New higher stamp duty for BTL/second homes

the_flying_pig

apologies if already discussed elsewhere.


seems like quite a big deal to me? will definitely deter at least some casual BTL interest.

Conrad

You 'all may recall me banging on about 2008 mortgage regulation tightening would lead to generation rent. Almost everyone thought this a non point.


My prediction this time is thus;


Mortgage regulation still means millions of people will not be able to buy, and now that B2L is becoming more difficult, a good many of those renters will have nowhere to rent either.


The argument prices will fall is nonsense, and even if they did, those frozen out of the mortgage market cannot buy anyway.
Furthermore tax increases mean rising rents.


Bring on the new generation that can neither buy nor rent.

wymondham

This further alienates those who have saved all their lives. Firstly they were sacrificed by the decimation of interest rates, and now those who looked to put their money into something worthwhile are getting hammered again. Looks like it really is being encouraged for people to not save/be prudent..?

Why not give people proper, normal interest rates again - we've been on emergency rates for long enough now...

MARTYM8`

wymondham wrote: »

This further alienates those who have saved all their lives. Firstly they were sacrificed by the decimation of interest rates, and now those who looked to put their money into something worthwhile are getting hammered again. Looks like it really is being encouraged for people to not save/be prudent..?

Why not give people proper, normal interest rates again - we've been on emergency rates for long enough now...

And what about first time buyers who face having to save for a lifetime to raise the deposit/pay the mortgage on one home to own and live in.

There are a lot of socially useful ways to make money which add value to the world – buy to let is not one of them. You just leech off the hard work of others younger than you who weren’t around like you when property prices were much cheaper. They work in productive jobs – you take their hard earned cash which without you might support a mortgage in order to pay for your property portfolio.

This change makes a lot of political sense too – the Tories are the party of the homeowner. If they don’t do something soon their natural voting base will disappear as more and more young people won’t be able to buy.

So stop complaining – and be grateful you can afford to own several homes. Nearly ten million people rent privately now – they don’t have the financial or person security you do.

So boohoo!

CLAPTON

MARTYM8` wrote: »

And what about first time buyers who face having to save for a lifetime to raise the deposit/pay the mortgage on one home to own and live in.

There are a lot of socially useful ways to make money which add value to the world – buy to let is not one of them. You just leech off the hard work of others younger than you who weren’t around like you when property prices were much cheaper. They work in productive jobs – you take their hard earned cash which without you might support a mortgage in order to pay for your property portfolio.

This change makes a lot of political sense too – the Tories are the party of the homeowner. If they don’t do something soon their natural voting base will disappear as more and more young people won’t be able to buy.

So stop complaining – and be grateful you can afford to own several homes. Nearly ten million people rent privately now – they don’t have the financial or person security you do.

So boohoo!

the changes won't lead to any new houses being built so won't help young people

stator

Fantastic news for human beings. Bad news for the slumlords.

MJ12

MARTYM8` wrote: »

There are a lot of socially useful ways to make money which add value to the world – buy to let is not one of them.

It's easy to say there are other useful ways to make money, but can you suggest any?

leveller2911

MJ12 wrote: »

It's easy to say there are other useful ways to make money, but can you suggest any?

Collecting Antiques, cars, coins,stamps etc, in fact there are numerous ways to make money. Or just work hard and save your money in the best interest rated accounts you can get.As long as they are paying above inflation interest rates they are making money, or there are unit trusts,bonds etc many of which are not invested in property.

Houses should be seen as homes and not as an "investments"... They are far too improtant to be left in the hands of people like Fergus Wilson.

As an example of making money with antiques etc I collect antiques and in the past 5 years I've spent around £10k and they are currently worth around £14k if I sold them today.

I have plenty of experience of pricing work for BTL landlords and 95% of them just want to take the rent but have no interest in maintaining their properties. They don't live in them so they really don't give 2 hoots about the damp,dangerous windows or the kitchen thats falling apart.

wymondham

MARTYM8` wrote: »

And what about first time buyers who face having to save for a lifetime to raise the deposit/pay the mortgage on one home to own and live in.

There are a lot of socially useful ways to make money which add value to the world – buy to let is not one of them. You just leech off the hard work of others younger than you who weren’t around like you when property prices were much cheaper. They work in productive jobs – you take their hard earned cash which without you might support a mortgage in order to pay for your property portfolio.

