Ireland on the Brink !

chucknorris

beingjdc wrote: »

On the plus side among their tax rises they have reduced Buy to Letters' ability to offset interest against rent, now you can only count 75% of the interest. Good model for us to follow, maybe!

I find that a strange thing for them to have done, I can't see our Gov doing that as our Gov depend on the private rental sector to house a significant percentage of the population. Is it somehow different in Ireland?

beingjdc

chucknorris wrote: »

I find that a strange thing for them to have done, I can't see our Gov doing that as our Gov depend on the private rental sector to house a significant percentage of the population. Is it somehow different in Ireland?

So what? There are a certain number of houses, how you tax them doesn't affect supply unless you believe people are going to leave them empty out of spite!

Anyway there's a difference between a strong private rental sector, and a private rental sector that's run on an empire of dodgy debt and only makes business sense thanks to tax breaks.

chucknorris

beingjdc wrote: »

So what? There are a certain number of houses, how you tax them doesn't affect supply unless you believe people are going to leave them empty out of spite!

Anyway there's a difference between a strong private rental sector, and a private rental sector that's run on an empire of dodgy debt and only makes business sense thanks to tax breaks.

But most LL's do not have 'dodgy debt' where are you getting that notion from? How is the debt dodgy? Do you mean they are drug dealers or something?

ultra10

amcluesent wrote: »

No-one seems to have a description for how a sovereign nation, but which is part of a single currency zone, can go pete tong by itself. After all, they can only manipulate tax but not interest rate - the contradiction is glaring.

Other nations are in a race with competitive devaluations, but Ireland is unable to retain any manufacturing which is all going to Poland.

There is no 'wealth' just a spiral of debt triggered by easy money of EU grants, many Irish peeps left in a bad position now! But there's always the potato, so there is.

ireland will take decades to recover from this "Free money" experiment ..

beingjdc

chucknorris wrote: »

But most LL's do not have 'dodgy debt' where are you getting that notion from? How is the debt dodgy? Do you mean they are drug dealers or something?

Could you click the time in the corner of your PC screen and check the date for me? Your computer seems to be posting stuff from 2005.

The UK buy-to-let sector is riddled with people who have mortgages they can't afford, rents that bring in less than mortgage costs, loans secured for more than the value of the property, and prior loans which have been MEWed to death to raise the deposit for further off-plan rabbit hutches, which are now plummeting by 40-50% in value. They're so toxic that a huge number of them have been taken onto the government balance sheet, or otherwise shifted away as the original loan provider has gone to the wall.

It's a disaster zone.

chucknorris

beingjdc wrote: »

Could you click the time in the corner of your PC screen and check the date for me? Your computer seems to be posting stuff from 2005.

The UK buy-to-let sector is riddled with people who have mortgages they can't afford, rents that bring in less than mortgage costs, loans secured for more than the value of the property, and prior loans which have been MEWed to death to raise the deposit for further off-plan rabbit hutches, which are now plummeting by 40-50% in value. They're so toxic that a huge number of them have been taken onto the government balance sheet, or otherwise shifted away as the original loan provider has gone to the wall.

It's a disaster zone.

That doesn't make it 'dodgy' there is nothing illegal about it. I think you are falling for the press releases, most LL's I know are like me geared way down at about 30-40%

beingjdc

chucknorris wrote: »

That doesn't make it 'dodgy' there is nothing illegal about it. I think you are falling for the press releases, most LL's I know are like me geared way down at about 30-40%

Happy to replace the word "dodgy" with the word "toxic" if you want.

You probably know a lot of people who've been landlords for a long time, and don't enjoy hanging around with the muppets who have got into it over the last few years. Have a look at the singing pigs, or see B&B's buy-to-let loan book where the number of mortgages in arrears has gone up, first to over 2%, and now to almost 5%, before the real unemployment, emigration, housing benefit reduction etc crisis hits, and a time when interest rates are very low.

Paddy2eyes

In any other business you can offset interest on borrowings against profits for tax purposes. Why should the business of property rental be any different?

beingjdc

Paddy2eyes wrote: »

In any other business you can offset interest on borrowings against profits for tax purposes. Why should the business of property rental be any different?

Who says I think you should be able to in other businesses? If you're borrowing to invest in a new product etc, then maybe, but if you're just loading up on debt for a takeover, then no - that's just another of the things that's left us in the mess we're in now, companies loading up on debt in structured takeovers on the assumption that Joe Taxpayer will pick up the strain.

chucknorris

beingjdc wrote: »

Happy to replace the word "dodgy" with the word "toxic" if you want.

You probably know a lot of people who've been landlords for a long time, and don't enjoy hanging around with the muppets who have got into it over the last few years. Have a look at the singing pigs, or see B&B's buy-to-let loan book where the number of mortgages in arrears has gone up, first to over 2%, and now to almost 5%, before the real unemployment, emigration, housing benefit reduction etc crisis hits, and a time when interest rates are very low.

I am well aware of the idiots that thought it was money for old rope, it never was, it's huge responsibility and if you are about your tenants which all responsible LL's should it is also time consuming. I have zero sympathy with the idiot speculators that didn't know what they were doing and lost plenty, they got/are getting excatly what they deserve