In my area lots of landlords do interest only mortgages. I don't recall anyone saying it was hard work all the time. Only that it is work and that there is nothing wrong with taking a reasonable profit for that work. Plus when things go wrong it can be both very stressful and a lot of work. Its not all easy going and sitting back counting the profit. You have to factor in all the things like when the tenets trash the place and refuse to pay.
Insane rent increase.
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Strongly disagree with that. There is often a difference between the people who rent out 1 property and those that build up a massive list of properties with the goal of greed and profit. Being a landlord is not an immoral pursuit in every regard or inherently about greed. If you believe that then you have an overly negative outlook. I do agree some landlords are greedy and everything is about profit but that doesnt mean all are.
What is landlording about if not profit please.
My buy to let is interest only
I'm a landlord, like most, fallen into it.. was never for profit. Be lucky if I break even.
Reasonable profit doesn't come into it though. Its profiteering in most cases. As I have said above, my partner has a property and its very very little work, earns her some extra money (she puts probably about 70% of that aside for maintenance, repairs etc) and she isn't even charging market rate. By the time the mortgage is paid off, she will have an asset worth probably about £800,000 that she put about £90k towards. She will have made close to that initial £90k over the lifetime of the mortgage from rental profits as well. Not bad money for doing very little for 25 years eh.
Maybe sell? The market's hot.
But edge cases of weird leases or family issues aren't really the thing anyway. @Pottsey was defending a much wider landlord class.
Soldato
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How ? Did you buy at current market rates to let and are expecting to sell when the bubble bursts or something ?
First of all profit does not = greed there is a big difference between profit and greed. Making a reasonable profit being a landlord is not the same as being greedy or being an immoral pursuit in every regard like you said. That is just wrong.
Some people are landlords for reasons other than profit. Like keeping a family home that’s been in the family for generations and renting it out when its not in use by a family member. Having a holiday home that you use x months then renting it out the other months. Or falling into it like Smeemi did and not making a profit.
There is a difference between the landlords that own a single property and the landlords that buy multiple properties with the goal of as much profit as possible. Its not fair to paint all landlords with the same brush. Some are greedy that doesnt mean all are immoral and greedy like you said.
I already explained why it's inherently immoral:
You're just going to ignore that?
Tbh, I don't see holding a potential home back from a new owner-occupier family is an especially moralistic position. That's a bit of a clutching at straws scenario really.
There's a misconception that all property prices have gone up. Flat prices have gone way down. I bought for 260 in 2017, wanted to move to a house in 2020 as i was going mad in lockdown in a flat, couldnt sell it so bought a house and put the flat on btl, flat is worth about 210 now.
What's the difference please
Man of Honour
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Inflation is going crazy. Everything has gone up.
Except flat prices rofl
Soldato
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Ah that makes sense, I'm sure you'll turn a profit the longer you hold it though, these things come in cycles of 10 - 20 years so as long as you can hold that long enjoy the steady income from renting I'd say
Prices have gone absolutely crazy round here recently. I'm in L16 and bought in 2009 and again in 2015 and since then things have gone through the roof! My first house was £130k but there is nothing for that amount round here any more.
Thing is I lose my additional stamp duty if I don't sell within 3 years of buying. That's about 11k and I want to do an extension on my house so am planning on selling this year.
Tbh it was probably the right decision to move as my house has probably gone up by an equivalent amount the flat went down, so probably have cushioned myself a bit.
Plus it's a lot of hassle BTL for what it's worth, I've been quite unlucky though tbh, not as bad as some landlords of course.. plus I hate having a lease, want to get rid asap.
And significant tax changes for BTL landlords
Yep especially for higher rate taxpayers. You even have to pay the additional 11% student loan tax on it. I make almost nothing from £13k rental income.
Yes I'm under 30 and have two properties, I'm not complaining.. only about 5 years ago I was a tenant, and honestly, I do feel for landlords. It is tough.
What I wish I did instead is continued renting and never bought the flat. It would have been cheaper and I would have saved a lot.
Soldato
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For the middle class owning a house or two as BTLs, which I would love to do as a pension booster.
If you live in Dubai and own 200 houses in a limited company then the tax changes don't apply annoyingly.
The only scenario I see where BTL could work for me is if my girlfriend moves in then keep this house in my name, with her saving up 25% for a BTL deposit. This would avoid getting spanked for stamp duty.
I cannot comment on the south as I know prices are mental, but for anyone claiming they cannot buy a house in Stoke/Burton/Derby then they really need to have a look in the mirror. A friend just (as in <6m ago) sold her parent's two bed terrace with a garage in Fenton (Stoke) for 77k and there was nothing wrong with it.