How does Buy to Let END!

[Joxer]

50 minutes ago, Wight Flight said:

Brilliant news.

Just one question. 

Where are renters meant to live?

In the repossessed landlords house 

[spygirl]

8 hours ago, Wight Flight said:

Brilliant news.

Just one question. 

Where are renters meant to live?

Thats a very gormless Labour mindset, where they want everything fixed, instantly.

Not going to happen. Itll be a bit messy and rough.

However .. Im noticing To Let stick around or much longer. so there not the poring in of migrants.

Theres still a lot of migrants around, so space for a much harsher system.

There is fast approaching deadstop with IO BTL.

 

 

[spygirl]

7 hours ago, Joxer said:

In the repossessed landlords house 

Theres an element of this.

Banks face similar hurdle to repo as the LL.

 

[Wight Flight]

27 minutes ago, spygirl said:

Thats a very gormless Labour mindset, where they want everything fixed, instantly.

Not going to happen. Itll be a bit messy and rough.

However .. Im noticing To Let stick around or much longer. so there not the poring in of migrants.

Theres still a lot of migrants around, so space for a much harsher system.

There is fast approaching deadstop with IO BTL.

 

 

So sorry for having a gormless Labour mindset.

Obviously the homeless need to change their thinking and a home will magically appear.

Do you actually have an answer for where they are meant to live?

 

[Andersen]

LL's are selling up - confimed - main reasons are increasing red tape and taxes from https://www.propertytribes.com/more-evidence-that-landlords-are-quitting-t-127655484.html

Source article (does this link work - my pc crashes) https://https//www.landlordtoday.co.uk/breaking-news/2022/2/red-tape-leads-to-landlords-quitting-the-sector--fact

[Hardhat]

38 minutes ago, Andersen said:

LL's are selling up - confimed - main reasons are increasing red tape and taxes from https://www.propertytribes.com/more-evidence-that-landlords-are-quitting-t-127655484.html

Source article (does this link work - my pc crashes) https://https//www.landlordtoday.co.uk/breaking-news/2022/2/red-tape-leads-to-landlords-quitting-the-sector--fact

That website is like the parallel world of TOS

[Pip321]

On 04/03/2022 at 23:28, Wight Flight said:

Brilliant news.

Just one question. 

Where are renters meant to live?

 

On 05/03/2022 at 00:12, Noallegiance said:

Don't complicate matters!

If BTL is removed in the way described house prices should fall. If house prices were back to being based on the average salary then maybe from £260k to £120k. If houses drop to £100k then generation rent buy…because it’s relatively cheap to do so. Less tenants, more owners.

I appreciate this is simplistic but it is what happened in the past as home ownership became more affordable the % owning increased.

We need a rental market but not like the one we have now….not where rental for many isn’t ‘just a choice but it’s enforced’ 

I am a LL and it’s laughable. I bought and rent to tenants who have lived there for 10/15 years and end up paying off my debt. I disagree with it but I do it hypocritically because the system lets me…and everyone else seems to think is ‘the only solution’  

Personally I would whack interest rates up to something where there is a more balanced economy, stop interest only mortgages (unless in temporary times of borrower difficulty). BTL is fine but the level of borrowing to make it work is unacceptable. 

I would try to get back to a situation like I had. I was 18, an office junior on what would be today about £12/14k now, married, baby aged 1, had no money other than the deposit we saved from cleaning jobs whilst at 6th form….and on our 18th birthday we bought a nice home. So I had literally almost no possessions but we had hope and a pathway.

An affordable home is not too much to ask. 

 

[Wight Flight]

10 minutes ago, Pip321 said:

 

If BTL is removed in the way described house prices should fall. If house prices were back to being based on the average salary then maybe from £260k to £120k. If houses drop to £100k then generation rent buy…because it’s relatively cheap to do so. Less tenants, more owners.

I appreciate this is simplistic but it is what happened in the past as home ownership became more affordable the % owning increased.

