Accidental Landlords are starting to sweat.

ad9898_3

StevieJ wrote: »

Not the ones AD knows and I probably live closer to him than I do to you

So it's you is it !!!, the last couple of days there has been an old guy who suffers from alzheimer's walking up and down my road, knocking on doors, asking for friends that he knew from childhood, if you could have remembered your name Steve and told me, I would have invited you in for a cup of tea and a biscuit.:D

StevieJ

ad9898 wrote: »

So it's you is it !!!, the last couple of days there has been an old guy who suffers from alzheimer's walking up and down my road, knocking on doors, asking for friends that he knew from childhood, if you could have remembered your name Steve and told me, I would have invited you in for a cup of tea and a biscuit.:D

Jolly decent of you old chap :beer:

SouthCoast

A shortage of rental property is a myth in the four postcodes that
I track on RightMove.

Number listed:
April 08 136 52 154 26 = 368
June 08 160 50 208 36 = 454
Aug 08 177 80 271 58 = 586
Sept08 222 98 337 64 = 721
Oct 08 230 103 324 58 = 715
Dec 08 245 153 378 106 = 882
Jan 09 248 143 401 94 = 886
Mch 09 253 132 446 102 = 933

chucky

ad9898 wrote: »

Of course you are correct, however I would hazard a guess that out of the 1 million + BTL mortages out there, all of them aren't on trackers, and then you have the small matter that of those that do have trackers, how many have got one that is down at .5% ? It would be interesting to find out, as this is being rolled out all the time to counter the argument.

around 40% are fixed rate mortgages for BTL

"amateur" BTL motivated sellers will more than likely be the ones that have to get rid of their property within the 3 year PPR rule to avoid Captial Gains rather than being in financial trouble.

StevieJ

chucky wrote: »

around 40% are fixed rate mortgages for BTL

"amateur" BTL motivated sellers will more than likely be the ones that have to get rid of their property within the 3 year PPR rule to avoid Captial Gains rather than being in financial trouble.

Are these the ones that have lived in the house for a number of years, but couldn't sell, so rented out?

chucky

StevieJ wrote: »

Are these the ones that have lived in the house for a number of years, but couldn't sell, so rented out?

yep - they're the ones. it's all in their favour if done correctly.

if you sell within the first 3 years of renting you don't pay any Capital Gains.

if you live in it for 5 years rent for 4 years owning the property for a total of 9 years you do have a Captial gains tax liability. however, you don't pay 40% Capital gains straight. you only pay four/ninths of the Capital Gain.

rent_and_buy

chucky wrote: »

yep - they're the ones. it's all in their favour if done correctly.

if you sell within the first 3 years of renting you don't pay any Capital Gains.

if you live in it for 5 years rent for 4 years owning the property for a total of 9 years you do have a Captial gains tax liability. however, you don't pay 40% Capital gains straight. you only pay four/ninths of the Capital Gain.

thats exactly what our plan is, ive just had a 3 year fixed btl mortgage agreed, i think a lot of people are doing it, i think if it all works out well though, we might keep it a little longer than 3 years, after all the fees we will only make about 100 pound a month on top.


Havent signed anything yet for the mortgage, we are just waiting for the the right property for us to buy, but nothing seems to be coming up.

penguine

So in about 3 years' time a lot of properties will come onto the market as accidental landlords realise prices aren't going back up anytime soon.

StevieJ

chucky wrote: »

yep - they're the ones. it's all in their favour if done correctly.

if you sell within the first 3 years of renting you don't pay any Capital Gains.

if you live in it for 5 years rent for 4 years owning the property for a total of 9 years you do have a Captial gains tax liability. however, you don't pay 40% Capital gains straight. you only pay four/ninths of the Capital Gain.

Is it not 18% now ? So you are paying capital gains even though the house is down in price i,e. the original value is from when you bought it not when you started renting:eek:

chucky

penguine wrote: »

So in about 3 years' time a lot of properties will come onto the market as accidental landlords realise prices aren't going back up anytime soon.

this has been in place for some time,
why would "a lot of properties" need to be sold in 3 years time?

BTL is a small proportion of the UK market.

i think you need to read and understand the thread again.