How does Buy to Let END!

[eek]

31 minutes ago, spygirl said:

https://www.telegraph.co.uk/property/buy-to-let/landlord-20-years-everything-learnt/amp/

 

The Secret Landlord is a new monthly column by an anonymous buy-to-let investor, pulling back the curtain on the highs and lows of renting property and answering readers' questions

Owning property is a peculiarly English obsession. When people find out I own property that I rent out, the first question they ask is: how many? It’s a question I tend to avoid, because nobody really likes to talk about how much they earn, another quirk of the English.

For the purposes of setting out my stall, let’s say it’s enough. More than enough. I am what you would call a "portfolio" landlord. I have properties up and down the country of all shapes and sizes. This is my full-time job and has been for almost twenty years.

It’s a job which, like most others, has its ups and downs. If I’m being honest, the last couple of years has been more down than up, on account of increasing regulations and rules. Plus, after this amount of time in the same job, it’s fair to say my enthusiasm has started to wane a little.

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This spring, given the hot property market, I decided the time had come to sell one third of my portfolio. It didn’t go as planned.

It started off well: the properties received plenty of attention and got buyers into a frenzy, but getting an offer is different to getting to completion. I was messed about by buyers (saying they were going to buy it and then pulling out a few weeks later), and messed about by tenants, with agents struggling to gain access – even when the next buyer will most likely be another investor.

The whole debacle gave me time to reflect and rethink: why am I landlord? 

I accidentally fell into renting property when a sale fell through. Instead of selling, I rented it, and actually enjoyed the process. So much so I bought many more, often at auction and usually needing refurbishment. I love bringing properties back to life. I love providing homes for people.

The problem I have found, over the years, is people’s perception of what I do. And while other people’s opinions shouldn’t really matter, it’s difficult when you want to feel proud of what you do. Being a landlord is like being a stain on a magnificent oak table. From every angle you are seen as being a problem, a parasite.

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I’ve had time to think about the business I have built and how I want to shape my future. I have been hit by recent challenges for buy-to-let, such as tax changes that have squeezed profits, the eviction ban and the arrears that have built up in the last 18 months. 

And I'm well-versed on the upcoming changes planned by Government, such as the likely removal of Section 21, and how landlords readjust to the new landscape; the proposed EPC changes and the huge capital investment this will require (especially for lower end); and likely further changes to taxes and Making Tax Digital, which could mean having to report income every quarter.

While many are negative about the future of the sector, I’ve rubbed my crystal ball and polished my halo of optimism and realised buy-to-let is a brilliant business to be in, and there are massive opportunities for those who want to remain in this business long term. 

The fact remains: people need somewhere to live. Demand is very strong, and rental prices post-Covid are increasing to much higher than anticipated levels.

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But I want to future-proof my business. You and I may not know about how to best retrofit properties and boost energy efficiency – but we can learn together. In this column, I'll be sharing tips on issues I have encountered, such as the ways I’ve managed to get money out of non-paying tenants. I’m happy to tell you all about buying at auction, about how to work out if a property is a good deal, how to find reliable tradespeople, or if you’ve even got the makings of a landlord.

This job isn’t for the faint-hearted. Being a landlord does mean you get to collect monies on assets you own, but there’s a lot more to this than just cashing a rent cheque.

Many of my tenants have stayed with me for years, some almost as long as I’ve been a landlord. I like to think that says something about the service levels I provide. And this is a service business – don’t forget that.

I know there are rogue landlords out there, but I’m not one of them. I’m not perfect, and sometimes I get it wrong. I want the opportunity to be honest and share the good, the bad and, hopefully, the useful.

 

Anyone who falls into LL as they were not able to sell their house should not be a LL ffs.

In terms of a portfolio LL, who's houses up n down the country and lives off the income...

Hes going to be leveraged to the moon and have a huge tax bill. The limited interest relief io btlget requires it to be offset against non property income.

Its mental he raises s21 and not s24, which, assuming this is real, means hes fucking clueless.

S21 wint be removed. It'll exist in one form or another. 

 

S21 will be changing though - Scotland got rid of it in 2017 and it the "no fault / no reason" bit is due to be removed, it was announced in the 2019 Queens speech and (because of Covid) is one of the laws still going through Parliament.

Edited August 17, 2021 by eek

[spygirl]

6 minutes ago, eek said:

S21 will be changing though - Scotland got rid of it in 2017 and it the "no fault / no reason" bit is due to be removed, it was announced in the 2019 Queens speech and (because of Covid) is one of the laws still going through Parliament.

An eviction process will exist.

However it wont be the 2 months and you are out, which was the biggy in persuading banks to enter IOBTL.

Once banks cannot determine how long it'll take to get possession of a deafualting property then that lians has to classed as dud and tge bank take  a large hit.

