oh dear (tm): Generation rent: the housing ladder starts to collapse for the under-40

[Chuck]

What's not to like?

It's in Huddersfield?

[AtW]

The thing I like about receiving rent is there isn't a special 7.5% tax on it.

Wot, no income tax on it?

[expat]

The thing I like about receiving rent is there isn't a special 7.5% tax on it.

So i'm gonna get some more.

Like so -> 2 bedroom terraced house for sale in Manchester Road, Huddersfield, West Yorkshire, HD1

~£425 a month rent is 10.2% return, and saves £380 tax on the equivalent divvies. What's not to like?

The fact that costs may soon not be deductible. ISTM that Osborne is not vicious but is ruthlessly rapacious; and not for low-tax per se but rather for low-state. So expect one relief or loophole after another to be closed. He seems to be better than most chancellors at closing all the exit doors at the same time.

[d000hg]

The thing I like about receiving rent is there isn't a special 7.5% tax on it.

So i'm gonna get some more.

Like so -> 2 bedroom terraced house for sale in Manchester Road, Huddersfield, West Yorkshire, HD1

~£425 a month rent is 10.2% return, and saves £380 tax on the equivalent divvies. What's not to like?

10.2% return minus your costs of course. You have to get insurance (£200) for a start, you have to have a gas safety check (£75), you need to expect to pay £100 a year on repairs, you need to factor in gaps in rent between tenants and the risk of non-payment sometimes. When it's not let, you might have to pay the council tax (depending on the local council's stance this could be anywhere from 0% - 200% the full rate). And you have to have it redecorated every now and then.

[vetran]

10.2% return minus your costs of course. You have to get insurance (£200) for a start, you have to have a gas safety check (£75), you need to expect to pay £100 a year on repairs, you need to factor in gaps in rent between tenants and the risk of non-payment sometimes. When it's not let, you might have to pay the council tax (depending on the local council's stance this could be anywhere from 0% - 200% the full rate). And you have to have it redecorated every now and then.

shush the filthy spekulant trousers the lot and deprives a poor renter a house that they would pay £50 for.

[ChimpMaster]

You are a contractor for goodness sake


Property for sale in SL4 - Houses for sale in SL4

Looks like a good opportunity here. Extend further on the side to the back to give you ground-floor bedrooms, and build up a first floor over that side extension to give you another 2 bedrooms, and voila, you have an 8 bedroom multi-let business. In Slough you can charge £500 pcm per double room, so that's a £4k income per month on what would probably be a total investment of £400k. Assuming you put down £100k and finance £300k at 5%, that means you will have a profit-before-costs of £2750 per month.

So there you go. A house that for 8 people has become a home.

[lukemg]

Clearly a few nerves touched on both sides. This can all be summed up by the phrase 'what's in it for me' which drives the vast majority of human attitudes and actions...
Personally, I wouldn't touch a BTL, for all the horrendous reasons listed, my Vodafone shares have never yet phoned me up and said 'the boiler is f***ed, get it sorted now...'
Seems to me it only works due to leverage and through being illiquid, which prevents human nature causing problems when the market fluctuates.
Personal house is more than enough exposure to this market segment thanks.

[PurpleGorilla]

Looks like a good opportunity here. Extend further on the side to the back to give you ground-floor bedrooms, and build up a first floor over that side extension to give you another 2 bedrooms, and voila, you have an 8 bedroom multi-let business. In Slough you can charge £500 pcm per double room, so that's a £4k income per month on what would probably be a total investment of £400k. Assuming you put down £100k and finance £300k at 5%, that means you will have a profit-before-costs of £2750 per month.

So there you go. A house that for 8 people has become a home.

Sorry, where does all the money come from to fund this? (purchase + renovations).

[ChimpMaster]

Sorry, where does all the money come from to fund this? (purchase + renovations).

Well my post was slightly tongue-in-cheek. But your question shows the inherent problem: if you don't have the initial deposit then you won't get a look in and you will have to be more creative or diligent to get that deposit.

Perhaps it's an age thing. I've been working the best part of 2 decades. Though I feel that those who were 5 to 10 years ahead of me really hit the sweet spot: high wages/rates and low house prices.

When I bought my first house I had to cash in all my savings, closing down TESSA and ISA accounts too. I had to eat home made sandwiches for lunch for 6 months. I still have to drive around in a car that has 130,000 miles on it, and my wife and kids trundle around in a 7 year old family car that looks battered. There are numerous other things I need to spend money on but it'll happen when I can do it, and in the meantime I am just happy to have time with my family in the home that we've worked very hard to be in.

You have to start making the sacrifices at some point, but they won't last forever.

[expat]

Well my post was slightly tongue-in-cheek. But your question shows the inherent problem: if you don't have the initial deposit then you won't get a look in and you will have to be more creative or diligent to get that deposit.

Perhaps it's an age thing. I've been working the best part of 2 decades. Though I feel that those who were 5 to 10 years ahead of me really hit the sweet spot: high wages/rates and low house prices.

When I bought my first house I had to cash in all my savings, closing down TESSA and ISA accounts too. I had to eat home made sandwiches for lunch for 6 months. I still have to drive around in a car that has 130,000 miles on it, and my wife and kids trundle around in a 7 year old family car that looks battered. There are numerous other things I need to spend money on but it'll happen when I can do it, and in the meantime I am just happy to have time with my family in the home that we've worked very hard to be in.

You have to start making the sacrifices at some point, but they won't last forever.

They will if you get divorced.