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Buy-to-let landlords rush to sell before capital gains tax rise
carolt
Posts: 8,531 Forumite
http://www.guardian.co.uk/money/2010/may/19/buy-let-capital-gains-tax
"Estate agents report deluge of inquiries from landlords about possibility of selling before proposed tax rise introduced
Estate agents are being deluged with inquiries from panicked buy-to-let landlords hoping to offload properties before proposed increases in capital gains tax (CGT)."
"Estate agents report deluge of inquiries from landlords about possibility of selling before proposed tax rise introduced
Estate agents are being deluged with inquiries from panicked buy-to-let landlords hoping to offload properties before proposed increases in capital gains tax (CGT)."
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Exactly not the operation of the current rules. I stopped reading at that point.The proposed tax changes would hit buy-to-let landlords selling any property other than their own home. Under the changes, the sale of a £200,000 property originally bought for £100,000, with a 40% tax bill, would net its owner £160,000, for example. If the owner were to sell now, he or she would net £182,000.
[edit] Fell for posting in a carolt thread... must be Friday.0 -
This is where big changes to tax rules skew the market.
Of course it might not happen. The government could already be getting the result it wanted. All of these panic sales will bring in a fair chunk of tax, even at just 18%.0 -
Estate agents are being deluged with inquiries from panicked buy-to-let landlords hoping to offload properties before proposed increases in capital gains tax (CGT)."
Meanwhile, back in the real world......."There has been a noticeable level of increase in the number of landlords coming to us to ask about selling their buy-to-let properties, with some choosing to actually put them on the market to try to avoid the potential CGT liability," said James Hyman, a partner at the south-east England estate agents Cluttons.
"However, most of them want to know whether they have enough time to get the sale through to the point of exchange and whether they would get full price for the property."
Ahhhh, I see.
Not a "deluge" then, with most clearly not interested unless they can get "full price" for the property.
So what else does the article say once you get past carolt's misleading headline......Stephen Ludlow, director of Ludlow Thompson, said that although his agents had fielded a number of enquiries from landlords: "Most investors are interested in long-term, high-yielding properties, not short-term capital appreciation, so they are unlikely to be deterred by a hike to CGT."
John Hards, co-managing director of Countrywide's residential lettings division, said: "So far we have not seen a knee-jerk reaction from private or investor landlords. Most investors are taking the wait-and-see approach to see if the chancellor introduces other measures in the coming weeks."
Estate agents further north, particularly in Leeds and Manchester, where there was a boom in buy-to-let properties at the height of the housing market, said they had received very few enquiries from landlords, and that generally there appeared to be less panic over CGT than in the south.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
dealsearcher wrote: »This is where big changes to tax rules skew the market.
True.
And if there actually were significant numbers of BTL panic sales, it would send rents skyrocketing.All of these panic sales will bring in a fair chunk of tax, even at just 18%.
But as the article makes clear, there are not actually a lot of panicked landlords selling at all.
Most are adopting a wait and see approach, and even the ones selling are not interested unless they can get full price for the property.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Read the whole article, Hamish, rather than cherry-picking the paragraphs you like the look of.
The general direction is extremely clear.
Landords panicking - rushing to sell.
Which is good news, as we all know more supply without corresponding demand = lower prices.
Which is clearly what is worrying you.0 -
HAMISH_MCTAVISH wrote: »True.
And if there actually were significant numbers of BTL panic sales, it would send rents skyrocketing.
But as the article makes clear, there are not actually a lot of panicked landlords selling at all.
Most are adopting a wait and see approach, and even the ones selling are not interested unless they can get full price for the property.
Obviously I will not be too pleased if some sort of taper/indexation relief system isn't introduced in the next 8-12 years. If it is then I don't feel I will be much worse off, if it isn't I will probably be more inclined to keep my investment properties beyond that preiod and just pay a letting agent to deal with day to day management.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
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got to love the quotes - it reminded me of something and thought i'd put both into a search...Doctor_Gloom wrote: »The rats are fleeing the sinking ship. And there's no honour amongst thieves.
and i found thisThere's no honour amongst thieves
maybe it was a coincidence... then i thought i'd put the other soundbite in the search and this came back... it looks like you've used it a few times now...ad44downey wrote: »The rats are fleeing the sinking ship!! It was only a matter of time I supposeAll the rats are fleeing the sinking ship and you're thinking of jumping onto it. :eek:ad44downey wrote: »Great news. The buy-to-let rats are fleeing the sinking ship at an alarming rate .They don't like it up 'em.Doctor_Gloom wrote: »the next leg of the crash is just around the corner and are trying to bale out while they still can. The phrase "rats fleeing the sinking ship" clearly springs to mind.
sorry to break it you but i'm still here and will be for a long timeThe rats are fleeing the sinking ship
How much longer before chucky the rat jumps overboard?
welcome back a44downey, pizzagirl, fatpig, napoleon, banderman, rollerball and all of the other user names you got :T0 -
I just hope that they all told the truth on their Buy-to-let mortgage applications. :eek:Read the whole article, Hamish, rather than cherry-picking the paragraphs you like the look of.
The general direction is extremely clear.
Landords panicking - rushing to sell.
Which is good news, as we all know more supply without corresponding demand = lower prices.
Which is clearly what is worrying you.0 -
HAMISH_MCTAVISH wrote: »But as the article makes clear, there are not actually a lot of panicked landlords selling at all.
It is not only effecting property:
http://www.ifaonline.co.uk/ifaonline/news/1649477/cgt-fears-linked-tory-rifts-rolls-royce-share-dump0
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