Buy to let no longer worth it?

CLAPTON

marksoton wrote: »

They're not doing it from the kindness of their heart, and they're not "helping" anyone. They are running a business and have chosen a niche market. Probably because their property wouldn't rent within the "normal" sector.

So enough of that pious BS please.

you mean like 99.99% of all businesses and most people who work for a living and expect to be paid for it.
you I know work for nothing except the glory

marksoton

CLAPTON wrote: »

you mean like 99.99% of all businesses and most people who work for a living and expect to be paid for it.
you I know work for nothing except the glory

Err, that was exactly my point...

summerholiday

marksoton wrote: »

Err, that was exactly my point...

Your comment came over very differently.

I am particularly not religious nor pious. If I was renting out a property I would not let it to those whose history points to them being trouble and not look after the property.

Of course, it is a business transaction, that is life, regardless if private landlord or governmental-run council housing - the latter of which use my taxes to ensure damage to the publicly-owned properties is rectified without recourse to erring tenants and perfectly good windows are completely changed.

I have seen so much money wasted on uncared-for council housing and the ease of use into its seemingly inexhaustable 'slush fund'.

I think that must be where the BS was.

Miss_Samantha

Of course rules may change.
However, here the government is going against basic accounting and tax rules:
1. Profit is worked out as 'sales' minus expenses.
2. Tax is collected on profit.

The 118 forum is a very good resource for landlords, where you get valuable advice from people who actually know the topic and are able to discuss or debate in a civil and professional way.

This is not the case on all forums, shall we say.

Prothet_of_Doom

HappyMJ wrote: »

5 years ago in November 2010 my house was worth £125,000. Today it's worth about £140,000.

8 years ago in November 2007 my house was worth £160,000.

13 years ago in June 2002 I purchased my house for £80,000.

Timing is the key. If I had sold in 2007 I would have crystallized a large profit but people were buying in huge numbers as they were seeing the huge gains made over the previous 5 years. If I had bought in 2007 I would be in negative equity even today.

Indeed. We are investing in a £130K house (up north)

The Vendor paid £147K in Sept 2007.

Thrugelmir

Miss_Samantha wrote: »

Of course rules may change.
However, here the government is going against basic accounting and tax rules:
1. Profit is worked out as 'sales' minus expenses.
2. Tax is collected on profit.

The Government sets the taxation rules. Always has done. To suggest otherwise shows the naivety of many people who are running a BTL business.

There's a fundamental difference between profit and taxable profit if you wish to get technical and the accounting gets a little more complex rather than just basic.

Miss_Samantha

Thrugelmir wrote: »

The Government sets the taxation rules. Always has done. To suggest otherwise shows the naivety of many people who are running a BTL business.

Nothing naive here, nor is anyone suggesting that the Government cannot set taxation rules.

However, we ought to expect sensible and fair tax rules (and law).

The government has in effect decided to set income tax to more than the income it relates to.

I'd like to see people's reactions if the government suddenly decided to tax them at £1.50 to the pound. I don't think they would be naive to be outraged.

Thrugelmir

Miss_Samantha wrote: »

Nothing naive here, nor is anyone suggesting that the Government cannot set taxation rules.

However, we ought to expect sensible and fair tax rules (and law).

The government has in effect decided to set income tax to more than the income is relates to.

I'd like to see people's reactions if the government suddenly decides to tax them at £1.50 to the pound. I don't think they would be naive to be outraged.

The answer is simple, borrow less. The Governments plans have given people plenty of time to exit if they wish.

booksurr

Miss_Samantha wrote: »

Nothing naive here, nor is anyone suggesting that the Government cannot set taxation rules.

However, we ought to expect sensible and fair tax rules (and law).

The government has in effect decided to set income tax to more than the income it relates to.

I'd like to see people's reactions if the government suddenly decided to tax them at £1.50 to the pound. I don't think they would be naive to be outraged.

the crystal ball we were using at the company technical tax update day last week drew attention to the possibility (probability?) that after 2020/21 (when the transitional relief is finished and only basic rate relief remains) interest rate relief will be entirely abolished so that it harmonises with the treatment of residential mortgage relief.

After all do you remember the withdrawal of MIRAS - it was not that long ago and now it has gone it leaves BLT grossly "unfair" in comparison. A fair tax rule would therefore be no finance costs relief at all for anyone.

padington

Thrugelmir wrote: »

The answer is simple, borrow less. The Governments plans have given people plenty of time to exit if they wish.

Planty time to increase the rent too.