Tenant arrears - and it aint getting better soon.

[wighty]

19 hours ago, msi said:

...and let HMRC take a good look at your books

Why should HMRC need an excuse?. There's hidden billions in taxable income.  Capital Gains and rental income undeclared.

[Former postman]

Hang the landlords out to dry. Feck em

[scb]

On 06/01/2021 at 16:31, richmondtw said:

and destroy their credit rating - no reference next time they want to rent 

Landlords don’t provide credit so no change to your credit rating. As for referencing, you lived with your mum/son/mate/own home that you’d bought so don’t can’t get a reference.

[spyguy]

2 minutes ago, scb said:

Landlords don’t provide credit so no change to your credit rating. As for referencing, you lived with your mum/son/mate/own home that you’d bought so don’t can’t get a reference.

Ccj for non payment of rent.

[Si1]

15 minutes ago, scb said:

Landlords don’t provide credit so no change to your credit rating. As for referencing, you lived with your mum/son/mate/own home that you’d bought so don’t can’t get a reference.

https://www.which.co.uk/news/2020/03/equifax-to-include-tenants-rental-payments-on-credit-reports-can-it-help-you-get-a-mortgage/

 

[msi]

4 hours ago, wighty said:

Why should HMRC need an excuse?. There's hidden billions in taxable income.  Capital Gains and rental income undeclared.

Because Tory fan boys decry 'Nanny State' when HMRC sniff out of interest. Make it a condition of any support and they are tied to full disclosure

[wighty]

23 minutes ago, msi said:

Because Tory fan boys decry 'Nanny State' when HMRC sniff out of interest. Make it a condition of any support and they are tied to full disclosure

There are not sniffing out of interest. It's £billions of blatent tax evasion.

[msi]

8 minutes ago, wighty said:

There are not sniffing out of interest. It's £billions of blatent tax evasion.

Tell it to the Daily Fail fanboys

 

[wighty]

3 minutes ago, msi said:

Tell it to the Daily Fail fanboys

 

If they're not declaring income or capital gain they are breaking the law. Tory lady boys can say what they like.  

My hope is that HMRC are ignoring it for now so that when the day of reckoning arrives there will be more revenue and fines to collect

[Pop321]

18 hours ago, Insane said:

Yes agreed

However to get to the point of the housing market tanking while we have such low interest rates there would have to be a massive economic downturn with mass unemployment first creating those who hold current mortgages unable to pay their debts. If this would happen it would not be a case of people going bust and there being plenty of others to take their place at a lower price as the people wanting to take their place would also be part of a bad downturn. 

It could happen but there would be much upheaval and economic turmoil for much of the population first it would not be a smooth transition.  

Alternatively it would be a smooth transition. Struggling owner occupiers and leveraged BTL’ers go bust......TPTB and those with translatable assets/cash step in. Turmoil for the many and good times for some.😆

Reality lies somewhere in between and those in secure fairly well paid jobs who can hold onto those jobs tend to do okay during house price falls....if they are not already ‘on the ladder’. 

Interesting aside is many in a great position eg already own a nice semi and have a secure job....don’t sell and move to something bigger despite a great opportunity to do so.

I guess it applies to most things eg shares etc and that is falling markets are a great opportunity missed by the majority. 

[erat_forte]

1 hour ago, Pop321 said:

...

I guess it applies to most things eg shares etc and that is falling markets are a great opportunity missed by the majority. 

Well if the majority stepped in and tried to take advantage then it would no longer fall, surely?

[Si1]

12 minutes ago, erat_forte said:

Well if the majority stepped in and tried to take advantage then it would no longer fall, surely?

The point of market cycles is that the majority have tended to allocate all they money during the boom

[Pop321]

58 minutes ago, erat_forte said:

Well if the majority stepped in and tried to take advantage then it would no longer fall, surely?

Indeed. Unless say the majority step in but only at a certain and affordable lower price. 😉

[Pop321]

47 minutes ago, Si1 said:

The point of market cycles is that the majority have tended to allocate all they money during the boom

Interesting, hadn’t thought of it so succinctly. I can think of many many examples where I have seen this to be the case. 

[Trump Invective]

14 hours ago, wighty said:

If they're not declaring income or capital gain they are breaking the law. Tory lady boys can say what they like.  

My hope is that HMRC are ignoring it for now so that when the day of reckoning arrives there will be more revenue and fines to collect

Hopefully - if their mates aren't going to be sent down!

[Insane]

4 hours ago, Pop321 said:

Alternatively it would be a smooth transition. Struggling owner occupiers and leveraged BTL’ers go bust......TPTB and those with translatable assets/cash step in. Turmoil for the many and good times for some.😆

Reality lies somewhere in between and those in secure fairly well paid jobs who can hold onto those jobs tend to do okay during house price falls....if they are not already ‘on the ladder’. 

Interesting aside is many in a great position eg already own a nice semi and have a secure job....don’t sell and move to something bigger despite a great opportunity to do so.

I guess it applies to most things eg shares etc and that is falling markets are a great opportunity missed by the majority. 

