How does Buy to Let END!

[spygirl]

8 hours ago, One percent said:

Yeah but the new government rules say that you can’t evict tenants. She has sent notice that she wants stuff repaired and has raised the rent above equivalent properties, hoping the tenant will find something cheaper. 
 

stuff she has been pushed to replace by managing agent include: wrought iron gate fallen off its hinges (feral kids swinging on it) , light fittings that have broken (how?) boiler and hob which are around five years old. 
 

then said tenant has ripped up all the brand new floor coverings up and replaced with carpet that hasn’t even been fitted. Also painted wall in all rooms a really dark colour so that it resembles a cave the kitchen, which was new when tenant moved in, is now chipped and scratched with doors hanging off. 
 

told her that she needs to turn into slum landlord and refuse to do any maintenance. 

615am bizzyness feature on R4 is on about new eviction rules. (commercial LL, but same goes).

Some cunt weasel - ea or ll - whinging on about 'reinvesting in the asset'

Renting  houses to benny scums is like hiring out Ferrari to benny scum - daft idea.

Renting out Ferraris which youve a ~150k bank loan is beyond nuts.

Scabby has loads and loads of social housing, Single mum, kids - front of the queue. Dogs cant be an issue in LHA - estates are full of pitbulls.

So your mate 's tenant is either:

- Better than the scum on the estate, in which case she needs to get a job and pay for everything.

- Worse than the scum on the estates. Dont touch people the LHA dont/wont touch. Ever.

 

 

 

 

 

[Andersen]

Death by 1,000 cuts?

University crisis hits BTL https://www.telegraph.co.uk/property/buy-to-let/buy-to-let-property-markets-worst-hit-universities-crisis/amp/

Enfield council hikes HMO licence fees by 58% (and hammers BTL profits)
https://www.property118.com/shameless-enfield-council-hikes-hmo-license-fees-by-an-eye-watering-58/

Xmas truce for tennants facing eviction (not good news for LL's with nil income) https://www.bbc.com/news/business-54108829

[spygirl]

From the now closed hpc thread.

g

And responding to @eek

The numbers above look bad. They are even worse when you work out whats happened.

You see those 2 same day transaction?

 

	Price Paid	Nominal change	Real change
02 Jun 2020	£28,500	-56.1%	-70.1%
18 Aug 2006	£64,950 *	106.5%	66.2%
18 Aug 2006	£55,000 *	n/a	n/a
20 Feb 1998	£31,450 *	n/a	n/a

 

What is likely to have happened is this would have been bought by one of these BTL manager/Below Market Value scams running in the mid 2000s.

They have bought @ 55k, then sold the say day to some 'canny investor' normally down South, for their careful selected  IO BTL portfolio.

All at a ~20% markup. For 1 days 'work'

14 years later, after various voids, evictions and now taxation on rental income, the canny investor has thrown the towel in.

Of course the IO BTL destroyed the local market so there are fuckall people able to buy. So ill have gone to a localish cash buyer looking at benefit farming - the price is now set by the LHA.

 

There were entirely legal operators, selling 10s of 1000s of these shitty terraces in boro, County Durham <northern shithole post industrial town>

In the late 90s/early 00s must of inner boro was occupied by OO, white british people, normally working.

By the 2010 the majority  was IO BTL.

By 2020 the majority  is now IO BTL slums filled with non white migrants/EE from everywhere, none of which work,legally that is.

Articles like this never existed before ~2004ish. There were fucakall private rentals outside of student housing.

https://www.insidehousing.co.uk/insight/insight/gresham-how-the-housing-market-failed-a-community-64285

Explaining how Gresham got to this point is a complicated process. There is the long view, familiar to communities across large swathes of the post-industrial North East: as the traditional steel and shipbuilding industries of the region declined and were eventually killed off, jobs became scarce, people fled south and the economy stagnated.

No, it really isnt. Its private LL, migrant scum, and a generous all you can eat benefit system open to all.

Mr Araia found himself in Middlesbrough thanks to the Home Office’s asylum seeker dispersal programme. Because of the availability of cheap housing, the town has one of the highest proportions of asylum seekers in the country – and the new arrivals are now an integral part of the fabric of life in Gresham.

