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Being Subsidised By Your Landlord


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Bit bored so I thought I'd find out whether I was getting a good deal on my rented house in Uxbridge.

Went to nethouseprice and found out my landlord paid £210,000 in Jan 2004 for the house I rent. He spent 8 months doing it up (new kitchen, new carpet throughout, new porch, back garden, central heating etc) before we (girlfriend and I) moved in.

Negotiated rent down from 950 pcm to 850pcm and moved in last October.

Now I know these are all very rough figures but looking at BBC mortgage calculator and using some reasonable-ish figures if he put down a 20k deposit that would leave £190k to be repaid. Assuming 25 years at a fix of say 5.5% that makes £1180.36 repayment and £870.83 IO. Either way, we are being subsidised by either roughly £330 or £20 a month, and he certainly isn't seeing any capital appreciation (house 4 doors down went for £209k last month.

Now I've actually worried myself into thinking he is going to try and sell up and kick us out at the end of our lease!!

Maybe all this information readily available on the internet isn't such a good thing :P

I'm sure I've made loads of mistakes in my assumptions above but like I said, just playing around.

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.... if he put down a 20k deposit that would leave £190k to be repaid....

That 20K could be in the bank earning interest :D so he's worse off than you suggest.

I'm being subsidised to the wonderful tune of £700 a month, compared to my rent of £1100 and an interest only of £1800 (landlord bought the place 1 month before we moved in)

You have to enjoy shorting the housing market by renting at the moment. It's fantastic.

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Our landlord paid £149K in Jan '03.

During the peak last year houses were selling for £235K in our road. He put the house on the market for £250K in July '04.

It's now down to £215K and the 6th viewing is tonight.

At £215,000 I'm £150 better off (paying rent) than an IO mortgage, plus building insurance, etc etc.

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I'm being subsidised to the wonderful tune of £700 a month, compared to my rent of £1100 and an interest only of £1800 (landlord bought the place 1 month before we moved in)

Don't you think this is a big problem though. Once the BTL brigade start off loading properties rents "should" increase (supply and demand). Demand would stay constant but supply decrease?

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That's right llamaboy.

The BTL muppets sell their houses to people who don't need em, and dont want to live in them, so the amount of residential accomodation goes down, leading to a shortage, so rents rise.

Er, can anyone see the fallacy in this?

Oh yes. The people who buy from teh BTL move in. I.e they move OUT of their existing accomodation. And if they have been renting, they have just exchanged 2 beds for 1, given that you get far more space by renting than buying right now.

The only way for rents any time soon is down, for that simple reason, and the pressure will continue downwards till renting becomes more expensive than buying, at which point, it will, of course, reverse. Say about 2010.

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  • 440 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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