BTL, one with lower LTV or three with 75% LTV?

wolfplayer

AnotherJoe wrote: »

If i suddenly got an unexpected bill from the taxman for lets say £1,000 for the past years rental, and that was more than my income from my rental (not that I have one) dont you think i could (a) pay that from savings? Or (b) a small loan? Or failing that, would I (c) put it on credit card or (d) put my house up for sale at one hundred and fifty thousand pounds less than others in the street are going for in order to save the credit card interest of about £30 on my notional £1,000?

I dont see (d) happening as I'm not in the habit of chucking £150k away in order to save £1k.

Well you should tell all this to the BTL landlords on BTL forums, who have gone from being 'multi-millionaire portfolio landlords' to now not being able to cover the extra costs of Section 24.

They feel trapped and are trapped, because to sell because they don't have the money to pay CGT on houses they MEWed the gains out of over the years, to buy more BTLs.

So they're between Section24 and having to find the extra cost there- even if you believe some gumph about 1 in 5 landlords affected, and see them only having to find around £500 more a year, AND up against CGT liabilities.

For some BTLers it's going to mean £10Ks more on S24, and huge CGT if they look to sell. Trapped. Many have their own high value homes they can look to sell, to make whole lenders and the tax-man.

How do you know what the market will offer for their houses when they come to market with far more of a need to sell? I don't either, but it's not a stretch to believe post Section 24, 2017 to 2020 when it applies in full, that market will be cooler with many more in financial distress BTLers.

I won't be offering the silly high prices the BTLers believe their own homes and BTLs are worth, with a mind to buy just one home. That's something for future market to decide upon, but S24 certainly going to be more of a buyers market as Section 24 weighs down on prancing BTLers and their claims on multiple homes.

And of course lenders and HMRC can force them to make whole the debts they owe. "Get that house on the market." Pay us what you owe. Leaving the 'owners' no choice in the matter.

I'm looking at highly leveraged multiple property BTLers, of which their number is very high. Savings? How many BTLers have actual liquid money in savings to speak of? BTL forums have many BTLers who are thrilled they've put every penny into BTL, shunned' stupid' ISAs.

And yet on MSE we've still got the stream of BTL minded posters wanting to get into BTL or buy more BTLs. They deserve everything that is coming their way.

AnotherJoe

For some BTLers it's going to mean £10Ks more on S24, and huge CGT if they look to sell.
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LOL. How is "huge CGT" a bad thing?

leveller2911

Houses should be seen as a home and not an investment vehicle for the greedy................

Through my business (Carpentry & Joinery) up until recently I dealt quite bit with BTL landlords with regards to maintaining their properties but no longer quote for their work purely because 95% of them are selfish money grabbing sc*mbags who's sole interest is making money whilst not maintaining their houses. I've had cases where 2nd floor windows were in danger of falling out into the street ,purely down to lack of maintenance. Houses rented to families with small children who would die if they fell out of these rotten windows and still the landlords do sweet fanny adams.

I'm far too busy to be pricing work for amateur LL's who see their tenants as some sort of underclass and they certainly wouldn't live in their rentals given the state of many of them but they are good enough for "renters".......

I'm sure there are some decent LL out there but I've not met many and as I said I dealt with them on a regular basis.

BTL's see money as their God.