FAO BTL owners Jenrick has just sold you down the river

[Old Greg]

This is quite interesting

https://www.bi.team/wp-content/uploa...nal-report.pdf

they divide arrears into 3 groups.



Interestingly they say arrears at :



Do you think businesses should run at 20% payment defaults?

They are hardly slum landlords.

Risk of business. They happily turn a profit in the good times... and we've all seen the Q2 GDP figures.

[NotAllThere]

If negative rates ever became a reality then we would all be screwed, beyond your level of comprehension.

What like Switzerland, Denmark and Japan?

[TheGreenBastard]

What like Switzerland, Denmark and Japan?

Negative interest rates are mostly an economic tool to keep exports competitive in a system where the world's reference currencies (USD, Euro) are doing extreme QE. For instance, I can get a domiciled Swiss account above 0%, so the reality for a consumer is that I'm not losing capital vs. interest rate.

UK could possibly pull off negative interest rates for the same reasons those countries you listed can. I'd welcome negative / near zero interest rates for my Ltd. BTL portfolio. Even on a personal level, those with savings in assets would likely benefit - the bottom rung of society maybe not so much.

[minestrone]

It is only a matter of time before maintenance of large developments is interrupted. Some of the shoddy housing stock banged up the the 90s turds will start falling through ceilings after a few months. I think there is a real possibility of certain areas going south very quickly and turning into 1970s New York style crime ridden tulip holes.

[hugebrain]

Negative interest rates are mostly an economic tool to keep exports competitive .

Not really. They are a tool to take money from people that have worked for it and give it to people that haven't.

For example, landlords are still making good money even if the tenants aren't paying any rent. This is because mortgage rates are less than inflation. As long as this difference is enough to cover the maintenance the landlord is still making money (on top of the thousands he's made from the stamp duty cut).

More importantly for the people making the decisions, if low interest rates generate inflation then it's a huge transfer from our savings to them. They have generously given themselves index linked pensions etc.

[GhostofTarbera]

I live a 15 min walk from Canary Wharf about 100K houses have sprung up in last few years

Studio, 1 and 2 beds for £450-700K rented out at £1800-3K per month as people liked working close to work.

Now, lots of these renters have no job to go back to

Now, majority are looking to escape London and work remotely

One young chap in our (remote office) was paying £1000 for a flat share in London, with 3 other sharers

He went back up north and not his own place with nice sun terrace

His other shares have done runners as has no income for 6 months

London rental market is going to crash

Good I say !!


Sent from my iPhone using Contractor UK Forum

[vetran]

Risk of business. They happily turn a profit in the good times... and we've all seen the Q2 GDP figures.

This was in 2018 so it was good times.

Do you know how housing associations work? They charge needy people about half of private rental cost, they also build houses so they can either rent or sell them.

[TheGreenBastard]

Not really. They are a tool to take money from people that have worked for it and give it to people that haven't.

For example, landlords are still making good money even if the tenants aren't paying any rent. This is because mortgage rates are less than inflation. As long as this difference is enough to cover the maintenance the landlord is still making money (on top of the thousands he's made from the stamp duty cut).

More importantly for the people making the decisions, if low interest rates generate inflation then it's a huge transfer from our savings to them. They have generously given themselves index linked pensions etc.

So Denmark, Swiss and Japan have negative interest rates to transfer money from the working class to the rich?

[NotAllThere]

So Denmark, Swiss and Japan have negative interest rates to transfer money from the working class to the rich?

I hope so!

[hugebrain]

So Denmark, Swiss and Japan have negative interest rates to transfer money from the working class to the rich?

To the indebted. Although in Switzerland the landlords have to reduce the rent when the interest rates go down, so at least they’re trying to be fair.

In the UK, they print billions of pounds to subsidise meals at McDonalds. The purpose is not just to fatten up the chavs and get coronavirus to kill them more easily. The main idea is to devalue the pound so the landlords don’t have to pay back the money they borrowed. Win win from the MPs point of view.