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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
Rufusgy · 12/09/2015 08:36

Totally agree Suzanne. This last budget signaled the start of the end of btl.

Guiltydilemma · 12/09/2015 08:44

I'm a landlord that lives in a ridiculously expensive city. Not a high earner but fortunate in that I've been able to buy properties (thanks to inheritance) to rent out for investment purposes. If we didn't invest in property now there is no way I could afford to help finance my kids if they wanted to go to university. Likewise one day my kids may, like me, want to live in the area they grew up in. Without our financial help, without us investing now for their future, their is no way they would be able to afford to. The housing crisis in a nightmare. I want to ease the nightmare for my kids and that's why we've invested in buy to let properties. I don't think that's particularly selfish. On an additional note I do consider myself to be a very ethical landlord. I treat my tenants very, very well as I appreciate they are providing the bread and butter to make my kids future brighter.

suzannefollowmyvan · 12/09/2015 08:52

Obviously anyone with spare money will invest it so as to get the best return, for some time property has been the best bet for many people

to the detriment of the housing market

suzannefollowmyvan · 12/09/2015 08:55

..in asmuch as it doesnt provide affordable homes in many parts of the country

BarbarianMum · 12/09/2015 09:14

suzanne how is it detrimental to the housing market to buy up and do up houses in areas with lots of run down and vacant properties? Where property is still affordable and hasn't increased in value in years?

suzannefollowmyvan · 12/09/2015 09:22

If people were investing in koi carp or faberge eggs and drove the prices of said things sky high such that the average working person couldn't afford them, well it wouldn't matter.
??
But people wouldnt see the point in investing in big goldfish because they can't rent them out to people who can't function properly unless they have the use of a goldfish but have no hope of ever owning one because the price has been driven up by investors who were lucky enough to be in a position to buy up all the goldfish ??

BarbarianMum · 12/09/2015 09:26

Is that supposed to be an answer to my question? Because I don't understand it, if it is.

shash1982 · 12/09/2015 09:27

People living in council houses are renting, but have a secure tenancy;

^^ Alot of councils / HA's don't actually offer secure tenancies anymore.

suzannefollowmyvan · 12/09/2015 09:29

no, cross posted
what you describe sounds like a regeneration project Barbarianmum
??

BoffinMum · 12/09/2015 09:33

A lot of the problems in large towns and cities come about because we don't build the right kind of rental housing. Instead of building comfortable and future-proofed family flats with good disability access, good storage, good bike and car parking, useful play and laundry areas and good sound insulation, we more or less give the best land to a very limited group of developers (about four or so large companies in the UK), who proceed to throw up flimsy and fairly miserable blocks of flats aimed at notional 'young professionals'.

Characteristics of these flats include second bedrooms squeezed into the space a cupboard ought to take, sloppy build quality, inadequate storage and noise insulation problems. Instead of taking pride in the job, developers pimp up one or two of them as show homes, and then play down the square footage of actual usable living space, as well as the overall building standards, so people are blinded by marketing and don't ask proper questions about the construction of the properties and what they are getting for their money.

These flats are designed not as homes or as part of communities, but instead to be flogged to private investors at massively increased prices. These investors then rent them out piecemeal and tenants have to try to fit their lives into what they have, whilst paying handsomely for the privilege. They do not have much of a voice at all. Residents' Associations are few and far between, tenancies are transient, and landlords conspicuously absent and fragmented as a body. Lettings agencies vary in their approach to professional standards and can be uninterested at best and unethical at worst.