We need a rental market but not like the one we have now….not where rental for many isn’t ‘just a choice but it’s enforced’ 

I am a LL and it’s laughable. I bought and rent to tenants who have lived there for 10/15 years and end up paying off my debt. I disagree with it but I do it hypocritically because the system lets me…and everyone else seems to think is ‘the only solution’  

Personally I would whack interest rates up to something where there is a more balanced economy, stop interest only mortgages (unless in temporary times of borrower difficulty). BTL is fine but the level of borrowing to make it work is unacceptable. 

I would try to get back to a situation like I had. I was 18, an office junior on what would be today about £12/14k now, married, baby aged 1, had no money other than the deposit we saved from cleaning jobs whilst at 6th form….and on our 18th birthday we bought a nice home. So I had literally almost no possessions but we had hope and a pathway.

An affordable home is not too much to ask. 

 

You may be right in the very long term, but an entire generation will be missed out.

 

[spygirl]

2 hours ago, Wight Flight said:

You may be right in the very long term, but an entire generation will be missed out.

 

Thats 2 generations - the one buying and the one selling.

Again, OO will soon curse the day that IO BTL was invented.

 

 

[Bilbo]

Now they want the second home stamp duty scrapped. Just read it will make you cry 😂

https://propertyindustryeye.com/chancellor-urged-to-abolish-stamp-duty-surcharge-for-landlords/

 

[spygirl]

Pro LL morons a local FB group.

Apartently being a LL entitles you to the first born child and first go at a nubile young bride.

Fucktards dont grasp a s21 is a polite request.

Anyhow, no idea if this is true.

LL is selling all property she owns through NY ... all 200 of them....

Gordon Brown, you useless one eyed cunt.

 

[HousePriceMania]

25 minutes ago, spygirl said:

Pro LL morons a local FB group.

Apartently being a LL entitles you to the first born child and first go at a nubile young bride.

Fucktards dont grasp a s21 is a polite request.

Anyhow, no idea if this is true.

LL is selling all property she owns through NY ... all 200 of them....

Gordon Brown, you useless one eyed cunt.

 

What's NY? 

[One percent]

8 minutes ago, HousePriceMania said:

What's NY? 

New York. Don’t you know anything?  

Quote

 

 

[spygirl]

24 minutes ago, HousePriceMania said:

What's NY? 

North Yorks.

I'm guessing if it's true or there about,  theyll be in the Scarb-Brid area.

Further back in thus thread I've mentioned the number of ordinary people in Scarbs - taxi drivers, tradesmen  etc - who 'own' extraordinary number of houses.

All on the never never, and pretty much zilch hpi, certainly not enough for costs n voids.

These cretins should have exited as soon as s24 started.

 

 

[spygirl]

On 13/03/2022 at 08:30, Pip321 said:

 

If BTL is removed in the way described house prices should fall. If house prices were back to being based on the average salary then maybe from £260k to £120k. If houses drop to £100k then generation rent buy…because it’s relatively cheap to do so. Less tenants, more owners.

I appreciate this is simplistic but it is what happened in the past as home ownership became more affordable the % owning increased.

We need a rental market but not like the one we have now….not where rental for many isn’t ‘just a choice but it’s enforced’ 

I am a LL and it’s laughable. I bought and rent to tenants who have lived there for 10/15 years and end up paying off my debt. I disagree with it but I do it hypocritically because the system lets me…and everyone else seems to think is ‘the only solution’  

Personally I would whack interest rates up to something where there is a more balanced economy, stop interest only mortgages (unless in temporary times of borrower difficulty). BTL is fine but the level of borrowing to make it work is unacceptable. 

I would try to get back to a situation like I had. I was 18, an office junior on what would be today about £12/14k now, married, baby aged 1, had no money other than the deposit we saved from cleaning jobs whilst at 6th form….and on our 18th birthday we bought a nice home. So I had literally almost no possessions but we had hope and a pathway.

An affordable home is not too much to ask. 

