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Starter homes being bought by BTL LLs
Comments
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So we are all still paying the equivalent of 17.5% VAT
20% and 5% depending on the service/product IIRC."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Homeowners are visionaries that build up nest eggs, those too scared to buy will rent for the rest of days and pay somebody else's mortgage for them0
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shortchanged wrote: »How would they fare with future interest rate rises considering their initial capital outlay is likely to be very high?
In the same way they would cope with;
(from other thread)Graham_Devon wrote: »Since 2008, wages have risen on average by 6%.
However....
Rent up 24%
But instead of paying someone else's mortgage, they could be building equity, maybe even overpaying, so that any rate rises - if they happen at all - can be cushioned.0 -
moneyinmypocket wrote: »Homeowners are visionaries that build up nest eggs, those too scared to buy will rent for the rest of days and pay somebody else's mortgage for them
Not so much visionaries, we just want somewhere to live without being at the mercy of 2 months notice from a stranger.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
Don't forget everyone .. Your average BTLer hasn't got a pot to p155 in.
Their advantage over FTBs derives from being able to borrow a deposit by remortgaging and treating anticipated rent as income.0 -
Don't forget everyone .. Your average BTLer hasn't got a pot to p155 in.
Their advantage over FTBs derives from being able to borrow a deposit by remortgaging and treating anticipated rent as income.
Does that include you?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
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Never done BTL mate.
My apologies I thought you were in debate with CN last night.:oI've been at it for longer than him.
What do you want to know mate?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »My sincere apologies I thought you were in debate with CN last night.:o
Oh I see. My post above that you quoted was a response was to someone asking CN for advice because he was a "property expert" not a BTLer
Over the years I have owned many properties bought as either a home, for flipping or renovating, convering into flats, whatever.
During this time, I have become an accidental landlord many times and I do still own a house which I rent out (mortgage free obviously).
However, I have never bought a house with the sole intention of letting it.
Hope that clears it up.0 -
shortchanged wrote: »Could start by removing some of the advantage that BTL'ers have over FTB's by removing the tax relief on interest payments.
BTL is a business and receives similar tax relief as other businesses, but let's presume that tax is payable over the mortgage interest as well.
How much would that impact on the profits?
What are the LL's options?
1) Sell.
2) Increase rents to cover the losses.
Let's presume it's 50 / 50.
Another 750,000 or so properties pass from LL's to owner occupiers.
You've then reduced the rental market significantly and restricted the options of properties that tenants may have.
Your also restricting new tenants to the rental market.
What's likely to be the impact on rents if there is reduced supply?
NEXT:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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