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AIBU?

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Original poster

to be annoyed about investment properties when so many people have no home?

261 replies

horlickslover · 11/09/2015 01:58

So many established people beginning to "invest" in property again these days. Buying up ideal family homes and first time buyer homes to rent out or use incresingly (depending on area) for airbnb lets. I have to say it really annoys me. I know a few people looking around to buy second or even third homes as an investment. We have a house that is our home I just think it is a bit greedy to go and buy up available housing like that when so many people just can outbid wealthier people looking to turn property into an income. It would be totally fine if their wasn't the housing shortage there is but as it stands I think it is pretty greedy, selfish behaviour.

OP posts:
Londonista123 · 13/09/2015 10:32

I again disagree, particularly looking at properties outside of the capital. Sure there are many people on below average wages, but as earlier PP linked, there are houses available for far less than average. And the typical first time buyer doesn't need an "average" property - something smaller will do fine. There are also people who meet their partners earlier than me, so can buy together (making use of two salaries). I do think there is a housing crisis in this country, for the reasons mentioned earlier, but I also think there is "pull finger out" crisis, and some would-be buyers need to get themselves in hand, cut expenses, save and get on.

YonicScrewdriver · 13/09/2015 11:41

In my example above, I was looking at one bedroom flats in gravesend, on the average salary, as a previous poster had suggested Kent. They are £100k up.

The alternative of a studio is maybe £5k cheaper.

YonicScrewdriver · 13/09/2015 11:42

£100k is already well under the national average so I'm not sure what your point is about averages

"The average price of property in the capital is £481,820 in comparison with the average for England and Wales of £181,619."

HeighHoghItsBacktoWorkIGo · 13/09/2015 12:30

If everyone "pulled their finger out" Yonic, prices would rise even further. It would be even more demand chasing too little supply. Both supply and demand need to be addressed at a macro-level.

YonicScrewdriver · 13/09/2015 12:34

I'm not the one who said pull your finger out...

Londonista123 · 13/09/2015 12:35

I was getting at the same point as an earlier poster - that there are parts of the country where for £50k - £80k a starter flat (or even a small terrace) is achieveable. As a single person or couple one may want a larger property, lovely garden, whatever else, but it's not a need. The average price is less relevant, given that one isn't buying the "average" property in that area.

For example, my London flat cost less than a 1/3 of the average price you quote, and from talking to other FTBers that isn't unusual.

(In Kent the Medway towns are cheaper than Gravesend in my experience (and without the terrible name!) there are very nice parts of Gillingham with flats at £90k, terraces from £120k but those needing repair sometimes selling for circa £100k.)

Londonista123 · 13/09/2015 12:41

Agree with HeighHogh re macro level action needed (I was the one suggesting that some would-be buyers need to pull their finger out).

I invest in BTL because it provides me a good return. If there was more house-building in this country, and a curb on how foreign investors are taxed/allowed to buy, and whatever tax against LLs that the government wants to levy, I (as nutella said earlier) would re-assess the viability of BTL for my long-term financial goals.

A surge of buyers saving harder and buying (likelihood: zero) wouldn't necessarily make prices rise as far as those greedy landlords are concerned: if the property price increases, yield decreases, and LLs will look elsewhere/at other investments.

NoMoreRenting · 13/09/2015 13:00

But to be fair, that's the average price of property, not the average price of a 1bed, getting on the market, property.
There are many parts of the country wherevyou can buy 1 or even 2bed properties for far less than 100k.

NoMoreRenting · 13/09/2015 13:02

3bed here

YonicScrewdriver · 13/09/2015 13:21

And the average wage is also average across the country and across a working life.

If you can accept the point that, even saving and working as hard as they can, many people will simply never have a wage that enables them to buy within commuting distance of their work, then we could drop this discussion.

Oliversmumsarmy · 13/09/2015 13:26

I did have a flat in London less than 1/2 the so called average price for London properties which I tried and tried and tried to sell to FTBs. It "sold" 3 times to 3 different FTBs all 3 pulled out citing reasons from they thought if they saved a bit more they could afford something better to being scared. In the end I sold to an investor who signed and completed without any hassle. Unfortunately FTBs don't do themselves any favours when it comes to buying. Between them they must have spent £10k on solicitors and mortgage arrangement fees.
Glancing through a news article yesterday was a story about a single guy on £40 k who was bemoaning the fact he would never be able to afford to buy. His rent was £625 per month. Sorry but if you can't afford to save on that salary with that rent then something more is going on with FTBs.

