42000 increased by 15000 to 57000 = 35% increase
We ARE all in it together. It's just that some of us are sailing through it in a yacht, and others are wading through up to their necks in it.
Comment on: Dave's dream
Comparing mortgage rates to what they were in 2007 is completely irrelevant. What a first time buyer needs to think about is:
- what will your monthly mortgage payments + maintenance costs be?
- how does that compare with what you're paying in rent now?
- can you handle the inevitable rise in interest rates?
Those questions are the same whether or not the purchase is via the Help to Buy.
If you're buying now, it won't affect you if the bubble bursts in 5 years' time as long as you can still afford to make the payments.
Comment on: Fixed term contracts and rent restrictions would 'fatally undermine' the market, says RLA
Does anyone know what notice period is expected from tenants for these proposed 5-year fixed term tenancies? I would not want a 5-year fixed tenancy if it meant I had to give more than 2 months' notice if I wanted to move out. But looking at it from the other side, if I was a landlord I would not want to give someone 5 years guaranteed without a bit more security for myself, i.e. protection from continually losing rent while tenants change.
Rosa Hooses has not added any discussions yet.
Posted in: Is it logical Captain?
So you mean I am talking about return on investment whereas profit is just operating profit of the business without taking into account the capital invested?
70% profit still sounds a bit high though, if you consider the costs of maintenance etc, plus of course the cost of repaying a mortgage if you needed one to buy the property you are letting.
Posted in: Is it logical Captain?
70% profit sounds very unlikely. I seem to remember one of the reasons people first suspected Bernie Madoff was a bit dodgy was that his consistent 10% returns on investment were too good to be true...
If I bought a 200k house I could rent it out for about 12000 per year. Which is a 6 percent profit, out of which I will have to pay for repairs, admin, periods when there is no tenant etc.
I'm neither a landlord nor a finance person so happy to be proved wrong on this!
Posted in: Council Housing is not subsidised
we are agreed that council housing is not subsidised - other than the initial capital subsidy which subsidised the building of the property in the first place. After 30 years or so, rents are in 'surplus' when the point is reached where any borrowing in addition to the initial subsidy that was necessary to build the property has been repaid.
This initial capital subsidy is a short term cost to the taxpayer, and there is also the opportunity cost of not charging the market rent, but these costs are perhaps preerable to the longer term high cost of paying housing benefit to private landlords, particularly as rent paid (either by tenants themselves or by HB) on council properties can be reinvested by the Government whereas HB on private rents just lines the pockets of private landlords.
Currently though, the Government favours short term savings, hence the decision to charge 80% market rents rather than invest capital subsidy.
Posted in: John Healey interview
Given the shortage of housing generally, and of affordable housing, why aren’t county councils and other public sector landowners being forced to release land at nil or low cost so that it can be developed with a high proportion of affordable housing? Or at least required to consult with local councils about forthcoming land disposals?
Posted in: Benefit reform
“The government aims to get one million people off incapacity benefits by 2015”...
“From today claimants who would previously have applied for incapacity benefit will have to apply for an employment and support allowance”...