Interesting thread on squealing pig

IveSeenTheLight

Generali wrote: »

A strawman is a form of argument that you see a lot of on bulletin boards.

It's where you misrepresent someone elses views through a subtle but deliberate distortion of their position and then knock down the argument you've just made up for them rather than the one they are actually advancing.

There are a lot of strawmen / ladies in this forum then

mean_momma

monkeyman1974 wrote: »

So maybe not BTLers as people, but rather the unfair advantage provided by the tax rules.

BTL has always been around and served it's purpose, helping the flow of rental properties. However, the recent crazy boom resulted in hoards of naive amateurs stampeding to grab overpriced over-mortgaged 'investments'. Irritating that they are now being helped out with the lowering of capital gains tax on selling, but at least this might free up a few flats for first time buyers.

flower_72

Hi there, thicko here
Can anyone explain what being "mewed" means?
It keeps coming up in posts and I still haven't figured it out. I get the feeling it's not a good thing and some seem to take it as an insult? Puzzled.

m00m00 wrote: »

but the mass hordes who piled into BTL on the back of mew'ed deposits

ixwood

"Mortgage Equity Withdrawal"ed. Took property equity as cash. Usually to buy flash cars, holidays, 82" telly's, speedboats etc.

flower_72

Aaaaahhh. Thanks for that. No more sleepless night!:rolleyes: I have learnt something today. Now I understand why one doesn't want to have mewed in the past.

neverdespairgirl

flower_72 wrote: »

have learnt something today. Now I understand why one doesn't want to have mewed in the past.

It's OK if you are a cat. Dodgy otherwise....

teabelly

Some banks are still lending. There are still ways of buying property with zero deposit. With prices so cheap you can get cash on completion which will cover any potential rental short fall for a while. Dear old Ajay Ahuja is on a property buying spree and is hitting all the EAs across the country to find properties that match his criteria.

The only thing that matters, as in any business, is cashflow. It doesn't matter what the market does or what your tenants do as long as you have enough capital to cover all your outgoings for long enough. The MEWers will have made the classic mistake of putting all the equity into deposits rather than keeping some back to cover the costs of potential mortgage payment short fall.

BTLers also needed contingency plans on what to do if prices stopped growing or they couldn't remortgage beyond where they were. There also needed to be some planning for what would happen if they had to pay the SVR.

Allowance on the interest payments against tax is standard business taxation. This is true for any purchase that is used in conjunction with a business. There is no reason to treat property differently. LLs that have no problems aren't likely to be popping their heads above the parapet as they are being blamed for the UK being an island with limited house building which is partly why prices have risen. They also had 10 years of barely any price inflation to catch up with which is why prices appeared to go mental - they were just catching up the previous trend.

2006/2007 was the golden time to buy as there were plenty of 100% mortgages around. FTBs are going to struggle even more as deposits will increase if prices fall so it will be much harder to buy, not easier. It was never easier as long as you could afford the mortgage payment (which you could fix for years on end) you could buy your own place. HPI guaranteed that even with 100% mortgage you wouldn't be in negative equity for more than a couple of years and it was as easy as renting.

At some point houses will feel cheap again and the whole merry go round will start over.

Snooze

neverdespairgirl wrote: »

It's OK if you are a cat. Dodgy otherwise....

:rotfl:

Rob

Snooze

nightwatchman wrote: »

I have not seen this program on savings. However I can not see what I could do with my hard earned cash under the present situation.

Stock market equities? At the moment they are as good investment as a night out in a casino.

Commodities or Gold? They are the next bubble.

I take my savings out of the stock exchange at 2006.

I could have made lots extra if I had let them there for an extra year however now with saving accounts out there that offering 10% it is not worth the risk.

Lift ones mattress up and insert cash.

Rob

brit1234

teabelly wrote: »

At some point houses will feel cheap again and the whole merry go round will start over.

I hope not, by then I think there will be more legislation to stop this no money down investing especially after the BTL forecast huge collapse which is coming.

By the way still banned from singing pig.:D