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Reply 60
I'd like to rent most of my life, may buy a house one day, but I prefer to rent.
I'd rather rent my own place than be living with my parents as an adult, as many people seem to be doing now. Money down the drain? Hardly, you're paying for somewhere to live. Which is what is meant to happen, yes some people have a mortgage but if you can't afford it then you rent or leech off your parents. People these days want everything for nothing, that's the problem. When you rent a car for a week, is that money 'down the drain' because you don't keep the car after? Of course not.
Reply 62
I'm not sure, but it makes sense that if something is for sale, and you remove some people from the bidding who also happen to be the richest, the thing will sell for less. Could someone who can pay current rates of rent instead pay a mortgage at the lower rate? I very much think so.



renting itself is not the immoral thing here. landlords taking advantage of the tenants is immoral, you could argue landlords creating a chain of houses by buying all the remaining houses is immoral, but system of letting others live in your house for a charge is not immoral.
Individually there's little effect, yes, but collectively it's a huge problem. One person avoiding tax doesn't have much effect, but when a whole load of people do it we do have a problem.

firstly, the item itself is irrelevant....the point was that they were not ripping you off, you just couldnt afford the more expensive bulk at the time (despite it technically being cheaper e.g. £5 for 10 sweets) but you could afford the £1 for 1 sweet at the time. theyre happy to give sell you the '£1 for 1' sweets but they arent obliged to give you 5 for free after your bought the 5th one for example. if you come in everyday with £1.50, youre not getting that bulk. they arent obliged to do anything.
The item is relevant because of its use. Houses have special laws applicable to them, special loans available for buying them and so on, not least the importance of having a secure, fixed address. You can't just compare any old thing to a home.
secondly, not all houses have the same rent, you could look for cheaper while you live in your current house. this doesnt necessarily make it more dangerous or mean living in the middle of nowhere.
What am I doing living in my current house whilst looking? I'm still paying off my landlord's mortgage, helping him to buy another property that I could have bought otherwise. As for your main point, even if I turn down a property, there's someone else desperate who will pay the price - people need housing, there isn't enough of it, so those in control of the housing call the shots.


to some respect sure, but that doesnt mean most are 'cash burning a hole in their wallets' rich like that monopoly guy... imagine a location where there is minimal competition, where there is a house (still fairly expensive), you cant assume that the first time buyer can automatically get the house. they wouldnt be able to live in it if they couldnt, but they could if a person just starting out to become a landlord bought it (their first rented house) and charged a reasonable rent. this would most likely be cheaper than paying down payment/mortgage wouldnt it?

this is one exception and im sure there are some others.

Think about why someone would choose to buy to let, it's all about profit. They might be able to argue that they're being charitable compared to other landlords, but in the end, they're intending to make a tidy profit and have the power to do so. Overall, the landlord has done better financially, meaning the people they took the money from have lost out financially.
Reply 63
I understand what you're saying, and legally you're right. Morally, and practically, it is wrong. Take a step back and look at what's happening in the big picture rather than on each 'transaction'.


Original post by infairverona
I'd rather rent my own place than be living with my parents as an adult, as many people seem to be doing now. Money down the drain? Hardly, you're paying for somewhere to live. Which is what is meant to happen, yes some people have a mortgage but if you can't afford it then you rent or leech off your parents. People these days want everything for nothing, that's the problem. When you rent a car for a week, is that money 'down the drain' because you don't keep the car after? Of course not.


More cars are being built, so someone else buying them doesn't stop you from having one. The same is not true for housing, plus there's clearly a greater need for a home than a car.
Original post by Hopple


More cars are being built, so someone else buying them doesn't stop you from having one. The same is not true for housing, plus there's clearly a greater need for a home than a car.


True, but the thing is if you can't afford a mortgage then someone else buying that house isn't exactly stopping you from getting the house. You not earning enough stops you from getting a house. I find it extremely ironic that many of the people who benefited from the buying council houses scheme now seem to be lefties whinging about there not being enough houses - didn't mind when it gave them the chance to own a house though, did they? Everyone wants to own a house. There are not enough houses and too many people. Save from building houses on the remaining green parts of this country, what is the solution? Landlords buying houses barely features in the grand scheme of the problem, to them it's almost like a job.
Original post by Hopple
There's a huge difference between housing and services, for a start you don't need phone, internet and TV to the extent that you need a home.


