Tenants' costs of renting a home 'up again' | Discuss

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Tenants' costs of renting a home 'up again'
14/12/2011
11:41 am
Dean
Wales
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10/10/2011
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With the economic downturn and the ever increasing doubt that we will never get out of this dilemma that the UK economy is in, it seems that it has also been effecting people that don’t own property. Some would argue that house prices will increase, when others say that they will continue to drop but no-one really knows what to do. To Buy or Not to Buy??? That is the million dollar question.

But as you will see from this article  rental costs have risen for the past 12 months and there is no sign of this easing off any time soon.
Personally I think that if you currently have the funding for buy to let mortgages then invest in bricks and mortar as the return is far greater than any bank or building society out there.

A lot of people may worry that house prices will drop further and they may do.
However, if you are looking to invest in BTL’s then it is a long term investment, not for quick turn around purposes - which we are not in the market for really.

If rents keep increasing and there is such a supply and demand issue in the rental sector then I personally would invest in where the margins are.

I’d love to hear what everyone else thinks about this, as I’m sure there are lots of different opinions out there.

14/12/2011
12:00 pm
Paul Routledge
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20/05/2011
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Dean,

Over the last few months we bought another 4 houses in Barry in Wales we paid between 85k & 95K and they all rented within a month for between £550pcm and £625 giving us an approximate yield of  around 7 to 8%.

We are putting 2 to 3% away for repairs, renovations and insurances and this is still giving us a good net yeild of around 5%. and of course this isn't adding any upturn in capitol growth or incorporating any BMV valuations which is a bonus. 

Quite frankly if I could get someone to lend me £20 million tomorrow at a fixed 5 year fee of 4% I would rip their arm off lol:-) But who wouldn't?

So if you win the lottery I am your best investment bet today!!Laugh

Paul

14/12/2011
12:51 pm
pierceandco.co.uk
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12/10/2011
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We did this article earlier this year to highlight the positives of property investment - We also have a calculator to let you work out your yield -

In a nutshell - I (Mark) have no money invested in any financial institution or investment - Its all in bricks and mortar despite my friends in years gone by being critical of my investment choice - Who's crying into their soup now my friends?

Mark A Reynolds

Pierce & Co Residential Letting Agents

http://www.pierceandco.co.uk

01296 20 1234

14/12/2011
1:13 pm
Paul Routledge
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To true Mark,

Same as that and they said I was mad not getting onto the City band wagon, but all my old investment consultant friends are not crying in their soup there queuing for it lol Laugh 

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