It’s nots £12 profit if you have capital in the asset at the end. It’s £12 on top of the mortgage payments that you have made. And the few hours of work that you have to do will more than make up that.
House prices rose 7.3% this year, average now almost £250k
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It’s nots £12 profit if you have capital in the asset at the end. It’s £12 on top of the mortgage payments that you have made. And the few hours of work that you have to do will more than make up that.
Because the houses keep being bought to be let out... because home ownership is decreasing year-on-year nationwide.
I'm not sure how that happens if landlords aren't buying more property..
Oh and because people keep talking about "adding to their portfolio"
It’s a interest only mortgage. I’m not paying any capital.
This is the issue. You guys have zero experience of BTL and think money grows on BTL trees
Yes some do. Some don’t.Because the houses keep being bought to be let out... because home ownership is decreasing year-on-year nationwide.
I'm not sure how that happens if landlords aren't buying more property..
Oh and because people keep talking about "adding to their portfolio"
But they aren’t all the same. The ones who are big are limited companies anyway so they are just a business. No different to a man selling roofs, heating systems or carpets
You’ve got a crapper there!
Interest only mortgage on a £300k house is what, £300/month?
so you would need to be renting it out at about £500/month for a 300k house... no if that is the case, you have a lemon.
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we fell into this gap. Between the 250k cap for the isas, the new 228k cap for the equity loan and no stamp duty savings unless you get past 300k (0 stamp duty up to 300k fir FTB) there’s not a lot of help. Waiting for Boris to do some magic.
It's completely different.
You (or anyone else) buying a house they don't need, and taking if off the market, incrementally impacts the ability of FTB to buy a house that they do need.
Let's face it, a lot of BTL are buying up the basic starter homes precisely because it forces people to rent.
It's a calculated move to divide this country into the portfolio owners and the perpetual renters.
And people get a taste for it, and they don't stop at one or two BTL properties, they get greedy.
We *need* a limit on the amount of homes people can buy and not live in. And companies that aren't non-profit housing associations, govt bodies, or care homes, should be *banned* from owning residential property full stop.
Isn't that effectively North Korea? /s
This is the US, but it highlights the complete myth that BTL doesn't hurt home ownership
Corporations are buying houses — robbing families of American Dream (nypost.com)
Sounds pretty horrific. No reason it won't happen here.
First I didn’t buy a house. Nor was it a first time house , whatever that is.
second I didn’t buy it to rent out and make money . I ended up with it due to circumstances I don’t need to go into here.
Thirdly. The government have made BTL pretty much pointless under individual self assessed taxation and now people with a few or more properties are running their portfolio as a limited company. This is no different to any other company out there making money. Food and heating is a basic right too isn’t it ?
I think you are very naive. My advice would be that if you want a house move somewhere where you get paid more and stop complaining about it.
people are saving, moving, making cut backs etc as well as taking all the help they can get to get into a house.
but it shouldn’t be that hard.
Why can’t people complain that the system is broken or that the morality of BTL?
do the news headlines and general frustration of the majority of the population not raise flags for you that the system is broken in many ways, including BTL?
So you’re not buy to let? As you didn’t purchase the house with the only intention to let it out? Accidental landlords are not terrible people, it can make sense, but doesn’t help the problem.
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I think you guys need to realise the government HAVE made significant changes to discourage it.
I don’t think that is settling in though? You seem to still think it’s a gold mine. Anyway let’s see what happens to prices. after this stamp duty ends (likely to extend) and any landlords like me who find it too much faff dump property. ( and pay the government their share via CGT)
I don’t think that is settling in though? You seem to still think it’s a gold mine. Anyway let’s see what happens to prices. after this stamp duty ends (likely to extend) and any landlords like me who find it too much faff dump property. ( and pay the government their share via CGT)
Soldato
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Because you are not understanding the underlying causes for the current situation, rather, using BTL as a strawman.
This creates a negative feedback loop which has led us to this situation in the first place.
This is why over time, it will get worse, regardless of what policies the government brings in to appease the people who complain about it.
This is the US, but it highlights the complete myth that BTL doesn't hurt home ownership
Corporations are buying houses — robbing families of American Dream (nypost.com)
Sounds pretty horrific. No reason it won't happen here.
I'm trying to find somewhere out in the New York suburbs to rent but there's hardly anything available it's all taken up by greedy homeowners. Would be amazing if a company came in a bought some up to make them available for rent
The true negative feedback loop is the gap between the haves and the have nots widening every year.
What you guys completely fail time and again to address is that we need people doing those low paid jobs (tho they don't need to be low paid, but that's another story). They can't all just up and leave. And it would help nobody if they actually did (like all of them!)
If the low paid can't find a house and are locked into paying rents often higher than a mortgage would be, so we're just entrenching the situation, funnelling money from the bottom to the top as always in this country.
Money begets money and poverty begets poverty. And we're just reinforcing that with a housing market that is more affordable if you have more to start with (a large deposit, etc). Those at the bottom can't even save a deposit...
And seriously, 15x-25x average income as the base cost of a house? That's pure madness.
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Are you salty because you aren't earning enough, or that you haven't saved anything? Feels like you just keep making excuses for yourself.
Soldato
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No that's pretty much what i meant, and if you had the power to make laws, you would make the situation even worse than it is, and 15 years later, there would be a foxeye 2.0 on another forum, saying the exact thing you are saying right now.
BTL and property as a money turning asset is part of the puzzle.
The other parts have been discussed (need to build more, better, spread the wage disparity across the UK, improve planning etc etc etc) but the one that gets an argument is the one where people have a vested interest in defending their investments. (Understandably). But it is still part of the problem.
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