HMO Room Rents - how do you break down rental costs or dont you bother ?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #61
    Originally posted by hech123 View Post
    They could rent them for free if they wished
    Most of these companies are backed by investors - Not by a single entity like Tesco.

    Their Investors require returns and they have to deliver - They may not have as much choice about margins as you hypothesise.
    I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

    That also means I cannot share in any profits from any decisions made!

    Comment


    • #62
      To be honest I disagree. Most the large blocks I have seen are built by goliath companies that have super huge portfolios of companies. In fact I can safely say that every single block in the City I live in is built by a company that has a portfolio in the tens of millions, possibly the hundreds.

      As for your earlier statement about unite dropping prices, does this not illustrate exactly the point I am making? Impact housing association are also dropping prices. I view this market as similar to commercial when all the goliaths moved in, prices got squeezed very far.

      This did not mean other people stopped making money in commercial but the market got a lot tougher and a lot of people lost money. If a pension company is happy with a 4-5% return this is fine but for us mere mortals who are using finance this was a risky investment.

      Areas will be different. I think the type of student pods you are talking about are possibly where individual investors are buying them? I may be wrong. The reason these are being sold off is because some of the more shrewd goliaths have realised the way the market is turning and are selling off these types of properties to dumb investors who do not understand the market.

      You have pretty much confirmed what I was trying to illustrate which is that the big companies will drop there prices. No obviously I do not think they would let them for free, this was an extreme example but sitting around thinking they will leave them empty is a crazy idea.

      Looking at the figures it seems the market is saturated, it does not take a genius to look at a market where there are 50% voids and realise this is a bad market. I am sorry for people as I have had a huge amount of come backs over this, it is obvious people are heavily invested in it.

      As I have said earlier many people will continue to do well and most people who have commented do seem to know this market very well and know what they are doing, I am just pointing something out. If you told me the local housing association was running at 50% occupancy my alarm bells would be ringing and ringing very very loudly.

      Comment


      • #63
        Oh and as for demand driving prices down this is completely wrong, demand drives prices up. Over supply and lack of demand drives prices down.

        Comment


        • #64
          Originally posted by hech123 View Post

          You have pretty much confirmed what I was trying to illustrate which is that the big companies will drop there prices. No obviously I do not think they would let them for free, this was an extreme example but sitting around thinking they will leave them empty is a crazy idea.
          So why did you say it?!

          It is not an example of anything, simply an untrue statement.

          They may indeed have to drop their prices, but that is not the same as giving something away.
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


          • #65
            Mind the gap, there is a possibility they would let them for free and they could do if they wanted to, thats why I said it. In all likelihood they will not have to as you see they have reduced them 50%, maybe they will reduce them 70-80% I do not know, but I do know it will be hard competing against them.

            I am currently in a similar war, there are 500 ex-shipyard flats near me and another 180 near by, I own 20 of them which I purchased for £15,000 per flat a number of years ago. The other 500 have been empty for 4-5 years but are now being sold off to investors from down south, prices ranging from £25-£45k.

            This is in a town of 80,000 in a fairly poor area. Now my flats stand me at very little as I have collected a lot of rent in. There is very little demand for these flats and things are going to get very competetive. If I need to I will pay people to move into my flats, I would let them for next to nothing just to keep people in them and heat on in the building etc... I really do not care as they stand me at virtually nothing and I do not want the council tax burden.

            I see the big companies viewing the student blcoks they have pretty similar. Obviously I will try and get what I can for them but the people currently purchasing are going to find it very very difficult to compete with me as I do not need a return.

            The blocks I see of student acc near me is owned primarily by massive companies that are turning over millions. In addition they can not change the market they are in as these buildings are pretty much purpose built and only have planning as student accomodation so I only see them reducing rates lower and lower, this in a market where students are not increasing looks bad to me but as I said good workers will always do well and find a way to make it work.

            Comment


            • #66
              So you made an unwise investment in the boom years and are now having to cut your losses by letting anyone you can find live rent free in your property simply to stop them being vandalised/going damp?

              That is not a sensible business strategy.
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

              Comment


              • #67
                No I purchased at £15k per unit and have currently had my money back more or less. I currently get about £5000 per month and hopefully this will continue but if I have to reduce I will. Many investors are buying in now at £40k plus but do not understand the market, similar to a lot of people going into student accomodation

                Comment


                • #68
                  Originally posted by mind the gap View Post
                  With the greatest respect, that is hogwash.

                  Solar cells (photovoltaic cells) are not the same as solar panels, for a start. The latter are less productive in colder climates and do not form part of this country's green energy programme.

                  Solar cells yield continue to provide a better return than most other long term investments. We are getting 17% on ours ( installed just before the feed in tariff was reduced), but even now you can get 10%.

                  Even last summer, the wettest on record, they produced near enough their target output. And as for durability, there are no moving parts and the Centre for Alternative Technology has been using them for well over 20 years.

                  I shall view your comments with the same scepticism with which you obliged me to view your pronouncements on student housing...
                  Wow Amazing that you still have not twigged on to the fact I was right about HMO student lets. My local papers page 3 today - headline 'Student numbers drop by 18%'. Look on the landlordzone board - 'Investment in Student let's reach new high's even numbers are dropping' - Yes I told you all months ago and it is happening right in front of your eyes.

