Saturday, July 26, 2014

Only just realised?

Buy-to-let: creating bedsits for 20pc returns is just a response to the market

This is the baseline model for London. You can get 600 a month HB on a per room basis. Even a two bedroom house switches to three single occupancy (or double) rooms. That flat, you could fit a family in there, two kids sharing a room, but they wouldn't be able to match the rental costs. Truly this is a scandal because the government is maintaining a price level that they themselves arbitrarily decided, while at the same time switching provision from health care and education to keep the money flowing.

Posted by stillthinking @ 09:30 AM (4542 views)
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4 thoughts on “Only just realised?

  • the government is maintaining a price level that they themselves arbitrarily decided, while at the same time switching provision from health care and education to keep the money flowing.

    The Tory government are ABSOLUTELY DETERMINED to win the next election, they are literally going to put EVERYTHING on it.

    Success may depend upon the NHS scandals that are brewing as a result of government policy.

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  • That’s NOTHING. I work in London and have seen a small ground floor shop converted into four studios, some of which have NO EXTERNAL WINDOWS. Same had been done to an outbuilding. All the flats were occupied. The worst had NO WINDOWS.

    Bear in mind, the new planning laws allowing conversion of office to residential without planning permission meant that there are almost ZERO controls on the sizes of flats in those conversions.

    Beds in sheds, well, there is another item. Ludicrous outbuildings with single skin chip-board walls, plastic corrugated roofs, and folk living in there getting pneumonia, etc. just horrid. But it is not a crisis in the media, so we can only imagine that this has been planned. Labour’s initial objectives were won. They turned Tory seats in London to Socialist because most immigrants vote socialist.

    The Tories want is in the EU, at least the leadership does. Very soon, there will be enough pro-Europe voters to keep us in forever, and they are desperate for cheap labour for their buddies.

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  • Yup. We plan to do a loft conversion. Put an en-suite with a mini IKEA kitchenette in there and rent out the studio for £100 a week. Half of the income will be enough to cover interest and repayments on the home improvement loan that will also cover our rear extension, with money left over to pay off the loan and main mortgage.

    The income will be tax free because the first £4250 is tax free and then we can offset the higher amounts against interest payments on the home improvement loan.

    No, I’m not a property bull, I just think folk should own their own home and take advantage of the tax free allowance for renting a room.

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  • libertas – what is the Lenders reaction to your proposal (consent to mortgage form signed by lodger as an absolute minimum) plus notification to the Buildings & Contents insurer !

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