Just to Make Things Completely Clear

economic

Generali wrote: »

As a father with two pre-High School kids I get to have 2 days at home where I get to be a grown up for a few hours and then still get to be a Dad too. Then I spend three days a week saving the world.

It's bloody great.

What do you do? I'm looking for part time work ideally similar to you.

mwpt

michaels wrote: »

It's all good for smaller less professional landlords who don't earn above the higher rate tax threshold who can take advantage of higher earning larger more professional landlords divesting their properties.

Not so goo for the couples currently renting a two bed two bath property which will now be sold to a single couple and the other couple will have to move back in with their parents.....

This argument is dumb (note, you are smart though). If you can argue this way then I could equally say that since 2002 as OO occupation rate has decreased, tenants have had an easy ride.

It's clearly not so simple, and stating that this is all bad for tenants is rubbish, since something like 70% of tenants would prefer to own. It's actually good for tenants overall, but maybe, maybe, slightly bad for some tenants.

stator

It's good isn't it?
Over levereged debt based businesses are what caused the credit crunch and housing crisis. There should be huge penalties for trying to run a business that way.

cells

stator wrote: »

It's good isn't it?
Over levereged debt based businesses are what caused the credit crunch and housing crisis. There should be huge penalties for trying to run a business that way.

That's a stupid comment. Very few business run without any borrowings

michaels

mwpt wrote: »

This argument is dumb (note, you are smart though). If you can argue this way then I could equally say that since 2002 as OO occupation rate has decreased, tenants have had an easy ride.

It's clearly not so simple, and stating that this is all bad for tenants is rubbish, since something like 70% of tenants would prefer to own. It's actually good for tenants overall, but maybe, maybe, slightly bad for some tenants.

The argument is that we have a housing shortage and that generally rental properties have higher occupancy rates than OO (this is after all what the mortgage market supports) thus any move from rented to OO will merely exacerbate the shortage.

It is a bit like the argument that reducing mortgage availability (100% loans, self cert etc) would increase the chances for people to get onto the housing ladder...how did that work out?

PasturesNew

As a 20% tax payer .... what's the difference between a 20% tax-rate LL and a 40% tax rate LL?

Two people, buying identical houses at the same time and getting the same mortgages on the same rate and the same rent.

What'd be the sort of difference it'd make?

silvercar

PasturesNew wrote: »

As a 20% tax payer .... what's the difference between a 20% tax-rate LL and a 40% tax rate LL?

Two people, buying identical houses at the same time and getting the same mortgages on the same rate and the same rent.

What'd be the sort of difference it'd make?

Before they would effectively get tax relief at their marginal rate on the interest they pay on the mortgage of the BTL. In a few years time they will only get 20% relief.

So let's say a property of 200k with a 75% mortgage at 5%. The interest would be £7,500k a year. That would be an expense against the rental income and so effectively reduce their profit and reduce the tax they pay. Now that relief is being restricted so instead of the mortgage interest reducing their tax bill by £3,000 it will reduce it by £1,500.

So it's costing them an extra £1,500 a year/ £125 a month.

cells

The Westminster government (or some wonks in the treastury) are unhappy about the price of property in Westminster and nearby. They think that these taxes on landlords will reduce the price of nice big terrace homes in inner london so 'well paid middle class staff' like themselves can get a look in.

Generali

economic wrote: »

What do you do? I'm looking for part time work ideally similar to you.

I'm an equity analyst specializing in 'ESG factors', basically that means I examine the effect of intangible things on the share price of companies.

For example, a couple of big themes I've been looking at are the impact of policy responses to climate change and obesity on companies.

Generali

cells wrote: »

That's a stupid comment. Very few business run without any borrowings

As you say, it's virtually impossible for a business to run without debt as there is always a time lag between buying stock and selling it.