To think no one has a right to make money off their house

[Laughingstock1991]

The general consensus among financial commentators this week has been that the housing market has turned. Interest rates are still going up and are unlikely to come down for a few years. The low interest rate financial experiment that has been in place since 2008 has ended and it’s unwinding is going to be painful. The housing boom was based on cheap credit.

My mortgage is likely to go up about 400 a month. Lots of commentators reckon we are in for a big fall in house prices. Good thread here:
https://twitter.com/EdConwaySky/status/1668987423643119623

What pisses me off is the absolute assumption made by some people (like my friend today) that the government should use public money to bail out mortgage holders. Most people were stress tested on their mortgage- I was- and yes it’s going to be tough but do I think public Money (renters money) should be used to bail out mortgage holders- fuck no! The Lib Dems have raised this also today.

House equity is unearned wealth. There are no guarantees. We have been through a boom and now it’s going bust. Hopefully sanity will return & housing will be seen as a home again- not an investment. Its not a ‘market’.

And I say all of this as a homeowner who is going to have to pay a lot more. I want everyone to be able to afford a decent home- not just those with money.

I don’t think that’s unreasonable!

Yes, it’s actually more capitalistic if you can’t just make money from your house as it encourages graft, innovation and active investment rather than just sitting on your arse getting rich doing nothing because of inexorably rising house prices.

YANBU at all.

Nah, I'm just holding onto my first house so I can pass onto my kids. Being a landlord is just an interim solution while they're growing up.

Nothing wrong with that, unless you think selling up and then seeing your own kids struggle to get into the housing market is a sensible idea. I don't and had the resource to mitigate it.

I'm most definitely not providing any social good. But I do know I'm providing a home for a couple that don't want to buy. I've already mentioned this but you're so blinkered by your chip that you have absolutely no response for it. What do people do when they just want to rent? Rent off state owned housing? Or from faceless corporations? What difference does it make whether a faceless corporation owns a rental or a private owner? I don't expect a response as this thread is full of your one liners and twitter links.

That’s precisely my plan. I took a cheap shitty house and spent a fortune on it to make it into a home. It’s going to be a home for somebody in my family ideally and if the kids don’t want it well then it’ll be a nice rental property for somebody but there’s no way it’s going down the toilet

What's wrong with passing on two, if I have two children?

Oh, you wouldn’t be allowed 2 children at all under this new Communist regime. Which one’s your favourite?

@troubg yes quite. It’s the landlords on here doing most of the moaning. Maybe they were all hoping for a bailout!

🤣🤣

Yeah, thing is OP, most "houses" are someone's "home" and not just a roof over their heads.

If I want to enjoy a particular view, or have certain features in my "home" I don't need YOUR permission to pay a seller more money than the next guy to secure the property. This is essentially why houses are expensive and prices (historically) will ALWAYS rise.

ANY correction in prices will be short lived, because everyone who says prices need to come down WILL rush out to get their hands on a "cheap" property. This will just create a "hot" market and prices will shoot up again.

Your "home" is worth more than bricks and mortar. And people are willing to pay over the odds to secure the "home" they want.

I don’t see it as sad. I am proud of what we have achieved. Yes I have no doubt I could earn 100k+ in London - but likely not in our field. The aim is for the business to earn £200k here! 🤣

I do have some sour feelings about missing the London 20s fun and travelling, but I don’t regret it so far. Obviously will if we lose it all 😭

We qualified in a type of architecture. Houses and environment is important to us. We get all tetchy, irritated and scatter brained if we don’t have enough space or things are visually jarring. We also always have to have a project. So that’s probably part of the reason home ownership and continually striving for a ‘nicer’ homes is important to us. We are about half way through this one and that’s us done for the next 10 years. The plan was to then focus on our little one, the business and holidays. I haven’t been skiing for a decade and a half and I want my boy to have those experiences.

Pleased things are comfortable for you in London. My sister took that route and it’s working out for them. Hopefully works out for us too 😬

You literally have no idea 😂

The government already spend c£20b a year subsidising rent so I'd say they've already had a bailout tbh. That money would be much better spent building and maintaining social housing than on protecting landlord's investments as it does now.

There is a place for landlords and rented property but the whole sector needs significantly more regulation to remove the rubbish one's from the market and protect those who actually need / want to rent.

Bear in mind 15% of a smaller principle is less than 6% of a much higher principle we have today.

you have to factor in multiple increases is costs and wages you cannot just say 15% is higher therefore worse l.

also during the late 70s early 80s it was affordable to have a house on one wage, a second wage was addditional value which massively boosted your capital and lifestyle.

today if you don’t have two full time workers you are priced out of most things

I agree BTL has pushed up the price of ‘starter homes’ causing the trap of people on rent as there is no affordable 2 bed properties for first time buyers. Which then means more people start families in rented homes which mean more 3 beds are needed which means essentially the first two rungs of the ladder have been cut

Since the extra 3% stamp duty and cutting the 40% tax relief, landlords have been selling in droves. Hasnt made any difference to the market with all this “stock” coming back in!

unfortunately most lay people literally have no idea about the housing market and us “demon” landlords 😂

I bought my 2nd house from a landlord, i wasnt the highest offer. Nor a cash buyer

I have examples of immigrants doing really well having started with very little too but these are people now in their 80s in the main. They lived at a time where, if you worked hard, you could afford a home and a good quality of life.

It's so much harder now without family money. People with really high paying jobs maybe (although presumably your colleagues have mortgages), but not a single mum with 4 children living off benefits. Also, that poster has form for....putting it nicely, exaggeration!

So many landlords on this thread! All so full of how is normal folk have no idea how bad it is for them. My heart bleeds 🙄

Then instead of being dismissive and adding a laughing emoji, why don't you explain your opinion. Presumably you have an opinion on this topic.

I have
several times up thread if you bothered to read the whole thread before jumping on me

But she/he is quite right. The OP literally has no idea.

@SamanthaCaine yawn. Another landlord coming to tell us how difficult it is for them and how they can’t wait to evict their tenants and sell up. Yawn.

Not jumping on you but responding to your dismissive, not very pleasant post. I'm afraid I don't have time to read every single post. You can always cut and paste your previous reply.

Fair enough.

You're right, it's much more difficult now but still possible. The people I'm talking about, other than my friend's parents, ar younger than me and in their 30's. But they're professionals, which makes a difference.

That's just your opinion. There are plenty of other opinions which are equally valid.
As I have already said, I think the government will attempt to avoid it and will apply pressure to lenders as much as they possibly can. Something like MIRAS is possible but it would be very, very unpopular and difficult to execute and would cause all sorts of other problems.