How does Buy to Let END!

[AWW]

I suppose the bank gets its money even if you park it halfway through the term.

[spygirl]

Pressure on landlords will force rents to rise four times as fast as house prices

Average rent is expected to rise 25pc to nearly £1,600 a month by end of 2026

https://www.telegraph.co.uk/money/property/buy-to-let/landlords-rents-rise-faster-house-prices-hamptons/?li_source=LI&li_medium=liftigniter-rhr

Phew. Just as well I invested  in BTL, the only sector that isnt subject to nay form of price restraint ....

 

[One percent]

3 hours ago, spygirl said:

Pressure on landlords will force rents to rise four times as fast as house prices

Average rent is expected to rise 25pc to nearly £1,600 a month by end of 2026

https://www.telegraph.co.uk/money/property/buy-to-let/landlords-rents-rise-faster-house-prices-hamptons/?li_source=LI&li_medium=liftigniter-rhr

Phew. Just as well I invested  in BTL, the only sector that isnt subject to nay form of price restraint ....

 

The massive (incorrect) assumption that we all on here know, is that this will only work if the tenant can afford it. Given the stagnation of wages, i very much doubt that they can. 

[JoeDavola]

27 minutes ago, One percent said:

The massive (incorrect) assumption that we all on here know, is that this will only work if the tenant can afford it. Given the stagnation of wages, i very much doubt that they can. 

Or perhaps those who would have previously rented one bed flats are forced into house shares.

Not sure I could sleep at night but buying a well priced 5 bed terrace to use as an HMO probably isn't the worst investment in the coming years given the desperation.

[One percent]

19 minutes ago, JoeDavola said:

Or perhaps those who would have previously rented one bed flats are forced into house shares.

Not sure I could sleep at night but buying a well priced 5 bed terrace to use as an HMO probably isn't the worst investment in the coming years given the desperation.

I’ve talked on here about a wessie couple who are literally drowning in debt. Can’t sell the b&b. They have now taken it off the market and rumour is that they are letting it to the home office. They are not taking bookings after next month so there might be truth in it.  If this kind of thing becomes common then all bets are off and god only knows where the market and rentals are headed. 

[JoeDavola]

Just now, One percent said:

I’ve talked on here about a wessie couple who are literally drowning in debt. Can’t sell the b&b. They have now taken it off the market and rumour is that they are letting it to the home office. They are not taking bookings after next month so there might be truth in it.  If this kind of thing becomes common then all bets are off and god only knows where the market and rentals are headed. 

The villiage I am planning on buying in doesn't have any hotels, and at most one small B&B.

I do not need to explain why I see this as a good thing!

[spygirl]

56 minutes ago, JoeDavola said:

Or perhaps those who would have previously rented one bed flats are forced into house shares.

Not sure I could sleep at night but buying a well priced 5 bed terrace to use as an HMO probably isn't the worst investment in the coming years given the desperation.

Its is.

LAs are after all HMOs.

 

[JoeDavola]

3 minutes ago, spygirl said:

Its is.

LAs are after all HMOs.

I don't understand your logic here.

I'm referring to buying a house in a residential area then filling it with 4-5 desperate single folk each paying a fair whack.

A dirty business but one which is going to get a pretty good rental return.

Edited September 11, 2023 by JoeDavola

[Bear Hug]

4 hours ago, spygirl said:

Pressure on landlords will force rents to rise four times as fast as house prices

Average rent is expected to rise 25pc to nearly £1,600 a month by end of 2026

https://www.telegraph.co.uk/money/property/buy-to-let/landlords-rents-rise-faster-house-prices-hamptons/?li_source=LI&li_medium=liftigniter-rhr

Phew. Just as well I invested  in BTL, the only sector that isnt subject to nay form of price restraint ....

 

How does that maths work when the house prices are falling?

[spygirl]

3 minutes ago, JoeDavola said:

I don't understand your logic here.

I'm referring to buying a house in a residential area then filling it with 4-5 desperate single folk each paying a fair whack.

A dirty business but one which is going to get a pretty good rental return.

They dont like HMOS.

