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Guest muttley

Are Landlords Recession Proof?

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Guest muttley

There have been many threads asking the question "What jobs are recession proof?", but I don't remember whether the BTL landlords included themselves.

So.....Are landlords recession proof? What happens to rents in a recession?

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Guest Winners and Losers

Interesting Mutley (for once :rolleyes: ). Well, I doubt that my rent is actually going to go down. So even though I might not be making a fantastic yield, or even a profit, the rent still covers the mortgage and I could probably manage to ride out the worst of it. It might not be easy though! Having said that, I have 50% equity in the property - it might be a different story for BTL's who are leveraged to the hilt.

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Guest muttley

Interesting Mutley (for once :rolleyes: ). Well, I doubt that my rent is actually going to go down. So even though I might not be making a fantastic yield, or even a profit, the rent still covers the mortgage and I could probably manage to ride out the worst of it. It might not be easy though! Having said that, I have 50% equity in the property - it might be a different story for BTL's who are leveraged to the hilt.

Relevant WAL (for once :rolleyes: ) So how come you keep finding solvent and willing tenants, even when the economy is shrinking?

Forget the BTLs leveraged to the hilt.They're gone anyway.

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Guest Winners and Losers

Relevant WAL (for once :rolleyes: ) So how come you keep finding solvent and willing tenants, even when the economy is shrinking?

Forget the BTLs leveraged to the hilt.They're gone anyway.

My tenants have young kids and I think they want stability. Two years now. I am not too keen on being kicked out of my rented accommodation either, so unless they are buying I guess they will stay. I have only had the same tenants from the beginning. It is a family home, not some crappy btl fixer upperer in Wandsworth. ;)

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Guest muttley

My tenants have young kids and I think they want stability. Two years now. I am not too keen on being kicked out of my rented accommodation either, so unless they are buying I guess they will stay. I have only had the same tenants from the beginning. It is a family home, not some crappy btl fixer upperer in Wandsworth. ;)

So, as a landlord you are recession proof because your tenants have kids?

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Guest Winners and Losers

So, as a landlord you are recession proof because your tenants have kids?

Not at all. I am just talking about my specific circumstance at the moment. If they moved out, I might have to reduce the rent and try and find the money to cover my mortgage, but while they are there and paying the rent I am OK, recession or not, that's it.

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Guest muttley

Not at all. I am just talking about my specific circumstance at the moment. If they moved out, I might have to reduce the rent and try and find the money to cover my mortgage, but while they are there and paying the rent I am OK, recession or not, that's it.

As a BTL landlord, I am sure you are aware that tenants come and go. A recession implies a decrease in spending power. Wouldn't this translate into falling rents?

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Are landlords recession proof?

Not really. They are supplying housing at a particular price. Housing demand at a particular price is partly a function of the economy.

When people lose their jobs or are trying to cut back they will want to spend less on housing. Many young people may move back in with their parents. People will look to share in higher occupancy dwellings to cut costs. New migrant workers will not be so attracted to the UK (fewer jobs) and many existing ones will return home.

The upshot is, less demand for housing at today's prices. Bad news for the landlords.

frugalista

edit: removed spazzness

Edited by frugalista

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Guest Winners and Losers

As a BTL landlord, I am sure you are aware that tenants come and go. A recession implies a decrease in spending power. Wouldn't this translate into falling rents?

I'm not really at BTL Landlord though, I rent out my main residence. We really need TTRTR at a time like this.

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Interesting Mutley (for once :rolleyes: ). Well, I doubt that my rent is actually going to go down. So even though I might not be making a fantastic yield, or even a profit, the rent still covers the mortgage and I could probably manage to ride out the worst of it. It might not be easy though! Having said that, I have 50% equity in the property - it might be a different story for BTL's who are leveraged to the hilt.

WAL...are you a landlord? From your posts, I just got the impression you were an ftb.....apologies if I am mistaken..

Edited by The Dude

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Guest Winners and Losers

WAL...are you a landlord? From your posts, I just got the impression you were an ftb.....apologies if I am mistaken..

No, I'm a landLADY (debatable). It is my 3rd property.

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Guest Winners and Losers

Thanks for being so candid....I like the Sinead O'Connor avatar! :)

I'm nothing if not straight up. :rolleyes:

10 points for you - most of the ignoramous' on here think it is a bloke.

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[Very few operations are recession proof.

Insolvency experts are not recession proof, they just have a recession in a differeny phase of cycle - when people stop going bust.

Last recession I had just started work in the Thames Vallley.

When the downturn started companies topped recruiting, esp. youger poeple.

Demand for rental properties collapsed.

Home owners started trying to rent out spare rooms, pushing prices down further.

The early 90s was a cyclical slowdown. i.e. it went up, then down, then back up.

I know of places - NE, Wales - where there demand for rentals just did not come back.

Nc such thing a easy money.

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It depends on a number of factors, the most important of which is how 'geared' they are.

I suspect it also depends on what kind of properties they have. People are likely to want to find ways to cut their rent, so those who would have shared before may move in with their parents, and those who rented small flats before may move into a shared house. Plus a lot of mortgageds will want lodgers to help pay the bills.

I'd guess people renting at the top won't be so affected, so the middle of the rental market will drain into the bottom.

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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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