House price inflation by £1000 per week ?

[Bandits]

2 hours ago, ian rush said:

People should perhaps reflect on a simple question to show how much of a mess the market and supply/demand is in: For how many people in this island does where you live earn more than you do going to work?

By property earnings you could include both rental return and capital value increases.

No right or wrong answer so to speak and all circumstances different but it’s a different angle to policy setting and addressing the difficulties.

That’s two simplistic an equation. A lot of BTL especially only makes sense whilst interest rates are low. I get about 6% return on my flat which is ok but if you factor in all the hassle and insurance and maintenance and management company decisions and other bollocks etc as soon as interest rates go back up a bit more it’s probably worth doing something else with the money. The only people making any real gains and money are people who bought property 20 years ago and have spend bugger all on it since. Or the people who have speculatively flipped property in the post covid bubble of madness. 

[2112]

@Banditsyou have forgotten landlords registration, additional government interference and people on social media who think that you make fantastic mega money on your investment and will slag you off something shocking. 
 

Thats why landlords, have had enough and are selling up or closing down. 

[english zloty]

39 minutes ago, 2112 said:

@Banditsyou have forgotten landlords registration, additional government interference and people on social media who think that you make fantastic mega money on your investment and will slag you off something shocking. 
 

Thats why landlords, have had enough and are selling up or closing down. 

Cashing in on their investment you mean? And with the present situation with the banks what happens then? No money in saving, so must be reinvesting somehow?

[Bandits]

5 minutes ago, english zloty said:

Cashing in on their investment you mean? And with the present situation with the banks what happens then? No money in saving, so must be reinvesting somehow?

The stock market has come off well from the post pandemic highs. It’s a good opportunity to cash out and stick some cash elsewhere without the hassle and probably get a better return over the next 5-10 years. 

[english zloty]

18 minutes ago, Bandits said:

The stock market has come off well from the post pandemic highs. It’s a good opportunity to cash out and stick some cash elsewhere without the hassle and probably get a better return over the next 5-10 years. 

If that were the case the wealthy wouldn't be investing so heavily in housing stock. Would they? Surely BTL is a direct consequence of poor returns on investment

[Mr Helmut Fromage]

16 minutes ago, english zloty said:

Cashing in on their investment you mean? And with the present situation with the banks what happens then? No money in saving, so must be reinvesting somehow?

Taking a possible Capital Gain on an investment / asset - if any Landlord in clearing more than 4% Net yield per annum they are doing well.

Seems a smart play at the moment to cash in on the investment - as interest rates are rising you can park the capital for 2½ % per annum for 12 months with minimal risk is probably quite prudent

With the new LL legislation and registration scheme only going to add to the cost of being a Landlord the Government have taken a narrow minded view and have a problem partly of their own making.

One of the larger (and "renowned" Landlords) has basically said crack on Mr T with your legislation and deeming whether his properties are fit for habitation - as his 200 + flats / bedsits etc are occupied by many on benefits, recent offenders, etc etc, he's happy to take them as Government cheques don't bounce - which could essentially see the Government's new legislation creating the Government a bigger housing and homeless problem.

[Bandits]

2 hours ago, english zloty said:

If that were the case the wealthy wouldn't be investing so heavily in housing stock. Would they? Surely BTL is a direct consequence of poor returns on investment

They’re not this is the whole misconception being put out by IOMG. The BTL investors here are largely 4 massive BTL stock holders - Dandara, Arragon, Fistard and one other who must own most of the IOM rental pool between them. The rest of them them are your usual slum landlords in Douglas who bought property for nothing 20 or 30 years ago and then just private people and pensioners who bought a house or two because it gave them a better income than putting it in the bank. In the last category there are better investments to be had now markets are leveling out and they’ve made big capital gains on the property. And the slum ones are quietly off loading property that it’s not worth bringing up to spec. The pool is getting smaller not bigger and the big 4 will be hardly offloading anything as they don’t need to. Yet we blame foreign investors and pensioners with second homes for being the real problem.

Edited August 5, 2022 by Bandits

[doc.fixit]

Must have lots of spare cash to invest in a buy to let or any other type of property buying in excess off one's home?

Soooo won't be worrying too much about heating or food expenses?

[english zloty]

27 minutes ago, Bandits said:

They’re not this is the whole misconception being put out by IOMG. The BTL investors here are largely 4 massive BTL stock holders - Dandara, Arragon, Fistard and one other who must own most of the IOM rental pool between them. The rest of them them are your usual slum landlords in Douglas who bought property for nothing 20 or 30 years ago and then just private people and pensioners who bought a house or two because it gave them a better income than putting it in the bank. In the last category there are better investments to be had now markets are leveling out and they’ve made big capital gains on the property. And the slum ones are quietly off loading property that it’s not worth bringing up to spec. The pool is getting smaller not bigger. 

