -2 years for their jobs, this will only create values for the taxman (stamp duty), estate agents, surveyors and solicitors. 

The cost of moving as a tenant - new deposit (because your previous landlord has probably used spurious reasons to steal a big chunk of your last one), letting agent fees, reference fees, inventory fees, getting-a-letting-agent-to-acknowledge-you fee... plus removals) - is not in a dissimilar ballpark to the cost of moving as a buyer these days.

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19 hours ago, reginekierkegaard said:

The government would love you all to starting blaming one another for the high housing cost but ultimately, we know it is due to our fractional reserve banking system, quantitative easing, ridiculously low interest rate, a fiat currency that is backed by nothing and intrinsically, they are worthless. 

We don't have a fractional reserve banking system.

 

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  • 407 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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