 

The only reason why BTL exists is that this the only way idiot post ~2002 LL could make the numbers work -ro ratwehr the bank make the figures work, the IO BTL LL tend to clueless.

Since ~2004 IO BTL have been piling into lets at less than 4% yield.

Its a HPI play innit...

Except with CGT it isnt innit.

99% of IO BTL should have existed the year before S24 started working its way up the taxed income.

They didnt. They are morons.

In the past, recessions and inflation used to trim HPI, to keep it aligned with earnings.

Brown broke that in 2002, then massively so in 2008.

After all, after years of pitching his prudent best chancellor ever, whod want to remembered as the idiot who blew the UKS biggest credit bubble, put ~5% of the under 45s into insecure rental accommodation, then blew up 200 years of UK banking. then, to top it all - bailed the bank out with the future tax from the people hes put in rentals.

Of course, the BoE was on site, being stuffed full of idiot Brown followers. Dont worry, we can spread the costs out - Brown ensured no more boom n bust ...

EU debt crisis, followed by SARS, followed by Covid, followed by Ukraine v russia V1 + V2.

If you fuck up then youve got to take the hit, as Cons did in early 90s.

 

 

 

 

[AlfredTheLittle]

Not sure how they're all morons for not exiting 5 years ago, given that house prices pretty much everywhere have shot up since then. They'll be sitting on very nice gains, have probably made a fortune in covid grants, and can comfortably exit now with more lots more profit. 

[spygirl]

35 minutes ago, AlfredTheLittle said:

Not sure how they're all morons for not exiting 5 years ago, given that house prices pretty much everywhere have shot up since then. They'll be sitting on very nice gains, have probably made a fortune in covid grants, and can comfortably exit now with more lots more profit. 

Resi LL dont get covid grants.

London/Se has been falling for ~5 years.

The rate of non paying rentals/voids will be massive.

Rise in prices is nothing more that a SD short term blip has probably gone by now.

The courts are grid locked after covid. The chances of a LL getting an eviction notice served in the next 12 months is 0.

Most northern IO BTKL LL are looking at a loss of 30k-70jk per house.

 

 

 

 

Edited March 21, 2022 by spygirl

[Bobthebuilder]

2 hours ago, AlfredTheLittle said:

They'll be sitting on very nice gains, have probably made a fortune in covid grants, and can comfortably exit now with more lots more profit. 

Who is going to buy them? If the house price has doubled then no local can afford to buy them, so its down to a BTLer paying double for the reduced rental yield that probably needs 20k spent on it for the new regs.

I know a guy paying £650 pm for a house that has gone from £160K to almost £300K during the convid, local wages cannot support rent at £1200 pm, what LL is going to take that on.

[AlfredTheLittle]

Someone is buying them unfortunately

2 hours ago, Bobthebuilder said:

Who is going to buy them? If the house price has doubled then no local can afford to buy them, so its down to a BTLer paying double for the reduced rental yield that probably needs 20k spent on it for the new regs.

I know a guy paying £650 pm for a house that has gone from £160K to almost £300K during the convid, local wages cannot support rent at £1200 pm, what LL is going to take that on.

Someone is buying them unfortunately, how else has his house gone up to £300k?

[Bobthebuilder]

5 minutes ago, AlfredTheLittle said:

Someone is buying them unfortunately

Someone is buying them unfortunately, how else has his house gone up to £300k?

Feeding frenzy during the lockdown, working from home, etc.

My biggest fear for these rural market towns is, they become the next 2nd home owners target. That would absolutely destroy the local community. Nearby Swanage is 50% 2nd homes now, but that has a tourism industry. Inland market towns in the shires generally do not.

[Wight Flight]

38 minutes ago, Bobthebuilder said:

Nearby Swanage is 50% 2nd homes now, but that has a tourism industry.

Had.

