Lowered Benefit cap could affect landlords from 8th May?

Reply to the comment left by "Alan Loughlin" at "19/04/2015 - 17:04":

ditto again

Yes, this has been discussed so many times.
If the cap was 12k, where they gonna’ live?

Unfortunately you are always going to have so many people different, there will always so many that rely on welfare. They need a safety net to eat & have shelter.

What if the family on benefits has always lived London? And kids school, mates, family there?

You can’t say to a family after having 6 kids for 10 years ‘Oh, that money we said we was giving u 10 years ago, we now not giving u.’ It’s a bit late now they already have the kids.

I agree, with new people ‘If you are having any more kids, we are not paying for them’. Then that mother or parents know that if they have any more, they won’t be getting any more benefits for them.
But it’s too late to do it retrospectively.

I see it at the bottom, I see these people every day, once they have lived in the house for 20 years, u cannot say we are now changing the rules. Tell them before they moved in, not once feet already under the table.

Are they for really in thinking this an acceptable amount for rent even on a house that cost £50,000 the landlord will pay the tenant to live there. Never Mind the higher priced houses. I am lucky I have a not to bad geared portfolio but this has me thinking. Do I want to continue investing in property for HB tenants. Unfortunately for me some of my houses are in areas where only HB tend to rent.

Reply to the comment left by "Mick Roberts" at "19/04/2015 - 06:39":

Hi Mick,

If you could of had your early property again knowing what you know, would you have avoided the dependance you have on your LHA properties and bought ones that could rent privately? Is it true to say that some of your properties will simply only rent to LHA tenants? Doesnt that worry you if the answer is yet should a dramatic change happen with government over 5 or 10 years, I know its unlikely but there could be a small chance.

Cheers

Reply to the comment left by "Alan Loughlin" at "19/04/2015 - 17:04":

If HB in London were to be damaged because they do not pay the normal London rate then as 4 in 10 tenants are HB, this would I think seriously lower the demand for rentals in London causing a big problem. And as we have a corupt government they are very unlikely to want to do this as I guess lower London rents would cause a problem through the economy and pockets of our politicains.

I was thinking about this this morning and it is a worry. But hen again what is the council / government going to do to house all these people who can no longer get a private let put them in B&B's which cost a lot more so where is there logic.

It has been said before they don't want poor people living in London. Then who is going to do all the low paid jobs. And most of these people receive housing benefit anyway.

If all landlord sold up the housing market would crash like never before. which would effect all properties except the high end market.

I’ve been doing houses approx 18 years now, & with the rules as they are coming now with this Conservative anti-welfare Govt., then in hindsight, I could say ‘Avoid HB’.

But on the other side, I’ve enjoyed HB. I’ve not done bad. I have a queue of people waiting. And when one of mine does come up, I get the tenant saying ‘Leave it leave it, we’ll do all the work & tidying up’. So on that side, it ain’t been bad.
And I like solving a problem of homeless HB tenant that couldn’t get anywhere & muggins here helped em & 10 years later, still in the house happy as larry.

I’ve had some 20% yields, the odd 40% yield, very very common for me 14% yield.
But as I’m getting older & not got as much drive & energy any more for the trouble HB brings, I am opting for 5% yields for easy life.

So now, I am having had enough of HB, makes u grey hair ha ha. But I probably couldn’t have avoided it to start with, as limited funds bought me the HB area houses.

Years ago, most of my houses would have only rented to HB tenants, but as the demand has got worse for tenants, working people demand for these areas going up.

Reply to the comment left by "Mick Roberts" at "21/04/2015 - 08:33":

Whats amazing is how you have carved up a lovely niche for yourself out of having to because of a lack of funds and then due to this and your natural ability/personality to deal with this end of the market you have been able to make huge yields. I seen a few of your videos and you are super cool even when a placed of yours has been trashed!

Do you by any chance remember what you paid for your very first property you bought and what the rent was you received then compared to the price of that same property today and the rent it fetches today?

What got you into property renting in the first place Mick?

Cheers

HB tenants are good and bad. This sector is extremely difficult and you must be willing to roll up your sleeves and self manage. The agents do not understand this sector. Mick has helped hundreds over the years who might otherwise be homeless. The problem we have is that because it is thought of as the lower ending the market then the tag of rogue landlord comes up. But the council and social housing do not get tarred with the same brush. The only way to tackle this is to make sure we manage our porfolio daily. It is hard work, the yields are goo, a lot of voids in between wrecked properties. But do not cry if things go tips up, be strong and resolute and keep your rents manageable for your tenants.

OOh, I’ve had a few more trashed videos since then, not had time to put ‘em on.

I bought first house when I was 18 for £21,000 I think. It might have been 18, I’m getting old I can’t remember ha ha. But my cheapest house was £14000 I think or £14,200.
In approx 1998, True value was about 30k. I believe rents were about £80pw. Value now approx 75k, rents now £127 same house.

I got into houses ‘cause been buying & selling cars for years & sick of it, then the pittance interest rate u got from your banks at the end of the year.
Plus I could see houses were only gonna’ go up.
And when I was younger, I wanted the Lamborghini’s & all that when I was older, so thought best get meself a plan.

Yes, u must be willing to roll up your sleeves & self manage, not easy HB tenants. Not hands off investment.

I did feel crying 16 years ago on my first smashed kitchen, but now just shrug my shoulders & get on with it.