Starter homes being bought by BTL LLs

shortchanged_2

Conrad wrote: »

Ermm same as we all did back in the day when rates went up and down and often around 8%.

So these FTB'ers today with mortgages of say £120,000+ will be able to cope just as well as FTB'ers of 12 odd years ago who probably wouldn't have needed a much bigger mortgage than £60,000 to get a similar house.

25 year repayment mortgage of £120,000 @ 8% = £936 a month

25 year repayment mortgage of £60,000 @ 8% = £468 a month

Do you think that earnings have gone up that amount over the past 12 odd years to cope with that difference?

Conrad

shortchanged wrote: »

So these FTB'ers today with mortgages of say £120,000+ will be able to cope just as well as FTB'ers of 12 odd years ago who probably wouldn't have needed a much bigger mortgage than £60,000 to get a similar house.

25 year repayment mortgage of £120,000 @ 8% = £936 a month

25 year repayment mortgage of £60,000 @ 8% = £468 a month

Do you think that earnings have gone up that amount over the past 12 odd years to cope with that difference?

99% of us never get anywhere near a repossession hearing, we cope, both partners work, we rent a room, life goes on. Life always goes on, always will.

You guys are so damned bleak.

ILW

shortchanged wrote: »

Yes. Because of the nature of the housing market i.e they are places to live, someone is getting an unfair advantage over a competitor.

A competitor would be another BTL buyer.
Would you come up with a whole range of business types that have different tax regimes because they are in competition?

shortchanged_2

Conrad wrote: »

99% of us never get anywhere near a repossession hearing, we cope, both partners work, we rent a room, life goes on. Life always goes on, always will.

You guys are so damned bleak.

It's because we are at a dangerous junction Conrad.

Low interest rates with high capital expenditure as I have given an example of, have the potential to seriously cause a great deal of problems in the future when interest rates rise.

Of course you can take turnbulls mentality and bury your head in the sand that interest rates will never go up,

shortchanged_2

ILW wrote: »

A competitor would be another BTL buyer.
Would you come up with a whole range of business types that have different tax regimes because they are in competition?

I don't care ILW. I think it is unfair that you have say 2 people going after the same property and one is entitled to a tax break and the other isn't. That in my mind is not fair.

Conrad

shortchanged wrote: »

It's because we are at a dangerous junction Conrad.

Low interest rates with high capital expenditure as I have given an example of, have the potential to seriously cause a great deal of problems in the future when interest rates rise.

Of course you can take turnbulls mentality and bury your head in the sand that interest rates will never go up,

Don't you think about the past? Seriously?

In ever year of my life there has always been predictions of great upheaval about to besige us, yet folk like you ALWAYS tell us the next big issue will be the big one.

Please I emplore you to check newspapers from 1970, 1975, 1985 and so on.
There are always great fears on the horizon.

Watch Jimmy Carters address to the nation 1977. He said a great perril was upon them as it was a certainty peak oil was just around the corner. All manner of dire predictions told us the USA was going to enter civil war and run out of food.
Oil promplty fell to all time lows FOR 20 YEARS and fuelled a great period of prosperity:beer:

What should we have done, forever sat on our hands?

shortchanged_2

Conrad wrote: »

Don't think about the past? Seriously?

I'm not Conrad I'm looking to the future.

Mr._Pricklepants

shortchanged wrote: »

I don't care ILW. I think it is unfair that you have say 2 people going after the same property and one is entitled to a tax break and the other isn't. That in my mind is not fair.

Yer well, it's not fair I have to pay VAT on goods in a shop either while for others they are deductible.

Come on, shorty....

shortchanged_2

Mr._Pricklepants wrote: »

Yer well, it's not fair I have to pay VAT on goods in a shop either while for others they are deductible.

Come on, shorty....

Good point prickypants. Still doesn't mean I think it is fair that BTL'ers get a tax relief.

Percy1983

ILW wrote: »

So BTL would be treated diffently to any other business in the UK?

Most other businesses involve a person or people doing some work for the money, BTL not so much so maybe it should be treated differently.