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Housing market

Discussion in 'off topic' started by matt j, Feb 2, 2022.

  1. PhilofCas

    PhilofCas pfm Member

    My son particularly likes them, barely a week goes by where he’s not praising their existence, he’s very passionate about them…
     
    Snufkin likes this.
  2. laughingboy

    laughingboy pfm Member

    On the one hand, the argument runs, there is no profit in BTL investing, no money at all; on the other, these over-leveraged landlords who are only in it for the money are the scum of the earth.
     
  3. stevec67

    stevec67 pfm Member

    And it changes. I've a friend who bought a few in the 90s when housing was cheap. It was a licence to print money until a few years ago and she no longer works. These days, less so, and fewer people will enter the market. I know of people who bought btl 10 years ago, bad move.
     
  4. mandryka

    mandryka pfm Member

    Why a bad move?
     
  5. stevec67

    stevec67 pfm Member

    Lower yields. Some not covering costs. Add in a less favourable tax system, it's less attractive again. A conventional pension scheme has less risk and offers 8%, typically. It's where I have my money.
     
    hifinutt likes this.
  6. mandryka

    mandryka pfm Member

    Well I think that eventually it's possible to have a choice between selling and using a fully managed service, because you aren't able to manage the properties yourself because of age or illness. And selling isn't easy, and you have the question of what to do with the capital which has been released. My thought is that it's best to hold on to the houses for as long as possible, enjoy the income and the capital growth, even if it means using an agent.

    Leasing to the local authority may not be realistic as I've said. Quite apart from the questions of how you get the property back, even today that company in Croydon offering it doesn't pick up the phone -- it would be mad to give them the rights over a house. They could disappear!

    But maybe there's a third way that I haven't seen.
     
  7. mandryka

    mandryka pfm Member

    Interesting, and I guess the tax changes will have made a very significant difference. Where is this? It doesn't quite mesh with my experience in London where demand for lets has been pretty consistently high for years, and rents seem high too, but I should say, I have no debt.
     
  8. stevec67

    stevec67 pfm Member

    London is its own special case. I don't know what on earth is happening there, it's a different country with its own rules.
     
  9. hifinutt

    hifinutt hifinutt

    yes sadly not the case for many . One neighbouring house rented out via a agent is just decaying . render falling off , mortar falling out . seems the practice here for many . another neighbour who renrted had wires poking out of sockets , sellotape holding broken windows together . many live in badly maintained houses . I wonder if any have filled in the decent homes consultation currently going on

    https://www.gov.uk/government/consu...ard-in-the-private-rented-sector-consultation
     
    darrenyeats likes this.
  10. Ellenor

    Ellenor pfm Member

    All too common. Got a landlord living next door to me. He lives a very comfortable retirement. Just bought himself another new caravan. You should see the state of the three terraced houses he rents out.
     
    Snufkin, flutteringwow, tuga and 3 others like this.
  11. mandryka

    mandryka pfm Member

  12. hifinutt

    hifinutt hifinutt

    Ken McEwan, of McEwan Fraser Legal estate agents, told The Telegraph: “Landlords are selling up and moving into commercial property, or they are just getting out altogether.

    “Landlords are in tears on the phone to us regularly because they can’t get their tenants out.”

    If landlords have grounds for eviction the creaking court system means it can take them 12 months to get possession of a property because there is such a court backlog.

    McEwan added: “Demand outstrips supply by five to one. This has been the case since the Scottish government changed the legislation.

    “They killed the market. I am seeing a massive exodus of Scottish landlords.”

    sounds bad
     
  13. Ponty

    Ponty pfm Member

    Depends on your viewpoint. There will be plenty on here who will be over the moon, particularly the bit about landlords in tears.
     
  14. mandryka

    mandryka pfm Member

    I think the first question is: is it true?
     
  15. dweezil

    dweezil pfm Member

    Are you really suggesting an estate agent might be economical with the truth? :confused:
     
    paulfromcamden likes this.
  16. Joe Hutch

    Joe Hutch Mate of the bloke

    I can't find a small enough violin.
     
    Ellenor, matt j and PhilofCas like this.
  17. Ponty

    Ponty pfm Member

    Surprised you’d even look for one, however small!
    I’m hearing noises about a stamp duty cut on Friday. Anything to keep the plates spinning.
     
  18. laughingboy

    laughingboy pfm Member

    Help to buy (2013). Stamp duty holiday (2020). Mortgage Guarantee Scheme (2021). Stamp duty cut (2022). This is what the Tories do when the economy is facing a downturn (especially if an election is on the horizon) - stimulate the housing market, because GDP goes up and it looks like growth. Look Ma, no recession!

    Blame yourself if you don't like it. You keep voting for it.
     
    darrenyeats, palindrome and tuga like this.
  19. Ponty

    Ponty pfm Member

    I agree. All it will do is increase prices, or prevent a price slide. On the flip side, IR’s are increasing which will reduce affordability. Still mega cheap money though. Trouble is, there is no one else I can bring myself to vote for.
     
  20. laughingboy

    laughingboy pfm Member

    Which is odd because the things you seem most upset by (over-indebtedness, an economy that discourages saving and encourages BTL investing) are the core policy outcomes of the modern Conservatives. Their trajectory is to shrink the middle class until we are back to the 1780s, where the role of the middle classes is constrained and social mobility is almost non-existent. Everything is financialized, if you don't have your wealth offshore you can't compete, and the vehicles of this globally mobile wealth are multi-national corporations.

    The Tories are waging class war and even your side - the small 'c' conservative middle-class - is getting hammered. And, because you are scared of 'socialism' (a nineteenth century fad that had limited success in moderating old-style capitalism and since the 1940s has barely existed in mainstream politics), you still think that mixed-market social democracy is a threat to you, rather than a lifeboat.
     

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