How does Buy to Let END!

[Bilbo]

Anecdotal and not sure if this is the best thread.

Had my eyes tested today by an optician I have known for some years. Has own practice that's always done well. Didn't know but he has a few BTL (under ten).

He has been with the same bank for 35+ years and as his mortgage fixed term for a couple of properties was now coming up. The banks "personal adviser" said they could be competitive on rate.

The adviser had all his details of personal banking and business so no problems he thought. The bank regected the request and said it was due to credit check. He checked his credit rating 💯 good! 

He was only after approx £100k and computer said no.

Bank not wanting to lend on BTL?

 

[Andersen]

Lockdown + Scotish 28 day notice period = student BTLs in Scotland are suffering more than England LL's.

"I'm losing £4,000 per month': Scottish landlords hardest hit by rental market woes."

https://www.telegraph.co.uk/property/buy-to-let/losing-4000-per-month-scottish-landlords-hardest-hit-rental/ 

 

[sancho panza]

12 minutes ago, Andersen said:

Lockdown + Scotish 28 day notice period = student BTLs in Scotland are suffering more than England LL's.

"I'm losing £4,000 per month': Scottish landlords hardest hit by rental market woes."

https://www.telegraph.co.uk/property/buy-to-let/losing-4000-per-month-scottish-landlords-hardest-hit-rental/ 

 

It's gets funnier at the end.They never bleated when they were getting tax breaks ahead of working people.....

 

'A fifth of his student tenants left – equivalent to a drop in monthly income of nearly £4,000.

 

Mr Healy’s yields fell from 9pc to 5pc. “Students are settled by September, if you’re vacant a couple of months in, you’re vacant for the year,” said Mr Healy.

The short tenant notice periods mean renters using properties as Airbnb-style short-term lets, said Mr McEwan. It is cheaper to pay for a month on a standard rental contract than to pay for, for example, a 10-day short-term contract. 

“People are signing up on a lease and immediately handing in their notice on the first day and just using the property as short-term accommodation,” said Mr McEwan. “Landlords are getting fleeced.”

Landlords with vacant properties receive no rent but do not receive full tax relief on their mortgage payments and, in some local authorities, have to have to pay higher council tax on empty properties. “Landlords who have invested for their pensions have got a liability around their necks," Mr McEwan said.'

[Hancock]

1 hour ago, sancho panza said:

. “Landlords who have invested for their pensions have got a liability around their necks," Mr McEwan said.'

Yes the thought of having to ask some toe-rag who probably fucken despises you for your pension cant make ones later years very relaxing.

Would much rather just look at my shares account and see the divvy's drop in.

[Andersen]

 

Due to tax changes LLs have bought a third less houses in the past 5 years than predicted, rental sector is 7% smaller, rental prices have risen 6% in the past year (10+% in south west), changes have forced 0.25 milliion LLs to sell up, 

https://www.telegraph.co.uk/property/buy-to-let/buy-to-let-sales-30pc-tax-crackdown-bites/ 

Anecdotals: I've seen 2 folk say they've given up well paid jobs (one100k) as wage + BTL income - 40% higher rate tax = no point in working! They've both kept the btl, now they're not higher rate tax payers their tax bill makes btl profitable. More unintended consequences, less folk working ... less tax income. World has gone mad

Edited May 27, 2021 by Andersen

[Wight Flight]

It won't be a popular view here, but we should have found an alternative system before we threw BTL landlords under the bus.

[macca]

2 hours ago, Wight Flight said:

It won't be a popular view here, but we should have found an alternative system before we threw BTL landlords under the bus.

2 buses?

the houses will still exist, landlords don't build houses!

Land tax is being mentioned in Scotland but I don't think Sturgeon has the power to implement it without independence.

A house would be very affordable to buy then. Only problem is rising house prices are tied to our fake GDP figures.

[spygirl]

9 hours ago, Wight Flight said:

It won't be a popular view here, but we should have found an alternative system before we threw BTL landlords under the bus.

I think the ide was that LL would look at the tax changes then sell up over a 5 year period.

Sadly, you  are dealing with greedy incompetent morons, whove clung onto property and have not clicked that they are fucked, and were always fucked.

 

[Wight Flight]

7 hours ago, macca said:

2 buses?

the houses will still exist, landlords don't build houses!

Land tax is being mentioned in Scotland but I don't think Sturgeon has the power to implement it without independence.

