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Right to rent
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Invalid user 2019  03 Mar 19 7.18pm |
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Originally posted by YT
Eh? Property is a massive global investment vehicle. Owned by pension funds, insurance companies...even trade unions! Don't forget the Church of England and Crown Estate
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 steeleye20 Croydon 03 Mar 19 7.30pm |
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Originally posted by dollardays
Don't forget the Church of England and Crown Estate Yes, especially them. (satire).... Remember the Archbishops of Canterbury's reaction when he was told to put up some of the homeless in Lambeth Palace?
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| EverybodyDannsNow SE19 04 Mar 19 8.18am |
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Originally posted by Hrolf The Ganger
Thanks for taking the time. So it's basically the investment in property/rent return compared to other types of investment at the going interest rate. Once again the cost of the property itself seems to be the key factor in driving up rental charges. I'm loathed to say it once again, but immigration must be a big factor in that. Yield is simply the annual rent return/purchase price - if you buy it for £500,000, and rent it for £2000 per month, your yield is £24,000 (£2k x 12 months) / £500,000 (x100) = 4.8%. Not sure what the other explanation is all about, particularly from someone who’s a landlord themself. It’s becoming less and less profitable to be a landlord, particularly in London where the purchase prices are so inflated, and rents just haven’t matched it - there’s also a whole host of new costs being burdened on landlords, such as council licensing schemes, which all eat into the already small profit margins.
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| Lyons550 Shirley 04 Mar 19 3.00pm |
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Originally posted by steeleye20
Nobody should give a s**e about landlords they are disgusting social parasites.
The Voice of Reason In An Otherwise Mediocre World |
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| Lyons550 Shirley 04 Mar 19 3.13pm |
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Originally posted by Hrolf The Ganger
Well if banks didn't charge so much for mortgages and house prices were so high, then perhaps more people would buy. You do realise that mortgage rates for landlords are even higher! Also that there's an extra 3% levy on the whole cost of the property as well...all extra costs that a landlord incurs. Having said that though, part of the reason for the extra levy is to weed out the unscrupulous landlord who DO exploit their tenants. Thankfully as a result of this and Sec 24 the 'new breed' of Landlord is far more savvy and business like in their approach, and like Tom i also rent my properties out below the market rate. I do so because A) I want my tenants to be happy and B) I want to give them the opportunity to be able to save for a deposit if they so wish.
The Voice of Reason In An Otherwise Mediocre World |
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| Rudi Hedman Caterham 04 Mar 19 3.19pm |
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Originally posted by steeleye20
Nobody should give a s**e about landlords they are disgusting social parasites. You probably think that about anyone with £3 in their pocket, hence why you probably don’t buy any drinks.
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| .TUX. 04 Mar 19 10.00pm |
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Originally posted by Mapletree
Oh dear What would you rather people invest in, BitCoins like Tux recommends? At least renting out housing benefits people. Nowadays in London there is no capital accumulation, so it's only providing a modest return. Probably lower than equities. There is a need for a private rental sector. Full stop. The fact that rents are high is solely a function of the cost of housing, given the returns aren't high. It isn't profiteering, simple ROCE calculation. Good shout. Please feel free to reference my stance again in the future.
Buy Litecoin. |
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 Hrolf The Ganger 04 Mar 19 10.05pm |
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Originally posted by Lyons550
You do realise that mortgage rates for landlords are even higher! Also that there's an extra 3% levy on the whole cost of the property as well...all extra costs that a landlord incurs. Having said that though, part of the reason for the extra levy is to weed out the unscrupulous landlord who DO exploit their tenants. Thankfully as a result of this and Sec 24 the 'new breed' of Landlord is far more savvy and business like in their approach, and like Tom i also rent my properties out below the market rate. I do so because A) I want my tenants to be happy and B) I want to give them the opportunity to be able to save for a deposit if they so wish. I think I already said that my greedy landlord remark was a little unfair.
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| Stirlingsays 04 Mar 19 10.18pm |
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Originally posted by Lyons550
I think Steely was having a bit of a wild turn.
'Who are you and how did you get in here? I'm a locksmith. And, I'm a locksmith.' (Leslie Nielsen) |
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| ChrisGC Wantage 04 Mar 19 11.24pm |
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Originally posted by EverybodyDannsNow
Yield is simply the annual rent return/purchase price - if you buy it for £500,000, and rent it for £2000 per month, your yield is £24,000 (£2k x 12 months) / £500,000 (x100) = 4.8%. Not sure what the other explanation is all about, particularly from someone who’s a landlord themself. It’s becoming less and less profitable to be a landlord, particularly in London where the purchase prices are so inflated, and rents just haven’t matched it - there’s also a whole host of new costs being burdened on landlords, such as council licensing schemes, which all eat into the already small profit margins. Sorry, I'll clarify for you. You've explained how to calculate the yield which had already been done. I explained the relevance of the return on investment compared to having the money in the bank: that's what yield is: return on investment.
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