That's interesting thank you, so the rumours of all the new rentals at Ballasalla aren't true. As the market is reducing. So they must be getting sold after all.

[english zloty]

34 minutes ago, Mr Helmut Fromage said:

Taking a possible Capital Gain on an investment / asset - if any Landlord in clearing more than 4% Net yield per annum they are doing well.

Seems a smart play at the moment to cash in on the investment - as interest rates are rising you can park the capital for 2½ % per annum for 12 months with minimal risk is probably quite prudent

With the new LL legislation and registration scheme only going to add to the cost of being a Landlord the Government have taken a narrow minded view and have a problem partly of their own making.

One of the larger (and "renowned" Landlords) has basically said crack on Mr T with your legislation and deeming whether his properties are fit for habitation - as his 200 + flats / bedsits etc are occupied by many on benefits, recent offenders, etc etc, he's happy to take them as Government cheques don't bounce - which could essentially see the Government's new legislation creating the Government a bigger housing and homeless problem.

Surely the new climate change laws are more of a problem for that landlord?

[Bandits]

1 hour ago, doc.fixit said:

Must have lots of spare cash to invest in a buy to let or any other type of property buying in excess off one's home?

Soooo won't be worrying too much about heating or food expenses?

A fair few are retired so the retirement lump sum goes into a BTL to generate a pension income instead of the bank. Many of them are retired CS though so yes screw them.

[Roger Mexico]

4 hours ago, Bandits said:

They’re not this is the whole misconception being put out by IOMG. The BTL investors here are largely 4 massive BTL stock holders - Dandara, Arragon, Fistard and one other who must own most of the IOM rental pool between them. The rest of them them are your usual slum landlords in Douglas who bought property for nothing 20 or 30 years ago and then just private people and pensioners who bought a house or two because it gave them a better income than putting it in the bank. In the last category there are better investments to be had now markets are leveling out and they’ve made big capital gains on the property. And the slum ones are quietly off loading property that it’s not worth bringing up to spec. The pool is getting smaller not bigger and the big 4 will be hardly offloading anything as they don’t need to. Yet we blame foreign investors and pensioners with second homes for being the real problem.

I don't know about the others, but don't Dandara manage a lot of properties for BTL investors?  Presumably this suits them very well and they continue to get the management fees as well as the capital payment for the property and explains why they were happy to 'bump' a lot of local buyers for the Ballasalla estate.

[Mr Helmut Fromage]

4 minutes ago, Roger Mexico said:

I don't know about the others, but don't Dandara manage a lot of properties for BTL investors?  Presumably this suits them very well and they continue to get the management fees as well as the capital payment for the property and explains why they were happy to 'bump' a lot of local buyers for the Ballasalla estate.

Dandara offer a guaranteed 12 - 24 month rental income for some of their BTL's on completion of purchase e.g. an income of £xxxx for the first 24 months - with a reduced Management fee - so yes they are earning on both the sale and the rental.

After the initial period expires you can choose to move the management elsewhere or continue without the rental income guarantee.

They also retain a number of properties themselves and offer these to rent directly from them using their inhouse maintenance.

[forestboy]

8 minutes ago, Roger Mexico said:

I don't know about the others, but don't Dandara manage a lot of properties for BTL investors?  Presumably this suits them very well and they continue to get the management fees as well as the capital payment for the property and explains why they were happy to 'bump' a lot of local buyers for the Ballasalla estate.

Dandara is a cancer on the island. 

[Bandits]

51 minutes ago, Roger Mexico said:

I don't know about the others, but don't Dandara manage a lot of properties for BTL investors?  Presumably this suits them very well and they continue to get the management fees as well as the capital payment for the property and explains why they were happy to 'bump' a lot of local buyers for the Ballasalla estate.

Yes but my point really is that almost the entire rental stock is owned by a handful of owners. Literally thousands of properties. As such I do find proposals to stop old ladies buying second homes or foreign investors buy buy to let’s odd when it’s clear that the impact would at best be marginal while around 10 local entities still control a rental pool of thousands of houses. It’s the small guys who will be exiting because it’s not worth it anymore it won’t be any of the above (aside from some of the slum landlords getting rid of the real crap in their portfolios while people seem happy to buy just about anything).