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BTL still attractuve to some

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House next door, 70s mid terrace just sold (£250k asking). Exchanged on Saturday. Up for rent today at £975pm. That's a circa 5% yield. What are people thinking? Landlords are early 40s couple with 10yr old son... Maybe they plan to pass it on to him rather than Bomad him a deposit?

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6 minutes ago, The Crow said:

House next door, 70s mid terrace just sold (£250k asking). Exchanged on Saturday. Up for rent today at £975pm. That's a circa 5% yield. What are people thinking? Landlords are early 40s couple with 10yr old son... Maybe they plan to pass it on to him rather than Bomad him a deposit?

Let us know when its let.

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Speaking to retired civil servant the other day, telling me how they had half a dozen properties and had just brought another.

I just don't understand why one would bother if your retired at 50 with pension that is going to be 50k, why give yourself the hassle?

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In the north west you can get terraces for 60-70k and get 500pm for it. It still makes sense to gear up on these properties if you can cook the books a little. Even for cash buyers it can stack up.

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54 minutes ago, HowMuch! said:

Speaking to retired civil servant the other day, telling me how they had half a dozen properties and had just brought another.

I just don't understand why one would bother if your retired at 50 with pension that is going to be 50k, why give yourself the hassle?

The problem is some people have money and just do not know what to do with it.

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1 hour ago, The Crow said:

House next door, 70s mid terrace just sold (£250k asking). Exchanged on Saturday. Up for rent today at £975pm. That's a circa 5% yield. What are people thinking? Landlords are early 40s couple with 10yr old son... Maybe they plan to pass it on to him rather than Bomad him a deposit?

Step 1: Announce you're leaving

Step 2: Start a thread on HP&TE that obviously belongs in Anecdotals?

What gives? Did you sell your account to a troll on the way to the door? 

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12 minutes ago, Jurassic Bland said:

Step 1: Announce you're leaving

Step 2: Start a thread on HP&TE that obviously belongs in Anecdotals?

What gives? Did you sell your account to a troll on the way to the door? 

Thanks. You've reaffirmed my reasons for leaving! I'm waiting for my account to be closed... Just happens that this sale/rental next door occured on my last day on the forum.

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1 hour ago, Drummer said:

In the north west you can get terraces for 60-70k and get 500pm for it. It still makes sense to gear up on these properties if you can cook the books a little. Even for cash buyers it can stack up.

The costs are much higher though, so I suspect a buyer of this kind of property loses just like the people buying in the 250-500k range and getting a gross yield of 3-4%.

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I sold my flat for £300k and after 2 months they’ve managed to rent it for £1000 so 4% before cost. £150 per month service charge and £125 letting agent so 2.9% presuming no voids. Thing is it still felt like I was giving it away as some other mug landlord paid £380 for another flat down the road that only managed to rent for £1000. I sold to a first time landlord. Old dear that had come into money. Lots of clueless people with lots of cash!

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Some northerners must get p***ed off with parasitic southeners who buy up North just to profit from the North, not bringing anything but extracting.

PS: I'm from the South, make £25ph can't afford to live in the South and am not a *****.

Edited by Arpeggio

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8 hours ago, The Crow said:

Thanks. You've reaffirmed my reasons for leaving! I'm waiting for my account to be closed... Just happens that this sale/rental next door occured on my last day on the forum.

Its not a BTL mortgage. You are not checked to ensure you can afford to elave.

You remove your account and go.

Zap.

That rental/price paid does not tally i..e they will be making a cash loss on it every month, even when its let.

 

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45 minutes ago, spyguy said:

Its not a BTL mortgage. You are not checked to ensure you can afford to elave.

You remove your account and go.

Zap.

That rental/price paid does not tally i..e they will be making a cash loss on it every month, even when its let.

 

I mean by a house to let it out... Not necessarily with a BTL MTG.

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12 hours ago, HowMuch! said:

Speaking to retired civil servant the other day, telling me how they had half a dozen properties and had just brought another.

I just don't understand why one would bother if your retired at 50 with pension that is going to be 50k, why give yourself the hassle?

He possibly thinks he is providing houses for the poor!

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14 hours ago, The Crow said:

House next door, 70s mid terrace just sold (£250k asking). Exchanged on Saturday. Up for rent today at £975pm. That's a circa 5% yield. What are people thinking? Landlords are early 40s couple with 10yr old son... Maybe they plan to pass it on to him rather than Bomad him a deposit?

Hey Crow.   Sad to see you do.  You'll leave a bit of a hole.

 

I left for a few weeks but no one noticed, so I came back :lol: 

 

 

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3 hours ago, TheCountOfNowhere said:

Hey Crow.   Sad to see you do.  You'll leave a bit of a hole.

 

I left for a few weeks but no one noticed, so I came back :lol: 

Oh...come back have you? It's like you were never away...

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19 hours ago, The Crow said:

Thanks. You've reaffirmed my reasons for leaving! I'm waiting for my account to be closed... Just happens that this sale/rental next door occured on my last day on the forum.

Being free to post anecdotals on HP&TE when there's a perfectly good Anecdotal sub-forum seems an odd hill to choose to die on but I guess it takes all sorts to make a world.

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19 hours ago, houseface2000 said:

I sold my flat for £300k and after 2 months they’ve managed to rent it for £1000 so 4% before cost. £150 per month service charge and £125 letting agent so 2.9% presuming no voids. Thing is it still felt like I was giving it away as some other mug landlord paid £380 for another flat down the road that only managed to rent for £1000. I sold to a first time landlord. Old dear that had come into money. Lots of clueless people with lots of cash!

I think many of them don't realise that rent is income and they have to declare and pay tax on it. They think it is just free money.

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On 18/06/2018 at 22:46, Kosmin said:

The costs are much higher though, so I suspect a buyer of this kind of property loses just like the people buying in the 250-500k range and getting a gross yield of 3-4%.

Why are the costs much higher for a cheap terraced BTL rather than a detached BTL. The small houses always seem to yield better

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On 18/06/2018 at 23:03, houseface2000 said:

I sold my flat for £300k and after 2 months they’ve managed to rent it for £1000 so 4% before cost. £150 per month service charge and £125 letting agent so 2.9% presuming no voids. Thing is it still felt like I was giving it away as some other mug landlord paid £380 for another flat down the road that only managed to rent for £1000. I sold to a first time landlord. Old dear that had come into money. Lots of clueless people with lots of cash!

Problem is, the banks are paying way less than inflation in deposit accounts so people are doing BTL instead. Rates need to rise. A lot.

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31 minutes ago, bear.getting.old said:

Problem is, the banks are paying way less than inflation in deposit accounts so people are doing BTL instead. Rates need to rise. A lot.

That is dash to trash and shows why low interest rates are bad.

https://www.investopedia.com/terms/d/dash-to-trash.asp

 

Quote

BREAKING DOWN 'Dash To Trash'

As the name graphically implies, investors are buying low-quality assets or assets that do not correctly price in the risks associated with them. The dash to trash often occurs near the end of a prolonged bull market, when investors begin to seek higher returns regardless of the risks involved. The longer it has been since a market downturn, the more likely it becomes that large pockets of investors will feel bulletproof.

 

 

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On 19/06/2018 at 10:19, TheCountOfNowhere said:

Hey Crow.   Sad to see you do.  You'll leave a bit of a hole.

 

I left for a few weeks but no one noticed, so I came back :lol: 

 

 

 

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  • 301 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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