Thank Goodness Brexit will not halt immigration

MisterMotivated

phillw wrote: »

Also the VAT on the maintenance of the property and any management fees (assuming a foreign owned property will employ the services of a property management company).

And, unless they're running the business at a loss, those expenses and the VAT due on them will be paid for from profits extracted from UK tenants.

The biggest problem appears to be that foreign buyers have money and that isn't fair, but maybe it would have made sense to vote in the referendum for the outcome that would have given you more money.

*Yawn* I assume you're trying to bait me with the B word, and by also implying I'm bitter because I'm not a rich Saudi oil magnate. Sorry Mr/Mrs/Ms/Xx Troll, no food for you today. I'm pretty happy with my success in life, and how I voted. My comments have nothing to do with any (false) perceived hatred of Johnny Foreigner, I'm simply making the case that people investing in UK property aren't really bringing new wealth into the country, but rather extracting it over the long term.

I don't see the difference between a foreign buyer and someone who sells up their BTL portfolio and retires abroad.

I didn't say there was.

MisterMotivated

phillw wrote: »

I don't see that happening here, our economy is too reliant on free flowing of capital. Someone would set up a financial instrument where a UK company owns the property, which the foreigner buys into.

I honestly don't see it happening here either, though it shows those countries recognise that foreign ownership of essential assets that can't be removed from the country is likely to be damaging to the local economy rather than being a good thing.

MobileSaver

MisterMotivated wrote: »

So perhaps saying 100% was inaccurate;

Thank you for again admitting you were wrong and that they do bring extra wealth to the country.

MisterMotivated wrote: »

So why is it you fail to understand that profits obtained from renting to people in this country are generated by taking rent money from people in this country and therefore do not contribute extra wealth to this country?

Huh?!?! If that is how you are defining "extra wealth" then how does any business (whether UK or foreign owned) contribute extra wealth to the country?!?!

MisterMotivated

MobileSaver wrote: »

Thank you for again admitting you were wrong and that they do bring extra wealth to the country.

That's your big win? 0.1% of a difference? :rotfl::rotfl::rotfl: Your mother must be so proud

how does...contribute extra wealth to the country?!?!

How does a foreign landlord taking £1,000 profit from UK tenant each month and giving £200 of it to UK government create extra wealth? More specifically, how does it do it in a way that creates even more wealth than, say, a UK landlord?

Thrugelmir

MisterMotivated wrote: »

I honestly don't see it happening here either, though it shows those countries recognise that foreign ownership of essential assets that can't be removed from the country is likely to be damaging to the local economy rather than being a good thing.

Social issues should rate as highly as economic ones. After all they improve the general well being factor. Like kids that run drugs. When you are struggling to get a minimum wage job. Being drawn in to a world of making a couple of £k a month is easy. House prices should not be out of the reach of ordinary people because people that live outside of the country. Use buying property for many other motives other to live in it.

MobileSaver

MisterMotivated wrote: »

More specifically, how does it do it in a way that creates even more wealth than, say, a UK landlord?

Now you are completely back-tracking. No-one said a foreign investor creates "even more wealth than a UK landlord."

You categorically stated there was no benefit to the country. I and others have repeatedly pointed out how the country benefits and creates extra wealth for the country and all you do is keep moving the goalposts until we get to the latest incarnation that you really meant "foreigners who never come to the UK and rent out their property to others (and the others are exclusively UK residents) generate less wealth than UK landlords." :rotfl:

MisterMotivated wrote: »

you fail to understand that profits obtained from renting to people in this country are generated by taking rent money from people in this country and therefore do not contribute extra wealth to this country?

You are absolutely correct; I do fail to understand how UK citizens paying rent money does not contribute extra wealth to the country.

So please can you explain it to me and all the economists out there that have been getting it so wrong for so long? How can any business contribute extra wealth to the country if your assertion is that all it is doing is redistributing money from people already in the country?

phillw

MisterMotivated wrote: »

How does a foreign landlord taking £1,000 profit from UK tenant each month and giving £200 of it to UK government create extra wealth? More specifically, how does it do it in a way that creates even more wealth than, say, a UK landlord?

A foreign landlord will likely pay a UK property management firm, while a UK landlord may self manage (and receive a tax allowance).

Moving the money out of the country also generates more fees.

Importantly foreign landlords are no better off, UK landlords can move their profits off shore.

MisterMotivated

MobileSaver wrote: »

Now you are completely back-tracking. No-one said a foreign investor creates "even more wealth than a UK landlord."

You can misinterpret my comments however you like; that's your problem, not mine. The point about UK landlords was added solely to emphasise that even the transaction you claim bring so much extra wealth to the country could be facilitated even without foreign ownership of assets.

You are absolutely correct; I do fail to understand how UK citizens paying rent money does not contribute extra wealth to the country.

It takes more than cycling money around the economy to create wealth (the most obvious way would be through the production and sale of goods). Otherwise, why don't we all just agree to rent houses from one another for £10,000 a week? Then we'll be the wealthiest country in the world by miles!!



No doubt you'll complain yet again about how it's my fault you've misinterpreted my comments but let me be clear that "extra wealth to the country" is not the same as "extra wealth to the government and less wealth to its citizens"

MisterMotivated

phillw wrote: »

A foreign landlord will likely pay a UK property management firm, while a UK landlord may self manage (and receive a tax allowance).

Or they may not. As a UK landlord, I use several property management firms. Also, I may be wrong, but I believe foreign landlords are able to claim the same tax allowances as UK landlords (assuming you mean on mortgage interest, etc?)

Moving the money out of the country also generates more fees.

But still results in some of our (citizens') money leaving the country.

Importantly foreign landlords are no better off, UK landlords can move their profits off shore.

Yes, they can. Nobody's contesting that.

Thrugelmir

phillw wrote: »

Moving the money out of the country also generates more fees.

The UK banks are majority owned by overseas investors.

The UK is running out of silver in the cupboard to sell.