Economy The most common kind of business in the UK is Buy-to-Let.

[The Big Yin]

Is there a minimum standard for a buildings to be rented in the UK? Like it has to be weather tight, structurally sound, adequate heating etc? I know in NZ there is and people have successfully raken landlords to court for unfit buildings and won all the rent they paid back

The only things required by law is the gas and electricity safety certificate along with working smoke and carbon monoxide alarms. Everything else is covered under your liability insurance - so if a ceiling falls on a tennant, and the house was not in a good state of repair as disclosed on your policy, you are personally liable.

 

[avenue94]

Why are you asking me? You said 30million fo 65million people.
Haha. If you need to build houses, you can bring construction workers, they build you a house take the money and fly back to their countries.

Guess you should tell the PM that.

 

[cmw43]

From the perspective of someone who works in the welfare system, what we're getting a lot of now is what I'd call the lockdown generation. Kids who lack social skills and have no self-confidence because they were stuck indoors for two years at a crucial time in their social development.

I feel sorry for them because they were let down. I do think finding them not fit for work is the wrong move, but when you're working on building the confidence to get them into work, it's not an overnight thing with a lot of them.

Annoyingly the kickstart programme that was implemented pretty poorly by the last government would be perfect for these kids.

My fiancee works for the council in community development and she had an apprentice type person come in for a year on the kickstart programme.

The kid didn't like buses and got a taxi to and from the office everyday, at the end of the programme you could apply for a permanent role and were guaranteed an interview but the kid wasn't interested just wanted to stay at his parents playing video games all day and didn't even bother applying. I don't know how widespread this kind of attitude is though.

 

[Fossor]

Guess you should tell the PM that.

The whole our conversation was about you arguing that any immigration is good.

 

[chardog]

A massive factor in the UK as well is low interest rates which has driven the market in people owning a rental property as basically a pension, often actually rented out via a scummy agent.

maybe they need scummy agents due to scummy laws, not so simple. at least here in california, I had to threaten eviction to two tenants, and the papers and procedures required are a total mess. it's not like renting makes a ton of money/cash flow either, as long as a mortgage exists. Most of my money is tied to stocks instead, it makes more money.

 

[Hellowhosthat]

My fiancee works for the council in community development and she had an apprentice type person come in for a year on the kickstart programme.

The kid didn't like buses and got a taxi to and from the office everyday, at the end of the programme you could apply for a permanent role and were guaranteed an interview but the kid wasn't interested just wanted to stay at his parents playing video games all day and didn't even bother applying. I don't know how widespread this kind of attitude is though.

I think those kids have always existed. I mean more the ones that want to do something but are chronically shy.

 

[Hellowhosthat]

maybe they need scummy agents due to scummy laws, not so simple. at least here in california, I had to threaten eviction to two tenants, and the papers and procedures required are a total mess. it's not like renting makes a ton of money/cash flow either, as long as a mortgage exists. Most of my money is tied to stocks instead, it makes more money.

Yeah but how much money do you expect it to make when the tenants are basically buying an appreciating asset for you.

 

[chardog]

75K for a home?

that doesn't seem possible, like they left out some details

 

[chardog]

Yeah but how much money do you expect it to make when the tenants are basically buying an appreciating asset for you.

If I'm investing in property, I would expect cash flow, and depending on where you buy, in many places, you dont even have cash flow.

here's the deal........ you dont like to rent, then go buy it yourself.

assuming there is a fair market, which there probably isnt, not many people can buy up a bunch of homes, not many have the funds to do that..... if you have an institutional equity firm buying up all the homes..... that can be a problem, but mom and pops, I don't see how that is possible.

 

[moreorless87]

maybe they need scummy agents due to scummy laws, not so simple. at least here in california, I had to threaten eviction to two tenants, and the papers and procedures required are a total mess. it's not like renting makes a ton of money/cash flow either, as long as a mortgage exists. Most of my money is tied to stocks instead, it makes more money.

Honestly I wouldn't be surprised if a lot of the legal framework is setup so that business ends up with bigger letting agents.

 

[Hellowhosthat]

If I'm investing in property, I would expect cash flow, and depending on where you buy, in many places, you dont even have cash flow.

here's the deal........ you dont like to rent, then go buy it yourself.

assuming there is a fair market, which there probably isnt, not many people can buy up a bunch of homes, not many have the funds to do that..... if you have an institutional equity firm buying up all the homes..... that can be a problem, but mom and pops, I don't see how that is possible.

