Lower West Stander
Well-known member
There are so many reasons why this is a stupid idea I'm not going to list them. But I guess if you have such a blinkered view it doesn't matter anyway.
Any Buy to Let Experts? Good and Bad Experiences Sought
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There are so many reasons why this is a stupid idea I'm not going to list them. But I guess if you have such a blinkered view it doesn't matter anyway.
Tesco in Disguise
Where do we go from here?
Lower West Stander
Well-known member
As I said earlier on this thread. The relationship between landlord and tenant can be mutually beneficial. We are not all Van Hoogstraten wannabes. Some people simply do not want to own a property and others know they will never be able to based on basic income and expenditure calculations. Yes I will get a decent return, but my tenant gets a property which is fully serviced by me in terms of repairs, essential electrics etc. at a below market rent.
I am not saying the system is flawless - it certainly isn't and there are those who abuse the system (on both sides) - but you are oversimplifying.
Tesco in Disguise
Where do we go from here?
Yes, because the prices are inflated by those who buy up several properties.
Baldseagull
Well-known member
BTL mortgages were introduced to create more rental properties, this should have had the effect of reducing rents as supply increased, unfortunately net migration of 250,000 people a year has somewhat filled the gap.
BTL landlords have had a good run, but when interest rates rise, many will be stuffed, you may resent them taking a profit out of your need for housing, but they are putting themselves at some risk.
Still, it is irritating when you think a Bricklayer is stuffing the cash he earned from building houses into the pockets of a landlord so that the landlord can then put a deposit down on the houses the Brickie is building, but cannot afford, and rent that one out to another low paid grafter.
BTL landlords have had a good run, but when interest rates rise, many will be stuffed, you may resent them taking a profit out of your need for housing, but they are putting themselves at some risk.
Still, it is irritating when you think a Bricklayer is stuffing the cash he earned from building houses into the pockets of a landlord so that the landlord can then put a deposit down on the houses the Brickie is building, but cannot afford, and rent that one out to another low paid grafter.
Beach Hut
Brighton Bhuna Boy
Thought about this several times but always backed out given several horror stories from friends of trashed properties and non-paying tenants.
One property is enough to worry about.
One property is enough to worry about.
Not true. They are a direct result of the introduction of shorthold tenancy agreements. This change in legislation swung the power from the tenant to the landlord overnight. As the power is now with the landlord it makes it more attractive for lenders to lend on rental property.
Garage_Doors
Originally the Swankers
I know a few people with more than one home but none let out. Generally they will be in different parts of the country for normal home, work residence and holiday homes.
Is that so wrong?
Baldseagull
Well-known member
AST's have been around since 1988, BTL mortgages since 1996, that is a bit more than overnight.
Banks would not take the rental income received into consideration on a mortgage for a home prior to 1996, that is when BTL mortgages arrived, after the Association of Residential Letting Agents introduced them with some of the banks. You may question the motives of ARLA but at the time they promoted it as a way of increasing the number and quality of properties available to rent. If you wanted to borrow to buy to let out a house before that it would require a commercial mortgage, harder to acquire, would often involve security on other property and more expensive than residential mortgages.
DumLum
Well-known member
Yes you got lucky buying in 87. For those who were still at school back then it has been a lot harder to get on the ladder. I worked out I paid about 100k in rent before getting on the ladder. Working 50/60 hours a week evenings and weekends and going without, forgive me for thinking the buy to let market is for parasites.
Buy a house rather than a flat. Flats tend to have "management charges" to tidy communal areas that will eat into your profit margins. Be aware these management companies can change - and new companies can and do hike up their charges. You are at their mercy.
Also check the remaining lease length if you do buy a flat - I delayed on extending mine and it cost me a pretty penny.
Also check the remaining lease length if you do buy a flat - I delayed on extending mine and it cost me a pretty penny.