What has that got to do with it? Just because something is needed to a great extent doesn't stop it from being a service. When my plumber comes to fix my water pipes so I can have something to drink during the day, I don't refuse to pay him just because I need water to live. Whether or not something is a service that ought to be remunerated has nothing to do with how vital the service is.

On top of that, £50pm is nothing compared to what one has to pay in rent.


So? The principle is exactly the same. It's a quantitative difference, not a qualitative difference. If phone, TV and internet cost £500 instead of £50 due to low supply or high demand, it wouldn't make that immoral as well. That's just what the market price of the service is.

Finally, the landlord gets to keep the house that their tenants have paid for at the end of it all, and continue to take money from them when the house is fully paid for -


The tenants haven't paid for the house though. They have paid (and continue to pay) for the right to live in someone else's house. Just like when I pay for a gym membership, I'm paying for the right to use it, not the actual gym itself. I don't expect to own the gym after many years of doing this.

there isn't a start up cost because you can always sell it to get your cash back,


A "start-up cost" is the cost of setting up the service provision in the first place - not the difference between the cost of setting it up, and the cost of selling it. It costs money to buy a house. The fact that you can get your money back by the end of it doesn't change that.

The relevant point is the fact that there are initial costs - meaning that the service being provided is in low supply, because not everyone can afford the initial costs. When someone gives you something that not many other people can, the principle of supply and demand dictates that you should be remunerated more highly for it.

If there was no start-up cost, everyone would be buying houses.

and now we know there isn't even a risk because the government will step in to prop up the banks and house prices. The landlord can then take up more properties and profit from even more homeless people at a time.


Making homeless people into non-homeless people is a good thing to do. The landlord ought to profit from it.
Reply 66
Original post by infairverona
True, but the thing is if you can't afford a mortgage then someone else buying that house isn't exactly stopping you from getting the house. You not earning enough stops you from getting a house.If the house is bought by someone else, then you can't buy it. Unless you offer them more, of course, but in the meantime you're stuck paying them rent money to live in it.

I find it extremely ironic that many of the people who benefited from the buying council houses scheme now seem to be lefties whinging about there not being enough houses - didn't mind when it gave them the chance to own a house though, did they? Everyone wants to own a house. There are not enough houses and too many people. Save from building houses on the remaining green parts of this country, what is the solution? Landlords buying houses barely features in the grand scheme of the problem, to them it's almost like a job.

There not being enough houses is another issue that needs to be solved, and is suited for another thread, however, how does who owns the house affect how many houses there are? The problem discussed in this thread is how someone buying a property to rent it out is causing problems for society, namely stopping poorer (and younger, since it is those who are rich and get there first who get the houses) people getting their own home, with the problem set to continue to worsen.
Reply 67
Original post by tazarooni89
What has that got to do with it? Just because something is needed to a great extent doesn't stop it from being a service. When my plumber comes to fix my water pipes so I can have something to drink during the day, I don't refuse to pay him just because I need water to live. Whether or not something is a service that ought to be remunerated has nothing to do with how vital the service is.
Can you get another plumber for cheaper? Can you do it yourself? Plumbers compete against each other for your custom, rather than set an asking price in line with other properties - landlords don't compete, they follow. And you can (try to) fix your pipes yourself, but you can't pick an unused plot of land and start cementing bricks together there.



So? The principle is exactly the same. It's a quantitative difference, not a qualitative difference. If phone, TV and internet cost £500 instead of £50 due to low supply or high demand, it wouldn't make that immoral as well. That's just what the market price of the service is.
Combined with the previous, it is immoral. Don't you see the effects of it on the large scale?



The tenants haven't paid for the house though. They have paid (and continue to pay) for the right to live in someone else's house. Just like when I pay for a gym membership, I'm paying for the right to use it, not the actual gym itself. I don't expect to own the gym after many years of doing this.
Again, look at what's happening on a larger scale. Individually, each agreement is legal and makes sense, if somewhat in favour of the landlord whose costs in the agreement (repairs, replacements etc) are easily covered by the tenant's rent, but on a large scale it's very damaging. Look who ends up with more money and more properties, and who ends up with less money and further from a first property.



A "start-up cost" is the cost of setting up the service provision in the first place - not the difference between the cost of setting it up, and the cost of selling it. It costs money to buy a house. The fact that you can get your money back by the end of it doesn't change that.

