New electrical checks and safety standards for Landlords8:59 AM, 15th January 2020
About 2 weeks ago 169
Two of my best friends are far more successful property investors than I am, however, they rent their own homes.
Am I missing a trick by owning my own property?
One of them is a Director/shareholder in a property company which owns nearly 10,000 properties. He lives in a very modern barn conversion, A rated for energy efficiency, gated, top notch property. I would happily live there. It has to be worth well over £500k (which is a lot for mid Norfolk) and yet his rent is just £1,200 a month. My other friend tells a very similar story.
Their justifications for renting their homes have got me thinking. We debated this recently and all I could come up with is that “it would not feel like my home if I was renting it”. Their response was, well do your tenants feel that way. I was stumped! I couldn’t see why their landlords would settle for such a terrible rental yield either but that’s another story.
It was difficult for me to pick holes in their logic. If they had a big mortgage, which they both would no doubt qualify for, the repayments would be significantly higher than the rent. If they had just a small mortgage their argument was that it was very poor use of capital. Hard to argue against.
There reasons go on. How many landlords have got a Gas Safety certificate on their own home one friend asked? That could be a whole article for discussion on Property118 I thought to myself.
Both of them like the ability to constantly look for somewhere better to live and be in a position to move at the drop of a hat. The fact that neither of them move very often wasn’t a counter argument they accepted, it was knowing they could if they wanted to that mattered to them. It’s much more difficult to do that if you own your home they insisted.
The third thing they said to me really did get me thinking. They are both too busy fixing problems with other peoples homes to ever get around to their own. If something needs fixing they just call their landlord.
So I have two questions to ask you:-
1) Do you agree or disagree with their rationale and if so why?
2) Have you got a Gas Safety Certificate on a home you own and live in?
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