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It is different this time

After 16 Months & 21% Reduction Still No Sale

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http://forums.moneysavingexpert.com/showth....html?t=1040645

Renting out!

After 16 months on the market, and many reductions in price, I am accepting now that I will not be able to sell my flat. I want to move into rented accomadation, so plan to rent out my place.

The plan....

Re-mortgage to a good rate fixed rate with HSBC (295 per month). HSBE will allow you to rent out a home you have previosuly lived in

Get the local agent to rent it out for me (14% of rental at 380 pcm) So I should make a tiny profit or break even on the mortgage.

Simple?

Surely not, what am I missing? Is there any reason this is not viable? Am I missing any tax that will hit me etc?

I am not thinking it is a quick way to make a buck.

But I really want to move to a bigger house and after 16 months accept that I will be unable to sell. Nobody can in this price bracket in Gloucester.

The flat was bought 5 yrs ago for 47k, was up for sale for 87k, and has now been reduced to 69k in line with others in the area. Still, non are moving

It must be really bad out there when agents can't even shifts flats at this price range. The way it goes the seller would be lucky to get his/her £47 back!

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So they will make no net income on the rental, have the risk of further capital depreciation, voids, damage, repairs etc. The alternative being drop the price to the original 47k for a quick sale, make no loss and be free. What is wrong with people?

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http://forums.moneysavingexpert.com/showth....html?t=1040645

It must be really bad out there when agents can't even shifts flats at this price range. The way it goes the seller would be lucky to get his/her £47 back!

Why not cut it to say 55k? So long as there's no neg equity i don't see why people feel they have to make back at 50% more than they paid.

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So they will make no net income on the rental, have the risk of further capital depreciation, voids, damage, repairs etc

One has to be a smart seller to understand what you are talking about, as most sellers are bainwashed with HPI. They are just too busy getting advice from Kirstie and chasing the market down

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It must be really bad out there when agents can't even shifts flats at this price range. The way it goes the seller would be lucky to get his/her £47 back!

I'm increasingly seeing people that I know become "accidental landlords" in exactly this way. I know of two families who are in the process of moving because of new jobs, one has rented out their current property and bought a second house, the other has rented out their current property but is now renting themselves close to the new job. And this is in addition to several couples I know that have ended up with additional properties as they married or moved in together when both previously owned their own homes. I also know people who bought flats for their kids when they went to university, after their kids have graduated instead of selling them they just shrug their shoulders and hand the property over to an estate agent as a managed let.

I find this a worrying development in that I'm seeing more and more, relatively affluent individuals, acquiring mini property portfolios as they just go about the business of living their lives. None of these people set out to become landlords, and they certainly don't fit the traditional BTL pattern. But it all adds to the emergence of a new property owning class, and consequently the slow erosion of owner-occupancy rates in the UK.

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The problem is that for a nice flat in a nicer area of Gloucester, you need to be paying more than that for a flat. (at current rip off levels)

Relative to other counties in the South West/Midlands, Gloucestershire relatively well off.

For a couple of Grand more you could get this: http://www.rightmove.co.uk/viewdetails-578...=2&tr_t=buy (look at that reduction in Firefox with the Bee!! - although that is presumably after the 25% off thing). Brand new, 2 bed. Still a rip off though.

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Surely not, what am I missing?

Is there any reason this is not viable?

Am I missing any tax that will hit me etc?

You seem to be missing a brain....

also.....

Capital gains Tax

(Tax is deductible on mortgage interest and agent's fees, though)

Gas Certificate (annual)

Electrical safety certificate (annual)

Homecare or similar for central heating/plumbing

Insurance - against non payment of rent

Insurance - Building

Money set aside for Void time between tenants

Repairs and re-decoration between tenants

Maintenance (Rented property MUST be kept at a higher standard than OO property)

Agents fees (finding fee or startup fee)

This chump will be making a significant LOSS.

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Surely not, what am I missing?

Is there any reason this is not viable?

Am I missing any tax that will hit me etc?

You seem to be missing a brain....

also.....

Capital gains Tax

(Tax is deductible on mortgage interest and agent's fees, though)

Gas Certificate (annual)

Electrical safety certificate (annual)

Homecare or similar for central heating/plumbing

Insurance - against non payment of rent

Insurance - Building

Money set aside for Void time between tenants

Repairs and re-decoration between tenants

Maintenance (Rented property MUST be kept at a higher standard than OO property)

Agents fees (finding fee or startup fee)

This chump will be making a significant LOSS.

Yeah, people seem to think being a landlord is easy and shit. BTLers that ignore yield are total fools

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I find this a worrying development in that I'm seeing more and more, relatively affluent individuals, acquiring mini property portfolios as they just go about the business of living their lives. None of these people set out to become landlords, and they certainly don't fit the traditional BTL pattern. But it all adds to the emergence of a new property owning class, and consequently the slow erosion of owner-occupancy rates in the UK.

I've always felt that tight enough credit would lead to this. In the absence of easy credit, those with savings, or who can generate income from existing debt-free property, will be able to accumulate more property (and as we've seen above, they might end up doing so purely for lack of other options). For the many who seem unable to save, the only option will be rental. Easy credit has meant that savers were unfairly penalised by HPI; now they should get a fair crack of the whip again -- no bad thing IMO.

I'm not even sure that the move away from OO should be a 'worrying' development. A properly-protected (i.e. offering secure tenure) rental system might work a lot better than what we have at the moment.

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This will end in tears. I reckon that they'll get cold feet as the price drops get worse, and either:

  1. Try to kick out the tenant and move back in, or
  2. Try to sell the place again, inevitably at a lower price than they could have got now.

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  • 399 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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