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Future buy to let investors & 2nd home buyers smashed

edited November 2015 in Not Sports Related
Brilliant news as far as I'm concerned.

More young folk may be able to get on the ladder now.

http://www.bbc.co.uk/news/business-34922738
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Comments

  • How would it work? How do you know someone is buying to let?

    Commercial landlords with more than 15 properties exempt.

    Not sure home ownership should be the priority but understand it's been successful historically
  • Brilliant news as far as I'm concerned.

    More young folk may be able to get on the ladder now.

    http://www.bbc.co.uk/news/business-34922738

    More landlords will give up and those who cannot afford to buy will be homeless.
  • What impact does this have on existing buy-to-letters? They might find it more difficult to sell the property when they want to quit, and I guess may have to sell at a lower price.

    For people who don't have a deposit to buy now, I think it pushes up rents.

    And the rental property market as a whole becomes more concentrated in the hands of larger property businesses who are exempt from the charge.

    That's assuming it works in targeting buy to letters.
  • Not sure it's that much of a game changer. Will certainly work in first time buyer's favour but the extent is up for debate.

    3% on a 400k property is 12k so, at most, that factor is going to reduce the price to 388k. Sellers, of which there are too few at the moment, will be even more reluctant to sell at the reduced price.

    Will it help reduce prices? A bit. Will it make property more affordable for young people? An even smaller bit (15% deposit on the reduced price example will be 58.2k as opposed to 60k) Will it put buy to letters off snapping up London property? I doubt it. Is it a good political statement for the Tories and raise government funds? Absolutely.

    I think the kick start for new builds is more likely to help first time buyers but it won't happen overnight. Most of the big builders are very busy for a while with other projects.
  • cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Out of interest cafcbrown, what year was it when you bought your first flat aged 19?
  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
  • edited November 2015
    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    It is brilliant because people such as your good self and many people I know, have all done exactly the same.

    We have a massive shortage of homes and one of the reasons, is that many people have 2 or more homes.

    Hopefully, if people are no longer incentivised to have more than one property and are in fact penalised, then perhaps more properties will become available for younger folk who have either very little prospect or no prospect of ever owning one property, let alone 2, 3 or more.

    I don't blame you at all cafcbrown, for taking advantage. But when we have an enormous housing shortage, I believe the incentives should be in favour of people looking for a HOME as opposed to people looking to make money from property.

    No offence intended to the numerous buy to letters on here as I'm sure there are plenty, which is exactly my point.

    NB, If some landlords decide to sell some proprties and some landlords decide to buy less properties, then the supply on the market will increase and prices will fall. This is what I'd anticipate.
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  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
  • cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
  • 2002 when I purchased it
  • As many as you want. You only need one house.
  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
    It generally goes, tenant moves in and pays 3-6 months rent, no problems, then they just stop paying and continue to live in the property for 3 - 4 month (The time it takes to get em evicted) Then I spend anywhere between £200-£800 getting it marketable again in the for 4-6 weeks it sits empty while I try and get someone else in it. I had an insurance with my lettings agent that covered upto 3 months rent and the court costs to get em evicted, but I've now sacked them coz they were on the fiddle an all (Keeping rent money till midway through the following month it should've been paid). So I rent it myself now

    Can't sell because the lease is now below 65 years and I can't justify (or afford £14-18k) to renew it, in order to sell the property. So my plan is to try and get some money back on it until I die, which hopefully will be before the 63 or so years are up on the lease. And not only that, the road the property is in is full of pissed up freeloading Slovak gypsies, so no one is interested in it.
  • PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    When you say "we" are you referring to the public in general or trolls ?
    Do grow up
  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
    It generally goes, tenant moves in and pays 3-6 months rent, no problems, then they just stop paying and continue to live in the property for 3 - 4 month (The time it takes to get em evicted) Then I spend anywhere between £200-£800 getting it marketable again in the for 4-6 weeks it sits empty while I try and get someone else in it. I had an insurance with my lettings agent that covered upto 3 months rent and the court costs to get em evicted, but I've now sacked them coz they were on the fiddle an all (Keeping rent money till midway through the following month it should've been paid). So I rent it myself now

    Can't sell because the lease is now below 65 years and I can't justify (or afford £14-18k) to renew it, in order to sell the property. So my plan is to try and get some money back on it until I die, which hopefully will be before the 63 or so years are up on the lease. And not only that, the road the property is in is full of pissed up freeloading Slovak gypsies, so no one is interested in it.
    Sorry to hear that mate. Perhaps one of our "experts" on here may have a better suggestion.
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  • Just another tax raising. A lot of people make money from BTL so it was only a matter of time before the government of the day milk this cow. My only surprise,is that it's taken so long to get round to it.
    I have a few friends who rent out places, to be honest I'm not envious of them. Can be a right pain and nothing like Homes Under the Hammer.
  • PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    There's not a shortage of cars or children and buying more than one car or having more than one child doesn't unreasonably inflate the price preventing others from merely having one car or one child.
    But we live in a supply and demand based economy and not some utopian situation borne of jealousy.

    Some people make money out of renting property out - good.

