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

[horlickslover]

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.

Well yes. We researched somewhere that people would want to rent but where there was good links into town and cafes and shops. We looked at expensive didsbury and tried to work out where was cheap but up and coming.

So why are you suggesting other people buy houses in Cleethorpes?

From reading the thread it seems to me that neither side will be convinced of the other's argument. I cannot find a better return for my money and would happily buy a property in a different town/city of the returns were good and I was guaranteed an income. The issue of not starting to save early is down to the individual's priorities. I was desperate to own my own home from the age of about 19 and saved hard for a few years to achieve it. I certainly don't turn my nose up at people who didn't have this mindset. Different strokes for different folks.

Not all Lincs grammars are poor. Bourne in the south, Queen Elizabeth west of Grimsby. The 2 single sex Grantham ones are also sought after. It was only us in Stamford that weren't in catchment for any. The LA used to pay for Stsmford kids who passed to attend Stamford independent school but they've withdrawn that now.

nutella
I cannot find a better return for my money
Absolutely true : because investment returns on UK property are effectively untaxed

If the UK brought in proper ownership controls and land taxes - like every other OECD country, the insanity of flats being bought by offshore companies (see my link up thread) and kept empty just for the capital gain
would end and thus prices would start to stabilise
without actually impacting on Schedule A income for landlords.

Because some people do want to live there and are happy to rent the house. If you sell it 5 or 6yrs later you're likely to have made a good chunk of deposit for somewhere smaller elsewhere.

Anyway, they were just a few examples. There are lots of cheap areas around most of our cities. And whilst I do appreciate that some people are tied to London. Many others just want to be in London.

This is true tak1npeace and that's why i, like many others, have sought to capitalise on it.

www.telegraph.co.uk/finance/property/house-prices/11332963/Chart-of-the-day-House-price-to-earnings-ratio-lurches-above-five.html

House prices:earnings multiple is now above 5 again - it was last above 5 in 2007 and before 2003 it never went above 5. However, recent (2014) rule changes have pulled back on the excessive multiples being offered pre-credit crunch. There is now far more focus on affordability, not just income.

To buy a property whilst you are renting another is (a) putting your faith in continued price appreciation and (b) a risk you are only likely to take if one or two untenanted months are not going to push you over the edge financially. Again, you need a far bigger deposit for this (25% vs 10% I believe) so the graduate living in a shared house and eating beans will still take a lot logner to save for this.

Thanks for the point re median income, Talkin.

Apologies Yonic! It was Londonista who wanted "fingers pulled out."

^If the UK brought in proper ownership controls and land taxes - like every other OECD country, the insanity of flats being bought by offshore companies (see my link up thread) and kept empty just for the capital gain
would end and thus prices would start to stabilise
without actually impacting on Schedule A income for landlords.^

Again, bravo TalkinPeace.

BTW, not sure if anyone has mentioned, but in his last budget George Osborne DID alter the taxation of BTLs. You will no longer be able to deduct the mortgage payments when calculating taxable income so you are effectively taxed on your turnover rather than profit. Which means that BTL investors with mortgages will have to pay a lot more tax on their investments from 2017 onwards. However BTL investors who buy outright with no mortgage will not be affected. It's making a lot of people consider whether they should sell up. Which is a destabilising effect.