The joy of being a landlord

[fez]

As a like for like, you should compare your capital repayment and your interest payment. At a guess though, your interest is around £400/month so your comparison would be renting costs you £925/month whereas the mortgage costs for £400/month as you're in effect renting from the bank instead.

My house has gone up in value about 20% in the past 5 years so if I did the maths I would be looking at around £2k/month rent vs ~£300/month interest along with £100k+ in appreciation.

£120k dead money in renting vs £18,000 interest and £100k appreciation. Difference of around £200k over 5 years. Its massive.

 

[Terminal_Boy]

I was going to say in Monmouthshire, right on the river severn where I live there's new sites popping up everywhere. 280+ developments as well not small ones. Yet no changes to already congested roads, no new schools, doctors or anything though.

That was huge problem where we used to live in E18. The old Queen Mary campus was levelled and developed into hundreds of flats. No extra roads or services put into cope. Local traffic gridlocked at peak times, no spare school places and doctor’s surgeries already at capacity.

 

[413x]

If we are doing rent/own comparison across all metrics.. Owning becomes an absolute no brainer.

If you ignore buying immediately before a crash.. Which is a minority.


I rented a 450-550 a month firsy floor grotty electric heating falling apart flat.

Now own a 3 bed detached in same. (but nicer) area with a mortgage of 905
330 a Month is interest

Now consider that rent is probably 600 or more. And my mortgage interest is always going down.

Then add the house price increase (bought Feb 2020) of (according to zoopla)
260k in Feb 2020, now estimate at 344000 (think this is too high though)

Maintaining has been minimal. I'd say under 1000 in costs that were needed. This includes buildings insurance.



Only justification for renting I can see is if you need to move around a lot.

 

[Welshman]

280+ plot developments

Again…check the figures, there isnt 280 development plots in monmouthshire currently on the go for housing, unless your including private individual builds.


are you talking individual houses, or mass building plots. Just for clarification there was only 279 houses built in monmouthshire last year……..not exactly a huge amount to require new roads, schools or doctors surgeries. As the people buying/living in those properties are probably already from monmouthshire, so would already be registered to use those sorts of things. Its not as if we are having a mass influx people.

In 2011 there was 91,300 people living in monmouthshire in 2021 there is 93,000 so an increase of 1700 people in 10yrs………

 

[adidan]

That was huge problem where we used to live in E18. The old Queen Mary campus was levelled and developed into hundreds of flats. No extra roads or services put into cope. Local traffic gridlocked at peak times, no spare school places and doctor’s surgeries already at capacity.

Same up here, houses were built before any upgrades to already congested roads or any other infrastructure. Doubt we'll even see that.

It's all good and well saying build houses but it had to be part of a larger scale infrastructure project.

 

[EddScott]

Skipton offering a 100% mortgages for renters with 12 months of on time payments.

5.49% - renters in the thread should be all over this if they meet affordability and credit history checks.

This together with a CGT discount/exemption (for the property owner) for those currently renting to purchase from their landlord.

A 2nd home owner selling to FTB get CGT discount. Selling to local government to improve available stock CGT discount.

That together with 100% mortgages would improve things greatly. It also shouldn't increase house prices as it will dilute the lower price market.

 

[MikeTheNative]

Again…check the figures, there isnt 280 development plots in monmouthshire currently on the go for housing, unless your including private individual builds.


are you talking individual houses, or mass building plots. Just for clarification there was only 279 houses built in monmouthshire last year……..not exactly a huge amount to require new roads, schools or doctors surgeries. As the people buying/living in those properties are probably already from monmouthshire, so would already be registered to use those sorts of things. Its not as if we are having a mass influx people.

In 2011 there was 91,300 people living in monmouthshire in 2021 there is 93,000 so an increase of 1700 people in 10yrs………

Developments that have 280 + plots. Brunel quarter in Chepstow, is about 345 plots in total.
Redrow Subrook is 212 plots, new Lovell in Calidcot that has just started is about 269. There's other David Wilson/Barratt in Caldicot that's 130.
Not sure what figures your looking at, but I'm looking at actual sites where houses are built.

 

[Welshman]

Developments that have 280 + plots. Brunel quarter in Chepstow, is about 345 plots in total.
Redrow Subrook is 212 plots, new Lovell in Calidcot that has just started is about 269. There's other David Wilson/Barratt in Caldicot that's 130.
Not sure what figures your looking at, but I'm looking at actual sites where houses are built.

Welsh government development figures……Actual figures provided on new builds via nhbc recorded house builds.

Its widely available on the internet for anyone to see and tells you of all property handovers whether private, social housing, housing association.

 

[Welshman]

Developments that have 280 + plots. Brunel quarter in Chepstow, is about 345 plots in total.
Redrow Subrook is 212 plots, new Lovell in Calidcot that has just started is about 269. There's other David Wilson/Barratt in Caldicot that's 130.
Not sure what figures your looking at, but I'm looking at actual sites where houses are built.