They are dangerous and attracted scum to their areas.

They license and levy large dollops of atxes and regulations on them.

This will get worse.

 

 

[Andersen]

Scotland - proposals have been put forward to charge 200% CT on 2nd homes (is this a stepping stone on the way to Wales 300% CT rates??)
There were 24,287 second homes in Scotland last September, according to official figures.
Second and long-term empty homes are subject to a default 50% discount on council tax in Scotland.  
https://www.mortgagestrategy.co.uk/news/scotland-sets-out-plans-to-double-council-tax-for-second-homes/ 

Exerpt from Freakonomics book regarding real estate agents (explaining why the selling EA doesn't always have the sellers best interests at heart).
https://forum.nachi.org/t/exerpt-from-freakonomics-book-regarding-real-estate-agents/56492

You can never go wrong with bricks & mortar. Right ? 

Edited September 11, 2023 by Andersen

[With a crooked smile]

5 hours ago, JoeDavola said:

Or perhaps those who would have previously rented one bed flats are forced into house shares.

Eve I find this shocking 1k for a room in a house share.

I don't understand why people would bother when you can just live elsewhere and have a better quality of life.

https://www.bloomberg.com/news/articles/2023-09-08/london-room-rental-costs-top-1-000-a-month-for-the-first-time?leadSource=uverify wall

[Wight Flight]

2 minutes ago, With a crooked smile said:

Eve I find this shocking 1k for a room in a house share.

I don't understand why people would bother when you can just live elsewhere and have a better quality of life.

https://www.bloomberg.com/news/articles/2023-09-08/london-room-rental-costs-top-1-000-a-month-for-the-first-time?leadSource=uverify wall

They don't.

Remember that net migration figure?

Guess who is netting off?

 

[With a crooked smile]

4 minutes ago, Wight Flight said:

They don't.

Remember that net migration figure?

Guess who is netting off?

 

Sorry you mean that lots of renters are leaving London for other parts of the UK? Obviously this has always happened to some degree and during/after covid the movement was accelerated but I assumed we're back to normal migration from London levels now?

[Wight Flight]

1 hour ago, With a crooked smile said:

Sorry you mean that lots of renters are leaving London for other parts of the UK? Obviously this has always happened to some degree and during/after covid the movement was accelerated but I assumed we're back to normal migration from London levels now?

No. I mean moving somewhere else. The smartest of my son's university cohort have left, or are planning to leave the UK.

The drifters are staying here living with their parents.

[With a crooked smile]

Just now, Wight Flight said:

No. I mean moving somewhere else. The smartest of my son's university cohort have left, or are planning to leave the UK.

The drifters are staying here living with their parents.

I'd be interested to know where they have chosen to go to. Many from my school went abroad. Very few went to Europe. A big chunk went to Asia (I'm talking China, HK and a few to Singapore, Malaysia and Thailand. Australia and Canada were also popular. Couple work in Middle East and low numbers went to Spain.

[Wight Flight]

Just now, With a crooked smile said:

I'd be interested to know where they have chosen to go to. Many from my school went abroad. Very few went to Europe. A big chunk went to Asia (I'm talking China, HK and a few to Singapore, Malaysia and Thailand. Australia and Canada were also popular. Couple work in Middle East and low numbers went to Spain.

Canada and Asia mainly.

[Rare Bear]

8 hours ago, JoeDavola said:

The villiage I am planning on buying in doesn't have any hotels, and at most one small B&B.

I do not need to explain why I see this as a good thing!

I read your first sentence as "The village I am planning on buying...."😃

[spygirl]

The Barclay family, the banks and the billion-pound debt

How a decade-long effort to restructure loans extended to the reclusive businessmen’s empire culminated in Lloyds Banking Group seizing control of a national newspaper

https://www.ft.com/content/322e4bea-40b3-4749-92f4-d5fa78762a14

It was a chance encounter, according to people close to Horta-Osório. But the pair knew each other well. The Barclay family was the debtor behind one of the single largest problem loans on the balance sheet of Lloyds Banking Group, where Horta-Osório had been chief executive since 2011.