But the communities of Poles, Romanians, West Africans and others can be easy prey for often unscrupulous landlords. In a council survey of housing conditions in 2008, 49.3% of private homes in the Parliament Road area were found to be ‘non-decent’, compared with 24.6% in Middlesbrough as a whole and 27.1% in England.

This lunacy, is very recent - last 10 years.

Labour's last fucked up horrah for their voters, whove now abandoned Labour.

For Labour to win again, then Labour ha to take a massive, throw them out stand on migrants. Nothing else will recover their old voters.

Most Labour strongholds are now occupied by people who cant legally vote, not that it stops some of them.

 

 

 

 

[Andersen]

Forget buy to let, the new model is build-to-rent.

300k flats now have planning consent in the UK, a 47% increase since October (< What!) the organistions involved are opposed to any surcharge falling on institutional players who form the backbone of the growing Build To Rent sector. No mention of how many plain brown envelopes were used during the planning process.
https://www.lettingagenttoday.co.uk/breaking-news/2016/2/30-000-build-to-rent-flats-now-have-planning-consent-across-uk

Wise Living’s five-year growth plan aims to build more than 10,000 Build To Rent homes by 2025 https://www.lettingagenttoday.co.uk/breaking-news/2020/9/another-new-build-to-rent-development-announced

Edited September 13, 2020 by Andersen

[dgul]

14 minutes ago, Andersen said:

Forget buy to let, the new model is build-to-rent.

 

I don't mind build-to-rent.  At least their cash is actually making new properties that weren't there before.

Now, this isn't a 'free-lunch', because they'll be increasing demand for builders and land which will keep up costs for others, but it isn't too bad.

IMO no foreign investor should be able to buy extant buildings in the UK, particularly for residential purposes.  But I don't have so much problem with them investing money in making more housing in the UK.

Regarding domestic investors, I've never seen the argument for BTL having tax-deductible costs -- I don't get this if I take out a loan to buy shares (for example).  But, I would accept tax-deductible costs for investing to create new housing (ie, build to rent).

This country would be in a much better place now if build-to-rent was the only realistic outlet for foreign investors and those in the UK who wanted to invest in property for their pension. 

[macca]

2 hours ago, dgul said:

I don't mind build-to-rent.  At least their cash is actually making new properties that weren't there before.

But its still rental, its not your home.. Does not create communities.. Its not a building that you maintain and take pride in..

You can see all the rental properties near me,, utter shit tips.. never decorated, un-kept gardens  run down hell holes..

Plus all the build to rents will be flats..

[dgul]

26 minutes ago, macca said:

But its still rental, its not your home.. Does not create communities.. Its not a building that you maintain and take pride in..

You can see all the rental properties near me,, utter shit tips.. never decorated, un-kept gardens  run down hell holes..

Plus all the build to rents will be flats..

There's a space for both OO and rental.

Two points:

• I despise the BTL thing about 'providing rental properties that people need' as though they're useful -- the houses would still exist without the BTL investment.  This is where BTR actually works (it is more reasonable for the investor to say that the property wouldn't exist without their money).
• The problem we've had (and continue to have) is that we've broken the relationship between pride in community and renting properties.  IMO this would be solved to a large extent by massively improving security of tenure for rentees; the system was broken with AST and continues to not work.

[Wight Flight]

1 hour ago, macca said:

You can see all the rental properties near me,, utter shit tips.. never decorated, un-kept gardens  run down hell holes..

Bit renterist mate.

[wherebee]

3 hours ago, macca said:

But its still rental, its not your home.. Does not create communities.. Its not a building that you maintain and take pride in..

You can see all the rental properties near me,, utter shit tips.. never decorated, un-kept gardens  run down hell holes..

Plus all the build to rents will be flats..

That's because of many factors, not just the renter mindset.  For one thing, when you have limited right of redress against vandals, why bother making your garden look good?  

[UnconventionalWisdom]

8 hours ago, dgul said:

The problem we've had (and continue to have) is that we've broken the relationship between pride in community and renting properties.  IMO this would be solved to a large extent by massively improving security of tenure for rentees; the system was broken with AST and continues to not work.