Again, regulated banks should have priced their io btl loans at a level to get rid if the business.

[Option5]

Lloyds Bank to enter the house rental market.

https://www.bbc.co.uk/news/articles/cjkdyy9xgn3o

And so it begins

 

[No One]

On 19/08/2021 at 17:30, Option5 said:

Lloyds Bank to enter the house rental market.

https://www.bbc.co.uk/news/articles/cjkdyy9xgn3o

And so it begins

 

great, just what we needed now

[Hancock]

The rentier economy doesn't end, the next stage is corporate parasites getting in on the act to take more peoples wages.

BTL in its varying forms just seems to grow, its as if they dont want a functioning society anymore.

[Andersen]

From the article: 

There are five things looming on the horizon that will very likely affect the property market in the months ahead:
1.  The ending of the stamp duty holiday
2.  The ending of furlough.
3.  Brexit - this has largely been put on the back-burner in the news due to the pandemic.
4.  Inflation on the rise.
5.  The ending of Covid19 support measures, including BBLs, mortgage deferment etc.  Mortgage deferment ends on 31st July 2021 - two weeks away.

The fourth one deserves more attention.  Landlords who have deferred mortgage payments will now have to start paying their mortgages, even if their tenants are still in arrears and court cases for possession backed up for months.

Those that have taken BBLs will have to start re-paying those loans.  A £50K BBL is a repayment of circa £930.00 per month.

The Covid19 support measures have largely masked the issues and have disconnected the property market from the pandemic ... temporarily.

I suspect turbulent times ahead in the Autumn and predict rising landlord repossessions.

https://www.propertytribes.com/the-5-horsemen-of-the-covid19-pandemic-t-127653079.html

It's not the end of BTL but it's a lot more difficult to stary legal and make a profit now than 10-20 yrs ago. Interesting times ahead.

[Wight Flight]

3 hours ago, Andersen said:

Those that have taken BBLs will have to start re-paying those loans.  A £50K BBL is a repayment of circa £930.00 per month.

Not quite.

You can take two six month periods of interest only, and one of zero repayment.

You can kick this can down the road for 18 months.

And most people will.

[Andersen]

LL's explain why they're selling up https://www.propertytribes.com/who-has-sold-btl-in-20202021-and-why-t-127653513.html

Lenders are downvaluing properties before lending, ~ 45% of valuations in the past 12 months have been lower than expected (photo) https://www.propertytribes.com/beware-the-rising-scourge-of-down-valuations-t-127653574.html 

[janch]

19 hours ago, Andersen said:

LL's explain why they're selling up https://www.propertytribes.com/who-has-sold-btl-in-20202021-and-why-t-127653513.html

Lenders are downvaluing properties before lending, ~ 45% of valuations in the past 12 months have been lower than expected (photo) https://www.propertytribes.com/beware-the-rising-scourge-of-down-valuations-t-127653574.html 

That's good news on 2 fronts:

1. More properties for sale if LLs are selling

2. If properties are beingdown valued by lenders they must be expecting prices to fall imminently.

Yay, it's about time

[UmBongo]

I get the impression that some properties are still being bought to be rented out. 

One tired looking house in my area was up for sale on the basis that the vendor becomes the tenant (although I can no longer find it on RightMove). 

[Phil]

On 01/09/2021 at 15:31, janch said:

That's good news on 2 fronts:

1. More properties for sale if LLs are selling

2. If properties are beingdown valued by lenders they must be expecting prices to fall imminently.

Yay, it's about time

I may sound ageist, but it’s a pity the btl  old cunts ( one post age - 74,  ffs) masks didn’t see the cunts off ( 1 said -sold ex council house- troublesome neighbours) .

it probably won’t crash with tptb being equally total twats, but I hope it does.

*note* great if young btl’ers get burned, black listed and live next to troublesome council neighbours ( hopefully Afghans that can’t settle in all fuzzy like, while paying some lone surviving btl wanker.

I know it’s Sunday and apologies for any obscenity that may cause offence.

[Andersen]

Over 20% of LL's are planning to sell property   https://www.propertytribes.com/one-in-five-landlords-plan-to-sell-t-127653598.html

A list of the 168 pieces of legislation the LL's need to comply with - no wonder many are selling up https://www.propertytribes.com/the-168-regulations-to-be-compliant-landlord-t-127652935.html

 

Edited September 10, 2021 by Andersen

[Phil]

6 minutes ago, Andersen said:

Over 20% of LL's are planning to sell property   https://www.propertytribes.com/one-in-five-landlords-plan-to-sell-t-127653598.html

A list of the 168 pieces of loegisltion the LL's need to copmply with - no wonder many are selling up https://www.propertytribes.com/the-168-regulations-to-be-compliant-landlord-t-127652935.html

 

Interesting comments. I'll hold fire to see what happens. May be spoiled for choice. I feel I won't have to wait long. 17 yrs . A few more weeks won't matter. Thanks.

