Get ready for more taxes on BTL

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realwildone wrote: »

Comments like this are crazy. BTL has ruined the lives of thousands of people who now have to rent rather than the excitement of buying and owning their own home. Many more are now subjected to debt slavery. The lives of thousands of people will be improved by the introducing of tax laws to kill off the parasites who prey on these people.

These parasites enjoyed the ability to buy their own first home at one time and now they stop others from enjoying that same benefit.

Heres another crackpot for you -

http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=421642&in_page_id=19&in_author_id=1865

thesaint

Ad wrote: »

The rental market will always exist as there will always be a demand for it. Finally, the penny drops.
No I don't always believe what I read in the newspapers or for that matter whats shown on the television news. Just the stories that support your theories.


The articles linked here are easily found in a couple of minutes. National newspaper websites are regularly updated and easily navigated.

So the writers of the pieces in the links shown here are all crackpots. Insults are the last weapon and the lowest form of reply.

Jeez i'm wounded.


Greed is also a deadly sin. Thank God I'm not self-righteous like your good-self

The market is not going to come crashing down around BTL'ers ears and you will be to busy on the internet to spot a bargain.

thelawnet

Graham_Devon wrote: »

It simply doesnt, and this is what people can't see. A mass selling of BTL homes would cause panic, pushing housing up even further. Then you have all the first time buyers still living with parents / in groups, who would see this, and push themselves further to get the BTL sales quicker, pushing the renters out of the market further.

I've said it on another thread slaming BTL. Force them to sell up and your forcing people to buy their own homes. That means maybe tripling the number of people needed to buy a house....that means houses become more valuable.

Eh? A mass-selling of BTL homes would need a mass of buyers.

There cannot be any more buyers than there are renters evicted by the sellers. So there is no possible net increase in demand - 100 tenants evicted by the BTL selling, 100 tenants want to buy a house, 100 more houses on the market, and as pointed out elsewhere, a concomitant increase in supply due to the sale of 'buy-to-sits'.

What would all those renting actually do if their landlords sold simutainiously (sp) over the space of 3 years because the taxman has pushed them to it? People think we have a 'have and have not' now!? Christ!

My guess would be they would offer to buy the property at a substantially reduced price. There would be no reason to pay current market rents because clearly if you could previously get £1000/month, but now only £600/month because of income taxes levied on the rent. Clearly if the yield falls by up to 40%, so does the capital value of the property. The seller will be forced to sell due to losing thousands per year. Also BTL would still be viable - for the people buying off the distressed sellers.

So Mr. X, who owns one BTL flat worth £240,000, which he rents at £1,000/month and pays interest-only mortgage at £1,000/month, would sell it to Mr. Y, a new BTLer, for £144,000, who then rents it out for £1,000/month, £600/month after tax, and pays £600/month I/O mortgage.

BTL as a business proposition need not be affected at all: a 40% fall in capital values would mean the new buyers would get the same or better yields (depending on the buyer's own tax position).

So BTL is just as viable (providing you buy at the new price), so there is the same supply of property for tenants to rent.

Also some property would be affected more than others. Prime rental material, i.e. flats, whose price is largely linked to BTL, would suffer more than 5-bed detacheds, which already have poor yields and a limited rental market, and where the price is based on utility for a family owner.

Somerset

realwildone wrote: »

I am not saying it is not taxed. I am saying it is not taxed enough. What now seems guaranteed now Gorden is in power. Is that tax relief will be scrapped and there may even be other taxes introduced on the BTL brigade. What a GREAT way to increase taxes, at a time when the coffers need boosting, at an industry which is hated by the majority of the population.

Pure economics here - if you over-tax something, you kill it. Now apart from destabilising the housing market, you only achieve one result for the poor tenant, a shortage of rentable housing stock. Now if the government and local councils aren't prepared to dramatically increase tax to fund a massive programme of building/buying, where does a renter rent from ? Governments have effectively opted out of social housing and instead left it to the private sector to pick up the overflow - take out the private sector and there's a shortage. Not everyone wants to, or will ever be able to afford to buy. Where do they live ? If you've ever been on a council 'waiting list' you'd know they are like gold-dust.

This reminds me of the argument about public transport vs cars. If everyone got out of their car and used public transport it would grind to a halt. It just doesn't have the capacity - it's struggling as it is.

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Somerset wrote: »

Pure economics here - if you over-tax something, you kill it. Now apart from destabilising the housing market, you only achieve one result for the poor tenant, a shortage of rentable housing stock. Now if the government and local councils aren't prepared to dramatically increase tax to fund a massive programme of building/buying, where does a renter rent from ? Governments have effectively opted out of social housing and instead left it to the private sector to pick up the overflow - take out the private sector and there's a shortage. Not everyone wants to, or will ever be able to afford to buy. Where do they live ? If you've ever been on a council 'waiting list' you'd know they are like gold-dust.

This reminds me of the argument about public transport vs cars. If everyone got out of their car and used public transport it would grind to a halt. It just doesn't have the capacity - it's struggling as it is.

When prices fall those trapped in rented accommodation will be able to buy again as they would have previously. The balance will be restored.

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thesaint wrote: »

The market is not going to come crashing down around BTL'ers ears and you will be to busy on the internet to spot a bargain.

Price falls are already happening check out the recent Land registry figures. Accept it the parties over the hangover is going to be long.

The smart money has already left.

mystic_trev

realwildone wrote: »

There is always stupid ideas like:-

Working or Starting a business

I''m [STRIKE]retard[/STRIKE] retired!

thesaint

Ad wrote: »

Price falls are already happening check out the recent Land registry figures. Accept it the parties over the hangover is going to be long.

The smart money has already left.

I am not interested in the land registry figures as i'm not selling. Doh.

When the government get around to evicting my tenants and selling it from under my nose to some FTB'ers will be the day you start making some sense on this forum (never).

Gorgeous_George

Increased costs of running BTL = increased rent.

May as well just add VAT to rent.



GG

Somerset

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When prices fall those trapped in rented accommodation will be able to buy again as they would have previously. The balance will be restored.

Your assumption is everyone wants to buy. Why assume that ? Job insecurity, changing jobs, living on benefits, low wages etc. There have always been people who either can't or don't choose to buy.

My parents couldn't afford to buy 40 years ago, my dad earned too little plus he didn't want the worry of the bills etc. He preferred the security of renting from the council.

Property costing more than many people can afford is nothing new. Maybe it's just expectations that have, ie ' I SHOULD be able to afford to buy. Why ?