CGT Changes

Debt_Free_Chick

I am far more cynical about the motives of this present Government.

I think they've made the changes to prop up the property market. If BTL investors start to panic a-la-Northern Rock and dump a lot of properties on to the market, everyone will suffer (or at least they will feel they're suffering) - as house prices will fall. This will leave too many people in negative equity ...... and a bad feeling when it comes to voting time!!!!!

IveSeenTheLight

andrew8018 wrote: »

If I am lucky enough to rent a council or houing association property then I have security of tenure with rights and with little chance of ever being evicted unless I am running a crackhouse or brothel. This security of tenure enables tenents to call their rented property a home. There is no such security of tenure when dealing with people such as yourselves

I have to comment on your security issue.

As a BTLer of two properties, I do whatever I can to keep my tenants happy.
It is in my interest to keep good tenants happy for as long as they want to stay there.

I would envisage most BTLers are in the investment for the long term and as such if they have a good tenant would be happy for them to stay as long as they wanted.

Both my tenants are extremely good. Any issues they have brought up I have been extremely quick in resolving. If I sort out all the small issues as then is there is any larger issue I know they will contact me.
I even encourage my tenants to advise me if there is anything they would like me to improve regarding the property, again to ensure the properties are well maintained.

If either of my tenants came to me asking regarding the option of leasing for a long term (2, 5, 10 years etc) I would snap their hands off as it gives us both long term security.

The tenants who are afraid of eviction are the ones which honest BTLers would be afraid of as tenants.

BobProperty

SquatNow wrote: »

It's not a payment to government/the community, it's a payment to an individual. It's a privately levvied tax.

Why must one person pay another PERSON for the right to live.

There's no such thing as a private tax. Tax by definition is levied by the state or community.

I take it therefore no one should profit from the production of food or supply of water either?

boyse7en

carolt wrote: »

We rent not because we are renters by choice but because with house prices at their current ridiculous levels it is the only sane thing to do - I'm not going to risk all financial security buying at these prices.

So you are choosing to rent to avoid the risk to your finances, which is your choice.

If renters are only renting due to the high price of buying a house, which is due to the BTL parasites, why was there a rental market 10, 20, 30 years go when house prices were, apparantly, much more affordable to the common person.
People choose to rent rather than buy property for all sorts of reasons, and to lump renters all together as spineless victims of society does them a great disservice.

carolt

BobProperty, it is impossible to rewrite history and certainly if the BTL brigade didn't exist, rather than large numbers of small city centre flats standing empty without 'investors' to buy them, they would never have been built, and instead developers would have concentrated on building homes owner occupiers wanted to buy such as 2 and 3 bed houses, which frankly would have been far more sensible, as we are now suffering from a glut of these inner-city flats.

boyse7en, that is nonsense - obviously not all renters are would-be buyers and there are plenty of genuine renters by choice - the traditional ones such as young professionals, just starting off, and those wanting flexibility, and new classes such as Poles living 2 or 3 to a room in a shared house. But I find it hard to believe that the numbers add up to anything like the increase in buy-to-let properties - around 1 million BTL mortgages, I believe, and that doesn't include all those BTL properties owned outright, or where the mortgage is taken out on the owner's own property to fund the BTL. So a huge increase in privately rented properties over the last 10 (let alone 20 or 30) years. Are you really suggesting that all those who currently rent off a private landlord do so by choice? Do you really not know anyone who has been priced out of the housing market over the last few years? Do you not read the rest of the forum?

clutton, you should be ashamed of yourself - can you answer franklee's points honestly, or is this just going to be another fudge.....?

silvercar

In answer to the original question,

landlords will delay selling any property they were thinking of selling now until April. I know of 2 cases wher a LL had an empty property, thinking (in one case instructed agent) to market for sale to crystalise gain and to use this year's CGT allowance. Following the budget announcement, they have both decided to rent out on 6 month AST and sell after April to reduce tax bill.

5 years ownership gives 15% taper relief, so 85% remaining @40% tax =34% tax now or 18% tax in April. If your profit is over £17,378 it is worth waiting assuming you will use the CGT allowance elsewhere next year. If you can use next year's CGT allowance, its a no brainer.

I foresee many 6 month ASTs in the next few weeks and an upward pressure on rental prices in April as many landlords sell some stock. Could lead to a glut on the market and a downward effect on prices.

BobProperty

carolt wrote: »

BobProperty, it is impossible to rewrite history and certainly if the BTL brigade didn't exist, rather than large numbers of small city centre flats standing empty without 'investors' to buy them, they would never have been built, and instead developers would have concentrated on building homes owner occupiers wanted to buy such as 2 and 3 bed houses, which frankly would have been far more sensible, as we are now suffering from a glut of these inner-city flats.

Developers were directed to brownfield inner city sites by planning guidance. There might have been a few more 2/3 bed apartments but your argument assumes developers to be perfect at judging the market and them being allowed to build profitable a totally different product. If a developer can get say 12 flats on a site or 4 houses, he would go for the highest profit margin. Say the flats go for £100,000 each to make it easy, that's £1.2m retail. So anyone willing to pay £300,000 for a 2/3 bed house on a brownfield site in a not so clever part of town?
I believe that a number of flats would have been built despite the BTL brigade because of planning. They would have been marketed to young couples/singles instead of BTLs. They still would be crap and expensive but there's no way they would all have never been built and we'd have hundreds of 2/3 houses instead.

clutton_2

Carolt and franklee i have absolutely nothing whatsoever to be ashamed about, nor will i apologise or justify how i run my business, nor will i continue to engage in this pointless circular argument - we clearly hold diametrically opposite views on Section 21 - neither of us is going to change our stance - its become very boring.

You may continue to beat me with a metaphorical stick if you wish - i have made my position quite clear, as have you, and i have nothing further to add. Let us agree to differ.

boyse7en

>>Are you really suggesting that all those who currently rent off a private landlord do so by choice?

No more than you are suggesting that the only reason that people rent is due to the high cost of buying. As I said before, people rent for all sorts of reasons based on their personal circumstances.

You have some interesting points of view, and have the ability to make them well. You don't need to resort to insulting people because they have a differing opinion.

moneysavinmonkey

IveSeenTheLight wrote: »

The tenants who are afraid of eviction are the ones which honest BTLers would be afraid of as tenants.

My boyfriend and I have been 'evicted' three times in the last 18 months since we moved to a new part of the country. Each time incurring moving expenses + taking up time and just generally being a stress and a hassle.

Eviction has been served due to: landlord emigrating, landlord wanting to sell, landlord needing property back for family.
On every occasion we have been model tenants and had our full deposit back (although usually with some needless delay).
We have no say in whether we want to move or not and i would genuinely find it quite upsetting if it happened again as I'm sick of moving and would like to settle somewhere for longer than 6 months.
The part of the country where i live, housing is very expensive and even with our joint professional salaries and help from my parents we can not afford to buy.

Exactly why should a BTL be afraid to rent to me?

Although I can see why some people have turned to BTL to make a living or provide a pension, ultimately i think that this is wrong and should not be encouraged by the government.

A whopping great big tax cut for 2nd property owners, and absolutely no help whatsoever extended to those young people who made the mistake of getting themselves educated and trying to earn a living rather than just getting pregnant and claiming benefits. thanks Gordon.

Clutton- you are dreaming if you think private tenants have the same security of tenure and rights as council tenants.