Renting in your 40's and staring into the abyss

ukcarper

Looking at Land Registry only regions that are above longterm peak are London, South East and Essex so it's perfectly possible that someone buying at peak could have lost money, but if they had a 25 year mortgage they would have paid about 25% off their mortgage.

It would seem to show that the problem of rising house prices is confined to above regions.

Crashy_Time

Cornucopia wrote: »

I don't think that's true. It was inevitable that the Government would make a grab for more tax from BTL (since it was probably under-taxed in the first place). But then, arguably so is private ownership.

I wonder if the next target will be capital gains on all property sales, maybe at a rate of 1-2%, just to see what the effects might be. HPC people should be in favour of this, BTW, as it would take some of the heat out of the market.

The tax authorities have always had the hots for any individual with additional earnings. It's just that BTL (and eBay and all sorts of other things) have made more people additional earners than ever before.

Many people over the years have given me the impression that they thought BTL was the new pension replacement, with protected rights and tax favourable status etc. Many small BTL landlords don`t have a clue what they have got themselves into IMO.

Crashy_Time

wotsthat wrote: »

All I hear is wolf! wolf!

I still don't see what's so exciting about finding some houses that have sold for less than their last purchase price. It could be novelty value I suppose as they are become rarer. Don't really see why you've shoehorned a few new builds selling at a lower price into being related to tax on BTL's. For all you know it's BTL landlords buying them to take advantage of the opportunity.

I've seen some of the threads on HPC about the BTL tax changes. I did note one bright spark warned against repeated 'premature congratulation'. A condition you've suffered with for many a long year.

A few years ago losing money on a new build was not something that the average punter would really have considered too much, they believed the "not enough" mantras, and a few years ago most BTL`ers were just loading up with as much debt and property as they could get hold of, now they have to pause and think about their bottom line (if they have any brain cells that is) and if they should really be there. As I said, sea change.

Crashy_Time

This discussion is more related to the renting/BTL topic


http://www.housepricecrash.co.uk/forum/index.php?/topic/205857-how-osborne-could-kill-btl/page-6

Mistermeaner

Crashy_Time wrote: »

This discussion is more related to the renting/BTL topic


http://www.housepricecrash.co.uk/forum/index.php?/topic/205857-how-osborne-could-kill-btl/page-6

Only because your talking to yourself

ukcarper

Crashy_Time wrote: »

A few years ago losing money on a new build was not something that the average punter would really have considered too much, they believed the "not enough" mantras, and a few years ago most BTL`ers were just loading up with as much debt and property as they could get hold of, now they have to pause and think about their bottom line (if they have any brain cells that is) and if they should really be there. As I said, sea change.

Have you any stats to show most BTLs were loading up with as much debt and property as they could I doubt it.

Cornucopia

Crashy_Time wrote: »

Many people over the years have given me the impression that they thought BTL was the new pension replacement, with protected rights and tax favourable status etc. Many small BTL landlords don`t have a clue what they have got themselves into IMO.

I think there are naive BTL LLs out there, and I've met one or two myself. However, the Lenders are wise to some of the issues, and the BTL equivalent of affordability checks do offer a level of protection against poor decisions.

Crashy_Time wrote: »

A few years ago losing money on a new build was not something that the average punter would really have considered too much, they believed the "not enough" mantras,

There has always been the potential for there to be a premium on newbuild. Even so, I have done well with some newbuilds over the years. I think the issue is whether it is a forced sale or not. If not, you simply hang on for the market to catch up on the newbuild premium.

and a few years ago most BTL`ers were just loading up with as much debt and property as they could get hold of, now they have to pause and think about their bottom line (if they have any brain cells that is) and if they should really be there. As I said, sea change.

Not sure what you mean by the "brain cells" remark. When a small group of people starts looking at property in a different way to everyone else, they probably won't all see it the same way, and some of them may have a flawed view. None of that really makes them stupid in the traditional sense, though.

Crashy_Time

Mistermeaner wrote: »

Only because your talking to yourself

Pardon? :money:

Crashy_Time

ukcarper wrote: »

Have you any stats to show most BTLs were loading up with as much debt and property as they could I doubt it.

No, no stats. What is your view on new builds dropping in price?

ukcarper

Crashy_Time wrote: »

No, no stats. What is your view on new builds dropping in price?

In the past they behaved like old properties as they were just bare houses with no incentives now they have white good carpets and buying incentives which increase price compared to older homes so they do drop in value or not increase as much. This can be shown by a estates near me when they were built they we the most expensive in area now they are amongst the cheapest. They have increased in price by about 25% since 2007.