I think expecting more than a little on top of what you paid for it is a bit greedy tbh. At the end of the day it you buy a property and rent it out for the term of a mortgage you have a $150k or whatever asset at the end of it.

 

[chardog]

Honestly I wouldn't be surprised if a lot of the legal framework is setup so that business ends up with bigger letting agents.

Property management firms are a thing around here, and you've got to get a lawyer to evict******* however, if you have some experience going to court, willing to learn (I am), then you can fight for yourself. With AI tools, it's arguably easier than ever to avoid lawyers, still a daunting process.

serving proper notice in itself is not pretty, had a tenant ball their eyes out because I personally served the notice....... she's two months overdue, I'm not the bad guy, just doing what I gotta do

I have consulted with a few realtors, and lawyer recommendation after lawyer recommendation....... there's a sub business in this which typically jacks up rent at least 10% to cover those costs.

tougher laws, higher rents, it's circular, a beast that feeds the beast. I've grown to hate being a landlord, soured with the overall process..... and I'm making more in a day of work then I do with a month of rent, it's not all worth it until the mortgage is gone.... and even then, repairs, if you dont do them yourself, you can end up having a loss for the month

 

[chardog]

I think expecting more than a little on top of what you paid for it is a bit greedy tbh. At the end of the day it you buy a property and rent it out for the term of a mortgage you have a $150k or whatever asset at the end of it.

so the mortgage company is going to profit at least 200K over the lifetime of the loan, and homeowners cant expect at least that much? private equity is making a bunch for loaning out that money. Insurers are making a lot, property taxes for the government, but homeowner

 

[Hellowhosthat]

so the mortgage company is going to profit at least 200K over the lifetime of the loan, and homeowners cant expect at least that much? private equity is making a bunch for loaning out that money. Insurers are making a lot, property taxes for the government, but homeowner

What mortgage rate are you getting where you're paying more than the value of the property in interest?

 

[chardog]

What mortgage rate are you getting where you're paying more than the value of the property in interest?

it doesnt take much, this is 7%

Home price $425,000

$85,000 down payment

Loan amount $340,000

Total interest paid $474,166

Total cost of loan $814,166

Payoff date
Mar 2055

I know a lot of folks think it's glamourous to own a rental, and they're not wrong, but it's not as cool as it looks. in california, you'll get like an 800 sq feet home with you can rent for 2000? your mortgage is 2600

link: https://www.bankrate.com/mortgages/mortgage-calculator/

 

[Hellowhosthat]

it doesnt take much, this is 7%

Home price $425,000

$85,000 down payment

Loan amount $340,000

Total interest paid $474,166

Total cost of loan $814,166

Payoff date
Mar 2055

I know a lot of folks think it's glamourous to own a rental, and they're not wrong, but it's not as cool as it looks. in california, you'll get like an 800 sq feet home with you can rent for 2000? your mortgage is 2600

link: https://www.bankrate.com/mortgages/mortgage-calculator/

Well if you're making less than the mortgage from it then you're not someone I'm talking about Sherbro.

 

[cmw43]

75K for a home?

that doesn't seem possible, like they left out some details

I think this guy is just a social media scammer selling his "courses" on how to get rich by doing what he does.

You can get a £75k home in that area but it'll be a crap two bedroom that needs renovating, not the fresh looking "five bed" they're claiming.

 

[650lb Sumo]

75K for a home?

that doesn't seem possible, like they left out some details

Disagree.

 

[chardog]

Well if you're making less than the mortgage from it then you're not someone I'm talking about Sherbro.

maybe, but you cant say for sure that increased regulations have no effect on landlords. I'm betting that many of these landlords are renting out portions of the home and using business entities to get the best outcome. Government that charge fees on business entities are also tied to this, business entities come at a cost direct or indirect, it's something you need to manage. Renting out may be the way of life in the area, otherwise some folks would not be able to afford their home.

it's a complex issue, there are factors of population growth, and institutional buyers factoring in that growth, foreign buyers, how difficult the laws is to navigate, how desirable is the area, how difficult it is to build in that area, mortgage prices, all of those factor into why people do what they do. if a large holdings company snatches all of the houses, has no mortgage to pay, can structure taxes favorable to the entity..... then you're screwed.

I dont know why it's so difficult to stop them in their tracks, like having a limitation on how many units they can own, however I think it's pretty clear that private equity plays a significant role in unaffordable homes in the US and UK.

 

[avenue94]

The whole our conversation was about you arguing that any immigration is good.

Where did I say any immigration is good?