Old Conservatives don't understand

[denso13]

Subject to deductions and caps

So that's a yes. thank you.

 

[denso13]

You understand the model is Build it, rent it, sell it, repeat X2

Who is doing that, where is this model working?

Nobody foregoes 30 years rent

Like I said, obviously not your strong point.

 

[carmanmemoranda]

That of course, isn't true. The profit is in the cost vs sale price.. Any minor increase in value from start of project to finish of project is a rounding error. Not to mention that in the last 18 months prices have flattened or fallen a little.

The vast majority of businesses that manufacture goods are in the business "where the sale price of you products increases while you are building it". Exceptions are high techs, where the value falls due to innovation.

A rounding error.

 

[carmanmemoranda]

Subject to deductions and caps - which you want to ignore.

Nobody foregoes 30 years rent. Per unit it would be less than 10% of asset owned life. (24 weeks out of 260)

You understand the model is Build it, rent it, sell it, repeat X2.View attachment 333780

Here are the numbers over a 15 year period starting with 1 single new build sold after 5 years vs rented for the full term.

The Local Council is better off by £57k with my model. Plus they create 3-4 more council houses vs 1. They also avoid maintenance which might increase from about year 5 on.

All this moaning about how right to buy reduces housing stock - is nonsense.

So youre happy being forced to sell your rentals?

 

[carmanmemoranda]

All this moaning about how right to buy reduces housing stock - is nononsense.

No. Its factual.

Unless you dismiss council social housing and only include other landlords

 

[motorbiking]

However, people like me, who say it reduces social housing stock, penalises the needy, increases public costs, dispossesses taxpayers to benefit a lucky minority, and feeds the private rental trade, are correct.

Strange that despite the beliefs you claim to hold about about the benefits of owners being forced to sell assets below their value, you dont want the same to be imposed onto private landlords.

It would be a fine business model under the same rules council's enjoy. If only someone had thought it.. What could we call them - Housing Associations perhaps?

Who is doing that, where is this model working?

Like I said, obviously not your strong point.

Nobody.. oh wait... 180,000

https://commonslibrary.parliament.uk/research-briefings/cdp-2023-0091/

Affordable Homes Programme 2021-26

The government's Affordable Homes Programme plans to deliver up to 180,000 new homes.

www.housing.org.uk

 

[motorbiking]

A rounding error.

I spend £139k building a product that is worth 320k. Assuming 4% growth p/a I have an increase of value of £2,780. my profit assuming I haven't sold it off-plan and can apply the increase to my sales price is £183,780

My growth due to increasing asset value is 1.51%.

 

[carmanmemoranda]

I spend £139k building a product that is worth 320k. Assuming 4% growth p/a I have an increase of value of £2,780. my profit assuming I haven't sold it off-plan and can apply the increase to my sales price is £183,780

My growth due to increasing asset value is 1.51%.

An increasing asset value, not a rounding error then

 

[denso13]

Nobody.. oh wait... 180,000

Government funded affordable housing scheme?

Can we stick to one thing at a time. Which council is using the model build it, rent it, sell it x2, as a method to fund the model going forward?

 

[motorbiking]

An increasing asset value, not a rounding error then

A reminder the claim was....

house builders make a lot of their profit margin on the increase in house price rises

1.5% of the profit is not "a lot of their profit margin"

 

[motorbiking]

Government funded affordable housing scheme?

Can we stick to one thing at a time. Which council is using the model build it, rent it, sell it x2, as a method to fund the model going forward?

Sure, how much discount do you get in your hypothetical example once you take off the caps and the deductions. Are you left with 70%.

That will be a no.

 

[Mottie]

However, people like me ……… are correct.

 

[denso13]

I spend £139k building a product that is worth 320k

And you add lost income from your 30 year business plan at say £1k/month = £360k. So the worth to you is £499k but the bricks and mortar value is £320k. If you sell a RTB at up to 70% off you could have a worth to you of £499k but selling for £96k. Madness...

 

[carmanmemoranda]

A reminder the claim was....


1.5% of the profit is not "a lot of their profit margin"

The claim by YOU was a rounding error

Mr swerve

 

[carmanmemoranda]

And you add lost income from your 30 year business plan at say £1k/month = £360k. So the worth to you is £499k but the bricks and mortar value is £320k. If you sell a RTB at up to 70% off you could have a worth to you of £499k but selling for £96k. Madness...

And thinks it's good for councils, and therefore taxpayer money