Why do people resent buy-to-letters so much?

BananaRepublic

cells wrote: »

Landlords are seen as bad becuase most people simply don't see or understand capital. They probably think the landlord only does a few hours work a month and gets £2k not realizing its a hugely capital intensive business that is also highly taxed.

In my past experience landlords do not do much work, apart from the frantic rush when purchasing the property. Neither do they pay much tax while letting the house. The house is taxed when sold, as CGT, as per other investments, but that is only on the gain, and since it is highly geared, the profits are potentially high, so they cannot complain.

BananaRepublic

Somerset wrote: »

Just curious, if the btl'ers disappeared overnight, where would the renters rent ? Some might buy Obviously I'm taking councils and HA's out of the equation as they can't service the current demand. So where do the renters live ?

BTL raises the price by increasing demand. Remove the BTL landlords, reducing the prices, and many of the people unable to buy now will be able to buy. Simples. BTL in effect partly creates its own customer base by pricing them out of the housing market.

chucknorris

BananaRepublic wrote: »

In my past experience landlords do not do much work, apart from the frantic rush when purchasing the property. Neither do they pay much tax while letting the house. The house is taxed when sold, as CGT, as per other investments, but that is only on the gain, and since it is highly geared, the profits are potentially high, so they cannot complain.

Could you please explain this to the inland revenue because they seem to believe that I should be paying 40% on all my taxable rental income (My salary, interest and dividend income takes me past the 20% tax band, as does my wife's too).

Somerset

BananaRepublic wrote: »

BTL raises the price by increasing demand. Remove the BTL landlords, reducing the prices, and many of the people unable to buy now will be able to buy. Simples. BTL in effect partly creates its own customer base by pricing them out of the housing market.

You haven't answered the question. I've allowed for some buying but we're still left with a pool of renters. Hypothetically if btl disappeared, where would those renters live ?

cells

BananaRepublic wrote: »

BTL raises the price by increasing demand. Remove the BTL landlords, reducing the prices, and many of the people unable to buy now will be able to buy. Simples. BTL in effect partly creates its own customer base by pricing them out of the housing market.

There are some unmortgageable properties and they do indeed go for a discount. However not substantially maybe 10-30% and at least in London that only takes prices back 1-2 years a time when just as many people were complaining property was overpriced

Crashy_Time

wotsthat wrote: »

I'd guess it's jealousy.

People are laughing at BTL`ers now, didn`t you notice? :rotfl:

kinger101

mwpt wrote: »

Actually, I think pointing out the cognitive dissonance does bring something to the debate. I believe you've just shown it again. You're trying (and failing) to convince me that BTL landlords do not skew the market, and you're trying to use a straw man argument "who will provide rental accommodation" when I never said anything about eliminating private landlords.

I'm not sure you know what cognitive dissonance means. I suspect BTL landlords don't have any moral conflicts with what they are doing, and therefore do not experience it. I understand there is a market for rental property, have rented myself, and had no particular objections to paying rent to a private landlord. Therefore, I didn't experience it.

I never said BTL landlords don't skew the market, but I believe their effect is minor. They are in the market because there is a demand for rental properties. Tenants need a roof over their head just as much as homeowners. There are many countries with a lower proportion of homeowners where housing is more affordable.

kinger101

Crashy_Time wrote: »

People are laughing at BTL`ers now, didn`t you notice? :rotfl:

You move in some strange circles.

Crashy_Time

Masomnia wrote: »

And the very people who want to buy homes no doubt. Some of my friends are quite pro a house price crash, and I always tell them to be careful what they wish for. No good if prices tank and you lose your job because the economy goes with it!

How do you see falling house prices impacting the economy?

lush_walrus

It's an interesting read, I remember when I first joined this site more than ten years ago the same old chat of house prices are going to crash, btl pushing prices up. How life is unfair why should X y z have this and a b c have nothing, how if they were landlords they would be so amazing not like the big baddies that were then. Fact is if those moaning then had got on with life and done what they were jealous of they would have had money now to do what they wanted to. But nope they were waiting for the crash...ten years on it still hasn't come.

Rather than be jealous be the person others are jealous of...morning and wishing changes nothing. Maybe this time there will be a crash maybe everyone will loose everything who knows but I for one would rather be on the side of giving something a go than moaning - and so far it's brought me the life I want to live.