Not a time to be a buy-to-let landlord

Mistermeaner

Ooooo a leap year. That means we all work 1 day extra without pay

wotsthat

Thrugelmir wrote: »

There'll be points of discussion during 2016 and forward from there. Let's see how events unfold. Much work to be done. :rudolf:

I think it would be rather bad form if things went tits up in 2016 and you attempted to say you called it based on your cryptic foretells of doom.

Electrum

I just heard there are many more foreign investors selling up because of the changes, thew question is who on earth will buy these empty properties in London?

Not local people on average earnings thats for sure?

padington

Electrum wrote: »

I just heard there are many more foreign investors selling up because of the changes, thew question is who on earth will buy these empty properties in London?

Not local people on average earnings thats for sure?

To my knowledge the tax changes don't directly effect forign buyers.

lisyloo

Electrum wrote: »

I just heard there are many more foreign investors selling up because of the changes, thew question is who on earth will buy these empty properties in London?

Not local people on average earnings thats for sure?

One answer is people on higher earnings.

Another answer is that demand falls and so do prices. That would be nice for buyers but no sign of it yet.

westernpromise

Electrum wrote: »

I just heard there are many more foreign investors selling up because of the changes, thew question is who on earth will buy these empty properties in London?

Not local people on average earnings thats for sure?

The Chinese won't sell. They never do. When did you ever read a newspaper story about the Chinese selling something?

buglawton

padington wrote: »

To my knowledge the tax changes don't directly effect forign buyers.

The implication is, foreign sellers offloading to local UK people, and trying to do it before the Apr 5th deadline.
However, rich foreigners are not really likely to sell to poorer locals at a loss.

Aberdeenangarse

Electrum wrote: »

I just heard there are many more foreign investors selling up because of the changes, thew question is who on earth will buy these empty properties in London?

Not local people on average earnings thats for sure?

Who told you? Some bloke down the Pub?

anchovypizza

It is only anecdotal, but I have seen four instances now where BTL landlords are selling up, all in the Hertfordshire and South Cambridge area, with three fold or more what you would put into the bracket of disgruntled.
I seriously think this is going to play out like much of the media reporting is reporting things, to start with anyway. Some of the early birds who got in on the act in the early 2000's will pocket the profit with the attitude of "all good things come to an end", good luck to them for their insight or even luck.

Then there will be those who came into the game late or the ones that kept leveraging as high as they could get away with. They will probably stick it out for a while, seen the same thing with share buying, they get in when the money has been made and stick with their horse until it is too late. These are the guys now hiring lawyers, starting petitions and basically throwing their teddies out of their pram on 118 as they threaten homelessness and rent rises to tenants.

Will be an interesting year.

padington

anchovypizza wrote: »

It is only anecdotal, but I have seen four instances now where BTL landlords are selling up, all in the Hertfordshire and South Cambridge area, with three fold or more what you would put into the bracket of disgruntled.
I seriously think this is going to play out like much of the media reporting is reporting things, to start with anyway. Some of the early birds who got in on the act in the early 2000's will pocket the profit with the attitude of "all good things come to an end", good luck to them for their insight or even luck.

Then there will be those who came into the game late or the ones that kept leveraging as high as they could get away with. They will probably stick it out for a while, seen the same thing with share buying, they get in when the money has been made and stick with their horse until it is too late. These are the guys now hiring lawyers, starting petitions and basically throwing their teddies out of their pram on 118 as they threaten homelessness and rent rises to tenants.

Will be an interesting year.

The tax changes don't effect foreigners directly or limited companies. i read somewhere that means it only effects 20% of the buy to let market.Which means only effects a very small proportion of the whole market of possible buyers and sellers. Also the slack will be taken up by the big boys, dont forget there a feeding frenzy to get in early before April ...

Read the comment at the bottom of this article, it's really the final definitive words on the whole issue for me ....

http://www.ibtimes.co.uk/uk-house-prices-it-rip-buy-let-investors-after-george-osborne-tax-hike-1535967


I also get the idea from reding between some lines that Osborne has also made clear off the record that no more landlord related changes will be introduced. Limited companies will remain exempt.

It will be an interesting year because we will realise that supply and demand is much more of a powerful force that any tinkering changes Osborne has made yet.