This change makes a lot of political sense too – the Tories are the party of the homeowner. If they don’t do something soon their natural voting base will disappear as more and more young people won’t be able to buy.

So stop complaining – and be grateful you can afford to own several homes. Nearly ten million people rent privately now – they don’t have the financial or person security you do.

So boohoo!

I don't own several homes? If First time buyers purchase houses in these silly times then they are pushing prices up also??

cells

leveller2911 wrote: »

Collecting Antiques, cars, coins,stamps etc, in fact there are numerous ways to make money. Or just work hard and save your money in the best interest rated accounts you can get.As long as they are paying above inflation interest rates they are making money, or there are unit trusts,bonds etc many of which are not invested in property.

Houses should be seen as homes and not as an "investments"... They are far too improtant to be left in the hands of people like Fergus Wilson.

As an example of making money with antiques etc I collect antiques and in the past 5 years I've spent around £10k and they are currently worth around £14k if I sold them today.

I have plenty of experience of pricing work for BTL landlords and 95% of them just want to take the rent but have no interest in maintaining their properties. They don't live in them so they really don't give 2 hoots about the damp,dangerous windows or the kitchen thats falling apart.

everything is renting

if you work for someone you are renting them your time

if you rent a car you are renting it. if you buy a car you are renting it at a price per mile thats equal to the purchase - sale price divided by the number of miles you do

if you buy a bar of chocolate you are renting a small slice of time/machine/people at ever step of the growing to manufacturing to transporting stage

if you use electricity you are renting a slice of a coal mine and a slice of a coal power station and a slice of the national grid.

there is nothing wrong with renting out homes.
If you think homes are too expensive to rent then we need more homes. In 'mainland' France they have 500,000 fewer people but 4.5 million more homes so renting is cheaper. In Germany they have even more homes arguably a small surplus of homes and you can rent a 80sqm apartment for £350pm


also like it or not the rental sector pays far more taxes than the owner or social sector combined. The social sector pays no taxes. The owner sector pays stamp duty but (now at half the level) not income tax on the imputed rents. IF the 5 million rented homes were 1 million instead and the other 4 million were turned into a combo of social and owner homes then the tax take would definitely be lower and other taxes have to be higher

leveller2911

cells wrote: »

there is nothing wrong with renting out homes.
If you think homes are too expensive to rent then we need more homes. In 'mainland' France they have 500,000 fewer people but 4.5 million more homes so renting is cheaper. In Germany they have even more homes arguably a small surplus of homes and you can rent a 80sqm apartment for £350pm

also like it or not the rental sector pays far more taxes than the owner or social sector combined. The social sector pays no taxes. The owner sector pays stamp duty but (now at half the level) not income tax on the imputed rents. IF the 5 million rented homes were 1 million instead and the other 4 million were turned into a combo of social and owner homes then the tax take would definitely be lower and other taxes have to be higher

I'm not sure what point your trying to make.

I don't have a problem with landlords if they maintain their properties and charge a fair rent but from my experience they dont.

I quote all the time for LL through letting agents and the LL very rarely have the work done and that why I now charge £75 per quote because they are wasting my time , the work doesn't get done by other companies so I'm not too expensive. If they have the work done the £75-00 is deducted from the invoice. I do however have a major problem with Housing benefit that LL receive . You say they pay lots of tax but they also rook the taxpayer with the high rents they charge for HB purposes. It was only when the Government limited the rent they would pay in each area for a 2,3,4 bedroom property, until then LL extracted the urine.

We all pay tax btw , I'm not sure a BTL who has a Ltd company pays anything like the tax that an everyday Joe would pay. There were far too many tax loopholes in the Buy to let market so lets not kid ourselves they are the ones who pay huge amounts of tax and the public should be greteful for the service they provide.They pay tax like other industries such as construction, retail etc so remind me again how much tax Amazon,Costa etc paid over the past decade.

If your providing a service (ie rental property) it should at the very least meet a minimum standard and many are not. If you purchased a TV from John Lewis and it was damaged you would want a replacement or your money back. I've lost count at the number of BTL properties I have been in that are just plain dangerous, the letting agents pass on the information but the work never gets carried out.

At the very least the BTL market need regulating properly and its clearly not.LL should stop looking at the BTL as a get rich quick scheme and realise they have obligations. Are you denying that in the past BTL have had an unfair advantage over FTB when buying property?. Huge Tax breaks etc?.

Like I said , there are plenty of other ways to make money........