Buy to let fever?

BobProperty

rizla01 wrote:

....Property market collapsing?

Most of the MPs have large portfolios so I cant see that happening again, ever....

Firstly, MP's probably have enough income compared to the size of their portfolios that they could ride out a slump.
Do tell how to legislate to stop a house price crash, please.
I bet a lot of MPs were Lloyds Names too and, of course, that was just a license to print money wasn't it?

ReportInvestor

The MPs AVC pension fund negotiated a scandalous (IMHO) withdrawal from Equitable Life

No wonder Parliament isn't seriously interested .

On Tuesday 25 April, Investors' Association is presenting evidence in Brussels to the European Parliament inquiry into Equitable Life.

rizla01

BobProperty wrote:

Firstly, MP's probably have enough income compared to the size of their portfolios that they could ride out a slump.


The doom & gloom that I read on these pages was suggesting more than a slump but a total collapse. anyway, large incomes or not, they certainly wont want to lose money, will they?

Do tell how to legislate to stop a house price crash, please.

You obviously can't legislate against it but the government are in a position to ensure that the interest rates (decided by the Bank of England) don't need increasing by whatever means, whether that means diverting funds from the NHS or levying taxes on the wealthier property owners or by some other means - perhaps even by taxing the BTL landlords to the hilt.

And re - the Stock Market - Nobody has any control over that. Hence the Lloyds crash.

Do you really believe that the government have no power over the property market increases?

fellakel

be very careful if this program makes you want to go out and buy properties to make quick cash. If you have awkward tenants, the law, the system etc is always stacked against the landlord - very painful.
it is most definately not the easy way to riches!!!

ReportInvestor

rizla01 wrote:

Do you really believe that the government have no power over the property market increases?

Actually they have given that power to the Bank of England, since setting the inflation rate means taking into account house price inflation.

wibble68_2

Tassotti wrote:

40 years ago when my parents bought their first house, it cost £16000. The house just sold for £180000.

Would anyone care to have a shot at how much this property has increased per year for the last 40 years.

I was a little surprised by the result.

Kruger

fellakel wrote:

be very careful if this program makes you want to go out and buy properties to make quick cash. If you have awkward tenants, the law, the system etc is always stacked against the landlord - very painful.
it is most definately not the easy way to riches!!!

Thinking cap on,
This has given me an idea in to how to get some of these BTL's back on the market for the crippled FTB's and young people on decent wages who cant afford to buy, There needs to be a country wide tenant revolt, with as many headaches being created for landlords as possible, late payments, sabotaged properties etc etc :eek:

I've setup a new group, https://www.stitchuptheBTLmarket.com

BobProperty

rizla01 wrote:

Do you really believe that the government have no power over the property market increases?

Not no power but very little. Certainly not enough to stop a slump.

"You obviously can't legislate against it but the government are in a position to ensure that the interest rates (decided by the Bank of England) don't need increasing by whatever means, whether that means diverting funds from the NHS or levying taxes on the wealthier property owners or by some other means - perhaps even by taxing the BTL landlords to the hilt."
1. BoE is independent of government.
2. How does taxing wealthier property owners and BTL landlords help? Either they will be forced to sell which will depress prices or they won't be able to afford the taxes so they will be repossessed and that will depress prices. I thought you said you could legislate to avoid a slump.
3. Interest rates are global, they vary between countries or economic groups but you can't beat the markets. Ask Norman Lamont who tried to align the £ to the Deutchemark.

"And re - the Stock Market - Nobody has any control over that. Hence the Lloyds crash."
The stock market fall didn't help but the main problem was the re-insurance amongst themselves, so one problem account was compounded around several insurers.

BobProperty

wibble68 wrote:

Would anyone care to have a shot at how much this property has increased per year for the last 40 years.

I was a little surprised by the result.

Do tell wibble, as I think it isn't that fantastic either. I haven't calculated it properly but estimate about 6%.

rizla01

2. How does taxing wealthier property owners and BTL landlords help? Either they will be forced to sell which will depress prices or they won't be able to afford the taxes so they will be repossessed and that will depress prices. I thought you said you could legislate to avoid a slump.

It wouldn't take a genius for Brown to come up with a way around that. Stealth tax of some kind or an increase in the amount of CGT payable on the sale of the props that the owner is forced to sell.

I think the answer lies in assisting the FTB by reducing the charges that the government levy on them during the purchase and perhaps assisted mortgages.

This would wake the property market up and keep it from stagnating IMHO.

All I am saying is that I cannot agree that the conditions are right for a major slump or collapse. We would need higher interest rates for that to happen - as well as massive rise in unemployment although productivity has all but disappeared in this country already but I suspect that that is being replaced by more service industry Companies.