I own 2 let properties in SW London & live abroad....
Meanwhile I'm contributing to the UK economy, paying UK taxes and can't afford to buy in London because there's a shortage of houses to buy - because so many people have bought more houses than they actually need to live in... 😯
In respect of sharing the wealth and allowing your average person to feel some stability, Buy To Let has been one of the worst things to happen in the UK - it concentrates ownership in the hands of few and creates an artificial shortage of houses to buy and therefore drives up prices to levels which are unaffordable without first time buyers getting themselves into excessive amounts of debt.
The 17 year old who sits next to me at work isn't even bothering to hope he'll ever own...
Why didn't you just put your money into an index tracker (or tax-free pension) instead and let someone else buy the houses for themselves so they could have some security, raise a family etc - you know - normal stuff about living a nice life...
Lucky you. I can't afford to buy the house I rent. Nor can many people under 30...
I couldnt when I was under 30 too. Instead of wasting time on the interweb trying to come up with more reasons why you deserve to buy a house try moving to a cheaper part of the country or earn more.
Why didn't you just put your money into an index tracker (or tax-free pension) instead and let someone else buy the houses for themselves so they could have some security, raise a family etc - you know - normal stuff about living a nice life
Cos you have to put it into rent instead - most of it.
Why didn't you just put your money into an index tracker (or tax-free pension) instead and let someone else buy the houses for themselves so they could have some security, raise a family etc - you know - normal stuff about living a nice life...
Thought it would be a good investment? Not a socialist perhaps?!
It wasn't long ago that a lot of BTLers got their fingers burnt as too heavily geared and rental values dropped leaving them unable to cover their mortgages. It's a big gamble in the short-term - would you get into BTLing in London now?
Indeed. Used to live in Bradley Stoke (aka Sadley Broke), which then was the negative equity capital of England. Shed load of BTLers (and 100%+ LTV home owners), and shed loads of rental stock all of which had no furnishings or white goods.
Sadly I was too skint to buy then, but I would have definitely purchased, and then let it out when I moved overseas, rather than sell on relocation.
anagallis_arvensisI couldnt when I was under 30 too. Instead of wasting time on the interweb trying to come up with more reasons why you deserve to buy a house try moving to a cheaper part of the country or earn more.
This. With my gf (now my wife), we bought our first house when I was 29½, and we were only able to afford that by moving away from our home towns to a cheaper area.
I'm not sure I understand why people feel they should be entitled to live wherever they want, at a price that is specifically affordable to them. Can't afford to live in London ? Don't live in London...
I think anyone buying at these levels will get burnt, the rental yields are c 3.5% at best which is poor, the ftse avg yield is 3.6% so the housing mkt is looking expensive.
To put this in perspective though the last one I bought (2 years ago) has increased by 30%, a stupid unsustainable rise but sadly someone will pay this sort of money for one.
The price now for a 1 bed flat (42 m2) in a decent commuutable town nr SW London (31 mins to waterloo) is now 300k.
The Govt set the rules, don't blame people speculating. You may vote for someone different next May.
It's OK, when UKIP takes power in a year's time and rounds up and shoots all the immigrants, house prices will return to normal levels, jobs will be aplenty and all ills will be cured....
Farridge is Mugabe?
Poolman, if you're looking in Weybridge perhaps, but not here...
[url= http://www.rightmove.co.uk/property-for-sale/property-30298302.html ]1 bed flat[/url]
Why didn't you just put your money into an index tracker (or tax-free pension) instead and let someone else buy the houses for themselves so they could have some security, raise a family etc - you know - normal stuff about living a nice life...
Why do you feel that the only way to have a nice life is to own a house.
Maybe instead you could base your perception of security on money held in investments, a government safety net, job security but also flexibility in the labour market meaning you could always find another job, a well regulated rental market with protection for renters. You can be secure in your house without owning it and you can be secure financially without all of your money tied up in your house.
The route cause of house price inflation being an issue is that everyone feels they need to buy a house to keep up with house price inflation. But this huge demand to purchase property is what fuels house price inflation. BTL and foreign investment just take advantage of this vicoious circle, they are not the cause, they are a symptom.
Either we resign ourselves to the viscious cirle powering a bubble or we do things differently. Increasing supply may pop the bubble but it is reducing demand that will lead to a stable market.
Edit: I'm not suggesting you should take a different course of action now, that would be foolhardy in the current climate. However I am sugesting that your ire is misplaced. You should not be angry at BTLers inocently investing their money in the most lucrative way, they are not the source of your problem. You should be angry at sucessive goverments for failing to address the issue.
Farridge is Mugabe?
Well I didn't want to mention it, but..
Nigel Farage is ‘just like Robert Mugabe', says former UKIP MEP
http://www.birminghammail.co.uk/news/local-news/nigel-farage-just-like-robert-5933432
The route cause of house price inflation being an issue is that everyone feels they need to buy a house to keep up with house price inflation.
No it's not. Because landlords are paying the same prices, so it's clearly an attractive investment for them AND us. Why?
Supply and demand.
Two of the root causes are demographic changes (urbanisation) combined with a much lower people density in houses, meaning you need more houses in large cities even if the population is completely stable and you have no foreign buyers.
I still think some kind of pressure downward is needed although I say that from my cheaper northern home/asset/drain on my finances. The rise in prices in the late 90s/early 00s was clearly ridiculous and the latest rises in London look just the same to me. My issue is that I see no reason why we should all suffer higher interest rates to slow down a specific location 'bubble' but hey the answer always seems to be we all pay for these problems whilst a small minority laugh all the way to the bank. Obviously in the main this minority 'have money' in the first instance so the gap in wealth between the classes which increased under Thatcher keeps on growing.
Still crazy:
http://www.rightmove.co.uk/property-for-sale/property-43117747.html
£940k, small 3 bed terrace.
I used to live in the same sort of house on that road, moved 7 years ago - should have stayed!
There is no solution to market psychology.. Lending restrictions might help... but then who is going to jump off the gravy train??