I am old enough to remember the late 80's early 90's crash. During the 80's the Mantra was property will stop going up but never go down. Then at the end of 88 when Double Miras was scrapped and Interest rates moved up it crashed. The biggest and first drops were in London and places where it had gone up the most they went down the most and the fastest. 

When there are times of high unemployment even those in secure jobs can feel insecure due to secure jobs not being guaranteed and the fact that they are aware of what is happening around them. 

One massive driver for the Market like any Market is Sentiment and after a few years of price drops Sentiment changes very fast. I remember friends who could afford their homes refusing to pay for an expensive asset that was losing money and giving back the keys ( long term bad decision) but at the time their feelings and sentiment won over. I Remember friends who could not afford their homes getting repossessed. 

Property became a dirty word. 

In 1993 I bought a flat for £50k it had been purchased for £150,000 in 1988 had never been lived in and had been held by the lender empty for years. People said to me you must be mad why do you want that ? Today when I relate this story I know people think I am talking rubbish. I still have the advert form when I bought that flat have tried to upload it to here but the system says the file is to big to upload on here ( if anyone knows how I can upload let me know and I will do it.

If we have a massive economic upheaval and downturn I cannot see a smooth transition of those losing their properties and there being many on the side lines waiting to step in as Sentiment not to do it will be a massive driving force.   

[Bruce Banner]

15 minutes ago, Insane said:

I am old enough to remember the late 80's early 90's crash. During the 80's the Mantra was property will stop going up but never go down. Then at the end of 88 when Double Miras was scrapped and Interest rates moved up it crashed. The biggest and first drops were in London and places where it had gone up the most they went down the most and the fastest. 

When there are times of high unemployment even those in secure jobs can feel insecure due to secure jobs not being guaranteed and the fact that they are aware of what is happening around them. 

One massive driver for the Market like any Market is Sentiment and after a few years of price drops Sentiment changes very fast. I remember friends who could afford their homes refusing to pay for an expensive asset that was losing money and giving back the keys ( long term bad decision) but at the time their feelings and sentiment won over. I Remember friends who could not afford their homes getting repossessed. 

Property became a dirty word. 

In 1993 I bought a flat for £50k it had been purchased for £150,000 in 1988 had never been lived in and had been held by the lender empty for years. People said to me you must be mad why do you want that ? Today when I relate this story I know people think I am talking rubbish. I still have the advert form when I bought that flat have tried to upload it to here but the system says the file is to big to upload on here ( if anyone knows how I can upload let me know and I will do it.

If we have a massive economic upheaval and downturn I cannot see a smooth transition of those losing their properties and there being many on the side lines waiting to step in as Sentiment not to do it will be a massive driving force.   

I considered buying a flat in London when they were going for £40 to £50k in the early 90s.

[wighty]

19 minutes ago, Insane said:

I am old enough to remember the late 80's early 90's crash. During the 80's the Mantra was property will stop going up but never go down. Then at the end of 88 when Double Miras was scrapped and Interest rates moved up it crashed. The biggest and first drops were in London and places where it had gone up the most they went down the most and the fastest. 

When there are times of high unemployment even those in secure jobs can feel insecure due to secure jobs not being guaranteed and the fact that they are aware of what is happening around them. 

One massive driver for the Market like any Market is Sentiment and after a few years of price drops Sentiment changes very fast. I remember friends who could afford their homes refusing to pay for an expensive asset that was losing money and giving back the keys ( long term bad decision) but at the time their feelings and sentiment won over. I Remember friends who could not afford their homes getting repossessed. 

Property became a dirty word. 

In 1993 I bought a flat for £50k it had been purchased for £150,000 in 1988 had never been lived in and had been held by the lender empty for years. People said to me you must be mad why do you want that ? Today when I relate this story I know people think I am talking rubbish. I still have the advert form when I bought that flat have tried to upload it to here but the system says the file is to big to upload on here ( if anyone knows how I can upload let me know and I will do it.

If we have a massive economic upheaval and downturn I cannot see a smooth transition of those losing their properties and there being many on the side lines waiting to step in as Sentiment not to do it will be a massive driving force.   

We believe you.

Look at homes bought in France, Spain, Turkey etc where markets aren't interferred  with. Still reeling from 2008.  People lost/losing a packet

[PeanutButter]

Can my landlord force me to let in potential buyers during lockdown?

[wighty]

1 hour ago, Bruce Banner said:

I considered buying a flat in London when they were going for £40 to £50k in the early 90s.

tell me about it, Bruce. 2 bed, river views. At least I shoved it in equities.

[wighty]

57 minutes ago, PeanutButter said:

Can my landlord force me to let in potential buyers during lockdown?

It's amazing how many AST tenants dont realise their rights.

[Bruce Banner]

21 minutes ago, wighty said:

tell me about it, Bruce. 2 bed, river views. At least I shoved it in equities.

Something like that. Had I bought one it wouldn't have been for investment or renting out, just a pad that we could use if we wanted a night or two in town. Daft idea though and I put the cash to better use, it would have been hassle and all I wanted was an easy life. 