    Some people make money out of building houses - good.
  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
    It generally goes, tenant moves in and pays 3-6 months rent, no problems, then they just stop paying and continue to live in the property for 3 - 4 month (The time it takes to get em evicted) Then I spend anywhere between £200-£800 getting it marketable again in the for 4-6 weeks it sits empty while I try and get someone else in it. I had an insurance with my lettings agent that covered upto 3 months rent and the court costs to get em evicted, but I've now sacked them coz they were on the fiddle an all (Keeping rent money till midway through the following month it should've been paid). So I rent it myself now

    Can't sell because the lease is now below 65 years and I can't justify (or afford £14-18k) to renew it, in order to sell the property. So my plan is to try and get some money back on it until I die, which hopefully will be before the 63 or so years are up on the lease. And not only that, the road the property is in is full of pissed up freeloading Slovak gypsies, so no one is interested in it.
    Sorry to hear that mate. Perhaps one of our "experts" on here may have a better suggestion.
    Cheers pal, I've given up askin the experts. If it's playing on my mind, I just shoot an extra animal when I go out for a mooch with the dogs.
  • 'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
    It generally goes, tenant moves in and pays 3-6 months rent, no problems, then they just stop paying and continue to live in the property for 3 - 4 month (The time it takes to get em evicted) Then I spend anywhere between £200-£800 getting it marketable again in the for 4-6 weeks it sits empty while I try and get someone else in it. I had an insurance with my lettings agent that covered upto 3 months rent and the court costs to get em evicted, but I've now sacked them coz they were on the fiddle an all (Keeping rent money till midway through the following month it should've been paid). So I rent it myself now

    Can't sell because the lease is now below 65 years and I can't justify (or afford £14-18k) to renew it, in order to sell the property. So my plan is to try and get some money back on it until I die, which hopefully will be before the 63 or so years are up on the lease. And not only that, the road the property is in is full of pissed up freeloading Slovak gypsies, so no one is interested in it.
    Sorry to hear that mate. Perhaps one of our "experts" on here may have a better suggestion.
    Cheers pal, I've given up askin the experts. If it's playing on my mind, I just shoot an extra animal when I go out for a mooch with the dogs.
    Excellent
  • PL54 said:

    'Landlords reacted angrily', troubling the hearts of no-one anywhere, ever.

    I'm a 'landlord' (not by choice) on the bones of me arse coz of tenant after tenant knocking me for months and months rent at a time and I can't do jacks to stop em. I'm sure you're over the moon to hear that
    Can't you get one of those guaranteed rent agent deals or sell the property ?
    It generally goes, tenant moves in and pays 3-6 months rent, no problems, then they just stop paying and continue to live in the property for 3 - 4 month (The time it takes to get em evicted) Then I spend anywhere between £200-£800 getting it marketable again in the for 4-6 weeks it sits empty while I try and get someone else in it. I had an insurance with my lettings agent that covered upto 3 months rent and the court costs to get em evicted, but I've now sacked them coz they were on the fiddle an all (Keeping rent money till midway through the following month it should've been paid). So I rent it myself now

    Can't sell because the lease is now below 65 years and I can't justify (or afford £14-18k) to renew it, in order to sell the property. So my plan is to try and get some money back on it until I die, which hopefully will be before the 63 or so years are up on the lease. And not only that, the road the property is in is full of pissed up freeloading Slovak gypsies, so no one is interested in it.
    Sorry to hear that mate. Perhaps one of our "experts" on here may have a better suggestion.
    Cheers pal, I've given up askin the experts. If it's playing on my mind, I just shoot an extra animal when I go out for a mooch with the dogs.
    Excellent
    Standard practice
  • PL54 said:

    PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    When you say "we" are you referring to the public in general or trolls ?
    Do grow up
    Touche dear troll, touche.
  • PL54 said:

    PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    There's not a shortage of cars or children and buying more than one car or having more than one child doesn't unreasonably inflate the price preventing others from merely having one car or one child.
    But we live in a supply and demand based economy and not some utopian situation borne of jealousy.

    Some people make money out of renting property out - good.

    Some people make money out of building houses - good.
    Yes, but the buy to let market had tax advantages, so therefore it wasn't "pure" supply and demand.

    The market was skewed in favour of btl and now it won't be as much.
  • PL54 said:

    PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    There's not a shortage of cars or children and buying more than one car or having more than one child doesn't unreasonably inflate the price preventing others from merely having one car or one child.
    But we live in a supply and demand based economy and not some utopian situation borne of jealousy.

    Some people make money out of renting property out - good.

    Some people make money out of building houses - good.
    Yes, but the buy to let market had tax advantages, so therefore it wasn't "pure" supply and demand.

    The market was skewed in favour of btl and now it won't be as much.
    What were the tax advantages?
  • IA said:

    PL54 said:

    PL54 said:

    JaShea99 said:

    cafcbrown said:

    Why is it brilliant? I purchased my first flat in Bexley at 19, lived in it for 8 years, during which time I saved enough of a deposit for my next home. As I had managed to save the deposit, which I worked hard for, I decided to keep my flat in Bexley and rent it out.

    Originally I never intended to do this, as my plan was to sell the flat and pay the deposit from that.

    I pay the right amount of tax of my rental property, and will pay capital gains when selling. If someone has worked hard and can afford to buy more flats/houses to rent out, as long as tax is paid, not sure I see why they should pay extra stamp duty.

    Because to put it simply, you only need one house.

    This is why I have zero interest in politics, because too many people don't understand this.
    How many cars and children are we allowed ?
    There's not a shortage of cars or children and buying more than one car or having more than one child doesn't unreasonably inflate the price preventing others from merely having one car or one child.
    But we live in a supply and demand based economy and not some utopian situation borne of jealousy.

    Some people make money out of renting property out - good.

    Some people make money out of building houses - good.
    Yes, but the buy to let market had tax advantages, so therefore it wasn't "pure" supply and demand.

    The market was skewed in favour of btl and now it won't be as much.
    What were the tax advantages?
    http://moneyfacts.co.uk/guides/buy-to-let/tax-on-buy-to-let-property-and-income290312/
  • Increase the rent. Simples.
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