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Explain the difference
Old Conservatives don't understand
- Thread starter JohnD
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Property prices have trebled in the 25 years.
A house worth 245k today would have only cost around 80k back then.
So, if you took out a 25 year mortgage back then for an 80k property, you have around 160k in equity plus all the rental income today.
Not a bad return, better than premium bonds.
Cut and pasted from the Internet.
How much has the average house price increase over the last 20 years in the UK?
Analysis by the Halifax has revealed that the Average Price of a home has risen by an incredible 207 percent in the last 20 years. UK house prices have more than trebled since the start of the 21st century
Ok lets use that after capital gains tax you will have £117,907 if you sold - Not sure that was such a good investment £80k invested over 25 years so a gain of 38K = which is £1,520 per year.
Between 1995 and 2022, the average mortgage interest rate in the United Kingdom was 5.62%
So If you just put that £80k in a bank with an interest of 5.62% then you would of earned £4496 per year not including compounding the interest with is added on to your £80k increasing it every year.
You are better off renting than the landlord is.
That calk is based on the mortages rate ovs the savings rate will be lower - just checking what it has been over the past 25 years.
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I have nothing against private rentals in principle.
My daughter owns 2 flats, or as she describes them, Apartments.
She bought them originally as somewhere to live and as an investment.
She lived in the one bed apartment at the bottom and rented out the top apartment which was larger in order to pay towards the loan she took out to buy them.
When she rented out the apartment above her own, she had to get a certificate from the council, when the flat was inspected, the council inspector found a small damp patch below the windows at the front, this had to rectified before a certificate would be issued.
Turned out the rendering on outside wall was defective, cost over a grand to get sorted, a tenant moved in and 2 weeks later, he phoned and said the oil boiler had packed in, new oil boiler was installed costing well over a 1000, all okay for another while, then another call from the tenant, the front door wouldn't lock, called a locksmith, he charged 365 quid to fix a lock.
Daughter complained to me that the rent money was going on repairs, i told her to be patient and that if she maintained the property it would pay off eventually.
She met a bloke on holiday and moved to Staffordshire, she has a family there now.
With the 2 apartments rented out she has paid off her loan early and is now seeing the benefit, i sort of manage the properties for her while she is away.
So, all in all, property can be a lucrative investment.
Haven't said that, i think the government should help first time buyers with deposit loans which like student loans can be paid back when they earn over a certain amount.
My daughter owns 2 flats, or as she describes them, Apartments.
She bought them originally as somewhere to live and as an investment.
She lived in the one bed apartment at the bottom and rented out the top apartment which was larger in order to pay towards the loan she took out to buy them.
When she rented out the apartment above her own, she had to get a certificate from the council, when the flat was inspected, the council inspector found a small damp patch below the windows at the front, this had to rectified before a certificate would be issued.
Turned out the rendering on outside wall was defective, cost over a grand to get sorted, a tenant moved in and 2 weeks later, he phoned and said the oil boiler had packed in, new oil boiler was installed costing well over a 1000, all okay for another while, then another call from the tenant, the front door wouldn't lock, called a locksmith, he charged 365 quid to fix a lock.
Daughter complained to me that the rent money was going on repairs, i told her to be patient and that if she maintained the property it would pay off eventually.
She met a bloke on holiday and moved to Staffordshire, she has a family there now.
With the 2 apartments rented out she has paid off her loan early and is now seeing the benefit, i sort of manage the properties for her while she is away.
So, all in all, property can be a lucrative investment.
Haven't said that, i think the government should help first time buyers with deposit loans which like student loans can be paid back when they earn over a certain amount.
What has changed for landlords to be packing it in.
its ridiculous that people who for years have proved they can afford mortgage payments that would be far cheaper than their rent cannot get one .
About time stricter zero deposit mortgages where made more popular to help people out of rent trap
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Stricter as in only for value of house and not thousands above the value as happened in the past
About time stricter zero deposit mortgages where made more popular to help people out of rent trap
.
.
Stricter as in only for value of house and not thousands above the value as happened in the past
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The Government hands out millions in student loans, millions are never repaid.
Why doesn't the government help young families buy a house.
Give them deposits if needed, to be repaid later from any equity accumulated in later years.
This help should be restricted to first buyers who want home to live in.
Think you need to revisit your post 253, where you clearly say renters of 25 years.
I clearly said every case needs to be taken on a case by case because renters have individual circumstances.
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That just drives prices up. The reason property prices have eased is because mortgages are harder to get which has reduced demand.
I wasn't the one who started the shouting.
It's pretty much all you do on here.
I meant every word of what I posted: there will be no apology.
And, given that I readily offer and make apologies (easy to search for), that will tell you everything you need to know
D
Deleted member 221031
And he’s not good at it.
biggest concern with zero deposit is negative equity .
Skipton building society reintroduced them last year and there is talk of a scheme getting introduced in the budget
Which is not the fault of landlords, it's down to many factors that have resulted in fewer homes to live in that people want to live in.
If "many" more houses were built, prices would come down. And if demand were lower, marjet forces would make rents lower.
Technically the landlord was in the right, though it's not an approach I'd take.
On the flip side, technically the tenant's next of kin inherit the tenancy and are entitled to continue with it if they want.
Now we're seeing why all the increase in red tape has been brought in to force the small landlord out.
City investors make land grab in rental market as buy-to-let landlords pushed out
Equity rich funds stand to dominate the industry amid rising cost of debt
www.telegraph.co.uk