Buy to let no longer worth it?

deaston

mrginge wrote: »

Then you have demonstrated pefectly that you don't really understand what is involved in BTL.

I think I demonstrated that in my first post when I said "I'm hoping to buy a buy to let flat next year". I've not suggested in anyway I'm some sort of property expert, hence why I've come here looking for some advice.

mrginge

deaston wrote: »

I think I demonstrated that in my first post when I said "I'm hoping to buy a buy to let flat next year". I've not suggested in anyway I'm some sort of property expert, hence why I've come here looking for some advice.

Then in answer to your original question, the impact of the changes will depend entirely on your personal tax situation. If you are basic rate taxpayer and your rental income will not push you into the higher rate then you won't be affected.

deaston

mrginge wrote: »

Then in answer to your original question, the impact of the changes will depend entirely on your personal tax situation. If you are basic rate taxpayer and your rental income will not push you into the higher rate then you won't be affected.

I'm not basic rate. But, again, you've missed the point of my first post - you really should read things more carefully.

I wasn't asking people to comment on how it might affect me, but instead wondering if any current landlords see the change as becoming an issue for them.

Are you a landlord?

marksoton

deaston wrote: »

I'm not basic rate. But, again, you've missed the point of my first post - you really should read things more carefully.

I wasn't asking people to comment on how it might affect me, but instead wondering if any current landlords see the change as becoming an issue for them.

Are you a landlord?

In effect you were by the precursor you are thinking of purchasing a BTL.

And you've done it in a pretty rude and disingenuous way judging by some of your responses.

TonyMMM

deaston wrote: »

For me, it'd be purely an investment. I've no interest in starting a buy-to-let business.

As others have said, that sentence makes no sense.

You will be running a business with all the legal responsibilities of a LL (even if you use an agency to manage the property).

HappyMJ

deaston wrote: »

For me, it'd be purely an investment. I've no interest in starting a buy-to-let business.

That will eat into your profit. You can buy shares in a fully managed property investment trust in a stocks and shares ISA and the management of every aspect is not your responsibility.

If you have no interest in maintaining a property then you will to hire someone to paint the property and to clean between tenancies. All that costs money and you can't get the tenant to pay for it. If you do the work yourself you save money.

There is quite a lot of work involved. It looks very easy to most people but it isn't. I spend on average about 1 hour per week managing the property but that's averaged over several years. Most of the work is done in a week or two every now and again and I can't schedule that it's just whenever the property is vacant. In the past 3 months I've probably spent 15 minutes in all managing it and all that was is to ring the gas engineer asking them to ensure they make an appointment with the tenant to get a gas safety certificate.

If I were to have 40 plus properties I'd really consider that as a full time job managing them all and sod's law you'll have more than one void and not enough time to get the work done before the next tenant moves in.

mrginge

Oh I do apologise for not sticking to your rule book. Let me provide you with a more appropriate answer to your original query.

deaston wrote: »

I'm hoping to buy a buy to let flat next year, but came across this article. Any current landlords see this as an issue?

Yes they do.

booksurr

AlexMac wrote: »

but as that only applies if you earn over the 20%/40% tax threshold its not an issue for us. I think we may be a grand or so worse off, especially as my wife (who jointly owns the two gaffs) is well under the threshold and I'm barely nudging it.

Obviously it will hit you if you have a big portfolio, gross earnings including rents and salry/pension well over the 20% (£42,385)
income tax threshold or are highly leveraged with a mortgage...

don't forget that your rental profit is added to your other income to determine if you have crossed the basic rate threshold. Under the new rules your rental profit will be higher as any mortgage interest is no longer deducted before arriving at the rental profit value so you may find yourself in higher rate territory for the first time.

You are quite right that highly leveraged LL will be hit very hard by the new rules and those with large leveraged portfolios will face negative cashflow by 2020/21 when the transitional relief is removed, and those with even modest leverage will face higher income tax bills as more of their total income will be exposed to higher rate tax

so as others said earlier in this thread, entering the BTL market now is best done with low leverage if yield is important to you

deaston

mrginge wrote: »

Oh I do apologise for not sticking to your rule book. Let me provide you with a more appropriate answer to your original query.



Yes they do.

Wow, your cage is easily rattled! You need to learn to relax and not let random people on the internet bother you so much.

booksurr

deaston wrote: »

I'm not basic rate. But, again, you've missed the point of my first post - you really should read things more carefully.

deaston wrote: »

Wow, your cage is easily rattled! You need to learn to relax and not let random people on the internet bother you so much.

and you should understand that posting on a public forum produces varied responses some of which you apparently fund unacceptable hence your immoderate comments in response to some posters