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How does Buy to Let END!


What happens when generation rent retire with tiny pensions and massive rent bills!  

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spygirl
Just now, JoeDavola said:

So basically every IO BTL loan, once it expires, will end up becoming very expensive indeed, basically every IO investor is fucked because the rental returns are generally so poor anyway that they barely pay a mortgage and maintain a property at 2% interest never mind 7%.

So over the next 3 years or so as all the BTL IO loans expire (wouldn't imagine an IO loan would fix for any longer than 3 years) you'll see pretty much every IO investor leaving the market - have I understood that right?

Wont even be til i epxires.

Any BTL reachign the end of it terms stops. Dead.

Any eixtsing BTL loan - and most tend to last 10-15 years, will be shoting up in APR.

Effectively this change removes all competition from the BTL mortgage market.

If a bank wants to charge 10, 20% then they can, their customer can only sell up.

 

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I have zero sympathy. BTL has been people who don't work exploiting people who do. I hope they all find themselves skint and unemployable.

Late partner's landlord claimed the deposit to replace all the cheap carpets as they had marked where the furniture had been. I got him to put the reason in writing. When she moved out we took th

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JoeDavola
1 minute ago, spygirl 🏆 said:

Wont even be til i epxires.

Any BTL reachign the end of it terms stops. Dead.

Any eixtsing BTL loan - and most tend to last 10-15 years, will be shoting up in APR.

Effectively this change removes all competition from the BTL mortgage market.

If a bank wants to charge 10, 20% then they can, their customer can only sell up.

Brilliant. This is a really significant development then. If you want credit for a house, it's only for the house your gonna live in - which is the way it should be.

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JoeDavola

When I think about it one side effect of this could be a flood of apartments, a favorite of the BTL-ers, coming on to the market. I already noticed an increase in HMO's in student areas coming on the market in the last year and had wondered what was driving that.

Bloke in the sauna the other day, late 40's, casually mentioned he 'owned' 3 apartments as well as the house he lived in, and his mate owned a couple of apartments bought in the boom that were still in serious negative equity.

There's tons of people like him in NI.

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gibbon

Gotta say this S21 abolition is extra good news. Add on the letting agent fees ban coming into force in June (my current letting agents are now charging £400 tenancy fee! try getting that out a slumlord you cunts), brexit and the recession 90% of experts think we're due in the next 1-2 years there's going to be a fucking blood bath in BTL.

I honestly can't fucking wait. 

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spygirl
25 minutes ago, JoeDavola said:

When I think about it one side effect of this could be a flood of apartments, a favorite of the BTL-ers, coming on to the market. I already noticed an increase in HMO's in student areas coming on the market in the last year and had wondered what was driving that.

Bloke in the sauna the other day, late 40's, casually mentioned he 'owned' 3 apartments as well as the house he lived in, and his mate owned a couple of apartments bought in the boom that were still in serious negative equity.

There's tons of people like him in NI.

I watching the estate of a a scabbyLL who dropped dead.

There seems to be a fair few who've bought up several 10s of places for slumlording.

All IO.

All with no obvious buyers, at elast not at 50% off the price they paid.

 

 

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twocents

.

Quote

 

https://www.buy2letcars.com

The simple way to grow your money

If you are tired of seeing poor returns on your savings and investments – invest with us and watch your money GROW! At Buy2LetCars we do things a little differently from traditional investment methods and deliver consistently high returns for our investors* with our asset-backed scheme.

An investment with Buy2LetCars will fund lease cars for UK drivers over three years and delivers returns of up to 11% per annum return* for you. Your capital is repaid in monthly instalments over the 36 months with a final balancing payment amount plus interest being paid to you once the 36 months has expired. 

Think of what you could be doing with your high return investment!


 

 

What next.

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JoeDavola
20 minutes ago, gibbon said:

Gotta say this S21 abolition is extra good news. Add on the letting agent fees ban coming into force in June (my current letting agents are now charging £400 tenancy fee! try getting that out a slumlord you cunts), brexit and the recession 90% of experts think we're due in the next 1-2 years there's going to be a fucking blood bath in BTL.

I honestly can't fucking wait. 