[Democorruptcy]

BTL in USA

Quote

 

Linda McKissack from Texas was drowning in $600,000 of debt, before she invested in 108 rental properties and became a millionaire landlord. Sterling White from Indiana was collecting welfare and selling Pokémon cards until he accrued a portfolio of 400 rental properties in less than four years. Stephanie Betters, a nurse practitioner from North Carolina, manages 1,000 units between shifts at the hospital.

They are all guests on the BiggerPockets podcast, America’s number one real estate investing show. Every week, host David Greene — a former police officer turned rental property magnate, encourages millions of listeners to invest in rental properties and quit their nine-to-five.

...

A nurse who owns 1,000 rental properties may remind you of a scene in The Big Short where a stripper admits to taking out multiple adjustable-rate mortgages on her five homes and a condo, and one wonders if this buy-to-let boom might signal the next catastrophic crash.

https://12ft.io/proxy?q=https%3A%2F%2Fwww.ft.com%2Fcontent%2F57ae7195-d889-4342-bb7f-9e413236599f

 

 

[spygirl]

24 minutes ago, Democorruptcy said:

BTL in USA

 

Linda McKissack from Texas was drowning in $600,000 of debt, before she invested in 108 rental properties and became a millionaire landlord.

Shes drowning in even more debt - if thats remotely true.

Im not sure how much of that is just made up blurb. I dont follow US mortgages much. However ... its unlikely shed be able to leverage up as much as that article implies.

https://lindamckissack.com/

Its more about scamming investors than any knowledge of returns.

When rates are low and credit is flowing freely then anything with borrowed money looks easy.

Then it changes.

 

 

 

[spygirl]

Coppers amazon reviews - 

https://www.amazon.co.uk/product-reviews/0997584750/ref=acr_dp_hist_1?ie=UTF8&filterByStar=one_star&reviewerType=all_reviews#reviews-filter-bar

Reviewed in the United States on 16 June 2020

Verified Purchase

David has thoroughly researched the data & facts in the presentation of his case or argument. For anyone who is determined to risk, in many cases is a large part of their assets in a venture exposed to many possible pitfalls, In 285 pages David details how it can be possible. The functional premise is that the investor MUST remotely create a "core four team" comprised of the perfect realtor, a capable and creative lender, the ideal trusted property manager, & a magical general contractor. David is right. Without establishing a dynamic team, going forward with such an enterprise would be foolhearty. What David cannot effectively argue or sidestep is the MOST IMPORTANT element of all. The element is CONTROL.

David makes a grand illustration of how to ride a bicycle from LA to Vegas. If the conditions are right and everything goes perfect, one could make the 275 mile trip successfully. You could physically condition yourself, bring along enough water & know how to fix a flat tire, but what you can't overcome is losing the handlebars. Without having complete CONTROL during every moment of the term of the investment you RISK A GREAT LOSS. I could write a 285 page book of all possible ways of how you can be fleeced by relying on people you don't really know or can depend on in a pinch.

Giving up total oversight on all that you own is a big gamble. And in today's climate of pandemics & civil unrest, who is going provide security for your property - the police? Who is willing to protect all that you own by sitting on the porch of your rental property with a shotgun - your realtor?

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Lynn

1.0 out of 5 stars Didn't find anything insightful,,, std stuff

Reviewed in the United States on 14 March 2020

Verified Purchase

I bought my copy off biggerpockets.com so I'm not a verified purchaser on amazon. I feel it was neccessary to leave this poor review to warn others this is not packed with gems or insights. I can however strongly recommend Landlording on Autopilot which is jammed with unique and great insights and helps.

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Yitzhak

1.0 out of 5 stars An Unfortunate Waste of Money

Reviewed in the United States on 4 May 2021

Verified Purchase

I was quite looking forward to this book as the author is one of the co-founders of BiggerPockets. Unfortunately, after reading about half the book (~120 pages) I have less than a page of useful notes. Most of the book is filled with fluff and material like "go to BiggerPockets and check this out."