I only mentioned it to confirm that flats in London were advertised at that sort of price in the early 90s. Doubtless, as a cash buyer, I would have got a decent discount.

Edited January 11, 2021 by Bruce Banner

[Insane]

2 hours ago, Bruce Banner said:

I considered buying a flat in London when they were going for £40 to £50k in the early 90s.

The one I bought was a 1 bed River View in Surrey Quays. The block was almost empty. Stunning Block Swimming Pool , Gym the lot. Service charges were a bit high just over £2,000 a year which 28 years ago was a fair amount of money. I remember laying in the swimming pool ( had it to myself ) thinking how did I get here. 

I sold it in 1997 for £75.000 , remember the agent saying these flats will chip up in price over the years but never go above £100,000. I paid £105,00 for a two bed in the same block on the same floor , it all took about 3 months to complete. On the day I moved I phoned an agent who said my two bed was worth £160 -£165 and my old one bed was £110. That is how fast the market moved in those 3 short months. I sold a few months later for £166,000.

I looked recently the one beds in that block are £375,000 - £425,000 Two beds river front like I had £600,000. LOL.

[Pop321]

2 hours ago, Insane said:

I am old enough to remember the late 80's early 90's crash. During the 80's the Mantra was property will stop going up but never go down. Then at the end of 88 when Double Miras was scrapped and Interest rates moved up it crashed. The biggest and first drops were in London and places where it had gone up the most they went down the most and the fastest. 

When there are times of high unemployment even those in secure jobs can feel insecure due to secure jobs not being guaranteed and the fact that they are aware of what is happening around them. 

One massive driver for the Market like any Market is Sentiment and after a few years of price drops Sentiment changes very fast. I remember friends who could afford their homes refusing to pay for an expensive asset that was losing money and giving back the keys ( long term bad decision) but at the time their feelings and sentiment won over. I Remember friends who could not afford their homes getting repossessed. 

Property became a dirty word. 

In 1993 I bought a flat for £50k it had been purchased for £150,000 in 1988 had never been lived in and had been held by the lender empty for years. People said to me you must be mad why do you want that ? Today when I relate this story I know people think I am talking rubbish. I still have the advert form when I bought that flat have tried to upload it to here but the system says the file is to big to upload on here ( if anyone knows how I can upload let me know and I will do it.

If we have a massive economic upheaval and downturn I cannot see a smooth transition of those losing their properties and there being many on the side lines waiting to step in as Sentiment not to do it will be a massive driving force.   

I was there....and we were possibly the luckiest people ever. 

At 18 with a little baby I was forced into buying by my daft wife in 1986 after prices had already rocketed for a year...paid a huge £28k and sold a couple of years later for £52k. Okay, wife got lucky. 

Gazumped on house we were buying, devastated but couldn’t let our buyer down. We were naive kids so moved into rented and basically took our eye of the property ball for a year or two as I gained promotions at work. 

Bought back in 1992, the house we are in now. £62k (plus £18k refurb), so paid a daft £80k.....for a house that had been worth possibly £140k a couple of years earlier. Sitting pretty in our early 20’s.....all luck. Mortgage repaid by 30 despite being wage and cash poor...the tide obviously changed at that point. 

It was this experience of changing sentiment that it changes lives. 

Never forget the day the house opposite (not as nice as ours but similar) came on for £50k a year or so after we had bought ours. And it sat empty for at least a year.....when people stopped buying they really stopped.

It will happen again ie a crash, and it ‘should’ be soon. I am as bearish as most but I have to caveat that who knows what the world governments will do next to keep this thing going. 

I can’t judge anyone buying now....because it’s a big unknown. However I would definitely suggest they hang on for this irrational current bubbly sentiment to pass and I think that has probably already past because I am seeing much better value on new listings than last summer. 

[Insane]

46 minutes ago, Pop321 said:

Bought back in 1992, the house we are in now. £62k (plus £18k refurb), so paid a daft £80k.....for a house that had been worth possibly £140k a couple of years earlier. Sitting pretty in our early 20’s.....all luck. Mortgage repaid by 30 despite being wage and cash poor...the tide obviously changed at that point. 

Yes when I look back at my life and property when I did not try hard I made money things just happened. When I went out there actively to make money I lost. Good Luck and Bad Luck some of it we make or help to make some of it just happens. 

 Was speaking with a Lady I worked with a few years ago , very elegant mid 40's she had done some modelling work in her younger years and made big money. Obviously past that career now and had an ordinary office job average wage. 

During the early 90's she bought a 1 bed in Mayfair for £400k and sold a few years later after things had gone back up for £700k thinking it was the top of the market. She wanted to sell wait for prices to drop and buy back in Mortgage free. 

Fast Forward 20 odd years. Still Renting , Got some money left for a deposit but can only buy anywhere in London if prices drop hard and fast and would have to have a big mortgage in relation to her earnings. 

I asked her how much the 1 Bed in Mayfair would be worth now ? Answer £3 Million . OUCH !!!!