Rents fall at fastest rate on record

MissMoneypenny

lynzpower wrote: »

especially when so much of our tax money is going to prop up these lending institutions.

The banks and their staff, pay a lot of taxes.

The banks would get a good balance sheet sooner if the government weren't forcing them to use tax payers money to prop up the members of the public that are financially inept. Goodness know how these people that have overstretched themselves with mortgages, are going to cope when the rates rise to a normal 7% - 8%.

Gorgeous_George

Thrugelmir wrote: »

The Irish Government had no qualms in restricting interest relief to 75% against rental income.

More of a vote winner than loser.

I think a simpler tax system would be fairer. A straightforward 10% tax rate on rent as an alternative to completing a tax return would be attractive to many one-property BTLers. 10% may be more than they would pay but saves the hassle and cost of an accountant.

GG

Radiantsoul

MissMoneypenny wrote: »

The banks and their staff, pay a lot of taxes.

The banks would get a good balance sheet sooner if the government weren't forcing them to use tax payers money to prop up the members of the public that are financially inept. Goodness know how these people that have overstretched themselves with mortgages, are going to cope when the rates rise to a normal 7% - 8%.

Well if any one bank takes action against those struggling it might do ok. But if all banks did it would drive prices down.

lynzpower

MissMoneypenny wrote: »

The banks and their staff, pay a lot of taxes.

The banks would get a good balance sheet sooner if the government weren't forcing them to use tax payers money to prop up the members of the public that are financially inept. Goodness know how these people that have overstretched themselves with mortgages, are going to cope when the rates rise to a normal 7% - 8%.

Compeltely agree. However our friends at Nu Lab, cant bear the idea of ANYONE getting poorer, let alone those LLs who are middle of the road, normal people, who went into property as pensions are in crisis, or who had to rent theri house out as they couldnt sell it.

Nu Lab do not want to draw any attention to this, as underwriting it all is thier own failiures.

They'llsave this one up for the Tories who will look big and bad again.

Pobby

5% yield on rent. That sounds to me like madness, what is the negative yield if interest rates return to 8%?

Thinking about it, for years 8% seemed a comfortable place to be when repaying a mortgage. I don`t think for years,70s, 80s, 90s it was ever much below that.

Bliss. 8% would be such a welcome return on my savings.

harryhound

I did say a tax on "profits" of BTL landlords. A lot of them won't be making any "profit" and would be only too glad to cover the mortgage.

Pensioners trying to live on interest are getting less than the rate of inflation and unless they have kept an eye on things will be getting joke amounts like 0.1%.
I cannot see anyone feeling sorry for a land lord getting (say) 5% on a wholly owned property and having to pay (say) 30% tax instead of 20%.
After all the standard rate for those of us earning on PAYE is about 30% after National Insurance has been added on.

novazombie

harryhound wrote: »

I did say a tax on "profits" of BTL landlords. A lot of them won't be making any "profit" and would be only too glad to cover the mortgage.

But as a land lord you cant only pay tax on the profit, its costs a bomb being a landlord, I know and am happy to have sold up before the coming crash.

The thing is when you get investigated by the tax man, there are loads of things that get disalowed. The profit they say you have to pay tax on is huge compared to the profit that you actually made.

Im glad to be out of it, but how many unsuspecting new land lords are doing their own books and when they get investigated will surely be reposessed.

Thrugelmir

novazombie wrote: »

But as a land lord you cant only pay tax on the profit, its costs a bomb being a landlord, I know and am happy to have sold up before the coming crash.

The thing is when you get investigated by the tax man, there are loads of things that get disalowed. The profit they say you have to pay tax on is huge compared to the profit that you actually made.

Im glad to be out of it, but how many unsuspecting new land lords are doing their own books and when they get investigated will surely be reposessed.

I would guess that a lot of people aren't even registered as being landlords with the HMIT.

As you point out I don't think that people realise the penalities involved for tax evasion.

The assumption I hear constantly seems to be that "I not making a profit if the rent covers the mortgage". Totally different to whether there is a taxable profit or not.

RDB

Yes and rents cant go down


Its interesting in other crisis like this one about 0.2% of income goes to rent.

http://www.youtube.com/watch?v=vvc2G...eature=related 3mins in.

RDB

I wouldnt like to be a landlord either, thats why I sold my house I was renting out for 99K just over 1 yr ago, I was asking 125K. A similar house is now on the market for 85k, thats the asking price so what someone would pay for it is anyones guess.

I have another small place thats been empty for a while I dont know what to do, if I drop the price anymore people will say whats wrong with it why is it so cheap?