The relevant point is the fact that there are initial costs - meaning that the service being provided is in low supply, because not everyone can afford the initial costs. When someone gives you something that not many other people can, the principle of supply and demand dictates that you should be remunerated more highly for it.

If there was no start-up cost, everyone would be buying houses.
It means there's no risk, is only open to the rich, and will transfer money from the poor to the rich just for the basic need of a home. Of course it matters that you get your money back, the landlord hasn't actually done anything of value.



Making homeless people into non-homeless people is a good thing to do. The landlord ought to profit from it.

The landlord is causing the homelessness problem in the first place by taking the house that the homeless person would have bought had they not been outbid anyway. Put simply, if there's a house for sale, person A needs a house and can pay £10 (per month/whatever), and person B already has one and can pay £15, person B gets the house. But then since A still needs somewhere to live, B charges A £10. B is not doing good.
I think it's potentially immoral that existing communities are able to restrict housing supply in their vicinity to the extent that they can now, resulting in a very profound housing shortage.

I don't think BTLs are in any way immoral. They're assuming a very significant financial risk for the profit they make. Their ROI is so poor no institutional investor is willing to touch this asset class. Renting also provides a key service to mobile professionals - it minimizes risk and essentially eliminates transactional costs.

I am really surprised so many people want to buy houses immediately. I definitely want to stay mobile, hopefully, well into my thirties.
Original post by dannydoy
WHAT?

How the @@@@ can you say that.

Did you not hear about the report recently that alot of people are one pay cheque from being homeless?

What makes you think you can make that judgement?

Posted from TSR Mobile


Say what? That was my point aswell. Homelessness can happen through poor financial planning, lack of cheap places to rent, loss of jobs, low wages.


My point was to outline that homelessness is not something that can be easily solved as it comes from OTHER problems!
Don't be so wet.
Original post by rockrunride
And if you're not, well, you live on the streets.
then someone else will rent the house instead - it's a business not a charity
Reply 72
Original post by FranticMind
Say what? That was my point aswell. Homelessness can happen through poor financial planning, lack of cheap places to rent, loss of jobs, low wages.


My point was to outline that homelessness is not something that can be easily solved as it comes from OTHER problems!


Potentially, However if we role the clock back 15 years say, Property was a lot cheaper back then and thus more "homeless people" (not homeless people per se, but people who don't own their own home) could afford to buy.

At the moment the housing prices are high and propertys are reasonably sparce. If you took the landlords out of the equation, were to pass a law that you could only own one house for example, then prices would fall as there would be more properties available.

Thus "homeless people" would be able to buy a home and begin to bbuild their wealth.
I think claiming renting is immoral massively overgeneralises and stereotypes landlords. My landlord and his partner lived in our flat when they were a younger couple and want to keep it for their daughter when she moves out. They rent out a beautiful flat to us at a fair price, are always quick and happy to do repairs and even upgrade things from time to time without us asking. I could probably afford to buy a flat but this is such a good situation I simply don't feel the urge to. Both the landlord and tenant are benefiting here.

Also, my previous landlord in between tenants repainted the whole flat and made repairs every single time. They could have just kept advertising at the same price because of the location the flat was in but they made a decided effort to make sure people got their moneys worth.

And you said something about commuters being ripped off, what if you were only working far from home for a year, would you want to be forced to buy a place for such a short amount of time because there was nothing to rent?

I really think calling BTL immoral is overstretching and imposing personal difficulties onto people who are simply providing a commodity. I very much doubt any landlord (and least private individuals not massive companies) buy a property with the thought to push prices up so nobody else can afford one. Now if people bought multiple properties and kept them locked up and not available for people to rent, maybe that could be seen as immoral.

As others have said, being a rubbish landlord, overcharging and exploiting your tenants is immoral but renting is a mutually beneficial arrangement and at the end of the day a choice made by both parties.

Thats my 2 pence anyway :rolleyes:
Original post by Hopple
Can you get another plumber for cheaper? Can you do it yourself? Plumbers compete against each other for your custom, rather than set an asking price in line with other properties - landlords don't compete, they follow. And you can (try to) fix your pipes yourself, but you can't pick an unused plot of land and start cementing bricks together there.


What do you mean "landlords don't compete, they follow"? What's the difference? Both landlords and plumbers have to do the same thing in terms of pricing - charge as high as they can, but not to the extent that nobody wants your services anymore because they can get equally good services cheaper elsewhere.

