The joy of being a landlord

[Firestar_3x]

When we owned three houses we rented them all out without a rent increase for over 8 years, reason being is the people who lived in them paid on time and took care of the houses.

But all landlords are bad, etc etc.

 

[NVP]

Actually they're usually bought with debt, which is then paid off with the sale of the product produced via labour. The labour generates the capital, not the act of owning the cow, unlike owning a house.

Like a mortgage?

Its an odd argument because food prices have not inflated anything like house prices over the last 30 years.

Perhaps, however, would they not both be classed as fundamental? Yet one is allowed to profit and the other is forbidden?

Inflation has been rampant. In the 90s my dad bought an 8 bed mansion, indoor swimming pool, few acres of land etc. and it cost him 230k. I bought my first property in 2011 for 250k, and it was a 3 bed semi with a garden the size of a shed.

 

[200sols]

Perhaps, however, would they not both be classed as fundamental? Yet one is allowed to profit and the other is forbidden?

Its not forbidden, far from it. The issue is it has gone too far to the massive detriment of society as a whole in my opinion.

 

[Rai200]

Like a mortgage?

Not really, because there's still no labour from the owner involved. If anything the labour of the renter pays the debt, and then some profit on top.

If you built the house then sure, you'd have a point.

 

[NVP]

Not really, because they're still no labour from the owner involved. If anything the labour of the renter pays the debt, and then some profit on top.

If you built the house then sure, you'd have a point.

Who pays for the maintenance of the property? Who pays for the insurance of the property? Who pays for any legal issues that come up with the property?

Do you rent or do you own a property? As if you own you should know that simply buying a house isn't the end of it...

 

[Scam]

OP should try living in his home with the threat of eviction with two months notice hanging over his head every day, or rent rises every year "just because" whilst literally every single other bill is going up by stupid amounts. Because that is the reality of renting in the UK. I'm sure an overnight jolly down to London wasn't all that bad. (Well, maybe if it was Luton ). I'm not saying that to argue, but point out the reality of renting in the UK. It's hands-down absolutely awful as a tenant.

Profit squeezing? People seem to think landlords just bank the entire rent. The tax changes really impacted landlords, not much profit in this game when 40% goes straight to the taxman. Just spent 6 bills on some central heating issue this past week, the previous month it was over a grand repairing a leaky terrace. At the end of the year there really isn't much in comparison.

40% a bit like a proper job then? Your post goes to show how ridiculous profits on landlording have become over the last decade. Landlords expect to profit every month when comparing mortgage/costs with the rent coming in, and expect the price of their property to go up 5%+ every year because that's what UK property does, right? Talk about a gravy train.

Millennials are getting older – and their pitiful finances are a timebomb waiting to go off

 

[Rai200]

Who pays for the maintenance of the property? Who pays for the insurance of the property? Who pays for any legal issues that come up with the property?

Do you rent or do you own a property? As if you own you should know that simply buying a house isn't the end of it...

The renter does. It may come out of your profit but unless you're losing money then you aren't paying for it.

 

[413x]

Obviously it would be ideal. If councils owned all properties vs landlords. It would make renting far cheaper and profits (if any) would go straight back into public spending.

Unfortunately in UK we have sold of literally everything, water, gas, house. If government could sell the air they would. And it's left us in a mess.

I understand things just didn't work in public ownership. But there is no reason why they shouldn't.

I for sure dont blame landlords. Making money is what our society drives towards. But I still think it shouldn't happen in a better world.

 

[NVP]

40% a bit like a proper job then? Your post goes to show how ridiculous profits on landlording have become over the last decade.

If you assume my entire income comes from property, which it does not.

 

[NVP]

The renter does. It may come out of your profit but unless you're losing money then you aren't paying for it.

So it's my profit, but it's not my money?

 

[Kenai]

At least NVP manages to make money and isn't afraid to say so, half the sob stories you get from landlords these days, it sounds like most of them should be registered charities.

 

[Rai200]

So it's my profit, but it's not my money?

Come on now. This is a simple concept.

If the costs are £600 a month (insurance, mortgage etc.) and a renter is paying £1000 a month then you aren't paying anything. Even if at the end of the year you have to pay for £4,000 in repairs you've still made £800 for the year.

It's the renters money paying for everything, and giving you a bit on top.

 

[NVP]

Obviously it would be ideal. If councils owned all properties vs landlords. It would make renting far cheaper and profits (if any) would go straight back into public spending.

Yes, I know a number of people who rent their property via the council as the council take care of absolutely everything. Seems a strange model...

 

[NVP]

Come on now. This is a simple concept.

If the costs are £600 a month (insurance, mortgage etc.) and a renter is paying £1000 a month then you aren't paying anything. Even if at the end of the year you have to pay for £4,000 in repairs you've still made £800 for the year.

It's the renters money paying for everything, and giving you a bit on top.

Is your issue now that people make money? Is profit only allowed if it's unrelated to property? Why? Because you think landlords are the reason house prices are so high?

 

[NVP]

At least NVP manages to make money and isn't afraid to say so, half the sob stories you get from landlords these days, it sounds like most of them should be registered charities.

It made more sense than buying a lambo

edit: I jest

 

[platinum87]

You just appear to have a problem with people making money, or with landlords making money, without any real reason as to why? Jealousy? Idiocy? Ignorance?

Communism, and other such things, emerge due to a cognitive fallacy, essentially, that resources or wealth are finite.

The obvious solution is to take money from someone who has it, and give it to someone who does not have it, and thus, problem solved.

Thus you making money, means someone else is loosing money.

 

[Deleted member 77746]

How do you think people bought those cows? ...with profit, yes?

No they swapped them for their wifes before they were milked from all their properties they owned.

 

[Scam]

If you assume my entire income comes from property, which it does not.

No. If someone goes to an office every day and pays 40% tax, why shouldn't you on your income too? Following on from my point above about landlords expectations.. Why shouldn't you be taxed?

Is your issue now that people make money? Is profit only allowed if it's unrelated to property? Why? Because you think landlords are the reason house prices are so high?

Given a safe/secure place to live is classed as a human right (and many landlords do their best to ignore that), yes of course people shouldn't be monetising that. Before you say it, I have exactly the same argument with Thames Water, British Gas etc. The profits they make whilst providing a basically terrible service, is obscene.

And the boomer landlord generation has had a massive negative effect on property prices in this country. That's patently obvious.

 

[cheesyboy]

Farmers give you their milk and produce for free, yeh?

A farmer buying a cow doesn't limit the market for cows: higher demand for cows will result in the supply of cows increasing.

When you BTL a house, you take a house from the pool, and no replacement is created. You are not producing anything, you are holding a necessity hostage and charging it back at a premium.

It is simply not at all the same, and is a terrible analogy.

 

[dlockers]

You ignoring the post where I stated I bought properties as my pension? So no, not ignoring my investment. Literally stated it

Why are you whinging about monthly profit then? Lol.