Britain's Debt Pandemic - New Statesman. Is economic meltdown on the way ?

X-No-Archive: yes In message , "tim (moved to sweden)" writes

I'm not selling and most certainly do restrict my choice of tenants. I always opt for purpose-built apartments with secure inside parking, minimum of two bedrooms, and controlled access, in prime positions such as on sea fronts, and no gas. Such flats are usually in town centres with shops and other amenities close at hand.

In other words I buy what I wouldn't mind living in myself. It's an expensive policy but it has always paid off because my flats are rarely left unoccupied for long. The wow factor of a panoramic sea view cannot be under-estimated. It really is a killer water feature.

As I once learned, houses are a pain in the buy to let market. No one gives a monkeys what happens to an unoccupied house, whereas neighbouring tenants in a block will gang-up on squatters and such like undesirables. Pitching the rent slightly below the market rate ensures that I get to cherry pick suitable tenants. They're usually those known to the letting agents who have good tenants on their books who jump at the chance of renting a secure, modern flat with a sea view. You're probably right about it not being a sellers' market but that's never affected me.

In the case of the tenant who gave my name when he had the meters swapped, he was a decent enough bloke who didn't quit leaving me with an unpaid bill. He was a bit prissy and felt that he'd had enough of the behaviour of pissed late-night revelling females getting noisily shagged under his balcony or on the beach. The young chap in there now loves it, saying that he's never had so much nookie. Someone tipped him off about the girls flogging the 'Big Issue' under the balcony who will do anything on a wet, cold, miserable day for a generous bloke who buys their stock.

I do warn tenants about the noise at weekend nights but most of them are local, and know of the problem, which is markedly less so now that Arun District Council have laid on late-night buses to shanghi slappers and their vomit comic breeding partners out of the town at nightclub chucking out time.

Thanks for your comments. Apologies for not replying to all of them.

Reply to
JF
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On Sat, 22 Oct 2005 09:52:42 GMT, snipped-for-privacy@jibbering.com (Jim Ley) mysteriously appeared thru the usenet mist to inform us thus...

It won't be any part of their income, they're outgoings. Anyway, even the most modest homes these days get large CT bills.

It can reduce the CT bill by a varying amount.

Reply to
hummingbird

On Sat, 22 Oct 2005 14:30:26 +0100, Gordon mysteriously appeared thru the usenet mist to inform us thus...

And for every person like you, there are x10,000 who cannot afford all the latest electronic gadgets.

Quite. These bills hit retired people much harder than younger folks usually because of lower pension incomes.

Reply to
hummingbird

An oil price rise would feed through into inflation figures, both because petrol and heating oil form part the figures, and because rising transport costs would be passed on to consumers in increased prices for everything else.

The Bank of England would respond to an increase in inflation by increasing interest rates.

Reply to
Jonathan Bryce

Well yes, they sell their electricity to the tenant, not to you.

Reply to
Jonathan Bryce

The electricity meter doesn't belong to you. It belongs to the electricity distributor, and they can do what they like with it.

Reply to
Jonathan Bryce

Which is almost certainly unenforceable. Just like a condition that said you can only eat food in the house that is bought from Sainsburys.

Reply to
Jonathan Bryce

But you could have an alternative arrangement whereby they sell the electricity to the landlord, who in turn re-sells it to the tenant.

Reply to
Ronald Raygun

Thanks!

What would be the expected response from the BoE if oil prices continued to trend upwards? Presumably rates would continue to go up, eventually resulting in stagflation, right?

Hmmm... Wikipedia's entry for 'stagflation' seems to confirm that:

"Stagflation is thought to occur when there is an adverse shock (a sudden increase, say in the price of oil) in a country's aggregate supply curve. The effects of rising inflation and unemployment is especially hard to counteract for the central bank. The bank has one of two choices to make, each with negative outcomes. First, the bank can choose to pursue a loose money policy to stimulate the economy and create jobs by increasing the money supply (by lowering interest rates) and exacerbate the inflation problem further. Or second, pursue a tight money policy (by increasing interest rates) to try and rein in inflation at the cost of perhaps increasing unemployment further."

Cheers, Alex.

Reply to
Alex Butcher

The ownership of fixtures and fittings is immaterial. If a tenant organises a change without landlord's consent, then they're in breach of their tenancy agreement and can be turfed out on their ear.

Reply to
JF

I agree it would be a breach, but not one which any court would consider material enough to justify terminating the tenancy forthwith.

Rather the tenant would have to bear the cost, if any, associated with reinstating the status quo ante.

Reply to
Ronald Raygun

But is that 1% in real terms? If you reckon it is which measure of inflation was used in the calculation. Hopefully not one of the heavily bezzled rates promoted by the government. If the actual rate of inflation is nearer to 6% or even 9% then it is easy to understand why Maria feels that:

"People are not spending like they once did"

DG

Reply to
Derek ^

Bondholders set long term interest rates. If bondholders see inflation coming as a result of higher oil prices (through secondary effects say) then they'll demand compensation in the form of higher interest rates otherwise they won't buy the bonds (meaning that the borrowwing spree stops dead in its tracks).

FoFP

Reply to
M Holmes

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