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Main Discussion

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Clergs (!)
Posted - 20 March 2017 11:24
seriously, look

http://www.telegraph.co.uk/property/buy/buy-to-let-calculator-how-will-new-tax-reduc e-your-profit/

why does the government hate people who aren't millionaires eh?
chimp_
Posted - 20 March 2017 11:26
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You just can't catch a break
Clergs (!)
Posted - 20 March 2017 11:27
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I cannot!
Clergs (!)
Posted - 20 March 2017 11:27
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fvck this, I am selling before May's New BOE puts interest rates up to 20%
Wellington
Posted - 20 March 2017 11:27
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but the rent up then.

i suspect that is what most landlords will do if they aren't breaking even.
Clergs (!)
Posted - 20 March 2017 11:28
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in Scotland we have rent control legislation

zazzi
Posted - 20 March 2017 11:43
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Wellington
Posted - 20 March 2017 11:27 Report as offensive Report Offensive
but the rent up then.

i suspect that is what most landlords will do if they aren't breaking even.

*** That's like saying, if I'm not getting the price I want on my house, I'll just increase the asking price***
Keef_
Posted - 20 March 2017 11:45
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Can't you switch to interest only?
pancake humper
Posted - 20 March 2017 11:46
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Isn't this the whole point of the rules? To get people that move out of homes to actually sell the fvcking things rather than exploiting a combination of low interest rates and favourable tax laws to hang on to them forevermore.
the short long
Posted - 20 March 2017 11:51
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There is such a glut of rental properties, in London atleast, that renters won't have to put up with increased rents. If the tenant does leave the landlord would need to deal with an empty property for a few months
Keef_
Posted - 20 March 2017 11:58
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I'm not sure it works tho. People will happily subsidise a £1k a year loss if the annual capital gain more than offsets it. In London a 2% increase in value y-o-y pretty much renders it a no-brainer. Debt is nominal and you'd happily bung spreadsheet Phil a bit of cash every now and then.
pancake humper
Posted - 20 March 2017 12:03
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It's gonna be interesting. The number of rental properties available in London at the moment is insane because it makes no sense for anyone that can avoid it to ever sell a flat. I'd bet there's a surprising number of London landlords that couldn't handle the cashflow impact of a £1k a year loss.
Clergs (!)
Posted - 20 March 2017 12:05
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I wish Edinburgh capital growth was as predictable
chimp_
Posted - 20 March 2017 12:09
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Still probably makes sense
the short long
Posted - 20 March 2017 12:12
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The problem is going to be those who have 2 - 3 properties and all of a sudden they've gotten to find an extra £3.5k to pay their bill.
Keef_
Posted - 20 March 2017 12:14
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Possibly - but then they would sell one to de-lever the other two presumably?
Keef_
Posted - 20 March 2017 12:17
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Besides - if you've got 3+ it's territory where it makes sense to move them into a limited co.
the short long
Posted - 20 March 2017 12:17
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Then you get whacked with a large capital gains bill don't you?
sporting_zucchini
Posted - 20 March 2017 12:17
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saoirse99 Posted - 20 March 2017 11:28
in Scotland we have rent control legislation

DEVO-HEHEHEHMAX !

🐝 buzz
Posted - 20 March 2017 12:19
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Well you only pay CGT on the gain, what's left is yours so suck it up...
Keef_
Posted - 20 March 2017 12:19
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Depends. Valuations can be a matter of opinion...
🐝 buzz
Posted - 20 March 2017 12:24
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What Swing said. Several thousand years of economic theory and empirical evidence have not evidenced any connection between supply and price.
chimp_
Posted - 20 March 2017 12:26
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heh
Clergs (!)
Posted - 20 March 2017 12:27
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Swing didn't pay it off with his wages tho

He paid it off with his convenient dead granny
Clergs (!)
Posted - 20 March 2017 12:28
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Belated heh@buzz
🐝 buzz
Posted - 20 March 2017 12:28
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And tbh you deserve a heh for the 12:27.
Keef_
Posted - 20 March 2017 12:34
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The hapless wage earner gets exploited by the bank or the rentier.

Welcome to life lessons 101.
Keef_
Posted - 20 March 2017 12:35
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Unless you have aforementioned dead granny obv.
sporting_zucchini
Posted - 20 March 2017 12:37
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How long until the BoE has to raise IRs? Yelland is going to raise the US Fed rate two more times in 2017. Historically UK base has mostly been above the Fed base.

As swing predicts, there will be lots of marginal BTLs unloaded, or repos by banks to drive down prices. Investors sitting on cash piles will lurve this as will FTBs.
Keef_
Posted - 20 March 2017 12:38
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Brexshit will mean that BoE interest rate rises will be at least another 5 years. Not happening any time soon.
🐝 buzz
Posted - 20 March 2017 12:39
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"As swing predicts, there will be lots of marginal BTLs unloaded, or repos by banks to drive down prices."

Being exactly what Swing didn't say....
sporting_zucchini
Posted - 20 March 2017 12:47
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Nearing, only if Hammond can keep puling the Osborne confidence trick. Events may force the BoE to raise IRs. There will be a massive shift in perception after Brexit takes effect depending on the "deal or no deal". All bets are off after 2019.
Captain Mal
Posted - 20 March 2017 12:57
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Clergs - you're Consumer Buy to Let - I'm not sure anyone would actually lend to you / lend you enough to make a loss on it.
Clergs (!)
Posted - 20 March 2017 13:00
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I already own the property

I can get permission to let for about £250 for 3 years

if I wanted to keep it after that, I would have a strong enough LTV to easily get a BTL mortgage

so what's your notion of the problem?

Clergs (!)
Posted - 20 March 2017 13:03
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also, I could ask for about £200 more pcm than I am going to from this guy, because it's unfurnished and I can't be arsed fixing stuff like the popped double glazing

I say going to

might

arg
Captain Mal
Posted - 20 March 2017 13:29
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Have you asked recently about the permission to let?

The rules all changed in March last year. You should now be designated as Consumer Buy To Let because this is your old property (though some lenders do take a lax approach). AFAIAA that means they have to do a full affordability assessment to prove you can afford to pay both the BTL mortgage and your rent / other mortgage plus all other costs, expenses etc. you have.

The BoE have also been hitting the Banks with tougher requirements on the ICR stress tests so you've generally got to be able to pay interest on the mortgage at 8% from the rent (145% of 5.5% interest).
Clergs (!)
Posted - 20 March 2017 13:34
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let's be honest, mal, literally no one tells their mortgage provider

OBViously I would
Clergs (!)
Posted - 20 March 2017 13:34
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because I am the only moron in the UK

Clergs (!)
Posted - 20 March 2017 13:36
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(but yes I am quite sure my mortgage provider would allow it and there is no "affordability test" with them - I just fill in a form and they charge me a little bit extra)