To save you from buying the book, here are the useful tips:
- use Zillow/Trulia + county accessor website to review property in an area
- use Google Maps street view to walk around an area and learn what it's about
- use crime data / school ratings to help as well

random info on price to rent rations, 1% rule, 70% rule, 50% rule, DTI, LVI and of course - use BigerPockets to find people to be on your team!

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Quoizimodo

1.0 out of 5 stars Need money to make money.

Reviewed in the United States on 27 May 2019

Verified Purchase

Good book, but you need money to start any project.

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Stanford Huynh

1.0 out of 5 stars Not useful

Reviewed in the United States on 9 September 2019

Verified Purchase

Very generic content, not actionable, no strategy.

[spygirl]

Buy-to-let landlords forced to sleep in cars as they cannot evict rogue tenants

Property owners become homeless as councils tell tenants to wait for bailiffs

ByMelissa Lawford29 March 2022 • 12:00pm

Buy-to-let landlords have effectively been made homeless after delays to repossession claims have forced some property investors to sleep in their cars. 

Landlords have been unable to gain control of their properties after evicting tenants, as councils have advised renters to stay in their homes until they are forcibly removed by bailiffs.

This local authority advice has compounded record wait times in the courts and means some landlords must wait for weeks to regain possession.

Natasha French, of Brittons estate agents in King’s Lynn, Norfolk, said a local landlord had been sleeping in his lorry trailer while he grapples with months-long delays repossessing his property.

The landlord, 38, invested in a buy-to-let property with money that he inherited when his father died, in the hope he could help his children with future housing deposits. 

When his marriage broke down a few months ago, he needed to regain possession of the property so he could live in it. He served his tenants with a "section 21" notice – which should trigger a so-called “no fault eviction” – that expired at the start of March.

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The tenants have asked the local council for help finding a new home. The council told them they do not currently have suitable accommodation for the family, and that the have a legal right to remain in the property until they are evicted.

“The landlord is homeless. He can’t afford to rent somewhere else,” said Ms French.

David Smith, of JMW Solicitors, said: “It happens all the time. Any situation where a tenant goes to the local authority to find a new home, the local authority will tend to say they don’t have any local authority homes available so wait until the bailiffs come.”

The advice compounds massive delays in the court system. “None of this would matter if the Government could improve the speed between court order and possession. It is not funding the court system properly,” said Mr Smith.

In the last three months of last year, the mean wait time between a landlord’s court order and possession was 68 weeks. Excluding the highs reached earlier in 2021, this was the highest on record in any three month period in the Ministry of Justice’s dataset, which goes back to 2009.

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Tenants have a legal right to remain in a property until they are evicted by bailiffs, but local authorities are supposed to find alternative accommodation for low-income tenants when they have been issued with a possession notice.

If a tenant is in arrears and they stay in the property until the eviction notice goes through the courts, they will be more likely to get a money judgement against them, said Mr Smith. 

A spokeswoman for King’s Lynn and West Norfolk Borough Council said it could not comment on individual cases, but  advised people to seek alternative accommodation after they have been served with an eviction notice.

“We offer financial assistance and support to help them do this if they need it and we will also offer temporary accommodation from the date that the eviction notice expires, which they may or may not choose to accept. We also advise them of their full range of options and that does include their legal right to remain in the property, although we further advise that court costs may be incurred if they do this,” she said.

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Last year, the Local Government and Social Care Ombudsman upheld a complaint from a landlord against Brentwood council, which advised tenants to remain at his property until their eviction date after their section 21 eviction notice had expired. 

Brentwood council agreed to pay the landlord £1,679, which included lost rent and court costs.

Buy-to-let investors must be more aware of the likelihood of costs arising from delayed repossessions, experts warned. Mr Smith said: “Landlords elect not to price in these potential losses. I get landlords saying they can’t pay their mortgage because of these issues. Well, that is not a good business plan.”

The problem is rooted in the shortage of local authority housing and is one reason why landlords are often reluctant to take tenants on benefits, he added.