Good. This is about the one and only case of profit for the wrong reason. It's noticable how revolting smoking is in bars and restaurants in the remaining countries still permitting it.
The sooner it goes altogether, the better.
But would customers of said big pub know what sea bass actually is?
Well in Cambridge ... you know that place.. Of silly prices...;)...
Not the best time to be buying property unless you really need to move from where you live. As you have remortgaged to finance this you are no more exposed to the property market (up or down) than before and you have thus split your investment over more than one property. But you now have a bigger mortgage, and rents are unlikely to rise to cover any increase in mortgage rate, nor increases in maintenance costs etc.
no I would not invest in BTL now. If the market does go down there will be a time when you could afford to buy a repossed property for a lot less, and find plenty of tenants among the repossessed, or builders happy to sell their new builds at a discount, and banks willing to lend to low risks. Which is where all this BTL enthusiasm got going in the early 90s. but now is not the time.
In article , normanwisdom scribeth thus
|Yep.. and the tenants will do what?..
'Fraid you don't understand the BTL market. The ones we have are used by people visiting the area for several years, and more often than not they have their property rented out elsewhere.
Now what's wrong with that?..
It will depend on your costings, the rental market in your area, and whether you can afford to subsidise the venture in the short term,
Buy to let is a solid reliable business over the long haul, you won't be making the sort of capital gains that have been potentially made over the last few years. You won't do that for a very very long time.
Why? The prices are dependant on the demand (intense and likely to remain so) and interest rates (medium and stable). Prices are not set to rise and they could be set to fall a bit (at least in real terms if not actual).
The short/medium term demand for housing is likely to remain intense because of the easterners. Although the gov't (whose medium term prospects are poor) would like a lot of new homes built, local authorities are not keen to put them anywhere specific. A different govt might be unwilling to take on local authorities on this issue as their voters already have houses and reducing house prices (by increasing supply) is political suicide.
The economy seems reasonably stable but...If interest rates rise it will affect you in several ways.
1) Your mortgage repayments will go up. 2) Rent will slowly rise (as more people won't be able to afford to buy so will have to rent). 3) You will be earning less than other forms of investment including paying off those mortgages.So it really comes down not so much to housing market but your confidence in the economy and the stability of interest rates.
The type of property, it's state of repair and the likely tenant profile are really siginifcant issues but I take it that you've done your homework and costings. If you've simply been told by a salesman "you can't lose" then that's not going to be enough info to make a serious decision.
Agreed.
...(which are suffereing)
Not from my perspective rents are generally moving up as people find that have to rent because they still can't afford to buy. Interest rate rises have compounded the unaffordability of buying and so demand for rental is waxing.
and whether your
Probably, but property is
1) (At least most of ) it's own collateral. 2) less volatile that other investments
People do well to remember that a brand new dwelling has about a 20% mark up over a >10 year home. It escapes me why people should want to buy something that is going to take a certain amount of snagging (hassle if not cost) just to have everything new but perhaps not as practical/durable as needed.
Notwithstanding the relative merits and demerits of BTL as an investment; the private landlord in the university environment is a good thing. If he attempts to be less than honest, then it provides an excellent supplement to their education - i.e. how to recover a legitimate debt.
The difference between undergraduate and graduate is effectively one day. If they are mollycoddled until age 21 and enter the real world without the skillset to handle a commercial deal, then they have been done a disservice.
My tenants probably earn more than me but I own more than they do. So I TRADE their income for my property.
Providing a service
Many people like to have a home.
Nobody loves a landlord, I don't do it to be loved.
and BTL is a big factor
Yes and no. If it fuels a BTL bubble then yes. In practice the demand (brought on by demographic and migration effects) is much more to do with it.
Be warned - the bubble may burst at any
I'm really rather the opposite of gung ho over business decisions.
and everybody will have a good laugh at the landlords in
All my properties are paid for, I doubt I will be in trouble, I have relatively little sympathy for a short term BTL landlord who is not committed to the long haul.
It is a useful activity managing rental property. I, say, manage housing for a group of twenty somethings these are people who need a home but have not yet acquired the skills or capital own or run a home of their own.
Take said bastards to court. Anyway deposits are now protected.
We're not all like that.
Phil,
I own a flat which is let. It's in a University town (lots of students) where property is fairly cheap and the rental return is good.
I am not making any profit. In fact, if you count the loss of interest on the capital I put in, I'm making a loss. I have several reasons for doing it. I might make capital profit on it. I have locked into a possibly rising property market (and I think it will rise, long term if not short term). I can afford to pay the mortgage even were it empty - so I won't be forced into a sudden sale at a loss.
But it isn't going to be empty. I have a guaranteed tenant. One of those 20-somethings who can't get on the housing ladder. One who has been messed up by previous landlords, and I felt pity for him, with the instability of annual rentals, impossibility of getting repairs and trouble getting deposits back. A tenant I know quite well. My son.
He was a bit shocked when I told him I expected him to buy it off me one day. The price will of course be the lowest I can get past the taxman...
Andy
And in the short term may actually lose value. It will cease to be a shiny new house quite quickly, and builders will be building shinier newer houses all the time. People may realise the houses were overpriced to start with.
New houses can come with lots of problems, some minor, some not so (if your builder forgot to use wall ties).
I know they're usually execrably styled, but the 1970s were probably fairly good for houses. Fairly up to date compared to current building regs, room and plot sizes usually reasonable compared to new build. They can look shabby, but a quick makeover of kitchen and bathroom and a repaint can turn them round. Also they're often on nice mature estates with some trees.
Owain
The anti smoking fascists would lead you to believe that it increases custom. But since they lie about everything else.......
Sea bass yummy? Its a rat that swims. You couldn't pay me to eat it.
Typical anti smoking fascist. Remember when people had a choice?
Entirely possible to have smoking & non smoking pubs/bars/areas.
It's called freedom to choose.
Sorry, no sympathy from this corner, I gave up over two years ago
A smoker with no taste or knowledge of fish We still do pie and chips with cheap cider in the local's bar to cater for your type
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Smokers still do have a choice, they can stand outside under a pergola and freeze to death if the lung cancer doesn't get them first It keeps them from infecting everyone else inside with their second hand smoke.
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Two points. First of all, passive smoking is a complete myth. Agreed it might be unpleasant for non somokers, but we could easily have 'smoking' pubs & 'non smoking' pubs. Its called choice.
I've tried sea bass & its simply awful. Worse than brussel sprouts.
Great! Where do you live?
Yes im bound to take your word for that
Good thinking, I don't smoke no of the bar staff smoke over 90% of drinking customers don't smoke So im going to open a pub just to cater for 10% of the possible Dying clientele who will soon end up in the local hospice. Fact, more people are using the restaurant in the evenings because the entire pub is now smoke free.
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