Letting a house

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02/07/2014 at 15:44

bit extreme there Ric.  

not every b2l landlord is in it to screw their tenants over. sure, there a number who are but I would suggest they are in the minority.  many of us are in this for the long term as the investments are part of our pension plan - being self employed I don't get the luxury of an occupation pension like many get so have to look after myself. the properties are part of a diverse investment strategy so that if some go uptits hopefully others will balance it out.  anything wrong with that??

 

02/07/2014 at 17:49

fb, you are lucky that the baby boomers (1946-1948 set) realised that they had screwed up. They had enjoyed every advantage which their parents had fought a war for, and when they got into their 50's, could see that unless they made some big money fast, their wonderful lifestyles were going to come crashing around their spendthrift necks.

Being aware that having a house to rent out could be the solution, they changed the rules to allow them to buy (on borrowed money) the things and rent them out for a profit. It used to be called mortgage fraud.

Its a one sided investment where one party benefits totally at the expense of another. Investment it isn't. You're not paying for it, the tenant is.

If the deal was fair (which in 1995 I argued it wasn't) the landlord would only be able to charge the tenant the % of the rental value that the landlord had invested themselves, ie 10%.

No chance. It was full mortgage and the rest.

I don't give a toss about someones's sense of entitlement. Its up to the individual to accumulate enough assets without having to feed directly off someone else's efforts. That goes for agents and anyone taking a cut of someone's wages.

 

 

Edited: 02/07/2014 at 17:55
02/07/2014 at 18:40
RicF wrote (see)

I'd like to know how many people would have become landlords if they first had to own the 'rented out' property outright first, instead of playing with the 'but-to let' advantage.

Easy isn't it. Piss all your money up the wall and when you've messed up and have nothing to retire on, move the goal posts and screw someone else to pay for it.

 

Well I never have had a buy to let mortgage, neither did my dad as he bought it outright for cash about 20 years ago.  

Having said that if the rules are there that allow that it's hard to condemn people for taking advantage of them - I don't agree with private education or medicine but I wouldn't blame people for taking advantage of them seeing that they exist.   

02/07/2014 at 19:23

So you don't think that people have the right to invest their own money as they see fit then, Ric?

Do you have a pension or ISA? Aren't they just ways of making your money grow at the expense of someone else?

03/07/2014 at 07:15

Ric, how do you earn your money (I know the answer to this as you've said it a few times, but I would like to see how you write it down)?

03/07/2014 at 09:03

No SuperCaz, its the way that ,Buy to Let is sold as an investment that is the problem.

If you like the idea of making someone wealthy by paying their mortgage for them, then go ahead. Millions will never own their own home because (1) they'll never be able to save up due the rent they are paying, (2) the traditional cheap starter homes are all in the hands of investors.

 

03/07/2014 at 12:13
popsider wrote (see)
Peter Collins wrote (see)

Do something good for  humanity and rent it at lower than market levels. You'll feel good.

Yes quite happy to rent it for a bit less, I'm really just hanging onto it for a bit while some other financial stuff is sorted out (inheritance from a distant relative I've never actually met).    At that point I might sell it next time it is empty.   

Or give it away and go to heaven? (I'm not being entirely serious, you know)

03/07/2014 at 12:49

I don't believe in heaven anyway, having just had a 20% pay cut recently I feel I'm giving away my labour most days as it is.  

03/07/2014 at 18:13
Big_G wrote (see)

Ric, how do you earn your money (I know the answer to this as you've said it a few times, but I would like to see how you write it down)?

 

Ok, the pension fund that I was stupid enough to max out from 1988 has, due to compound interest and my belief in it, gone up today around £60.

The cash that my wife and I saved due to living in the smallest property in a good area has today made about £20 (foreign interest).

The house (maisonette) which I threw everything at to get rid of the mortgage (took less than ten years) is apparently appreciating at least £100 a day.

And my day to day gardening jobs (9:15 to 3:45) for which I suggested around £100, actually got me £125. 

There you go. That's a lifetime of having an investment mentality, and not trying to shaft people.

I've also got MEN1 syndrome. Ying and Yang and all that shit.

 

 

 

 

03/07/2014 at 20:29

I'm failing to see how investing in the property you live in is any different to investing in one that you don't live in.  By purchasing my own house I am preventing some poor first time buyer from owning it and therefore getting their first step on the property ladder.


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