Guest muttley Posted May 25, 2006 Share Posted May 25, 2006 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? Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 25, 2006 Share Posted May 25, 2006 Interesting Mutley (for once ). 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. Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted May 25, 2006 Share Posted May 25, 2006 Interesting Mutley (for once ). 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 ) 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. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 Relevant WAL (for once ) 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. Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted May 26, 2006 Share Posted May 26, 2006 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? Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 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. Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted May 26, 2006 Share Posted May 26, 2006 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? Quote Link to comment Share on other sites More sharing options...
frugalista Posted May 26, 2006 Share Posted May 26, 2006 (edited) 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 May 26, 2006 by frugalista Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 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. Quote Link to comment Share on other sites More sharing options...
Englebert Posted May 26, 2006 Share Posted May 26, 2006 (edited) Interesting Mutley (for once ). 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 May 26, 2006 by The Dude Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 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. Quote Link to comment Share on other sites More sharing options...
Englebert Posted May 26, 2006 Share Posted May 26, 2006 No, I'm a landLADY (debatable). It is my 3rd property. Thanks for being so candid....I like the Sinead O'Connor avatar! Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 Thanks for being so candid....I like the Sinead O'Connor avatar! I'm nothing if not straight up. 10 points for you - most of the ignoramous' on here think it is a bloke. Quote Link to comment Share on other sites More sharing options...
spyguy Posted May 26, 2006 Share Posted May 26, 2006 [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. Quote Link to comment Share on other sites More sharing options...
CrashIsUnderWay Posted May 26, 2006 Share Posted May 26, 2006 It depends on a number of factors, the most important of which is how 'geared' they are. Highly geared spuds who haven't locked in low fixed rates are going to be in trouble. Quote Link to comment Share on other sites More sharing options...
MarkG Posted May 26, 2006 Share Posted May 26, 2006 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. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.