Yeah considering most folk have to actually perform some useful skill to make a living (and then hand over a chunk of their wages to live in a poorly maintained shithole) I wouldn't mind seeing a few 'canny investor' slumlords being ruined.

 

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This is government response to their survey about longer tenancies.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/795448/Overcoming_the_Barriers_to_Longer_Tenancies_in_the_Private_Rented_Sector_-_government_response.pdf

On page 5 they emphasise that "we will also strengthen the Section 8 possession process, so property owners are able to regain their home should they wish to sell it or move into it".

Using the word home betrays the governments bias against tenants. Once the house is rented it's no longer the LLs home. It's their investment and the tenants home. Also it's going to be very easy for a LL to take the piss with that caveat. If removing section 21 is going to make any difference they need to enforce compensation to tenants who get the heave because the landlord is selling up or their kids need to use the rental. 

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16 minutes ago, Joxer said:

This is government response to their survey about longer tenancies.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/795448/Overcoming_the_Barriers_to_Longer_Tenancies_in_the_Private_Rented_Sector_-_government_response.pdf

On page 5 they emphasise that "we will also strengthen the Section 8 possession process, so property owners are able to regain their home should they wish to sell it or move into it".

Using the word home betrays the governments bias against tenants. Once the house is rented it's no longer the LLs home. It's their investment and the tenants home. Also it's going to be very easy for a LL to take the piss with that caveat. If removing section 21 is going to make any difference they need to enforce compensation to tenants who get the heave because the landlord is selling up or their kids need to use the rental. 

it depends.  If they have to prove it it really was their home, i.e. their main residence before renting it out, it wouldn't help most landlords.  

I think it would be reasonable to distinguish between people who genuinely rent out their home, to work a contract abroad for instance, and those who buy properties purely to rent out.  These properties tend to be better quality, with gardens and other features that require some maintenance,  and the landlord tends to be more interested in quality tenants, rather than maximising the rental income.

If such properties had to be identified in the rental agreement,  the tenant could take this into account, and an appropriately reduced rental figure agreed.

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Green Devil
1 hour ago, Joxer said:

This is government response to their survey about longer tenancies.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/795448/Overcoming_the_Barriers_to_Longer_Tenancies_in_the_Private_Rented_Sector_-_government_response.pdf

On page 5 they emphasise that "we will also strengthen the Section 8 possession process, so property owners are able to regain their home should they wish to sell it or move into it".

Using the word home betrays the governments bias against tenants. Once the house is rented it's no longer the LLs home. It's their investment and the tenants home. Also it's going to be very easy for a LL to take the piss with that caveat. If removing section 21 is going to make any difference they need to enforce compensation to tenants who get the heave because the landlord is selling up or their kids need to use the rental. 

The devil may well be in the detail. It's being spun as security for tenants. But since most of the scumbags troughers in liblabcon are btlers there will probably be some behind the scenes get around, perhaps related to how many you own or if you're owning a Ltd company? 

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leonardratso

meanwhile rogue landlord database is tumbleweeds for a year, 4 discretionary notes on it, but not public like was touted. Absolute load of swine flu prep.

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Wight Flight
On 15/04/2019 at 13:52, gibbon said:

Gotta say this S21 abolition is extra good news. Add on the letting agent fees ban coming into force in June (my current letting agents are now charging £400 tenancy fee! try getting that out a slumlord you cunts), brexit and the recession 90% of experts think we're due in the next 1-2 years there's going to be a fucking blood bath in BTL.

I honestly can't fucking wait. 

Whilst I applaud the idea of landlords getting burned, I do have a concern.

Despite LLs thinking their property disappears when it sells, we all know that it still exists and gets bought, probably by a first time buyer.

My concern is the current tenants are unlikely to be that buyer. The people flat sharing or still living at home will be the ones that are in a position to buy.

We could end up with the same number of renters chasing far fewer properties.

Since I am not currently in a position to buy, no matter how much prices drop, it is a concern.

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Agent ZigZag

 

1 hour ago, Wight Flight said:

Whilst I applaud the idea of landlords getting burned, I do have a concern.