A house would be very affordable to buy then. Only problem is rising house prices are tied to our fake GDP figures.

It's a nice idea but I don't see it.

House prices need to halve before they become affordable to most. That will push yield up to 8-10%.

There are plenty of cash buyers that would jump at that opportunity.

But that isn't really my point. Their are lots of people that want or need to rent, that either can't or shouldn't buy.

With fewer rental properties available, they are in a very unsecure position.

[Andersen]

1 hour ago, Wight Flight said:

But that isn't really my point. Their are lots of people that want or need to rent, that either can't or shouldn't buy.

^ Agreed. I worked away from home for decades often spending 1-3 years based in a town I didn't know until the job was done, then packing my bags and finding a new job somewhere else.

Renting was ideal for my needs, I could have afforded a mortgage but didn't want to be tied to place once the job ended. Renting suits some people (or most people at some point in their lives). Seeing the number of available rentals drop and rental prices jump is bad news for a lot of folk who can't / won't buy.

The latest legal difficulties when evicting are another issue. When combined, it's even worse news for folk who don't have a good record when renting as LLs can afford to be picky and are now leaving properties empty or putting them up for sale rather than rent to potential problem tennants. Tennants lose out, LLs lose out.

I keep hearing tennants will buy the ex-rental houses but I think that will be the exception. Many don't want to. the majority can't pass banks affordability checks. Almost all will struggle to afford with the current high house sale prices.

[Wight Flight]

What we need is to look at the US model.

My son has decided to shack up with his girlfriend for his last year at college.

Found a purpose built block of apartments, all owned by the developer.

About 80 apartments in total, built around a pool area with bbq zone in landscaped grounds, a gym and plenty of parking.

2 bed apartment, with all white goods, 1,100 sq ft is $1,095 per month. Maintenance bloke on site.

That includes all bills except electric.

This is the kind of thing we need to get built in the UK.

 

 

 

[Hancock]

1 hour ago, Wight Flight said:

What we need is to look at the UK model, prior to 1996 ... but more deregulation for small/self builders

Fixed.

[Hancock]

1 hour ago, Andersen said:

^ Agreed. I worked away from home for decades often spending 1-3 years based in a town I didn't know until the job was done, then packing my bags and finding a new job somewhere else.

Renting was ideal for my needs, I could have afforded a mortgage but didn't want to be tied to place once the job ended. Renting suits some people (or most people at some point in their lives). Seeing the number of available rentals drop and rental prices jump is bad news for a lot of folk who can't / won't buy.

The latest legal difficulties when evicting are another issue. When combined, it's even worse news for folk who don't have a good record when renting as LLs can afford to be picky and are now leaving properties empty or putting them up for sale rather than rent to potential problem tennants. Tennants lose out, LLs lose out.

I keep hearing tennants will buy the ex-rental houses but I think that will be the exception. Many don't want to. the majority can't pass banks affordability checks. Almost all will struggle to afford with the current high house sale prices.

Lots of my's, I's and me's in there.

So because you worked away from home, landlords need more tax breaks?

What about the 99.9% who do not work away from home?

[eek]

1 hour ago, Wight Flight said:

What we need is to look at the US model.

My son has decided to shack up with his girlfriend for his last year at college.

Found a purpose built block of apartments, all owned by the developer.

About 80 apartments in total, built around a pool area with bbq zone in landscaped grounds, a gym and plenty of parking.

2 bed apartment, with all white goods, 1,100 sq ft is $1,095 per month. Maintenance bloke on site.

That includes all bills except electric.

This is the kind of thing we need to get built in the UK.

 

 

 

Yep - the issue is we have amateurville rather than professional landlords who build to rent.

Thankfully pension funds have seen the money available in student housing and are starting to build other blocks that way. 

[Wight Flight]

16 minutes ago, Hancock said:

Lots of my's, I's and me's in there.

So because you worked away from home, landlords need more tax breaks?

What about the 99.9% who do not work away from home?

Yes, but what about the young - there are a lot of them.

I wouldn't advise anyone to move out of home and buy a flat- especially if you are shacking up with a new burd.

Decent rental flats / apartments are without doubt the best first move for a lot of younger people, leaving them the flexibility to move about a bit, as well as a bail out if it all goes tits up with the new relationship.

[Hancock]

5 minutes ago, Wight Flight said:

Yes, but what about the young - there are a lot of them.