Loans secured against key assets in their business empire, including the Telegraph newspaper group, had originally been extended to the Barclay family by HBOS, which collapsed in 2008.

Horta-Osório left Lloyds in 2021, but the work of reducing its exposure to the Barclays continued under his replacement, Charlie Nunn.

Almost 15 years after Lloyds’ government-brokered rescue of HBOS, the resolution of those loans is inching closer to completion after Lloyds decided to recoup part of its debt by seizing effective control of the Telegraph Media Group and putting it up for sale.

...

The sudden repossession of one of Britain’s most influential newspapers by a high street bank shows the extent to which two working-class brothers from west London had built a business empire using, in the words of one person familiar with their operations, “other people’s money”.

 

Hmm .....

 

https://justdoproperty.co.uk/the-power-of-leverage-using-other-peoples-money-to-purchase-properties/

When it comes to real estate investing, one of the most powerful tools at your disposal is leverage. Leverage allows you to magnify your investment potential by using other people’s money to purchase properties. This strategy opens up a world of opportunities for beginner and experienced investors alike.

By leveraging the funds of lenders or partners, you can invest in multiple properties simultaneously, diversify your portfolio, and increase your overall return on investment. While using leverage increases the risk involved, it also amplifies the potential rewards.

 

Why Borrowing Other People’s Money Makes Buy to Let Property Even More Exciting

https://www.thepropertyteacher.co.uk/why-borrowing-other-peoples-money-makes-buy-to-let-property-even-more-exciting/

 

Buying property using other people’s money

https://www.progressiveproperty.co.uk/buying-property-using-other-peoples-money/

 

Using ‘Other Peoples Money’ to buy Property

https://www.propertysecrets.org/index.php/2012/03/15/using-peoples-money-buy-property/

[MrXxxx]

13 hours ago, Wight Flight said:

No. I mean moving somewhere else. The smartest of my son's university cohort have left, or are planning to leave the UK.

The drifters are staying here living with their parents.

Unfortunately for the majority of people that want to do this it is only a temporary measure due to the fact that they no longer have freedom of movement within the EU or there are age restrictions on working/residing in other countries without visas i.e. Australia.

[spygirl]

3 hours ago, MrXxxx said:

Unfortunately for the majority of people that want to do this it is only a temporary measure due to the fact that they no longer have freedom of movement within the EU or there are age restrictions on working/residing in other countries without visas i.e. Australia.

Inthe 30 odd years of adult working life, I know of only a small number whove moved to mainland Europe.

Everyone else has moved to the US or Oz/NZ. Or even somewhere else in Asia.

The draw of mainland Eruope just iosnt there. Little to no jobs. LArgedollop of regualtion n taxes.

 

 

[spygirl]

On 11/09/2023 at 08:41, spygirl said:

Pressure on landlords will force rents to rise four times as fast as house prices

Average rent is expected to rise 25pc to nearly £1,600 a month by end of 2026

https://www.telegraph.co.uk/money/property/buy-to-let/landlords-rents-rise-faster-house-prices-hamptons/?li_source=LI&li_medium=liftigniter-rhr

Phew. Just as well I invested  in BTL, the only sector that isnt subject to nay form of price restraint ....

 

Now this is a real stat -

https://www.property118.com/45-of-tenants-are-struggling-to-pay-rent-ons/

 

[Wight Flight]

2 hours ago, spygirl said:

Now this is a real stat -

https://www.property118.com/45-of-tenants-are-struggling-to-pay-rent-ons/

 

What a pile of shite that survey was...

Quote

The survey also found that 45% of tenants and homeowners saw their rent or mortgage rise in the past six months

For a start you cannot compare tenants and homeowners.

Secondly, almost every tenant will face a rent increase every year, so it is bloody obvious that half of them will in any given six months.

[spygirl]

From TOS

This was always a BS scheme.

https://www.taxpolicy.org.uk/2023/09/13/property118/

[Wight Flight]

At least 75% of our new listings are six month only winter lets.

One today is just 4 months.

i really want to see these parasites burn.