                  Comment


                  • #69
                    Originally posted by hech123 View Post
                    Wow Amazing that you still have not twigged on to the fact I was right about HMO student lets. My local papers page 3 today - headline 'Student numbers drop by 18%'. Look on the landlordzone board - 'Investment in Student let's reach new high's even numbers are dropping' - Yes I told you all months ago and it is happening right in front of your eyes.
                    Er...your local paper's page 3, eh?

                    You have convinced me! I retract!

                    Not.

                    Please get your facts straight before spouting them at us.

                    There may be some reductions in student numbers in some universities but an increase in student numbers in colleges of education and for students gaining top A level grades:

                    http://www.bbc.co.uk/news/education-16836504

                    So your local university may lose student places but your local college of further ed. will probably gain. Keep up!
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment


                    • #70
                      Nice ding dong BTW!

                      Comment


                      • #71
                        Mind The Gap I really can not understand how you manage to cross the road........walking around with your eyes closed is dangerous................Please read quote.

                        Up to 30,000 fewer students may have started university courses this year following the tuition fee hike, the government's fair access tsar has suggested.

                        Professor Les Ebdon, director of the Office for Fair Access (OFFA), said fear of higher fees "appears to be an obstacle" for some - particularly for mature students.

                        He acknowledged that university applications are still be watched "anxiously" to see if the move to triple fees to a maximum of £9,000 will continue to be felt.

                        Ucas is expected to publish figures on the numbers of students starting degree courses this autumn shortly.

                        In an interview with Civil Service World Ebdon said: "I think we will find when the numbers come out that probably 20,000 or 30,000 fewer students have started this year than the year before."

                        He added: "We're all watching the applications anxiously to see whether that's a one-year effect or an ongoing effect."

                        Asked what obstacles there are to increasing the number of applications from disadvantaged groups of students, Ebdon said that fear of tuition fees "appears to be an obstacle, particularly for mature students who are much more difficult to reach than school leavers.

                        "They seem to have dropped off," he added.

                        There has also been a fall in applications from part-time students, Prof Ebdon said.

                        He insisted that the English fees system does encourage people to go to university, and is "one of the most progressive in the world", but added that there have been problems communicating this.

                        Figures published by Ucas last week showed that the number of students in England applying to university has slumped by almost 10%.

                        In total, 107,687 potential university students have already submitted their applications, the figures show, compared to 119,548 who had applied by this point last year.

                        It means that almost 12,000 fewer people living in England have applied to start degree courses in autumn 2013 - a fall of 9.9% compared to 2012.

                        Ucas chief executive Mary Curnock Cook has said that changes at this point in the year are "a poor guide to final demand".

                        The main deadline for applying for degree courses starting next autumn is mid-January.

                        Students planning to start degree courses next autumn will pay tuition fees of up to £9,000 a year. The hike was introduced this autumn.

                        A Ucas report published in the summer found that about one in 20 English 18-year-olds - about 15,000 in total - who might have been expected to apply to start university in autumn 2012 did not.

                        The situation was worse for older applicants - English students over the age of 18 were between 15% and 20% less likely to apply for 2012 than 2011, it said.

                        Part of the drop may be due to more people accepting places last year, Ucas suggested.

                        A spokeswoman for the Department for Business, Innovation and Skills (BIS) said: "The Government's reforms have made the university system fairer and more progressive.

                        "Most new students will not pay upfront, there will be more financial support for those from poorer families, and everyone will make lower loan repayments than they do now once they are in well-paid jobs.

                        "Our Student Finance Tour which ran in 2011 is being repeated in 2012. Last year it was highly successful in getting the message out to prospective students about the range of support available for university entrants.

                        "This year we have broadened its scope and recent graduates are now in schools talking to Year 9 and 10 students and their parents, as well as Year 11s preparing for the future."

                        Comment


                        • #72
                          http://www.huffingtonpost.co.uk/2012...n_2255898.html

                          Only 30,000 less this year but hey I am glad you posted some irrelavant BBC news article which has very little bearing at all in my opinion on the grander scheme of things.

                          The shift is massive, numbers droppping, accomodation increasing. GET OUT WHILST YOU STILL GOT A SHIRT!!! You may be ok I do not know all I know is the market in general is garbage, look to what everyone is getting into and get out.

                          Comment


                          • #73
                            Originally posted by QuestForFreedom View Post
                            Nice ding dong BTW!
                            No need to get personal!

                            Hech could use some training in apostrophic redistribution though...
                            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                            Comment


                            • #74
                              I am sorry if you have taken anything personal, my apologies.

                              Comment


                              • #75
                                Originally posted by hech123 View Post
                                I am sorry if you have taken anything personal, my apologies.
                                I wasn't actually talking to you in that post.

                                However, if comments are directed at me (as opposed to the forum in general), then of course I'll take them 'personally'. Not sure what you're on about.

                                The reasons why university applications fell for the academic year beginning Sept 2013 have already been explored. Did you not understand those arguments, or what? If you are panicking about it, then diversify. In cities with Russell group universities at least, the blip will short lived and numbers will recover. If you don't believe me, get out of student letting. I shan't be doing that any time soon.
                                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                                Comment

                                Latest Activity

                                Collapse

                                Working...
                                X