Problems looming for buy-to-let

chucky

ad44downey wrote: »

The tax regime needs to be fundamentally reformed so that buy-to-let chancers are properly taxed. Taxing their rental income at say a marginal rate of say 75% would be good for starters.

:rotfl: :rotfl: :rotfl:

Kenny4315

ad44downey wrote: »

The tax regime needs to be fundamentally reformed so that buy-to-let chancers are properly taxed. Taxing their rental income at say a marginal rate of say 75% would be good for starters.

Captial gains are taxed at high rate, if there are any.

Why would 75% tax rate be good ? Do councils build enough accomodation for everyone who wants to rent to obtain a council rental, no. If the rate was 75% on net profit, BTL's would simply disappear, result ..... the sale of cardboard boxes would increase ...

Or the burden to build the said council houses would be placed upon government and local authorities result ... substantial TAX INCREASES for everyone.

DOES EVERYONE LEAVING HOME HAVE ENOUGH CASH TO BUY AND MAINTAIN A HOUSE ..... Absolutely NOT

BTL landlords provide a service that government can't provide.

chucky

ad44downey wrote: »

The tax regime needs to be fundamentally reformed so that buy-to-let chancers are properly taxed. Taxing their rental income at say a marginal rate of say 75% would be good for starters.

two families in my car have two cars (nice ones too) - i hate them too.

BTLers and two car families they are disgusting creatures!!! :rotfl:

HelpWhereIcan

Very bad news for some, but not all.

As the OP quoted

amcluesent wrote: »

"We believe that the BTL sector could suffer above-average loss severities on repossession cases due to a concentration of certain property types that are witnessing above-average price declines" said Kate Livesey, an analyst at S&P.

Not to say all new builds were a bad buy, but many people with a new build flat in certain city centres made a very bad decision in 2005-7 especially when buying through certain property clubs.

Good news for those looking to buy at auction, and I know of a couple of cash rich investors looking at the current climate as a good opportunity to get a good return.

If a BTL speculator did not do their own due diligence, concentrated on one type of property and accepted having to subsidize a property they will be in for a very tough time.

A BTL investor who did their homework by selecting lettable properties in areas with demand and looked to secure true positive cash flow above all will be able to see through any drops in the market while taking advantage of those who did not.

Unfortunate thing is that the number of FTBs with the deposit etc to compete with cash rich investors for an repo property is quite small and, while some will return to owner occupation, many will just go from being owned by a BTL speculator to being owned by a BTL investor.

amcluesent

>compete with cash rich investors<

I'd like to get some exposure to the BTL market without becoming a LL. Are there any pool funds which supply vulture capital to back LL who know the business?

HelpWhereIcan

amcluesent wrote: »

>compete with cash rich investors<

I'd like to get some exposure to the BTL market without becoming a LL.

Are there any pool funds which supply vulture capital to back LL who know the business?

The quick answer is yes, there are many property funds but they tend to invest in commercial property.

One fund manager has called the bottom in commercial property and has started buying in 'bombed out' REITS due to share discounts of 40 - 60% to net asset value.

There are many vulture funds around and some appear to be hinting at buying real estate again but they will normally mean Commercial.

As far as residential BTL, I expect that there will be some but more common is the smaller SIVs, LLPs and Ltd Cos that some investors have set up to allow them to buy.

One of my guys is considering setting up a Ltd Co and securing a line of commercial credit (which his status will allow him to do) to buy a portfolio at auction.

Have a word with an IFA and ask them to check which REITS etc may be exposed to residential - they may become a target for Vulture Capital.

bambam101

ad44downey wrote: »

The tax regime needs to be fundamentally reformed so that buy-to-let chancers are properly taxed. Taxing their rental income at say a marginal rate of say 75% would be good for starters.

Don't think you'd make that much out of the majority of the btl'ers who brought after 2003, alot of people have to top up their mortgages because the rents hardly cover them. I got out of btl in 2006 - well glad i put new batteries in the crystal ball :cool: .