I wouldn't advise anyone to move out of home and buy a flat- especially if you are shacking up with a new burd.

Decent rental flats / apartments are without doubt the best first move for a lot of younger people, leaving them the flexibility to move about a bit, as well as a bail out if it all goes tits up with the new relationship.

Hence why i stated the UK pre 1996 as being a better option than America which has an epic property bubble that is very similar to our own.

[Wight Flight]

7 minutes ago, Hancock said:

Hence why i stated the UK pre 1996 as being a better option than America which has an epic property bubble that is very similar to our own.

Was it that good pre 1996? I recall a lot of house share being the option when I was younger.

We need purpose build complexes, owned and managed by a decent business.

[Hancock]

28 minutes ago, Wight Flight said:

Was it that good pre 1996? I recall a lot of house share being the option when I was younger.

We need purpose build complexes, owned and managed by a decent business.

Yes people would buy houses to live in them, not as investments to harvest other peoples wages.

End of the day you think landlord society is good if its corporations fucking over people instead of small timers; i don't!

[Wight Flight]

1 hour ago, Hancock said:

Yes people would buy houses to live in them, not as investments to harvest other peoples wages.

End of the day you think landlord society is good if its corporations fucking over people instead of small timers; i don't!

I don't think everyone can or should buy a flat / house at certain times in their lives.

Would you recommend my lad buys a house with his new burd?

Therefore there needs to be a well regulated and viable rental sector.

 

[Hancock]

1 minute ago, Wight Flight said:

I don't think everyone can or should buy a flat / house at certain times in their lives.

Would you recommend my lad buys a house with his new burd?

Therefore there needs to be a well regulated and viable rental sector.

 

If your son did want to buy a house or flat ... he could not as anyone on an average wage is priced out, he should have the option of making such a decision. Seems you're happy for this option to have been taken away as he might not be bright enough to decide whether he's too young to settle down.

You had the option of buying a cheap one bed starter home, but don't think it should be a choice the young of today should be afforded.

 

 

[Wight Flight]

4 minutes ago, Hancock said:

If your son did want to buy a house or flat ... he could not as anyone on an average wage is priced out, he should have the option of making such a decision. Seems you're happy for this option to have been taken away as he might not be bright enough to decide whether he's too young to settle down.

You had the option of buying a cheap one bed starter home, but don't think it should be a choice the young of today should be afforded.

 

 

If you get rid of all landlords, the option of renting will be taken away from him.

We need a mixed market.

 

[Hancock]

11 minutes ago, Wight Flight said:

If you get rid of all landlords, the option of renting will be taken away from him.

We need a mixed market.

 

Yes one where a person can choose, your way keeps things the same.

[Wight Flight]

4 minutes ago, Hancock said:

Yes one where a person can choose, your way keeps things the same.

No it doesn't.

I would like house prices to drop - but I wouldn't count on it.

I would love to see shitty little money grabbing landlords driven out of the market - which is starting to happen.

But we didn't replace those landlords with anything before driving them out, which is why we are seeing the absolutely desperate situation we now have in some parts of the country.

Of course council housing might be the correct answer, but we all know that what I would call normal people have absolutely sod all chance of getting one of them even if they built hundreds of thousands of them.

 

 

 

[Chewing Grass]

Was cruising around West and South Manchester today, from shitty slumsville Partington with Carrington full of crappy newbuilds all built on concrete piles as its a former bog, past Manchester United's fortified training ground and on to Altrincham/Hale/Ashley/Mobberley & Cuntsford.

Hale must have all the builders, gardeners & tree surgeons in the Northwest working flatout (didn't see a single one in Partington where zero maintenance goes on) on Grand Designs, every 100 yds there are Proprty Developers and Builders Projects.

Ashley was full of cunts driving Vinyl wrapped AMG's like cunts whilst Mobberley & Knutsford was full of wimmins in SUVs of excessive width & weight.

Its like everyone expects the magic money tree to go to the moon except those who already don't have any.

[CVG]

20 hours ago, Hancock said:

Lots of my's, I's and me's in there.

So because you worked away from home, landlords need more tax breaks?

What about the 99.9% who do not work away from home?

I don't think he said that.

Take me (sic). In my life I've rented rooms twice, flat once and house twice (incl. now), B&B'd for 26 weeks, and owned (mtg'd) 7 times.