Hello and a question

RenewableCandy · Post by **RenewableCandy** » 18 May 2011, 16:55

The smallholding has it UNLESS it means you have to start faffing around with cars. Cars eat money and in the short term at least being able to do without one will enable you to pay-down your mortgage much faster.

Near-ness to family is priceless at the toddler-taming stage of life and will become more so (presuming y'all get on!).

Meanwhile, "townie"-points are: Safety in the countryside is, at least at the moment, is more problematic than suburban safety (in my experience) and energy's far cheaper if you're on the gas n/w.

PS_RalphW · Post by **PS_RalphW** » 19 May 2011, 10:43

I have a problem.

My better half recently lost her second parent, and inherited her house and a wodge of cash. She inherited another wodge from a deceased aunt not so long ago, and we have some savings on top of that. We have enough to buy a reasonable house, cash.

We now own three houses outright, and getting rental income from two. I have a 'pension' scheme with my job, but I expect both to evaporate soon. It would take the rental from 3 houses to provide a living income, and from 4 to provide a bufffer to start rebuilding savings. I expect to inherit a wodge from my parents some day, and as they are 87+ and very ropey I suspect it won't be more than a decade.

Anyways, yesterday other half went to a presentation on buy to let properties. I thought she was going to brush up on the finer points of landlady regulations, etc.

However, on return, she has now seen the light and wants to get into full blown buy to let speculation with mortgages and multiple properties and open ended commitments to get the tax benefits and she's arranged a mortgage advisor to come and visit and...

Help! I thought she understood about PO and the end to growth and how do I talk her out of it because she is very stubborn and it is mostly her money and she admits she doesn't have a full grasp of the numbers
(she doesn't know, to the nearest £20,000 , how much money she has now)...

JohnB · Post by **JohnB** » 19 May 2011, 10:59

RalphW wrote:However, on return, she has now seen the light and wants to get into full blown buy to let speculation with mortgages and multiple properties and open ended commitments to get the tax benefits and she's arranged a mortgage advisor to come and visit and...

I think conventional buy to let has a rather shaky future, says someone who didn't buy a house to let years ago when he had the cash! There are a lot of people out there who can't afford, or really struggle to pay for, conventional rented homes, and many of the houses are crap. That's part of the inspiration for creating Eco-Hamlets. If there are imaginative ways to create homes to rent that are affordable and meet the tenants needs, I'd consider it, but I wouldn't consider conventional letting.

Using the money to fund sustainable housing projects might be worth considering. Some groups aim to pay a fair interest rate on money loaned to get started, and many projects struggle to find the money to get going, so they fail. I could tell you all about a site we lost in Stroud, because we couldn't get the money together in time. It's frustrating when one *anker's bonus could have bought and developed the site. There are people out there who want to live in such settlements and could only afford to rent, so the initial investment could be in helping to buy the site, and then turned into owning a home to let.

A condition of doing this is could be that you have a place to escape to when TSHTF.

UndercoverElephant · Post by **UndercoverElephant** » 19 May 2011, 11:03

RalphW wrote:I have a problem.

My better half recently lost her second parent, and inherited her house and a wodge of cash. She inherited another wodge from a deceased aunt not so long ago, and we have some savings on top of that. We have enough to buy a reasonable house, cash.

We now own three houses outright, and getting rental income from two. I have a 'pension' scheme with my job, but I expect both to evaporate soon. It would take the rental from 3 houses to provide a living income, and from 4 to provide a bufffer to start rebuilding savings. I expect to inherit a wodge from my parents some day, and as they are 87+ and very ropey I suspect it won't be more than a decade.

Anyways, yesterday other half went to a presentation on buy to let properties. I thought she was going to brush up on the finer points of landlady regulations, etc.

However, on return, she has now seen the light and wants to get into full blown buy to let speculation with mortgages and multiple properties and open ended commitments to get the tax benefits and she's arranged a mortgage advisor to come and visit and...

OH SHIT.

Help! I thought she understood about PO and the end to growth and how do I talk her out of it because she is very stubborn and it is mostly her money and she admits she doesn't have a full grasp of the numbers
(she doesn't know, to the nearest £20,000 , how much money she has now)...

We can't tell you how to talk her out of it - we don't know her.

You will be MUCH better off in three years time if you sell at least one of your three houses and buy some gold.

emordnilap · Post by **emordnilap** » 19 May 2011, 11:10

Money and problems seem to go together. It's oddly comforting not to have either.

PS_RalphW · Post by **PS_RalphW** » 19 May 2011, 11:35

I admit that having more cash than we know what to do with, is not what you might call the biggest of society's problems

Most of it has come through a lifetime of living within means, and unexpected inheritance, and just being lucky on the housing market.

It really shows how much real wealth the nation has squandered in the last 30 years, in that a little financial prudence could have left asignificant proportion of the nation in much more stable finances.