A better way would be for local housing associations to be given the land, for building regulations to be improved so flats are light, bright, peaceful and more spacious, with good amenities, and a sense of community. You should be able to live there as a young single person, bring your family up in a block, or live there as a retired couple without difficulties. There should be ample space to hang your washing out, park your buggy/bike/disability vehicle. Your block should be run professionally, preferably by a not for profit organisation, and you should have a say in how your flat's service charge and sinking fund is spent. That way we would have a much more humane and useful rental sector where homes were central to policies, rather than 'properties'.

suzannefollowmyvan · 12/09/2015 09:35

I'm not wholesale decrying renting
Rents and property prices need to be affordable and in proportion to earnings.
If that's the case in the area you're speaking about Barbarian then that's spiffing??

suzannefollowmyvan · 12/09/2015 09:37

excellent points BoffinStar
totally agree!

LovelyFriend · 12/09/2015 09:40

It gives me the rage.
And it directly impacts on my life.
I live with 2 fast growing DC in a small one bed flat and I'm finding it very hard to get out of here into a 2 bed.

Don't get me started on how fucked up "shared ownership/affordable housing" has become. This is my only option really. I was emailed last week about a new shared ownership/affordable housing development local to me where 2 bed flats are valued at over £1million. It's all totally fucked.

passthenutellaplease · 12/09/2015 10:07

I worked hard in my twenties and bought a lovely house for myself at a ridiculously low price. I then kept working like a Trojan and purchased another flat which intent out. Simultaneously, my DP had done the same and this was well before we met. We're now in our thirties with a DS and he lives in the house I purchased in my early twenties. This means we rent out three properties and work at the same time. Am I to feel somehow greedy that I worked my arse off and sacrificed plenty to be in a good position financially in my thirties??? Like hell I am.

passthenutellaplease · 12/09/2015 10:08
  • I rent out
m1nniedriver · 12/09/2015 10:20

Just wondering what you suggest I do with the flat I used to live in that I can't sell and can't live in? Should I just leave it for the bank to repossess OP?

HeighHoghItsBacktoWorkIGo · 12/09/2015 10:22

A lot of people renting also work incredibly hard. The fact that you work hard is neither here nor there. Most adults work hard and contribute to society in one way or another.

The messed up housing market is due to the tax and regulation system, not the fact that individual investors have reacted to market signals manipulated by successive governments both Labour and Conservative.

LovelyFriend · 12/09/2015 10:32

I work very hard too nuttella - I'd be happy with one 2 bed flat, not 4 houses, but good for you.

passthenutellaplease · 12/09/2015 10:40

lovelyfriend I'm definitely not suggesting that anyone who rents doesn't work hard. I can't help but think though that half the people moanin on this thread wouldn't turn down the extra income of a second property if the chance arose.

londonrach · 12/09/2015 10:42

Nuttella i also work very hard, long hours and sometimes 6 days a week and id be just happy with one house rather than stuck in the rent trap we are in. Ive saved and saved (lived on £30 pw food and everything, no posh mobile, on ipad for work) and sadly lost someone close to me and got the desposit and have the morgage set up but because people hold onto their houses to let out there is nothing on the market. I mean nothing! The house we were going to view today (the rare one that come up) has now been removed (not sure of reason). Im fed up of this!

passthenutellaplease · 12/09/2015 10:47

And that is rubbish londonrach i wouldn't ever dispute that. However, what's the alternative? Do we limit people to only ever owning one house at a time? Then what do we control after that? Slippery slope.

LovelyFriend · 12/09/2015 10:48

or third, or a fourth.

suzannefollowmyvan · 12/09/2015 10:49

I can't help but think though that half the people moanin on this thread wouldn't turn down the extra income of a second property if the chance arose
True I'm sure, problem is property used to be affordable and now it isnt
We need property to not be such a lucrative investment ??

LovelyFriend · 12/09/2015 10:51

I'm definitely not suggesting that anyone who rents doesn't work hard.
no but you are congratulating yourself on having more than you could possibly need, in a fucked up housing market, and profiting from people needing actually paces to LIVE their lives, because you work hard and are therefore deserving.

I'm just pointing out to you what a stupid cunty justification that is.

passthenutellaplease · 12/09/2015 10:54

suzanne what alternatives do you suggest people invest in to drive down the price of property?