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Original poster

Greed of ‘buy to let’

961 replies

LittleLottieChaos · 28/04/2021 07:34

When did people start to think that they should profit from housing? It all feels incredibly Dickensian. Pees me off when I see housing being listed as buy to let investments rather than ‘here’s a house for a nice young family to live in’. Especially with the market so horribly skewed right now.

It is shocking that people seem to think they have a right to profiteer from those less fortunate by whacking on high rents, that more than cover their mortgages. Legit: you need one house, one house only. Or maybe I’m missing something... or these are genuinely just bad people.

Interested to hear how people justify it? Do you just think, fuck ‘em I want to be rich? Do you not think about the morality?

(I rent but am saving to buy an appropriate house to live in... not to profiteer from)

OP posts:
Milesbennettdyson · 04/05/2021 15:56

I haven’t read the whole thread.

I myself have been the “victim” of a “greedy buy to let landlord”.

Back when I was fresh out of university and earning a rubbish wage in summer 2007, I made an offer on a 1 bed maisonette for a very low price in a rubbish area. At the time (shortly burst later) prices were going up and up and I was back home. My mum was driving me mad and I didn’t want to rent.

I got gazumped. I was very upset at the time.

Now I’m not so bothered of course (the years pass) as in Jan 2008 I flight a 3 bed house with my partner (at the time) and had got promoted. So if it had have gone ahead, I’d have wanted to buy with him or both of us would have been stuck there.

Now, I’ve paid off that mortgage and plan on moving but keeping this house as a buy to let and slowly buying a few.

I couldn’t beat so I’m joining him, rightly or wrongly.

TattyDevine · 04/05/2021 21:05

You've got to put your money somewhere or it depreciates. Banks don't pay much and inflation is about to be a big thing. If you've maxed out your ISA allowance and your pensions then property is always a good investment.

BabelGiraffe · 05/05/2021 01:11

@Bythemillpond

ByTheMillPond Who thought taking away tax relief on mortgage interest for btl was a great idea

George Osborne

But a lot of renters at the time thought it was a brilliant idea.
I remember the news article and people rubbing their hands together with glee for getting one over on their landlord. That their landlord would be stung with higher charges.
I sat there looking at these people and thinking how little thought they had given to the reality that was coming down the line.

I wonder how many renters groaned when they heard that tax relief on btl mortgage interest was going to be taken away from landlords and fully understood what that would mean.

That's yet another reason why economics should be taught as part of the national curriculum. The ignorance of many people of the major things that will impact their standard of living still astonishes me.
YouWereGr8InLittleMenstruators · 05/05/2021 02:00

YANBU, OP. I have always thought that it is grim to make a profit from housing. I know some people who do, and I think it says a lot about someone's character.
We all need one home only. It should be prohibitively expensive to own in excess of one home.
For the record, I have a mortgage on a house, paying a fraction of what renting neighbours in identical houses do in rent to private landlords. It is so unbelievably shit.

Bythemillpond · 05/05/2021 02:12

YouWereGr8InLittleMenstruators

I have always thought that it is grim to make a profit from housing. I know some people who do, and I think it says a lot about someone's character

Do we hen your come to sell your house you will sell it at exactly what you have bought it for?

theloraxspeaks · 05/05/2021 02:53

I agree with you @LittleLottieChaos

It's become ridiculous, so much greed. I've just unfollowed a IG I quite liked over their property greed and the houses they bought to turn into luxury rentals in Cornwall, make me feel sick. They would have been affordable cottages for local people.

I just read about someone buying 4 properties. Hailed as a hero. Not in my books.

Anonmousse · 05/05/2021 06:42

@YouWereGr8InLittleMenstruators
We all needonehome only

So if everyone only owned one house, what would people who need/want to rent do?

  • Students
  • People on short term contracts
  • New to an area and want to live there before committing to buy.
  • Possibly split from a long term relationship and waiting for a jointly owned house to sell
Some rentals are needed, for the above and other reasons.
PurpleRainDancer · 05/05/2021 06:59

@YouWereGr8InLittleMenstruators

YANBU, OP. I have always thought that it is grim to make a profit from housing. I know some people who do, and I think it says a lot about someone's character. We all need one home only. It should be prohibitively expensive to own in excess of one home. For the record, I have a mortgage on a house, paying a fraction of what renting neighbours in identical houses do in rent to private landlords. It is so unbelievably shit.
What a load of sanctimonious twaddle. Hmm
Elsielouise13 · 05/05/2021 07:09

I have a small property portfolio. Have worked hard for years and invested my money in property.

Our houses are fantastically maintained, new white goods with every new tenant and turnover is minimal. My tenants are mostly people who have told me they would rather live in one of my maintained properties than own their own.

Shoot me now.

Original poster
LittleLottieChaos · 05/05/2021 08:14

I feel like we could play a drinking game... do a shot every time someone accuses those that don’t agree with multiple property ownership of being ‘sanctimonious’.

Well done on using a ‘big word’, now try looking up ‘unregenerate’.

OP posts:
NeedATan · 05/05/2021 08:38

Some people have blinkers on and can only see things as they apply to them. No possibility of others having different (housing) requirements. And if you don't fit the same mould as they do, you are wrong. I dread to think what else they oppose because it's not the way they do it.