YonicScrewdriver · 13/09/2015 13:29

Was he bemoaning inability to save or inability to borrow enough, Oliver?

Oliversmumsarmy · 13/09/2015 13:36

I think it was his inability to save but then it went on how he had now moved to another flat and the rent was now £1377 per month

Didn't really read it properly as I after reading it through a couple of times I just didn't understand what it was on about.

Ta1kinPeace · 13/09/2015 14:07

The median wage in the UK (ie the one that half of the population earn below and half above) is just under £19,000
The median household income is around £24,000

so half the population live in households earning less than that.

Taxation of property in the UK has been stitched up for the rich by the rich
and the very rich Chancellor does not give a shit about anybody but the rich
so will do nothing to change it.

NoMoreRenting · 13/09/2015 14:11

Yes but from the house in Peterborough the train is 50mins. Lots of people commute in from areas of Herts/beds/bucks/Berks with that journey. Lots of young renters working in London and living in areas such as Reading earning reasonable salaries yet wouldn't consider moving to Peterborough to live. Likewise lots of young professionals living in London earning 30/40k who are renting because they can't afford to buy in the areas they want. They resolutely refuse to buy in areas they don't like. There are also lots of people renting who could have afforded something in a cheaper part of London when the market was lower around 09/10. But they held off in the expectation that by 2012 it would all be dirt cheap and now they've ended up further away from getting on the ladder than ever before. And as Oliversmummy said, there's too much procrastination. You see in on Locationx3. Couples have looked at 50 properties and in the year of indecision they can now afford less than when they started looking.
Again, I think it links I with spending all your money when you're young on exciting stuff like holidays and consumables instead of waiting and saving. Too much instant gratification and so when buying a house they say stuff like 'oh I'd prefer a bigger window or a nicer kitchen.'

They wAnt everything. They want it wow. They wAnt it cheap and they want it now. Without compromise or sacrifice.

NoMoreRenting · 13/09/2015 14:13

Excuse lack of paragraphs.

londonrach · 13/09/2015 14:22

No more renting. You do realise the second house you linked to is being sold by auction as its fire damaged, and another is a park house both of which is difficult to get a morgage on as its not standard or has problems. Believe me when we view we been trying to get it as quick as we can as we fed up of renting.

Ta1kinPeace · 13/09/2015 14:30

Nomorerenting
How well do you know Peterborough?
Its schools?
Its shops?
Its demographics?
Its politics?
Just that many people buying a home look at long term issues as well as just price

NoMoreRenting · 13/09/2015 14:31

I put in max 100k and was getting 8 pages.
We used to live in Stamford so I know how cheap property in Peterborough is. There are tons of properties for 100kor less. Tons of them. And as I said, the train journey is about 50mins.

Lincolnshire is very cheap (Stamford and Lincoln being the exceptions) and has the grammar school system. Lots of property in places like Grantham for less than 100k. 1h5mins on train.
We live in Wilmslow, Cheshire. Quick train into London is 1h45min. Dh does this twice a week.

Ta1kinPeace · 13/09/2015 14:32

And the house you've linked to in Cleethorpes and mentioned the Grammar school aspect as a good thing
What is the job and aspiration situation in Cleethorpes and Grimsby?
rhetorical question as a friend works there and knows all too well

NoMoreRenting · 13/09/2015 14:35

As I said, I lived in Stamford and I taught inPeterborough so I know it well.

But if at 22, as a graduate they said no to all holidays and going out and bought minimal clothes then they could afford a deposit to get on the ladder.

NoMoreRenting · 13/09/2015 14:36

But they didn't even need to live there.

We bought in Manchester and didn't know it at all. It was cheap and we wanted on the ladder. We continued to rent in the SE.

NoMoreRenting · 13/09/2015 14:38

People laughed at us and said why would you buy a house in Manchester. Well, we were the ones laughing 5yrs later.

Ta1kinPeace · 13/09/2015 14:40

Manchester and Grimsby are subtly different IMHO

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