Yet another story in
stuff about the woeful circumstances of a tenant because of the implied greed of landlords. As one person comments these "endless articles blaming landlords" don't help anyone. Landlords are not raking it in.
"As shown in Figure 1.3 and Appendix Table 3 rental investment yields have fallen gradually from 6% to 7% in 1997 to 3.5% to 5% in 2017. Such rates of return are now below mortgage interest rates and are close to low-risk deposit rates."
The 2018/19 yields will fall even lower as the current government imposes greater regulation and significant increased costs. Insurance and rates only go up.Yields at this level suggest that rents are not unfairly or unreasonably high. In fact they are too low. I would suggest that at least some landlords are holding rents down to keep good tenants.
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Some landlords are even using the losses on their properties to reduce their taxable income from other sources. This has to be stopped, I say.
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