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Remortgaging crunch looms for buy-to-let landlords


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7 minutes ago, spyguy said:

Good way to get some cash into the banks - SVR BTL loan @ 8%.

you realise going from 2%-8% is a fourfold increase

so I hope you can sleep at night wishing for rents to go up fourfold

once again, its the poor tenants who will bear the brunt of this.

 

If coca colas costs suddenly increase fourfold, who do you think picks up the difference? that's right, the customer

 

I'm providing a service here not a charity etc.

 

 

 

 

 

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3 hours ago, thewig said:

you realise going from 2%-8% is a fourfold increase

so I hope you can sleep at night wishing for rents to go up fourfold

once again, its the poor tenants who will bear the brunt of this.

 

If coca colas costs suddenly increase fourfold, who do you think picks up the difference? that's right, the customer

 

I'm providing a service here not a charity etc.

 

 

 

 

 

There is a point though where the price is so high the tenant can’t afford it and the landlord can’t rent it.. don’t know what happens at that point..?

house price crash? Mass selling of property? 

If you can’t afford the rent, the landlord can’t charge it.  Depending on the leverage he could leave it empty in a stand off.. 

OR the more you pay on rent the less you spend on shops and services.. and it all collapses 

dont know where the homeless tenant goes whilst everything collapses.. 

the government have made this mess on purpose.. 

 

Edited by macca13
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3 hours ago, thewig said:

you realise going from 2%-8% is a fourfold increase

so I hope you can sleep at night wishing for rents to go up fourfold

once again, its the poor tenants who will bear the brunt of this.

 

If coca colas costs suddenly increase fourfold, who do you think picks up the difference? that's right, the customer

 

I'm providing a service here not a charity etc.

 

 

 

 

 

Doesn't work like that - across much of the UK rents can't go beyond a certain level (and those on benefits are restricted by how much benefit they can get to cover housing). You can always pass input costs along to the customer! 

This will squeeze the profitability of btl, and squeeze a fair few out of btl altogether!

Edited by gruffydd
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Just now, gruffydd said:

Doesn't work like that - across much of the UK rents can't go beyond a certain level (and those on benefits are restricted by how much benefit they can get to cover housing). You can always pass input costs along to the customer! 

Make no mistake. Rents will rise.

 

Otherwise I'll just chuck em all out on the street, play chicken with the LHA wait for them to come begging, then we can talk input costs

 

 

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53 minutes ago, thewig said:

Make no mistake. Rents will rise.

 

Otherwise I'll just chuck em all out on the street, play chicken with the LHA wait for them to come begging, then we can talk input costs

 

 

Personally I think there will be blood on the streets if any government bails out the likes of you again. Seeing you and your greedy ***** friends drown in your own vomit would not be good enough...and I'm a relatively well-off capitalist, so imagine how the leftie millennials would love to feast on your flesh and see your children starve. It's happened before, many times in history, and it's exactly the attitude that you display that triggers such actions. You are a foolish person to show your true nature, a wise man would keep such thoughts to himself.

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3 minutes ago, HovelinHove said:

Personally I think there will be blood on the streets if any government bails out the likes of you again. Seeing you and your greedy ***** friends drown in your own vomit would not be good enough...and I'm a relatively well-off capitalist, so imagine how the leftie millennials would love to feast on your flesh and see your children starve. It's happened before, many times in history, and it's exactly the attitude that you display that triggers such actions. You are a foolish person to show your true nature, a wise man would keep such thoughts to himself.

foolish people don't go balls deep on bricks and mortar pal

one way bet, they aint building any more land, supply and demand innit bruv etc

 

 

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2 minutes ago, thewig said:

foolish people don't go balls deep on bricks and mortar pal

one way bet, they aint building any more land, supply and demand innit bruv etc

 

 

Greed is not a badge of honour,

it’s everything that is wrong with this world!

The cause of the next crash! 

The environmental disaster that is just around the corner..

 

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4 hours ago, thewig said:

you realise going from 2%-8% is a fourfold increase

so I hope you can sleep at night wishing for rents to go up fourfold

once again, its the poor tenants who will bear the brunt of this.

If coca colas costs suddenly increase fourfold, who do you think picks up the difference? that's right, the customer

I'm providing a service here not a charity etc.

Rents to go up 4 fold? Really? 

Did rents drop 90%+ when integrated rates fell from 5.75% to 0.5% in the crisis? Of course they didn't, and in the same way they won't rise on the way up. 

Remember too that half of landlords do not have a mortgage, so if you quadruple rents, your tenants will go somewhere cheaper. 

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4 hours ago, thewig said:

Make no mistake. Rents will rise.

 

Otherwise I'll just chuck em all out on the street, play chicken with the LHA wait for them to come begging, then we can talk input costs

 

 

Wig, you must have enjoyed that one.

What makes your statement so chilling is I am sure the deluded highly leveraged landlords actually think like this. Worse LHA may actually continue to support these leeches! But maybe I am just having an unusually negative day? Hmm early night and more positivity tomorrow!

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11 hours ago, Switch625 said:

What makes your statement so chilling is I am sure the deluded highly leveraged landlords actually think like this. Worse LHA may actually continue to support these leeches! But maybe I am just having an unusually negative day? Hmm early night and more positivity tomorrow!

Fortunately, housing demand has some elasticity (people opting to live under more crowded conditions, aided psychologically by the thought that it won't last long; I've done it myself), but there has always been a danger that us renters would suffer temporarily under legislation to crack down on (BTL) landlords. It's annoying to see the new measures come in slowly, but one positive effect is that if the sell-up is gradual, there is no possibility of homeless renters being used as political chips, since the elasticity of demand can take the strain while the legislation does its necessary work.

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14 hours ago, Ah-so said:

Rents to go up 4 fold? Really? 

Did rents drop 90%+ when integrated rates fell from 5.75% to 0.5% in the crisis? Of course they didn't, and in the same way they won't rise on the way up. 

Remember too that half of landlords do not have a mortgage, so if you quadruple rents, your tenants will go somewhere cheaper. 

This.  I suspect that quite a lot of LLs bought ages ago, or for cash, so can afford to undercut those who set optimistic/greedy rents, and are then looking at lengthy voids. 

I already see quite a few greedy rents languishing unlet on the London market I watch most - SW17.  

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33 minutes ago, Toast said:

Fortunately, housing demand has some elasticity (people opting to live under more crowded conditions, aided psychologically by the thought that it won't last long; I've done it myself), but there has always been a danger that us renters would suffer temporarily under legislation to crack down on (BTL) landlords. It's annoying to see the new measures come in slowly, but one positive effect is that if the sell-up is gradual, there is no possibility of homeless renters being used as political chips, since the elasticity of demand can take the strain while the legislation does its necessary work.

Positivity restored :)

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  • 415 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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