Rip diy btl

new_home_owner_3

macaque wrote: »

If new CGT rules shake out these cowboys, I shall be very pleased.

Your talking from you rear end, you can get bad profesional landlords aswell as private landords, you have just been unlucky, ive been renting my house for 6 months and whenever my tenant has a problem they contact me by phone i ask them when they will be at home and available and i arrange for a repair with my homecare agreement and i call them back within a hour of when they call me.

I dont bother them and i wouldnt dream of entering their home, even though i own it has far as im concerned it theirs whist they are renting it and im just responsible to make sure everything works in the property and its maintained.

I like to treat people how i like to be treated myself, if my tenants are happy so am i, why any landlord would want to treat their tenants badly confuses me, because all they have to do is leave, and i dont think any landlord would want that.

Generali

shane42 wrote: »

CGT = £10100 per per person so £20,200 , after that i have no idea but its interesting and i guess there is a clue un the 5 years bit?

CGT is a pretty complex area. For example, you don't pay it on gains from inflation, only from genuine growth in capital value. Also you get something called taper relief, that is the longer you hold an asset before selling, the lower the rate of CGT.

Count_Dante

macaque wrote: »

I speak as a long term renter and my concerns are as follows:

1. On two occassions, landlords have assured me that they were looking for rental periods of 3 years plus only to sell the house after 12 months. One did not even have the courtesy to tell us they were selling. I have a family which means moving house is expensive and very disruptive.

2. One amateur BTL rented us a house where many of the basic amenities were in very poor condition. He became very upset when we asked for essential repairs even though we were paying a high rent.

3. Some amateur BTLs have no idea about the basic rules. On several occassions I have had landlords access my home without my permission. One even let himself into the property whilst we were having dinner.

4. The tenant looks to the landlord for stability. Although I have not experienced it personally, I read on these forums about landlords with serious personality problems or financial problems.

If new CGT rules shake out these cowboys, I shall be very pleased.


P.S. For the sceptics, I rent out of choice and have no plans to buy.

Yep, I don't doubt that a lot of idiots decided to become landlords during the boom to make 'easy money' without having a clue of the financial risks or legal and contractual responsibilities. The country will be better off without such morons acting as landlords.

Cleaver

macaque wrote: »

I speak as a long term renter and my concerns are as follows:

1. On two occassions, landlords have assured me that they were looking for rental periods of 3 years plus only to sell the house after 12 months. One did not even have the courtesy to tell us they were selling. I have a family which means moving house is expensive and very disruptive.

2. One amateur BTL rented us a house where many of the basic amenities were in very poor condition. He became very upset when we asked for essential repairs even though we were paying a high rent.

3. Some amateur BTLs have no idea about the basic rules. On several occassions I have had landlords access my home without my permission. One even let himself into the property whilst we were having dinner.

4. The tenant looks to the landlord for stability. Although I have not experienced it personally, I read on these forums about landlords with serious personality problems or financial problems.

If new CGT rules shake out these cowboys, I shall be very pleased.

I think your brain works in quite a strange way if you think this is the case. Points 1 to 4 happened because it sounds like you had awful landlords. You say that these people you chose to rent off are renting out their houses without basic amenities, selling the house you're in without telling you and are barging in when you're having dinner. They sound like complete cowboys. Do you really think they sound like the type who will do their research and be knowledgeable about capital gains tax?! I sincerely doubt it. If they don't supply you basic amenities I doubt they go to the bother of even filling in a tax return.

With regard to point 4, I think you can get a skewed view of landlords on this site. A landlord who knows their stuff won't come on here to ask questions, because they wouldn't need to. So if a landlord (or potential landlord) does come on here to ask questions, it must be because they don't know something or need help. Thus giving a skewed view that every landlord is awful.

To summerise - I'm no economist, but if you think raising capital gains tax will magically increase the quality of landlords I think you're very misguided.

Lastly, why are you renting properties from these people? I've only rented as a student and in my early twenties with a girlfriend. Short-term stuff and wasn't too bothered about long-term, quality places and we experienced a lot of the stuff you are experiencing. But if I were renting with a family and planned a long-term tenancy I would be doing a lot of research on my lanlord. Sounds like you're not doing this.

Conrad

In the real world people will easily find ways aroundf CGT. I know of LL's who pretend to move back into the property for example, prior to selling. Others simply never sell.

