Ouch. Where are you located in Georgia? I'm living in the state as well.
Insane rent increase.
- Thread starter willhub
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Ouch. Where are you located in Georgia? I'm living in the state as well.
I'm in Villa Rica, but I work in Peachtree city. Used to live in Dallas GA, and it's a way nicer town.
Its not greed as they should make a profit to cover the risks and work involved as well as to build up a pot to pay for everything. Expecting landlords to not make a profit and wanting them to run at base costs can be viewed as greed from the tenants. Why shouldn't someone make a reasonable profit given the amount of work and risk involved? If they are not making a monthly profit past covering the mortgage costs then how are they meant to pay for everything else that is involved in being a landlord?
He sounds like a classic grade A ****.
Soldato
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So why don't you go in to work tomorrow and tell your boss you'll work for free? Because people expect to get paid for doing work, being a landlord is both work and a risky investment (house prices do drop sometimes, tenants cause damage, mortgage rates rise etc.)
If there is no money in it then landlords will exit the market, meaning people who can't afford to buy will be left with nowhere to live as the remaining houses available to rent will be fought over and prices will increase even further.
There are some crap landlords out there, but that's why you can complain to the council etc. Who should enforce, and if the council aren't enforcing then that's a different thing, but to actually prevent someone running a business from making a profit at all, that's a new kind of special.
Because the landlord already has someone paying for an asset which they can sell later. So they get a large asset paid for, costs covered and a monthly profit on top? No wonder rental prices are so much above mortgage costs if this is the expected return on investment. The whole system is broken when one of the most basic necessities of life (shelter) is so ridiculously expensive.
you shouldnt have been wasting money on cars and computers and going out etc etc. should have used that money to put deposit on your own house and pay mortgage instead of getting rinsed on rent.
This risk that landlords take on is almost 100% BS. Let’s ignore the fact that house prices almost everywhere are rising at an insane rate and cut right to the chase. Being a landlord is largely ******* easy, you can pay someone to do 99% of the work if you want, you make money every month AND you have someone else paying off your mortgage.
Barring a catastrophic disaster you are taking a tiny risk for massive profit at someone else’s expense. Probably someone far worse off than yourself.
My partner has a house that brings in about 500 more than the mortgage cost every month (she isn’t even charging market rate), the house has nearly doubled in value in the last 12 years and she has to do very little apart from occasionally talking to the company she pays to manage it and every 5 years or so she has to pay out a chunk to replace large items I.e the kitchen or bathroom or all the carpets.
In about 15 years she will have a house worth probably 3x what she paid for it which is paying her more each month than a lot of people earn and it won’t have a mortgage on it.
The housing market is a mess and anyone who says otherwise is burying their head in the sand or doesn’t want to admit that they are fantastically lucky and are benefitting from other peoples misery in some way.
Barring a catastrophic disaster you are taking a tiny risk for massive profit at someone else’s expense. Probably someone far worse off than yourself.
My partner has a house that brings in about 500 more than the mortgage cost every month (she isn’t even charging market rate), the house has nearly doubled in value in the last 12 years and she has to do very little apart from occasionally talking to the company she pays to manage it and every 5 years or so she has to pay out a chunk to replace large items I.e the kitchen or bathroom or all the carpets.
In about 15 years she will have a house worth probably 3x what she paid for it which is paying her more each month than a lot of people earn and it won’t have a mortgage on it.
The housing market is a mess and anyone who says otherwise is burying their head in the sand or doesn’t want to admit that they are fantastically lucky and are benefitting from other peoples misery in some way.
Prices can depreciate meaning you want someone to work for free for 25+ years and then risk selling for a loss and losing money for those 25 years all the while earning zero monthly money. What are you asking is unrealistic and unfair.
The current system is not broken in that it’s not the landlords over charging or the landlords being greedy like you seem to be saying at least most of the time. For most landlords they are making very little, the so called £150 to £250 profit on top of the mortgage is not profit to spend on holidays. Its profit to build up a pot to pay all the landlord running costs and fee’s.
Why should landlords work for free given the risks and amount of work and costs involved? Most of the time rental prices are so much above mortgage costs because of all the costs and fee’s the landlord has to pay. Not because of greed. Have you ever looking into the work it takes to be a landlord and the amount of costs involved?
Its not working for free, you are having a property paid for by someone else which you can later sell for a profit. You are trying to get money out of it now and cash in later as long term property prices always go up.
If I agreed with an employer that in return for my employment that they pay for my home which I get to keep once paid off then yes asking for wages on top could be seen as unreasonable. I'd get another income stream to cover other costs.
agreed
Thats not what's happened.
House prices have surged, which has cut more people out of owner occupation, forcing people into rent. Growth in buy to let has slowed, mostly because the number of properties going on the market during covid has stalled, so the whole market has ****** itself.
It is working for for free. You are basically saying work for free for 25+ years and you might get paid at the end of 25 years or you might not get paid anything how is that fair? Plus as I said before if you are not making a monthly profit how do you build up a pot to pay all the big costs that landlords have to pay? Its not like a landlord can say sorry you have to wait 25years until I sell up before I pay the bills.
What about all the landlords who have an interest only mortgage? Should they work for free as well as they wont get any money at the end when they sell up? Just because they have a mortgage it doesnt mean the landlords gets to keep the property at the end of the mortgage, that's now how all mortgages work.
Landlording isn't work.
Caporegime
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- Dormanstown.
Teeside isn't that grim.
You aren't working for free.
If a rental price was capped at x% above mortgage and a pot for running costs (maintenance, fee's, updating etc) then long term you are still going to make a decent return. After x years the mortgage will be paid for so you'll receiving a decent monthly amount and have a large asset to sell when you exit. Even if you exit early you'll still have a nice increase in capital in the property.
Rental prices are too expensive if landlords expect an instant return, plus all that on top.
An interest only mortgage shouldn't be a viable solution for decent return for a landlord, you are expecting too much from tenants to cover that sort of cost. Its a long term game not instant returns and no investment is risk free but the chances are your property value is only going to increase.
Most landlord are already doing that though and yet you are still unfairly going on about greed. If a cap was put in place under the conditions you say, I would bet most rent prices wouldn’t change one bit as rent is already worked out like that. Landlords are not expecting or getting an instant return most of the time. Depending on area £150 to £250+ above mortgage level a month is perfectly fair and reasonable. I don't see how £650 or £850 is remotely greedy for rent. (depending on area and type of property)
Are interest only mortgages even possible on B2L? That doesn't seem like something a bank would sign up for unless the mortgage rate was astronomical. The risk to them seems rather high.
Oh and not a single person I know who has a single second property thinks that its a job or that its hard work for the money.
Edit: had a look into it and yes, Interest only in B2L is a big thing for reasons that make perfect sense. It allows landlords to hoover up more houses and generally expand their property empire much faster. Massively incentivised by crazy inflation in the housing market.
Oh and not a single person I know who has a single second property thinks that its a job or that its hard work for the money.
Edit: had a look into it and yes, Interest only in B2L is a big thing for reasons that make perfect sense. It allows landlords to hoover up more houses and generally expand their property empire much faster. Massively incentivised by crazy inflation in the housing market.
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Landlording is inherently about greed. It's unavoidably so when you have to outcompete owner-occupiers to buy the thing, and then need a steady supply of priced-out aspirational owner-occupiers to actually rent the thing to.
It's an immoral pursuit in every regard.