if Goerge Osbourne takes away tax benefit for BTL won't rents just go up?

Generali

lisyloo wrote: »

Well I think you're actually wrong in this case.
The same bank pays me more to save their own money than they do to borrow it, so they are paying me.
It might be an exception but you need to be careful when you say never, b ecause you're wrong in this case.

Banks care about their average cost of funding. You can't compare your mortgage rate with the rate you get on your savings.

chucknorris

JencParker wrote: »

Or there could be a significant reduction in 'demand' to be btl landlord! In which case, more low end housing would be available for sale to ftb - not a bad thing at all. And because so many who could not get on the housing market are now able to buy, there would not be the demand for rental property!

There isn't any 'or' about it, that is exactly why I said the supply of rented housing would be reduced (because some landlords would sell up and leave the market, and less new landlords would enter the market). As I said above, there will always be a strong demand for London (where my property is) rental property.

lisyloo

You can't compare your mortgage rate with the rate you get on your savings.

It's not my savings it's their money borrowed from them.
If you don't want to compare 2 numbers and make a profit that's your choice, but I can assure you I CAN compare 2 numbers and work out which one is bigger.
You can put whatever semantics you want around it but if someone charges you 1% for borrowing some money and pays you 4% for saving it then there's a profit to be had. The naysayers or those who want to put semantics around it don't make any difference to the fact that some of us can make money.

Still I guess I don't need to care too much about what semantics you put around it. I'm getting paid.

benb76

The removal of loan interest as a legitimate expense is just a fantasy of the HPC crowd. It's not something that's going to happen.

Many of them don't understand it anyway. There was one poster who said he was considering setting up a Ltd company to buy his house so that he could rent it back to himself and claim the so-called tax benefit. No, I've not worked this one out either!

Thrugelmir

lisyloo wrote: »

Well I think you're actually wrong in this case.
The same bank pays me more to save their own money than they do to borrow it, so they are paying me.
It might be an exception but you need to be careful when you say never, b ecause you're wrong in this case.

The bank doesn't view your account in isolation. That's why we are both right. As you are taking the micro view and I'm taking the macro view. The bank will simply adjust it's own margins to compensate across it's entire lending book. No one foresaw the current enviroment.

mwpt

benb76 wrote: »

The removal of loan interest as a legitimate expense is just a fantasy of the HPC crowd. It's not something that's going to happen.

No, it's not going to happen, because it might have a downward affect on the housing market. In fact, would it might even go the other way at some point with negative gearing, as they have in Australia. Which would light another rocket under prices.