Capital Gains tax: buy-to-let investors must tear up retirement plans

IveSeenTheLight

Dirk_Rambo wrote: »

i actually live in el dorado. get the land registry figures up for that locale if you wish. if you do youll see that house prices have dropped 30% in the last 6 month.s good luck.

cockoo cockoo.

Thrugelmir

Gorgeous_George wrote: »

Consider BTL over 20 years.

Today... assume costs of £6000 per year and a rent of £500 per month. You make nothing.

In 20 years time... assume costs of £7000 per year and rent of £800 per month. You make £2600.

GG

On that basis your tenants would need a compound pre tax rise in income of over 3% every year for 20 years to meet the net rent of £800. If they are to maintain their standard of living.

(Assumption that tenants are basic rate tax payers).

On the same basis of 3% inflation, your costs would rise from £6,000 to over £10,800 in the 20 years.

Thrugelmir

IveSeenTheLight wrote: »

Man, spent a while trying to find the example I previously gave you of investing £30 or £32k in a property worth £150k £160k (representing a 20% deposit) or against putting in a bank and showing property to be the better investment regardless of HPI.

Had enough searching but will do again if you really want me to.
I'm sure you remember.

Did come across this post which was interesting and relevant

Lets agree to differ on this point. Only time will tell how the whole financial situation is going to unwind in the years ahead. There'll be winners and losers.

The number of CTL mortgages is an unknown quantity , but I've read of posters with up to 4 properties in addition to their private residence with both the Nationwide and the Skipton BS's. So the true number of "BTL" mortgages is clearly understated.

Its the CTL borrowers that are screaming blue murder as their interest rates get hiked. Unfair contract terms, breaking contractual terms etc. Writing to the FSA and the FOS. Obviously took no professional advice what so ever before building their empires.

I stand to be corrected but I have severe reservations currently as some lenders have yet to harden their rules.

IveSeenTheLight

Thrugelmir wrote: »

Lets agree to differ on this point. Only time will tell how the whole financial situation is going to unwind in the years ahead. There'll be winners and losers.

The number of CTL mortgages is an unknown quantity , but I've read of posters with up to 4 properties in addition to their private residence with both the Nationwide and the Skipton BS's. So the true number of "BTL" mortgages is clearly understated.

Its the CTL borrowers that are screaming blue murder as their interest rates get hiked. Unfair contract terms, breaking contractual terms etc. Writing to the FSA and the FOS. Obviously took no professional advice what so ever before building their empires.

I stand to be corrected but I have severe reservations currently as some lenders have yet to harden their rules.

What's a CTL?

I understand why you want to agree to differ.

I am an investor, so I understand the market.
You've clearly shown concepts that shows you are intelligently thinking about the investment but do not understand the full detail i.e. using the 300 month average repayment amount as a requirement for the first month

Here's a post if you remember where I outlayed an investment opportunity.
Interesting that you dod not discredit it, but simply queried who would have the deposit for the investment

http://forums.moneysavingexpert.com/showpost.html?p=25912167&postcount=190

JonnyBravo

CTL = Consent to Let

Thrugelmir

IveSeenTheLight wrote: »

I am an investor, so I understand the market.

Not disputing that. I know many successful people and equally those that tried and failed through no fault of their own.

I'm more than happy to "crunch numbers" on a compound basis rather than simple average over a 300 month period. To achieve a desired result from a low starting point is far more challenging.

I erred on the side of caution with a low interest rate of 5% over the entire 25 years. As I didn't wish to be accused of delibrately weighting the figures against.

Thrugelmir

chucky wrote: »

The Mortgage Works - decent rates but fees may be an issue with the wrong LTV. the commercial route is a good option at the moment.

So which of their products do you regard as a reasonable? In terms of interest rate and fees. If you were to invest now.

chucky

Thrugelmir wrote: »

So which of their products do you regard as a reasonable? In terms of interest rate and fees. If you were to invest now.

i have no interest in buying at the moment - there are no properties at the right price.

just looking at finance is only one side of the investment transaction and is pointless.

mortgage interest is an important cost that is relative to the price of the property being purchased vs rental income - it's a bit pointless just looking at just mortgages.

HAMISH_MCTAVISH

carolt wrote: »

Oh diddums, however will they cope.

Forced to own only 1 house each!

And they might have to pay for their pensions themselves, instead of getting me to pay for them.

My heart bleeds for them.

Well that turned into yet another damp squib. Minimal changes, no BTL selloff.

So do you ever tire of being so spectacularly wrong?:D

JonnyBravo

To be fair to carolt, she didn't write the article, so I'm not sure she was "wrong"
She did however post it hoping it would come to pass, so I think a more appropriate question would be to ask her how she feels now the politicians have not made changes to help her.
So, I'll ask.... where do you see the market going now BTL (and other capital gains) haven't been targetted in the way the article predicted carolt?