Dartford, Kent ( release-news ) September 10, 2012 - The charity Shelter has reported that tenants are cutting back on food, bills and other essentials to be able to meet their rental payments each month.
The cost of renting is rising, with 2011 showing the fastest increase in the rental value of homes, resulting in many tenants being unable to meet their repayments and resulting in landlords making money from property.
The recent banking crisis and the strict lending criteria of lenders has resulted in first time buyers being unable to get on to the property ladder.
First time buyers now need to save a large deposit and are unable to secure a mortgage. In addition many people are nervous of stepping onto the property ladder due to the uncertainty surrounding interest rates and falling house prices. In the meantime many of these people are turning to the private rental sector for somewhere to live.
Paul Ribbons is a property trader and runs the Paul Ribbons Partnership. He says:
"It is all down to supply and demand. The public can get mortgages but at a price. They require such a large deposit it is punitive. The thing is how can it be a long-term lifestyle choice when tenants have no rights to tenure? Short term yes, you are trying out a relationship or a new job and don't want to commit long term. But medium and long term, no.
Let's think about that for a moment. If you were renting, the maximum you would probably get from a landlord is a year contract. Having been involved in property for over a quarter of a century and been on the talking circuit in front of 1000's of landlords, I ask them this question. ' How long would you give a tenant a contract for, even if they were the best tenants in the world?' The answer varies from 6 months (which is the minimum legal term) to a maximum 18 months. And why is that? The landlord wants flexibility.
"But the tenant who wants to start a family wants security, and if that's what they're after there are only 2 ways that can happen. Get a property from a local housing association which is virtually impossible or buy. I know which one they will do, don't you?"
Paul Ribbons runs the Ribbons Partnership and has a unique and very lucrative strategy that has helped him, and his delegates, in making money from property. He has been involved in over 500 below market value (BMV) deals. and has a simple and effective strategy of buying property from the open market, distressing them and reselling them at auction for profit. Everyone can do it, and in his book and via his courses, he tells the story of how he came across his simple formula of making money from property.
For more details visit: http://www.propertytradingadvice.co.uk/