According to this official document brunel quarter is 123 houses

 

[MikeTheNative]

Welsh government development figures……Actual figures provided on new builds via nhbc recorded house builds.

Its widely available on the internet for anyone to see and tells you of all property handovers whether private, social housing, housing association.

Oh your looking at figures for handovers up to March 2022. They have completed on a lot more of the ones in Brunel Quarter since then
How about this link where it says they have already built 3000 + homes in past few years and going to build more along Calidcot Chepstow way?

Council proposes sites for pioneering housing development - Monmouthshire

Monmouthshire County Council has taken another step forward in developing its proposals for a Replacement Local Development Plan. The Council recently agreed to produce a new growth strategy and has...

www.monmouthshire.gov.uk

That link doesn't include quite a few planned for Chepstow.

 

[MikeTheNative]

According to this official document brunel quarter is 123 houses

Barratt David Wilson is the same company. They split the site between brands.
Why so confident in something you don't know lol

 

[Mesai]

I don't agree with this.
Owning has been cheaper for me.

If you include paying yourself the proportion of the mortgage that is equity increase it's vastly cheaper.

Nah .my lifetime property bill is 44k giving an equity of 350k, all your doing renting is paying for someone else's mortgage and a wedge for them on top

Both of you are taking into account the long-term investment, whereas I'm talking raw cash expense i.e. why people can't afford to buy the same standard that they're renting.

Obviously if you take into account the asset it's a more profitable and smarter option (assuming you stay in one place), but if an individual had 1,500 to spend each month, rental is a flat rate and they could afford to live slightly outside their means as there's very little risk it will change. With a house, you might get a mortgage for the same value, but what about the myriad of other adhoc expenses, or a drastic change in the interest rate?

 

[Welshman]

Houses built in wales by unitary authority in 2021-22

 

[Welshman]

Barratt David Wilson is the same company. They split the site between brands.
Why so confident in something you don't know lol

Never make a statement that you cant back up……dont ever tell someone they dont know something when you dont know who they are, or where they work.

 

[Welshman]

Oh your looking at figures for handovers up to March 2022. They have completed on a lot more of the ones in Brunel Quarter since then
How about this link where it says they have already built 3000 + homes in past few years and going to build more along Calidcot Chepstow way?

Council proposes sites for pioneering housing development - Monmouthshire

Monmouthshire County Council has taken another step forward in developing its proposals for a Replacement Local Development Plan. The Council recently agreed to produce a new growth strategy and has...

www.monmouthshire.gov.uk

That link doesn't include quite a few planned for Chepstow.

Built…..not building, you do know the difference between those two words right?…

and have actually read the document, before posting it……

 

[MikeTheNative]

Never make a statement that you cant back up……dont ever tell someone they dont know something when you dont know who they are, or where they work.

Are you joking?

Plans for 345 homes in Chepstow recommended approval

CONTENTIOUS plans to build 345 homes at the former Mabey Bridge site in Chepstow have been recommended for approval.

www.monmouthshirebeacon.co.uk

 

[Welshman]

Are you joking?

Plans for 345 homes in Chepstow recommended approval

CONTENTIOUS plans to build 345 homes at the former Mabey Bridge site in Chepstow have been recommended for approval.

www.monmouthshirebeacon.co.uk

Like i stated, have you read the document you posted. You stated no roads, schools, or doctors…..yet the document you posted listed those as part of the provision

its also up until 2033….. so again, not a huge amount over the next 10yrs

 

[200sols]

New roads get built purely to access land so they can build more houses all the traffic is still.funnelled into the same bottlenecks in the end. Schools, doctors etc need to be built first not afterwards, just the shells ready to occupy but too often they build the homes and wriggle out of everything else and that's before you even start on how they renege on the.number of affordable houses on any given estate.

 

[rhobbyh]

New roads get built purely to access land so they can build more houses all the traffic is still.funnelled into the same bottlenecks in the end. Schools, doctors etc need to be built first not afterwards, just the shells ready to occupy but too often they build the homes and wriggle out of everything else and that's before you even start on how they renege on the.number of affordable houses on any given estate.

Affordable housing quota's (its meant to be 10% I believe) are really lucrative for local councillors/councils. The brown envelopes are flying around a year out from the site's completion and lo and behold only 2 or 3% are designated affordable when its all done. Happens in every single new build site. I'm surprised there hasn't been a panorama tv show about it.

 

[Welshman]

New roads get built purely to access land so they can build more houses all the traffic is still.funnelled into the same bottlenecks in the end. Schools, doctors etc need to be built first not afterwards, just the shells ready to occupy but too often they build the homes and wriggle out of everything else and that's before you even start on how they renege on the.number of affordable houses on any given estate.

Its upto the government to build schools, doctors surgeries etc etc……not the housing developers. Also the developers will team up with a local social landlord to ensure there is social housing on site as per the planning agreement before the local authority signs it off. In the case of Monmouthshire, the social landlord would be Monmouthshire Housing, Melin Homes, and a few others that could partner up with the builder.