Insane rent increase.

andybird123 said:
Yes apparently anyone who works full time on something isn't allowed to earn anything from it, I didn't realise we were a communist country all of a sudden.
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Does a landlord renting a crap house which is falling apart and needs a lot of his time to fix deserve to be paid more in rent than a landlord renting out a brand new house which doesn't need any of his time to repair?
 
Pottsey said:
Except for its not nonsense, I have to assume you are only saying that is as it goes against you overly negative viewpoint that everyone is greedy and immoral which just is not true. I am not defending the indefensible. I am defending against your viewpoint which I find immoral and overly negative. It’s immoral to paint all landlords in the way you are.


It is clear that a great many people prefer to rent over own a propriety with various valid reasons and according to you the landlords renting to those people with a reasonable rent profit are immoral and greedy. That is just flat out wrong from my point of view. How do you know some of that increase are not for valid reasons? Why do you think the entire increase is 100% only from greedy and immoral landlords? Where is your evidence?


I have yet to see any valid evidence from you that all landlords are inherently immoral in all regards and greedy. Some of them are but not all of them.


That would be immoral and greedy to give them all to owner occupiers.
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Maggie introduced rtb which was effectively the above.

Landlords obviously want to make money, most people want to make money, as much as they can, not all though.
The problem is that the government have chosen to make btl less profitable which seems to have resulted in rent rises, presumably they hope for a correction but this won't happen without a lot of pain for Landlords and they will do everything they can to avoid that.
The correction may come from insolvency.
 
Simon said:
you can make no capital gains but make profit every year on the income. Not sure what 90% CGT would achieve other than make it even more pointless to sell
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The money in btl is in the capital gain.

to illustrate: You buy a property for 20% of its price or whatever (80% mortgage) and then keep 100% of its gain in value. If prices are rising by 5% per year, you've made a 100% gain on your original 20% deposit in 4 years. The rent pays the interest on the mortgage.
 
cheesyboy said:
So your position is that the need, from transient workers that you highlighted, for private rentals has doubled in a decade?
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No that is not what I am saying. I never said the entire increase was transient workers, students, people who don’t want to rent for various reasons only that some of the increase is due to them. I am saying many of those types of landlords are not inherently immoral in all regards and greedy and so what you are saying about all landlord being inherently immoral in all regards and greedy is wrong.

Many people choose to rent and benefit from renting over owning a property. Are you going to call those tenets greedy and immoral because they are taking away homes from that people could otherwise own? Why does the person who wants too own a home have more of a right to that property then say the transient worker that needs somewhere to live? Why should that home owner have more right to own that property then the students that wants to rent while at uni? and the list goes on.
 
cheesyboy said:
The money in btl is in the capital gain.

to illustrate: You buy a property for 20% of its price or whatever (80% mortgage) and then keep 100% of its gain in value. If prices are rising by 5% per year, you've made a 100% gain on your original 20% deposit in 4 years. The rent pays the interest on the mortgage.
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What about the areas where prices are not rising or even going backwards? What if there is another market crash or correction in 10 or 15 years? What about all the tax's and running costs? If the rent is £500 and the mortgage is £500 the rent doesnt cover the mortgage.

EDIT: There is no way to know you will get 100% gain on your original 20% deposit in 4 years it might even be negative. That is way most try to take a monthly profit. One landlord on here has already explained to you he is negative not gained 5% per year over the past years.
 
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cheesyboy said:
The money in btl is in the capital gain.

to illustrate: You buy a property for 20% of its price or whatever (80% mortgage) and then keep 100% of its gain in value. If prices are rising by 5% per year, you've made a 100% gain on your original 20% deposit in 4 years. The rent pays the interest on the mortgage.
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I’m aware of how it works. Just not all BTL properties are about Capital gain.

the last four years has seen a taper to 0% on mortgage interest relief which means the tax man makes more than most BTL properties. Especially on people with 80% mortgages
 
Simon said:
I’m aware of how it works. Just not all BTL properties are about Capital gain.

the last four years has seen a taper to 0% on mortgage interest relief which means the tax man makes more than most BTL properties. Especially on people with 80% mortgages
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Then it's even more about capital gain, isn't it.
 
Tax changes over last few years have already discouraged BTL. Depends what you are after. Passive income or actual gains

Flats have done rubbish in last 5yrs anyway
 
I had an offer in 2015 of 220k for mine. Now it’s worth 200k apparently and this is Reading. Flats have done rubbish and the taxman and letting agent seem to make the easy money now
 
Puzzled said:
Tbh why should a landlord make a profit? You've already got someone paying off the mortage on the property for you and covering costs, that should be enough. Asking for a profit on top is just greed, be happy with the asset you are left with at the end.
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Really?
I bought a property outright and then let it out, does that make me greedy and a bad person?
 
smeemi said:
Why do you hate landlords then lol

It would have been cheaper for me to rent my property than buy it over the 5 year period
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I don't hate landlords, I hate the way the property market is rigged in this country to funnel money from the poor to the wealthy.

That taxpayer money isn't used to protect people daft enough to buy 'luxury lifestyle apartments' in dreary home counties towns is a small consolation though. At least no everyone is bailed out.
 
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