Buy To Let.

Honest John Back Room » General discussion ( non motoring )
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Tue 12 Oct 2010 09:02
Buy To Let. - Dutchie

This has always been one of my pet hates,houses are to live in and bring a family up in our situation.Some of the rents young people pay to these landlords are far to high in my opinion.We need more affordable housing for young people and give them a change.

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Wed 13 Oct 2010 10:53
Buy To Let. - woodster
I disagree. To state that houses are for living in and raising a family is akin to saying that cars are for getting from A to B and nothing else. The housing market is like any other market and it will find its own level, as will the rental market. Supply, and most importantly,demand, will at some point check prices. Doubtless at this point you'll be telling me that doesn't explain sky high prices that we've seen. My answer is that if people are foolish enough to be carried along on the crest of an imaginary wave, determined to pay an over-the-top price, then more fool them. If all first time buyers simply stood back and held off, then prices would fall . Buy to let is the same. People think they've seen a gravy train and want some of the action. Let them have it. If there are too many rental properties, their rents will be down, they'll have reduced occupation and potentially get their fingers burnt. That in itself will help cool the investor market. We've heard countless times about young people being forced out of an area because prices are too high or people are buying holiday homes in nice areas. I've yet to see a seller reducing their price in order to sell to a young/local person. No, they're too busy cashing in! Who can blame them? It's their property and they'll sell at the highest price. Would you reduce the price of anything else you own? This is akin to saying that Tesco's have killed the high street. More like shoppers have chosen not to patronise the small shops. Shoppers holding the money have killed the high street by choosing to go elsewhere. Back to housing - I think too many young people expect too much when they start out. For many youngsters, ex council stock is off their list, they want brand new furniture, big TV's, new cars and anything else they think they 'deserve'. Credit is regarded as a right with no foresight for other expenses and higher interest rates. Lowered expectations (that we're probably all going to have to face soon) are perhaps the order of the day. I'm only 45 and suffice to say that I'm very comfortable and happy with what I have. At 20 I had nothing and lived in rented with crap carpets and secondhand furniture/bed. A very far cry from the youngsters I work with today. I ignored the advice to 'buy as soon as you can' as I instinctively felt prices were too high. I saved my money, drove cheap cars and kept the crap furniture. When everyone else was in negative equity I put my deposit down and went straight into a 3 bed detached, with my crap furniture! Ignoring an over inflated housing market and saving hard was the best decision I ever made (along with taking my bike test and having a couple of big bikes...) The market was never going to be able to rise forever and we've seen it all again recently.
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Wed 13 Oct 2010 16:52
Buy To Let. - Dutchie

I think the market is still rising regarding house prices especially in the south of the UK.Regarding buy to let often the starter homes are bought by amateur landlords giving first time buyers not a lot of choice.I blame a lot of the banks when people are going into negative equity they did give people 100% morgages ,the only reason at the moment that people are not losing property, interest is so low it should be around 3% inflations must be about 4%depending how the party's in power fiddle the figures.There must be a lot of people with savings who are receiving a very low return.I remember as a young man bringing up a family with my wife paying over 15%interest on our morgage and that was a struggle.We are happy with what we got a nice home paid for a motorcar and not to forget our two cats:)

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Thu 28 Oct 2010 00:07
Buy To Let. - Dutchie

To follow this discussion about buy to let and private landlords.Regarding social housing and private landlords why should the taxpayer subsidise private landlords exspecially in London,Its about time this scam is stopped and let the landlords lower the rent there will be enough problems soon when a lot of people having to move house due to subsidy and the rent situation.which they won't be able to afford.without money from councils.

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Thu 28 Oct 2010 18:53
Buy To Let. - FP

"why should the taxpayer subsidise private landlords"

I am a private landlord. I don't receive any subsidy from anyone at the moment, certainly not the taxpayer.

Could you tell me how I can get one of these subsidies?

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Fri 29 Oct 2010 11:24
Buy To Let. - woodster
Chris, I think perhaps Dutchie means that private landlords are indirectly subsidised by the benefits system paying a person's rent for them when they wouldn't otherwise be able to afford it. In such a system private rents can creep ever upwards. Didn't Mr Cameron say that the cost of housing benefits had risen 50% in the last 5 years?. Having said this, I'm not making any comment about yourself or private landlords in general!
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Fri 29 Oct 2010 12:26
Buy To Let. - FP

Clearly, my attempt at irony didn't come over very well. :-)

I have never had any great need to take on a Housing Benefit tenant, though I did so, once. His rent was always paid promptly, but when I found out his girlfriend was living in the house a lot of the time and that he was smoking cannabis there I kicked him out. Many landlords won't touch such tenants, of course.

In my area it seems Housing Benefit may not be affecting rents much, if at all.

Edited by ChrisPeugeot on 29/10/2010 at 12:27

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Sat 30 Oct 2010 17:14
Buy To Let. - Dutchie

Hello Chris.

Maybe I got a bit anti landlord when my daughter studied in Leeds I believe there where about six students in the house and they all paid a lot of money for what they got.And they where lucky to recieve any deposit back when they left, I know in a student area its supply and demand.Regarding subsidies I meant the situation in London where some tenants are paying £2000 a month social housing which has to be paid for out the council rates.

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Wed 3 Nov 2010 19:50
Buy To Let. - bonzo dog

Person A owns a house & wants to sell. Person B wants to live in the area but can't afford to buy / can't get a mortgage. Person C buys the house & rents it to person B.

Simplified, yes, but that is essentially how the system works

If it were not for the buy to let mortgages many of the properties that are curently available (for the likes of students for example) would not be, as the supply would be very limited & only available to A grade tenents.

As has been stated, the upwards pressure on rented acommodation has ben due to the benefits & NOT the banks, although I'm sure they will get the blame as usual

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