A lot of people resent the fact they are paying for someone else's mortgage. Not making it look great is their small way of sticking two fingers up to the ll. Im sure people would have more pride if they were renting through choice and knew it wasn't reducing their chance of owning their own place.

[wherebee]

2 hours ago, UnconventionalWisdom said:

A lot of people resent the fact they are paying for someone else's mortgage. Not making it look great is their small way of sticking two fingers up to the ll. Im sure people would have more pride if they were renting through choice and knew it wasn't reducing their chance of owning their own place.

I rented places in London.  The first few I looked after and repaired little things, cleaned extra, did the garden, etc.

Then, after the second or third time some cunt landlord kept my deposit for no reason, I changed and said fuck it.

[UnconventionalWisdom]

7 hours ago, wherebee said:

I rented places in London.  The first few I looked after and repaired little things, cleaned extra, did the garden, etc.

Then, after the second or third time some cunt landlord kept my deposit for no reason, I changed and said fuck it.

I rent a place from the church. They built a hall for the old church down the road and put in 3 flats above it. The size is great for a one bedroom place as the flats are built to accommodate the size of the hall downstairs. They have never put the rent up in 3 years and when i have a problem they get workmen round the next day or two. Washing machine broke so they bought a new, good quality one. I am therefore happy to do the odd bit of diy to keep the place looking good.

I used to rent from a retired BTLters who were awful- spoke down to me, bought crap stuff and hired crap workmen when stuff went wrong. Couldn't give a crap about that place and I am unhappy these idiots are causing a housing crisis and trying to profit from people farming. 

[spygirl]

1 hour ago, UnconventionalWisdom said:

I rent a place from the church. They built a hall for the old church down the road and put in 3 flats above it. The size is great for a one bedroom place as the flats are built to accommodate the size of the hall downstairs. They have never put the rent up in 3 years and when i have a problem they get workmen round the next day or two. Washing machine broke so they bought a new, good quality one. I am therefore happy to do the odd bit of diy to keep the place looking good.

I used to rent from a retired BTLters who were awful- spoke down to me, bought crap stuff and hired crap workmen when stuff went wrong. Couldn't give a crap about that place and I am unhappy these idiots are causing a housing crisis and trying to profit from people farming. 

Goes back to buildtobuy.

Pro LL will built a large block of identical rentals in urban areas. Then let them to your workers.

IOBTL are cunts who deserve to burn.

[spygirl]

 

[Andersen]

A clear indication that the evictions ban is to come to an end on Sunday has been published by the Master of the Rolls Sir Terence Etherton, leaving the government with little time or wiggle room to do a U-turn.
“If the government were to change its mind today then it would leave a lot of egg on the face of many groups and officials."
https://www.landlordzone.co.uk/news/evictions-ban-will-end-on-sunday-says-master-of-the-rolls/
*Track record says there still might be a U-turn.

I'm expecting a fair few LLs throwing in the towel after getting no rent this year. Issue 6 months notice to tennant then sell the property (watch for a jump in chain-free properties coming onto the market starting April).

[Wight Flight]

The landlord here has the curious idea that whenever he needs more money, his tenants will have to pay it.

I hope for their sake he doesn't fancy a round the world cruise.

https://www.property118.com/rent-controls-proposals-could-close-off-london-to-new-residents/

[spygirl]

23 minutes ago, Wight Flight said:

The landlord here has the curious idea that whenever he needs more money, his tenants will have to pay it.

I hope for their sake he doesn't fancy a round the world cruise.

https://www.property118.com/rent-controls-proposals-could-close-off-london-to-new-residents/

Professor Kath Scanlon, a housing expert at the London School of Economics last year warned that the Mayor’s rent control proposals would result in landlords simply leaving the market.

Chris Norris, Policy Director for the National Residential Landlords Association, said:

“Rent controls would be a disaster for anyone looking for somewhere to rent. As history and experience elsewhere tells us, all they would do is drive landlords out of the market exacerbating an already serious shortage of homes available.

“Rather than driving a wedge between landlords and tenants, the Mayor should focus on using the powers he already has to boost the supply of available housing, including for private rent. Only then will he make any discernible impact on improving the affordability of housing across the capital.”

