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Housing market?

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  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Crashy_Time wrote: »
    "Everyone"? I seriously doubt that, if the business isn`t viable it just isn`t viable, and lenders will be tight, LTD co. or not IMO.


    "At the same time, real rents have fallen 4.4% across the UK, it claimed" :)


    And of course rising rates will push over-leveraged BTL out of the game before they can figure out what a LTD co. is, and of course this is what the PTB are now aiming for ;)

    Thats your opinion, you have no actually knowledge of the housing market, clearly shown by the years you have been claiming a crash is coming. A business can be viable in a limited company as it is not subject to the same taxation, in fact if you do it the right way and are a 40% tax payer because of the obscure new taxation it can make the difference between the business making a loss to it making a healthy profit. That may of course change in the future but at the moment this is the case..

    Different people have different ways of raising money and I would agree for the massively in debt the days of BTL are numbered but that is a small minority.

    Where are these rate rises? all we have seen is rates return to 0.5% after a knee-jerk drop after the Brexit vote.. Carney has been promising rises for ages but every time it comes to it they find an excuse not to raise rates... Although rates will likely raise they will not be rising fast, maybe go up to 3% in the next 5 years, Any landlords that can't handle this rise have not done enough due diligence...
  • lizphilip8
    lizphilip8 Posts: 3 Newbie
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    I totally agree with Gwendo.

    Housing price varies from one location to another. My sister has a house in Cambridge. Previously she intended to buy in Peterborough. There was a huge difference in price and we believe location played a major role in that.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    https://www.propertyforum.com/property-in-the-uk/uk-house-prices-show-first-annual-decline-six-years.html


    They are spot on about negative press coverage affecting sentiment.
  • jimbog
    jimbog Posts: 2,113 Forumite
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    lizphilip8 wrote: »
    I totally agree with Gwendo.

    Housing price varies from one location to another. My sister has a house in Cambridge. Previously she intended to buy in Peterborough. There was a huge difference in price and we believe location played a major role in that.

    Absolutely the case. Cambridge, in particular the Science Park, has a great pull on talent
    Gather ye rosebuds while ye may
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    jimbog wrote: »
    Absolutely the case. Cambridge, in particular the Science Park, has a great pull on talent


    How is Brexit going to affect that though?
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Crashy_Time wrote: »
    How is Brexit going to affect that though?

    Good question, really depends on the deal, we still have no idea what it will be.. The government might decide to inject money into these sorts of areas so it might go up, on the other flip side it might go down...

    Both Cambridge and Oxford house prices are relatively high because of the universities, I don't think Brexit will stop foreign students coming to these universities... Will they be able to stay, I would hope so, in which case its unlikely to have as big of an effect on house prices in these areas as maybe other areas.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    buggy_boy wrote: »
    Thats your opinion, you have no actually knowledge of the housing market, clearly shown by the years you have been claiming a crash is coming. A business can be viable in a limited company as it is not subject to the same taxation, in fact if you do it the right way and are a 40% tax payer because of the obscure new taxation it can make the difference between the business making a loss to it making a healthy profit. That may of course change in the future but at the moment this is the case..

    Different people have different ways of raising money and I would agree for the massively in debt the days of BTL are numbered but that is a small minority.

    Where are these rate rises? all we have seen is rates return to 0.5% after a knee-jerk drop after the Brexit vote.. Carney has been promising rises for ages but every time it comes to it they find an excuse not to raise rates... Although rates will likely raise they will not be rising fast, maybe go up to 3% in the next 5 years, Any landlords that can't handle this rise have not done enough due diligence...


    You don`t know this though, you are speculating, the best informed talking heads on Bloomberg don`t know this either, they are speculating, but one thing is sure all the media buzz is about rising rates now, whereas before it was about co-ordinated central bank efforts to keep rates low, that is something to take seriously if you are thinking of splashing out big debt on a property IMO. Also do you think the sorts of people who dived into BTL for a bit of tax free cash in hand rent from a mate of a mate are going to bother with the hassle of becoming a Ltd co, and put themselves on the HMRC radar by doing so? Many will sell up, and many won`t bother in the first place IMO.
  • jimbog
    jimbog Posts: 2,113 Forumite
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    buggy_boy wrote: »

    Both Cambridge and Oxford house prices are relatively high because of the universities, I don't think Brexit will stop foreign students coming to these universities... Will they be able to stay, I would hope so, in which case its unlikely to have as big of an effect on house prices in these areas as maybe other areas.

    This is very much the case - the demand for places at Oxbridge always exceeds the places available
    Gather ye rosebuds while ye may
  • ognum
    ognum Posts: 4,842 Forumite
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    jimbog wrote: »
    This is very much the case - the demand for places at Oxbridge always exceeds the places available

    Seems to me you know little about housing in Cambridge.

    Student at Cambridge University are almost wholly housed in College accommodation. That is what the college system at Cambridge’s University is for, accommodation and tutorial support.

    Housing in Cambridge I see not expensive because of the University staff, they are for the most part on average wages. The issue in Cambridge dirt isn’t the amount of property owned by the University and the Colleges.

    The high paid workers are almost all employed in High Tech, Drug development and industries base do on the Science Park or on the Addenbrookes Park.
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Crashy_Time wrote: »
    You don`t know this though, you are speculating, the best informed talking heads on Bloomberg don`t know this either, they are speculating, but one thing is sure all the media buzz is about rising rates now, whereas before it was about co-ordinated central bank efforts to keep rates low, that is something to take seriously if you are thinking of splashing out big debt on a property IMO. Also do you think the sorts of people who dived into BTL for a bit of tax free cash in hand rent from a mate of a mate are going to bother with the hassle of becoming a Ltd co, and put themselves on the HMRC radar by doing so? Many will sell up, and many won`t bother in the first place IMO.


    You think rates are going to suddenly shoot up then do you? yes its a guess but its an educated guess based on economic predictions and the facts the government owes loads of money so is unlikely to want to see rates rise and we have brexit coming up, its unlikely the BoE will want to see a massive jump in interest rates.

    Actually the media is talking about two rate rises this year, thats likely to be all of 0.5%, all the media reports are based on Carney's comments, however if you look back over the last few years Carney has been warning of the same thing however always finds an excuse not to raise rates.

    How many landlords get cash in hand from a mate of a mate? Where are your stats, I just can't see this being true.. buying of BTL in company structure has rocketed, buying a property in a ltd company does not put you any more in the radar of HMRC, there are more opportunities as a 40% tax payer to be tax efficient. The PRS is changing, probably for the better, the amateurs are being driven out and the risky high LTV is not going to work any more. That does not mean it is dead, people who inherit property and more professional landlords are adapting.
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