Newkitchen123 · 05/05/2021 08:40

@Bythemillpond

YouWereGr8InLittleMenstruators

I have always thought that it is grim to make a profit from housing. I know some people who do, and I think it says a lot about someone's character

Do we hen your come to sell your house you will sell it at exactly what you have bought it for?

And if course if there's more than one offer, take the lowest offer so that you don't make even more profit
TattyDevine · 05/05/2021 09:16

Not to mention capital gains tax...

Mytiredeyeshaveseenenough · 05/05/2021 09:39

How about asylum seekers? Housed in private. How about those evicted from social housing? Housed in private.

How about those who can't get a mortgage? Bankrupts?

Still find it laughable that some people are still blaming Thatcher. If successive governments including Labour and coalition governments aren't changing it, that could be for a reason?

Milesbennettdyson · 05/05/2021 10:02

See I am a hypocrite. I was very sad when my chance of my own lovely little first home was snatched away from me by a greedy buy to let landlord. It’s only because I got in a relationship I was able to buy.

But now I plan on having a portfolio myself. I’m not going to gain anything by not. It means the state won’t have to take care of me as I’ll have decent pension provision so that’s one positive.

Xenia · 05/05/2021 11:18

We can't square the circle here. Some will always think it is morally wrong to get out even your only home and others not. As things stand it remains lawful although increasingly hard for small landlords due to being taxed on profits you to not make, new expensive things before you let in terms of checks etc etc.

Another housing issue is people living alone. Go back a while and people could never afford to do so - eg all my family history work shows that. in the 1800s and 1900s often an elderly parent had to move in with children when she got old and her husband was dead etc Coupels stayed married because coudl nto afford to split up and run two homes. Single peoplel ived t home until marriage and often strted marrid live living with parents. (My Indian neighbour has lived with parents his whole life other than at university, even now at his age - we are the same age). It is not morally wrong to want to live along but it is a very new thing that people they might be able to afford that kind of thing and means we need many more houses. People are also living longer so more properties needed.

We have 16m more people in the UK than when I was born (17m if you included 1m illegals). That is a lot more people to house.

AutomaticMoon · 06/05/2021 00:46

@YouWereGr8InLittleMenstruators thank you for your honesty Flowers then there are people like @Sec0ndDayT0day4 saying that people are ‘free to move if they don’t like it’ with such unbelievable condescension

Rollercoaster21 · 06/05/2021 06:03

@LittleLottieChaos YADNBU - buy to let should be banned to be honest. The whole system is shit - I was in Cornwall recently which is being wrecked by second home owners pricing out locals. Same in wales. It’s destroying communities and peoples lives.

Jennyfromtheculdesac · 06/05/2021 07:11

[quote Rollercoaster21]@LittleLottieChaos YADNBU - buy to let should be banned to be honest. The whole system is shit - I was in Cornwall recently which is being wrecked by second home owners pricing out locals. Same in wales. It’s destroying communities and peoples lives.[/quote]
What has BTL got to do with second home owners? You’re confusing two different things.

Bythemillpond · 06/05/2021 07:11

buy to let should be banned to be honest. The whole system is shit - I was in Cornwall recently which is being wrecked by second home owners pricing out locals. Same in wales. It’s destroying communities and peoples lives

Councils would have to evict some of their tenants as they lease properties off btl landlords.
I am selling my house and going Into rented for 6 months. Who would people like me rent from if btl was banned?

Bythemillpond · 06/05/2021 07:13

And what has banning btl have to do with 2nd home owners

Lostatsea1988 · 06/05/2021 07:38

Well you won't be able to afford to go to Cornwall again if you get your wish and they ban second home ownership as that'll mean no air b n bs / holiday lets, meaning existing purpose built hotels will have a complete monopoly on tourist accommodation and will absolutely skyrocket in price, just like centre parcs in school holidays! And you'll need to eat out for every meal as there will be virtually no s/c facilities in the county.

Fine if you like camping though!

Lostatsea1988 · 06/05/2021 07:42

But yes BTL is quite a different issue and has different implications for the loc community.

Renters go to local schools, use amenities, many will work locally so they create a community.

Second home owners don't, so the dymanics are different.

I enjoyed the poster upthread who complained about someone buying up properties to turn into holiday lets and said they would have made affordable houses for local people. Obviously not, or they would have bought them?

Charley50 · 06/05/2021 07:47

Only half way through the thread but renting isn't secure and isn't well-regulated in this country (it used to be better). If you can't knock a few nails in the wall to put pictures up, how can you really call it a home? If you can be evicted at any time, it's not secure. Rents are far too high because of buy-to-let mortgages. There are also some shockingly bad housing associations now, who take the rent, but let the properties fall into disrepair. It's shit. House prices and rents soar above pay.

yoyo1234 · 06/05/2021 09:41

I agree with PP: YANBU, OP. I have always thought that it is grim to make a profit from housing. I know some people who do, and I think it says a lot about someone's character.
We all need one home only. It should be prohibitively expensive to own in excess of one home.

I do not wish for a property crash just a realignment of price rises with wage rises and a gradual realignment with maybe average house price being 4x average earnings.