Sure, I can try to fix pipes myself. I can try to build a reservoir to collect water, I can try to make a filter to clean it out and make it safe to drink etc. but I will fail. Having access to running water is something that I am always going to rely on other people for. And I need it to live. But I'm still going to have to pay for those services. No different from housing.

Combined with the previous, it is immoral. Don't you see the effects of it on the large scale?

Again, look at what's happening on a larger scale. Individually, each agreement is legal and makes sense, if somewhat in favour of the landlord whose costs in the agreement (repairs, replacements etc) are easily covered by the tenant's rent, but on a large scale it's very damaging. Look who ends up with more money and more properties, and who ends up with less money and further from a first property.


Yes, the rich get richer and the poor get poorer. That's how a capitalist society is supposed to work. That's what happens with any kind of business or investment, or anything.

If I have a lot of money and put it in a savings account, I will make more interest than someone who doesn't have that much. If I have a lot of money and use it to start a business, In the long term I will make more money than someone who can't afford to start a business. If I invest my money in bonds and shares and things like that, I will get more money than someone who can't afford to. Overall, money constantly gets distributed in greater proportion towards the rich rather than the poor. (And we also have a mechanism in place specifically designed to counteract this effect - namely, progressive tax rates).

Everything works like that, not just houses.

It means there's no risk, is only open to the rich, and will transfer money from the poor to the rich just for the basic need of a home. Of course it matters that you get your money back, the landlord hasn't actually done anything of value.


Yes, it's only open to the rich. That's the whole point. There are few people rich enough to be able to do this, which means that the supply of landlords is low, which means the price of their service is high.

All investments work this way - part of the remuneration you get is to compensate you for choosing not to consume the money yourself there and then, because not many people can do that.

The landlord is causing the homelessness problem in the first place by taking the house that the homeless person would have bought had they not been outbid anyway. Put simply, if there's a house for sale, person A needs a house and can pay £10 (per month/whatever), and person B already has one and can pay £15, person B gets the house. But then since A still needs somewhere to live, B charges A £10. B is not doing good.


But if B doesn't buy the house for £15, someone else will come and buy it for £15 instead. So whether or not B chooses to buy a house has no bearing on A. B choosing not to buy a house isn't, in itself, going to make it affordable for A. The market is large enough that one person's actions will not affect the price.
However, if B (or anyone else) does by the house for £15, then they're helping A. A can only afford to pay £10 there and then, he doesn't have £15 to buy it for himself. The one who buys it for £15 and rents it to A for £10 is enabling A to actually have somewhere to live.

If everyone stopped buying houses to rent, then sure, it would drive down house prices and A might be able to buy one. But then you could say that about any other business too. If everyone started collectively boycotting any goods or services, the price would go down making it more affordable for those who currently can't afford it. That doesn't mean we should stop buying everything. Again, housing is no different here.


What you're saying is true, but it's just the same as how anything else in society works. I could use exactly the same logic that you're using to suggest that it is immoral for a farmer to buy a plot of land to grow food and sell it at a profit. Because someone else could have bought that land to (attempt to) grow their own food if the farmer hadn't outbid them. Food is necessary, but people are having to pay for it - and by the time they've used it, they've nothing to show for it at the end. It's risk free because the farmer can sell that land at any point. It's only open to people rich enough to buy it in the first place. What you're saying about housing is in no way unique to housing.
(edited 11 years ago)
Original post by TheFlyinBallsack
then someone else will rent the house instead - it's a business not a charity


Well done you :congrats:
Original post by rockrunride
Well done you :congrats:
therefore the point u were making is retarded.
No of course not, I would be in the unemployment line, as a Mortgage And Protection Advisor. It is such a big part of the industry and it stimulates the mortgage market.
Original post by TheFlyinBallsack
therefore the point u were making is retarded.


If you think sending people to poverty is acceptable for your extra million, go you.
Original post by rockrunride
If you think sending people to poverty is acceptable for your extra million, go you.
yet another retarded point.

landlords are only charging the prices they do because people will pay for it. even if rent prices were extremely cheaper, there'll be the exact same amount of "people in poverty" since only x amount of people can be accommodated anyway. the rest will rot away on a park bench or something in either scenario, the only difference is (for some reason) u would rather the successful people who have earned their money be homeless instead of the bums/chavs/crackheads that can't earn a decent wage

how much of a failure in life do u have to be to not be able to afford any ****ty old place to live, seriously. don't blame the landlords rofl, they're just businessmen
(edited 11 years ago)

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