Rental Doom

[tim123]

That post you link doesn't say rents would rise.

Anyway, it would be no different under the Tories...

At lease we wouldn't have to suffer "I saved the world" Brown.

tim

[tim123]

Whilst my rental income on my property hasn't increased with the downturn, my yield on my property has with the drop in interest rates, so what do I care if I have to drop £50 / £100 a month on a single property. My bum will start squeaking this time next year / the year after when interest rates are beginning to look like throwbacks to the 70's, but by then I'll be locking myself into fixed rates again.

As a previous poster stated, the only people hurting are those who followed the 'mortgage it to the hilt' school of thought.

Personally I think there're better off than the people who put 30% in. If you don't have any equity in your portfolio, declaring bankrupt and walking away is a much better deal than if you put 150K of your own money in

tim

[Cyberman]

Yesterday 13:39 - http://forums.contractoruk.com/782524-post42.html

Guess who?

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You were right!

It obviously depends on the area and where the jobs are. Where I am we have one of the lowest unemployment rates in the country, so demand for housing is obviously higher. Plus my house is a 4-bed detached, not a ten-a-penny pokey repossessed buy-to-let flat.

[Cyberman]

Who was it who said rents would rise as the housing slump took hold ?

http://www.guardian.co.uk/business/2...ettings-market

The For Sale and To Rent boards ( or both ) are starting to line up in my neck of the woods, particularly in the lower end BTL stuff.

It is going to be fun if ( when ! ) interest rates start to climb again

... and I didn't say rents would rise at the moment, anyway. long-term they definitely will alongside inflation. All I said was that rental income was a good idea as part of a pension strategy. It beats shares at the moment that's for sure !!

[Sysman]

My bum will start squeaking this time next year / the year after when interest rates are beginning to look like throwbacks to the 70's, but by then I'll be locking myself into fixed rates again.

The question there is when will fixed rates come back?

As a previous poster stated, the only people hurting are those who followed the 'mortgage it to the hilt' school of thought.

Going back to the early 1980s what hurt was that I ended up running 2 homes because I couldn't sell my house.

[Olly]

Going back to the early 1980s what hurt was that I ended up running 2 homes because I couldn't sell my house.

That's simply not true....I think you'll find you mean you couldn't sell it for the price you wanted.

[Sysman]

That's simply not true....I think you'll find you mean you couldn't sell it for the price you wanted.

Ok, let's say I couldn't sell it for the price I needed. I wasn't willing to see my hard work saving for a deposit plus an inheritance disappear just like that. It was a variation on what Tim said above, as I did have equity in the place:

Personally I think there're better off than the people who put 30% in. If you don't have any equity in your portfolio, declaring bankrupt and walking away is a much better deal than if you put 150K of your own money in