I did think of your project, John, and even mentioned the concept. I will work on that. I also mentioned wind farms (I looked into these before, but other half was not to be so easily deflected).

Gold is not a source of income. It is at best a holder of wealth. As long as we own these houses they will provide rent, most of the time. (We have had disastrous tenants before. They are part of the risk we can afford to manage).

I'm not too bothered about a collapse in the housing market. I see our money as so many monthly rental incomes. Rents may go down in real terms, but all the properties are in high demand areas, and if Cambridge goes into serious decline, then we are all in deep trouble anyway.

Other half really is getting tired of the Cambridge area. Unfortunately, if we sell up and move out, we will be whacked with a huge tax bill that will seriously dent our reserves. Stamp duty alone would be a big chunk.

I personally like the idea of a retreat to rural Wales. However, it is a big move and I will need to keep my family together through it, and think through their future options. I am not a lone operator these days.

I sometimes think my other half comes up with these impulsive, bad ideas to shock me out of complacency and force me to scome up with a better idea myself

JohnB · Post by **JohnB** » 19 May 2011, 11:38

RalphW wrote:I personally like the idea of a retreat to rural Wales. However, it is a big move and I will need to keep my family together through it, and think through their future options.

I just happen to have one of those looking for people, ideas and money

.

stumuzz · Post by **stumuzz** » 19 May 2011, 11:38

Ralph,

I have 14 houses let, so know a little about land-lording.

First, houses at the Mo'( do not bother with flats, new builds or off plan) are massively overpriced. Do some very basic yield calculations at repayment rates ( not interest only) and probably you will not show a profit. Remember capital is in very short supply for deposits so the many property spec companies will promise the earth to get the capital off you as it is the release mechanism for further funding ( i.e. paying themselves a salary on other peoples borrowed money)

Also never, never believe what the expected rent will be. Always do your homework and get to know some long term tenants and find out what they pay. This will be the real indicator of the rental average.

Second, good quality housing with gardens will always be in short supply. Therefore, you will have to decide which will be a better investment in the medium term, stocks , gold or housing.

Third, if you do choose housing, get 20 properties together which fit your criteria and put in 35% under asking price offers. As you are a cash offerer, there will be one that takes it.

Finally, if you cannot do everything yourself ( plumbing, repairs, diy) then forget it.

snow hope · Post by **snow hope** » 19 May 2011, 13:12

All I can say Ralph is that your wife needs a serious talking to. You have been on here long enough to know the situation and how it needs to be re-iterated to your wife.

Wish I had your problems mind you!! Loadsamoney........

featherstick · Post by **featherstick** » 19 May 2011, 14:50

Catweazle wrote:
featherstick wrote:Take us with you Catweazle!
There will be space.

Do you fancy coming out for a few rabbits one evening this week ?

PM sent. How about Friday? PM me a time after 7pm and a location. Cheers.

lurker · Post by **lurker** » 20 May 2011, 00:43

Is it just me who finds the idea of buy to let empires abit morally repulsive?

Landlords are SCUM

First up against the wall when the revolution comes, or TSHTF along side other leeches like bankers

JohnB · Post by **JohnB** » 20 May 2011, 01:00

lurker wrote:Is it just me who finds the idea of buy to let empires abit morally repulsive?

I don't see anything wrong with owning homes to let to people who can't afford, or don't want, to own their own home. Someone has to do it, and if they have available assets, why not use them to provide something that benefits other people? Unfortunately that's not the way much of the buy to let market seem to work. One of many areas of modern life where something could be done in a beneficial way, but isn't.

lurker · Post by **lurker** » 20 May 2011, 01:21

http://www.guardian.co.uk/commentisfree ... f-comments

Some funny comments on this article & alot of good points made also, worth reading though them imo

E.g

I'm deeply moved by Mr. Salusbury's humanitarian efforts. Is there not, in a very real sense, an almost saintly air about him? And did not Jesus say, in His Sermon on the Mounting House Prices: "Blessed are the freeholders for theirs is the kingdom of tenants"?

Seriously, though...who exactly is this transparently risible guff aimed at? The village idiot?

Next Week: Dr. Harold Shipman Explains That His Elderly Patients Are Grateful To Him For Being Murdered And How Much Money He Has Saved The NHS...

UndercoverElephant · Post by **UndercoverElephant** » 20 May 2011, 01:44

lurker wrote:Is it just me who finds the idea of buy to let empires abit morally repulsive?

Landlords are SCUM

First up against the wall when the revolution comes, or TSHTF along side other leeches like bankers

This one first:

cubes · Post by **cubes** » 20 May 2011, 17:19

lurker wrote:First up against the wall when the revolution comes, or TSHTF along side other leeches like bankers

That wall's going to be pretty damn crowded...