“We do though support the Mayor’s calls for greater financial support for tenants struggling with rent arrears. In the end this would help them, and the majority of landlords who are individuals and not property tycoons, to sustain tenancies.”

I love their reporting.

Those LL sounds under capitalised to me. They need to go.

The best way to improve availabliy of housing would be stop HB for non natives, cap HB at ~500/m and force all IO BTL onto 10 year repayment mortgage mortgages.

I like the way the pitch on LL has gone from property millionaires to por as church mice struggling to provide an essential service.

 

 

 

[Green Devil]

On 14/09/2020 at 09:59, wherebee said:

I rented places in London.  The first few I looked after and repaired little things, cleaned extra, did the garden, etc.

Then, after the second or third time some cunt landlord kept my deposit for no reason, I changed and said fuck it.

You can tell the IOCUNTBTL scumbag as he's always the one who does fuck all then keeps your deposit so he can refurbish the place. Let the fuckers burn. And dont forget to find some knotweed and plant it in the garden next to the border with the neighbouring properties.

[UnconventionalWisdom]

On 19/09/2020 at 08:33, spygirl said:

As history and experience elsewhere tells us, all they would do is drive landlords out of the market exacerbating an already serious shortage of homes available

They are still peddling this? They are the reason for the housing shortage

[Option5]

On 19/09/2020 at 11:17, Green Devil said:

You can tell the IOCUNTBTL scumbag as he's always the one who does fuck all then keeps your deposit so he can refurbish the place.

Late partner's landlord claimed the deposit to replace all the cheap carpets as they had marked where the furniture had been. I got him to put the reason in writing.

When she moved out we took the carpets with us (actually to the tip).

He went ballistic, claiming she'd stopped him re-letting the place. Sent him a copy of his deposit letter and pointed out she'd paid for the carpet it was hers, silence ensued.

[Green Devil]

17 hours ago, Option5 said:

Late partner's landlord claimed the deposit to replace all the cheap carpets as they had marked where the furniture had been. I got him to put the reason in writing.

When she moved out we took the carpets with us (actually to the tip).

He went ballistic, claiming she'd stopped him re-letting the place. Sent him a copy of his deposit letter and pointed out she'd paid for the carpet it was hers, silence ensued.

Did she move out after the landlord had assessed the deposit? I thought this was usually done after keys are returned to avoid some vile retribution. Landlord Scum usually holds all the aces.

[Option5]

4 minutes ago, Green Devil said:

Did she move out after the landlord had assessed the deposit? I thought this was usually done after keys are returned to avoid some vile retribution. Landlord Scum usually holds all the aces.

He'd already said he was keeping the deposit and why after his inspection the day before the move. We dropped the keys off at the agents office on the last day as she moved out. Everything else was left as inspected.

[HolyCow]

@spygirl This is one for you to deconstruct;

https://anonym.to/?https://www.telegraph.co.uk/money/money-makeover/money-makeover-33-nine-buy-to-lets-can-retire-40/

[spygirl]

3 minutes ago, HolyCow said:

@spygirl This is one for you to deconstruct;

https://anonym.to/?https://www.telegraph.co.uk/money/money-makeover/money-makeover-33-nine-buy-to-lets-can-retire-40/

Money Makeover: 'I'm 33 with nine buy-to-lets. Can I retire by 40?

'My property portfolio makes me £30,000 a year, but I'm highly geared'

 

Sp... just on the headline .. thats about 3.5k 'profit' per BTL.

Lets rip the whole lot from noscript:

 

Retire early and live off the income from your investments – the ultimate dream of financial bliss. Jack Scarborough, 33, wants to stop working before he reaches his mid forties and live off his buy-to-let empire.

There's a bit to do before he gets there, however.

He has an enviable portfolio of nine properties across London, Manchester and the Midlands, with a collective value of £2.9m. He owns some in his name and others alongside property investors.

He started out by taking a £60,000 loan from his mother at the age of 20 after she remortgaged her home. Since, he has leveraged his £150,000 earnings as an IT contractor to borrow from the banks and expand.

However, his equity in the nine properties only amounts to £500,000 meaning he owns less than 20pc of the portfolio outright. He also an outstanding mortgage on his main home of almost the same amount that costs him £1,700 a month in repayments. Mr Scarborough wants to pay this off before retiring as well.

