Not something i have noticed to be honest .
Demand still high for rental property ,certainly not reducing rents .

 

Yes....

I realise that is the general thought about rent..

But a friend of mine sold his house in August and has been off on holiday for a while,returning 2 weeks ago...

He wanted to rent a small house or cottage and has been pleasantly suprised... He has just moved into a small freshly refurbed cottage in a row of 8.. Not overlooked at all and opposite a park..
Its only a 2up,2 down with attic conversion..

Price.....£350 a month inc all Utilities !!

The guy who owns it told my friend that it was previously at £425 a month,but renters were sporadic and it spent a lot of time empty..

 

Think that may be area related. Both my 1 bed flats rented around the £400 mark, and the tenants pay their own utilities. Ramsey one took a while but the Wisbech one has a queue waiting when the current tenant leaves.

 

Maybe......

The house has also been for sale at £115k....Previously £129k

I think £350 inc bills is a brilliant price..Sounds cheaper to me than what the local authorities rent out..

Has the government now put a cap on rates for what they will pay for rental properties ?

 

I agree with this as well

 

id would love nothing better than to buy my own house, just not possible with the prices and deposits on mortgages etc, self cert dissapearing has also ruined it

 

Self cert is one of the reasons that caused house prices to rise so dramatically.

Without having to PROVE you could afford that 400k 4 bed detached home, you COULD afford that very home.

Until you couldn't and down it all came.

 

very true i do understand the reasons and rightly so i was just expressing my opinion, i could easily afford a 700 monthly mortgage however huge deposit and as im self empolyed getting the figures to work would be a nightmare

 

Save up for a couple of years....Get 15k+ as a deposit and you will have no problem raising funds..

 

Terrible rental figures for that value of house, it's possible to achieve around £650 p/c/m for that at a minimum.

 

Agreed.

My two flats combined cost around that and bring in £800ish before tax with no utilities/council tax to pay.....

Thinking of trying for a third in Peterborough in the new year as the banks are paying sod all in interest.

 

I agree.......

But any more wasnt achievable was it,Thats why the price dropped.

Cookstar.....There isnt a hope in hell of getting £650pcm for a house like that in this area.Similar house are £450pcm max and are sticking..

 

i was looking at a bit oof land by me for sale other day 4 or 5 acres some of it woodland other grass, wouldnt build on it etc but it had a telephone ariel that also was used but he police etc for the airwave thingy, that gernerated just over 5k a year in rental, seemed fair deal to me

 

Maybe so, not all houses give you a worthwhile return, these ones you mention clearly don't.

A lot of people jumped on the BTL bandwagon, without weighing up if it would be worthwhile in the long run, also coupled with laziness, a lot of people that I have spoken to seem to place having it close to where they live as very high up on their priority list, rather than the yield it earns.

 

What was the guide price?

 

I looked into BTL four years or so ago and couldnt get the figures to stack up unless you bought the house for a steal in the first instance.

 

it certainly makes it easier if the original price was low, our Flat was bought for £30k 12 years (ish) ago. have increased the mortgage to buy our house so now has 80k on it, valued around 140k and returns £550 per month.

 

What didn't stack up?

As I see it there are two ways of looking at it, a steady income or long term with little to no immediate gain.

Makes all the difference in what mortgage route to go down, if you were looking at a repayment mortgage and still wanting some left over afterwards for an income. You may well have struggled 4 years ago.

There is a lot of money to be made right now though.

 

It goes without saying that if you bought it 12 years ago, you will be laughing now.

I take it you used to live in the flat? That's exactly what got me into it, we needed to buy a house when the wife got pregnant, the market was crap fo selling but quite good for buying. So we decided to keep it and caught the bug.

 

I'm currently renting out a house while we sell our flat it's a 3 bed detached with garage it's only on a 6 month deal and we are getting £750PCM if are flat doesnt sell we will rent it out and even now it would rent quickly for £550PCM and thats a 2 bed flat

 

I'm going long. Current rental income covers the repayment mortgage/service charges etc (just, after tax). Will easily be paid off before I retire then will be a valuable income (hopefully rising with inflation) alongside my RAF pension and a good final salary pension from my last 11 year job. Havn't bothered with the pension scheme where I work now as the figures don't stack up.

 

Funny enough we might have that bug, possibly looking at doing the same again, rent out house and purchase another. probably in a years time.

 

If you want a very good mortgage contact..

 

Depends we're in the uk I live in Ipswich and prices are rising a little bit in told this is due to the Olympics and be close to London

 

Doubt prices will do much this year in nominal terms.

 

It's a real possibility. The housing market relies on credit that could very well dry up at some point this year. Then again, it might not.

Prices are still falling by a fair bit at 5% annual inflation though.

 

London and surrounding Area's as i say the east of England prices are increasing slightly

 

Certainly, in the South, prices are rising ...... it seemed like a switch was thrown last October - everything got sold within 2 months!

2012 is to be the year of the BTL landlords buying anything which moves .....

 

Where have you been hiding Pete? I've not missed you mind

TX.

 

Well this was a shock spoke to a friend who works for a estate agent since Nov 2011 until jan 2012 there have sold the most house in there 13 years of trading, There have even extend there opening time from 8am until 8pm there that busy