Investors pushing first time buyers off the bottom rung of the ladder

tcall

In the past month I have had two offers on properties and each time the vendor has decided to sell to an investor.
The first property we bid over the asking price, but were still outbid by an investor.
The second property we bid at the asking price, but the vendor still decided to go with an investor's offer, which was LESS than the asking price!
Is this a problem countrywide? It seems that if this trend is allowed to continue, the gap between rich and poor will widen dramatically.

dean_ham

Yes i have been thinking recently and agree with your comment "the gap between rich and poor will widen dramatically"

Nothing much us FTB can do really?

ivegotabig1

when the market goes into reverse, later this year, & a lot of "investors" decide to jump ship & sell, they will gt their fingers burned....in simple terms things have gone too far now, a reversal in property prices is inevitable..see the reposetion post for example..

deemy2004

Yeh, you tend to get the lemmings piling in at the end of a bull market....

dean_ham

I dont know the figures or anything but is there a shortage of houses out there...

I.e No. houses per person in the UK.



Next question....

What taxes to investors pay who rent out their property.

What do you guys think of some sort of taxing system to investors...

Investor owns 1 property to rent = 10% tax on income
Investor owns 2-4 properties to rent = 25% tax on income
Investor owns 5+ property to rent = 35% tax on income

All tax raised should be pumped back INTO THE AREA where the income came from. Improving run down areas for FTB's only, or newly built 1/2 bed appartments.

meanmachine_2

Personally I think anyone with more than two homes should be put in the stocks and publicly flogged.

Or failing that, they should at least have to pay full council tax.

The tax free rentable income allowance should go aswell. That is indefensible.

The govt will no doubt find ways of penalising these people. They always do.

When the crash occurs, the public will look for scapegoats - and the BTL vultures will be first in the firing line.

meanmachine_2

tcall wrote:

In the past month I have had two offers on properties and each time the vendor has decided to sell to an investor.
The first property we bid over the asking price, but were still outbid by an investor.
The second property we bid at the asking price, but the vendor still decided to go with an investor's offer, which was LESS than the asking price!
Is this a problem countrywide? It seems that if this trend is allowed to continue, the gap between rich and poor will widen dramatically.

Where do you live?

The BTL sums stopped adding up years ago down here in the south. Not that that's stopped certain muppets thinking they've cottoned up to a brilliant new way of making money. :rolleyes:

tcall

meanmachine wrote:

Where do you live?

The BTL sums stopped adding up years ago down here in the south. Not that that's stopped certain muppets thinking they've cottoned up to a brilliant new way of making money. :rolleyes:

Cornwall.
And in this part of Cornwall a one bed flat starts at around £130,000
The lowest priced properties have trebled in price over the last 4 years and all the cheapest properties are being bought by investors.

deemy2004

yes it appears cornwall is getting special attention from the London crowd.....

Mr_Proctalgia

tcall wrote:

Cornwall.
And in this part of Cornwall a one bed flat starts at around £130,000
The lowest priced properties have trebled in price over the last 4 years and all the cheapest properties are being bought by investors.

So its nothing to do with all those nasty sellers wanting as much money as they can then?????

benmills

I thanked you by mistake, but manners maketh man, so they say but Cornwall: it is true, has become a London suburb. I blame it on Rick Stein personally. Nevertheless, all their hot air keeps the wind farms turning. It is a fact.