There are other monthly outgoings including a home-improvement loan and credit card debt. With his mortgage he spends £3,000 per month.

His property portfolio provides him with around £30,000 a year after mortgage and other costs.

“I’m highly geared and what I really need help with is reducing my levels of debt while investing for my future,” he said.

Given his high-paying work, Mr Scarborough should still have around £80,000 spare each year to help pay off his mortgage, debts and save more into his pension, currently worth £65,000.

But can he stop working in around 10 years time with enough money to live off for the rest of his life, or is it just a pipe dream?

Hayley North of financial planners Rose & North said: 

Mr Scarborough is in an unusual and enviable situation for his age, with a confident approach to investment and a high tolerance for financial risk. Rental portfolios are not for the faint of heart. But his desire to retire in his forties and repay his main mortgage is certainly possible.

The biggest risk is losing his contracting role before he has repaid his residential mortgage. He urgently needs to ensure he sets aside money each month for emergency savings (at least three to six months of expenses) to protect himself.

He should also consider protecting himself against serious illness, at the very least over the next 10-15 years, while he is earning well and saving aggressively to reach his goals. Covering his mortgage for the next 15 years would cost £60 a month or so. 

If he simply squirrels away his excess income each month into savings returning 0.5pc a year, he will be able to repay his mortgage by the time he is 40.

He should also have another £370,000 to pay down some of his other buy-to-let loans, buy more property, provide security or save into his pension and invest.

Angela Lloyd-Read of financial planners Connor Broadley said:

Mr Scarborough’s portfolio provides a good base for ongoing income needs, but is not well diversified. Future changes to taxation on rental income or on the sale of investment property, could substantially alter his plans.

He also faces the possibility that joint investors may need to sell unexpectedly. This would reduce rental income and leave him with less money than planned. He needs to plan and save for these eventualities.

He should save £20,000 each tax year into a stocks and shares Isa and save more into his pension, and take advantage of tax relief.

Saving account rates are so low and the money he puts away will not be needed for some time – he will not be able to access his pension saving until he's 57 – so he can take some investment risk and grow his pot.

Would you like a Telegraph Money Makeover?

This money will grow tax free and is not subject to capital gains tax when making future withdrawals. Withdraws from his Isa will also not incur income tax.

If he saves well into his Isa and pension and achieves annual net returns of 4pc, his pension fund could generate the income he needs by 60. This means he could sell the buy-to-let portfolio and spend the proceeds.

To pay off the mortgage by age 45, he should overpay each month, subject to the terms of the mortgage.  or he might wish to remortgage over a shorter term, doubling monthly payments.

 

I call BS on everything but BTL and leverage.

His equity on the portfolio sounds total bollocks - 500k from 2.3m of housing.

Its more like fuck all.

Theres little to suggest how much money he earns in his accounts.

Theres fuck all i nthem, so its probably nowhere near 150k/y.

https://beta.companieshouse.gov.uk/officers/-PwAwd4aZF8WjdiDibG3N34x-oA/appointments

 

Without knowing any detail on how the protpetyy are held - peronal or in a compnay then who the fucks knows.

His company show a couple of places oin a LtdCo.

They fall well short of 2.3m though.

One of his registered addresses shows London to come:

Address:	1a Elswick Road, London, SE13 7SP
Type:	Flat
Tenure:	Leasehold
New build:	No
Estimated value:	£334,000
Links:	Price map  (London)
Transaction type:	Standard price paid transaction

Registered sales:

Date Sold	Price Paid	Nominal change	Real change
13 Jun 2014	£250,000	-32.6%	-33.8%
21 Oct 2013	£371,000 * **	1.6%	-16.8%
05 Jul 2007	£365,000 *	-27.0%	-27.6%
13 Mar 2007	£500,000 *	n/a	n/a

 

 

[leonardratso]

hmm, its vague isnt it, i like the template suggestions with no detail whatsoever, good luck getting even 0.5% in your shitty savings account, also good luck keeping all your tenants and having standing properties after the pikeys have been in and left paying zilch or the furloughed rent holidayers.