[Bilbo]

MSN catching on at last.

Today's Telegraph.

Chaos for landlords as property sales fall apart

Cautious surveyors are laying waste to landlords' investment plans

ByRachel Mortimer12 September 2021 • 5:00am

 

 

Property investors have been hit with a “double whammy” of down valuations to sale prices and prospective rental income, quashing sales.

After more than a year of surging house prices, cautious surveyors have brought landlords’ investment plans back down to earth with a bump.

Valuers have also questioned levels of potential rental returns, putting mortgage offers on the line as lenders fear investors will not be able to afford repayments.

Angus Stewart of Property Master, a buy-to-let broker, said: “The market is still pretty frothy and it is clear that many buyers are prepared to pay that bit more to get the house they want.

“But we are seeing valuers taking a much more cautious approach than house buyers.”

A down valuation occurs when a surveyor, acting on behalf of a bank or building society, values a property below the price agreed with the seller. It can mean lenders withdraw or greatly reduce mortgage offers.

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While landlords run this risk too, they have been dealt a second blow. In the buy-to-let market surveyors also assess a property’s rental potential, and a dispute over income can tip the scales on affordability.

Mr Stewart said: “Landlords can be hit with a double whammy when their lender’s valuer does not agree with them as to what they are planning to pay for the property and what level of rental income they are expecting.”

Surveyors can easily shave tens of thousands of pounds from a property’s agreed price and it has been known for some valuations to be £300,000 lower than expected.

One landlord recently offered £225,000 on a two-bedroom flat in Rugby, Warwicks, only to have it down valued by £55,000.

She said: “I offered £225,000, which I know was £10,000 less than the seller paid for the property three years ago and the offer was accepted.

“Despite this, the lender’s valuer said the flat was only worth £170,000. It’s ridiculous and the seller isn’t even making any money on the sale.”

[Hardhat]

6 hours ago, Bilbo said:

It’s ridiculous and the seller isn’t even making any money on the sale.”

The mindset of guaranteed profits in property

[eek]

6 hours ago, Bilbo said:

MSN catching on at last.

Today's Telegraph.

Chaos for landlords as property sales fall apart

Cautious surveyors are laying waste to landlords' investment plans

ByRachel Mortimer12 September 2021 • 5:00am

 

 

Property investors have been hit with a “double whammy” of down valuations to sale prices and prospective rental income, quashing sales.

After more than a year of surging house prices, cautious surveyors have brought landlords’ investment plans back down to earth with a bump.

Valuers have also questioned levels of potential rental returns, putting mortgage offers on the line as lenders fear investors will not be able to afford repayments.

Angus Stewart of Property Master, a buy-to-let broker, said: “The market is still pretty frothy and it is clear that many buyers are prepared to pay that bit more to get the house they want.

“But we are seeing valuers taking a much more cautious approach than house buyers.”

A down valuation occurs when a surveyor, acting on behalf of a bank or building society, values a property below the price agreed with the seller. It can mean lenders withdraw or greatly reduce mortgage offers.

Advertisement

 

While landlords run this risk too, they have been dealt a second blow. In the buy-to-let market surveyors also assess a property’s rental potential, and a dispute over income can tip the scales on affordability.

Mr Stewart said: “Landlords can be hit with a double whammy when their lender’s valuer does not agree with them as to what they are planning to pay for the property and what level of rental income they are expecting.”

Surveyors can easily shave tens of thousands of pounds from a property’s agreed price and it has been known for some valuations to be £300,000 lower than expected.

One landlord recently offered £225,000 on a two-bedroom flat in Rugby, Warwicks, only to have it down valued by £55,000.

She said: “I offered £225,000, which I know was £10,000 less than the seller paid for the property three years ago and the offer was accepted.

“Despite this, the lender’s valuer said the flat was only worth £170,000. It’s ridiculous and the seller isn’t even making any money on the sale.”

so the landlord is offers £225,000 is told it's actually only worth £170,000 and is complaining that she can't now pay £225,000 for a property that is worth 20% less. 

How stupid are these people - either the seller agrees the new price or the seller has a mess that is going to be hard to fix as when prices drop you need to put a lot of capital in just to keep things running still.

[Hancock]

8 hours ago, Bilbo said:

MSN catching on at last.

Today's Telegraph.

Chaos for landlords as property sales fall apart

Cautious surveyors are laying waste to landlords' investment plans

ByRachel Mortimer12 September 2021 • 5:00am

 

 

Property investors have been hit with a “double whammy” of down valuations to sale prices and prospective rental income, quashing sales.

After more than a year of surging house prices, cautious surveyors have brought landlords’ investment plans back down to earth with a bump.

Valuers have also questioned levels of potential rental returns, putting mortgage offers on the line as lenders fear investors will not be able to afford repayments.