And monkey, do you not realise yet, after all this time that millions of us DO NOT TRUST THE ALTERNATIVES - ie spiv managed funds and pensions.

Generali

Conrad wrote: »

And monkey, do you not realise yet, after all this time that millions of us DO NOT TRUST THE ALTERNATIVES - ie spiv managed funds and pensions.

Speaking as someone who has worked in financial services for 15 years, do not trust any managed investment. Every single one has a single beneficiary, the Portfolio Manager. If anyone else makes money it's a coincidence, not part of the product's design.

If I was in the UK and saving for retirement I'd be using a SIPP and mostly investing in index-tracking iShares ETFs. It's exactly what I'll be doing in Aus in about 2 years once Mrs Generali is earning so I can go into self-managed super.

I think that in the UK BTL is a lousy investment if it is cashflow negative or neutral due to tax and the illiquid nature of the UK housing market.

StevieJ

Generali wrote: »

CGT is a pretty complex area. For example, you don't pay it on gains from inflation, only from genuine growth in capital value. Also you get something called taper relief, that is the longer you hold an asset before selling, the lower the rate of CGT.

You do at the moment, reliefs went out of the window last year although the rate was reduced to 18%.

macaque_2

Cleaver wrote: »

I think your brain works in quite a strange way if you think this is the case. Points 1 to 4 happened because it sounds like you had awful landlords. You say that these people you chose to rent off are renting out their houses without basic amenities, selling the house you're in without telling you and are barging in when you're having dinner. They sound like complete cowboys. Do you really think they sound like the type who will do their research and be knowledgeable about capital gains tax?! I sincerely doubt it. If they don't supply you basic amenities I doubt they go to the bother of even filling in a tax return.

With regard to point 4, I think you can get a skewed view of landlords on this site. A landlord who knows their stuff won't come on here to ask questions, because they wouldn't need to. So if a landlord (or potential landlord) does come on here to ask questions, it must be because they don't know something or need help. Thus giving a skewed view that every landlord is awful.

To summerise - I'm no economist, but if you think raising capital gains tax will magically increase the quality of landlords I think you're very misguided.

Lastly, why are you renting properties from these people? I've only rented as a student and in my early twenties with a girlfriend. Short-term stuff and wasn't too bothered about long-term, quality places and we experienced a lot of the stuff you are experiencing. But if I were renting with a family and planned a long-term tenancy I would be doing a lot of research on my lanlord. Sounds like you're not doing this.

Not all private landlords are bad and not all professional landlords are good. As a long standing renter however, I would always choose a professional landlord over a private one. Far too many private landlords are unfit for the role.

Why do I rent from these people? Prospective tennants have to submit a swathe of personal information. Landlords produce nothing. They are sweet and charming and 12 months later they let you down. What sort of research are you suggesting? Lie detectors? Truth drugs? Private detectives?

Higher CGT has very little impact on bona fide landlords but it does make speculation and flipping much less rewarding.

Cleaver

macaque wrote: »

Why do I rent from these people? Prospective tennants have to submit a swathe of personal information. Landlords produce nothing. They are sweet and charming and 12 months later they let you down. What sort of research are you suggesting? Lie detectors? Truth drugs? Private detectives?

When I was a landlord I was surpised that no tenants never asked anything about me. If they had asked for evidence that I had conset to let the property, I would have shown them. If they wanted to see the equity level I had in the house, I would have shown them. If they wanted a two year contract for security, I would have given it to them. If they wanted to speak with the person who rented the property before them for a reference, I would have been happy to provide contact details. If they wanted to see any evidence of insurance, checks or other documents then all they had to do was ask and I would have shown them.

When our first tenants left (they were renting for a year, as they had sold their house and were always planning to move to Italy to start a business) I asked them nicely whether they would be willing to write us a reference on how we'd been as landlords, as I think we gave them great service. They obliged and I left that reference with the letting agent to show to prospective renters who looked round our house. All good landlords who give good service should do this type of thing.

If I were renting a long-term property for me and my family then these are things I would be asking for. If your new landlord can't / won't provide these things then rent somewhere else. You're the customer, vote with your feet.

chucky

'if' these CGT rules get put in place less people will sell because they don't want to be hit by CGT so less revenue for the Government.

if these people aren't selling less Stamp Duty revenue from the Government as there will be less transactions.

the government loses out twice in revenue terms, in these times of revenue required by the government, this won't be happening very quickly. - if it does it will be introduced in a diluted format.