Despite LLs thinking their property disappears when it sells, we all know that it still exists and gets bought, probably by a first time buyer.

My concern is the current tenants are unlikely to be that buyer. The people flat sharing or still living at home will be the ones that are in a position to buy.

We could end up with the same number of renters chasing far fewer properties.

Since I am not currently in a position to buy, no matter how much prices drop, it is a concern.

For areas like the south East and London I would tend to agree with your comment as more and more refugees pour in to a an area already under supplied in sufficient housing stock. However I consider over time the concentration of jobs in London will migrate out more as London based firms will also relocate out due to the inability to attract the required level of staff. Im seeing this now were young graduates from London are staying in the university towns they studied at as the quality of life, rent is far better than returning to London.

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spygirl
15 hours ago, Wight Flight said:

Whilst I applaud the idea of landlords getting burned, I do have a concern.

Despite LLs thinking their property disappears when it sells, we all know that it still exists and gets bought, probably by a first time buyer.

My concern is the current tenants are unlikely to be that buyer. The people flat sharing or still living at home will be the ones that are in a position to buy.

We could end up with the same number of renters chasing far fewer properties.

Since I am not currently in a position to buy, no matter how much prices drop, it is a concern.

They will be, eventually.

Since 2002ish, IO BTL LL have been the major property buyers, outcompeting FTBS a they had access to more leverage and a hole i nthe tax regime.

The people LL will sell to will, in the main, be FTB. Or at least cash buyer or people with a repayment mortgage.

The liks of S21 + S24 will see all the LL rentals o nthe market - plus their own OO as the bank repo's it.

Markets dont hold a level to stop the most leverage participants to remain solvent. Markets operate by clearing.

There will be ~20 years of IO BTL purhcases hittign the market. I already see it now.

 

 

 

 

 

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spygirl
14 hours ago, Agent ZigZag said:

 

For areas like the south East and London I would tend to agree with your comment as more and more refugees pour in to a an area already under supplied in sufficient housing stock. However I consider over time the concentration of jobs in London will migrate out more as London based firms will also relocate out due to the inability to attract the required level of staff. Im seeing this now were young graduates from London are staying in the university towns they studied at as the quality of life, rent is far better than returning to London.

Wotn happen.

UKPOP is turning very against migrants on benefits.

Im already seeing London/Se pop leave due to LHA beingless than market rents.

Stop low paid immigration and they'll flow back to London, at much lower rents.

 

 

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spygirl

In the cours, big fines,, LL OOO repod to pay the shortfall, BTL lender ramping up BTL APR as IO mortgages are banned.

Bland on ToS has done some exellent posts on the outcome. Her n me have been pretty much o nthe nail.

 

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So, I have been following this thread and other OTS for a while now.

 

Can some one give me a date where I can all the new changes begin to pop the market?

Is there a date?

 

I think Section 24 just got abolished but I haven't been keeping up with the changes as I once did.

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One percent

An old school friend of mine (thick as mince) is kicking off on Facebook about this

https://www.scarborough.gov.uk/home/housing/selective-licensing-scarborough-central

On 5th November 2018, the council approved the designation of a selective licensing scheme for all privately rented properties within parts of the Castle, Central  and North Bay wards in Scarborough. The designation comes into effect on 1st June 2019 and will last for a period of 5 years up until 31st May 2024.

The area of designation will be known as Scarborough Central and is the second area to be designated for selective licensing in Scarborough. The first area was designated in July 2017 and covers parts of Castle and North Bay wards and is known as Scarborough North.

The scheme requires landlords who privately rent out properties in the designated area to obtain a licence from the council. Landlords will be required to meet a range of licensing conditions, including safety checks, and that they have appropriate management arrangements in place.

The standard licence fee is £550 for a single household property. An extra £100 per household will apply if the licence is for a property that contains more than one household.

 

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Two apartments in my small block have been vacant for two months now. One is now currently being "modernised". Mine will be vacant shortly. Was speaking to a nosy neighbour today in the car park as he could see the removals were loading up and he said another one is leaving. So four vacant apartments all at once....this should get a little interesting. I think the rent increase I accepted knowing there was a good chance we were relocating might have had a bit of a knock on effect xD.

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