Angus Stewart of Property Master, a buy-to-let broker, said: “The market is still pretty frothy and it is clear that many buyers are prepared to pay that bit more to get the house they want.

“But we are seeing valuers taking a much more cautious approach than house buyers.”

A down valuation occurs when a surveyor, acting on behalf of a bank or building society, values a property below the price agreed with the seller. It can mean lenders withdraw or greatly reduce mortgage offers.

Advertisement

 

While landlords run this risk too, they have been dealt a second blow. In the buy-to-let market surveyors also assess a property’s rental potential, and a dispute over income can tip the scales on affordability.

Mr Stewart said: “Landlords can be hit with a double whammy when their lender’s valuer does not agree with them as to what they are planning to pay for the property and what level of rental income they are expecting.”

Surveyors can easily shave tens of thousands of pounds from a property’s agreed price and it has been known for some valuations to be £300,000 lower than expected.

One landlord recently offered £225,000 on a two-bedroom flat in Rugby, Warwicks, only to have it down valued by £55,000.

She said: “I offered £225,000, which I know was £10,000 less than the seller paid for the property three years ago and the offer was accepted.

“Despite this, the lender’s valuer said the flat was only worth £170,000. It’s ridiculous and the seller isn’t even making any money on the sale.”

I'm sure Kevin Calder who posts on their is a HPC'er, maybe he walks amongst us on DOSBODS.

Keith Calder 12 Sep 2021 4:52PM

I noticed something wasn’t right in 2008 and started digging.

I had to keep on digging all the way down.

You have to understand what wealth really is; what money really is and know how banks actually work.

Then you can see what happened.

Once this is clear, you can see where many of today’s problems come from.

The focus is on making money rather than creating wealth.

 

Economic liberalism yielded unexpected results.

Everyone had expected economic liberalism to unleash capitalist dynamism.

Instead there was a stampede towards the easy money of “unearned” income.

In 1984, for the first time in American history, “unearned” income exceeded “earned” income.

The rentiers have never had it so good.

 

The focus is on making money rather than creating wealth.

 

It’s in the economics, neoclassical economics, which results in neoliberals not knowing what real wealth creation is and associating it with things like making money, rising asset prices and trade.

They don’t know how the monetary or banking systems actually work.

They don’t look at private debt.

It’s a recipe for disaster.

Neoclassical economics is the economics of the Roaring Twenties, the Wall Street Crash and the Great Depression.

Policymakers achieve growth by using the economic growth model of the “Roaring Twenties” oblivious to where this is leading.

All this buying and selling of existing assets doesn’t create wealth, and only looks like it is due to the money creation of bank credit.

 

[spygirl]

 

[King Penda]

On 21/08/2021 at 21:41, No One said:

great, just what we needed now

Once one bank does it they are all going in to it .

[Hancock]

2 hours ago, spygirl said:

 

He's been bailed out by the LIBLABCON party for 11 years, this is what is so utterly vile about this country ... that him and his manwife got to keep 1000 houses that would have otherwise gone to families if the housing market was allowed to correct.

Governed by scum who ought to be tried for treason ... with me being judge, jury and executioner!

 

[King Penda]

1 hour ago, Hancock said:

He's been bailed out by the LIBLABCON party for 11 years, this is what is so utterly vile about this country ... that him and his manwife got to keep 1000 houses that would have otherwise gone to families if the housing market was allowed to correct.

Governed by scum who ought to be tried for treason ... with me being judge, jury and executioner!

 

It won’t correct and why more on hpc don’t realise that I never understand. Hmo are the next big thing it’s one think a family digging there heels in it’s another geting 4 unrelated people to do the same thing in a legal hmo.particularly if 2/3 of them are state funded . The system moves the goalposts the landlords will an hmo brings in more cash ok more legality but for a council get to clever and it could be 4 plus to rehome 

[Hancock]

4 hours ago, King Penda said:

It won’t correct and why more on hpc don’t realise that I never understand. Hmo are the next big thing it’s one think a family digging there heels in it’s another geting 4 unrelated people to do the same thing in a legal hmo.particularly if 2/3 of them are state funded . The system moves the goalposts the landlords will an hmo brings in more cash ok more legality but for a council get to clever and it could be 4 plus to rehome 

HMO is a hassle, can't imagine the average 60+ BTL'er wanting to deal with many of the people that are willing to live in a HMO (bedsit).

[spygirl]

https://www.thesun.co.uk/news/16215628/m25-property-empire-poor-insulation/

Smith, who claimed to be a brickie, was pictured among activists gluing their hands to tarmac in rush-hour traffic on Monday.

He also led a march on the Home Office yesterday, with a placard which read: “Arrested 4 times because I am mourning for life on Earth.”

But The Sun can reveal Smith is heir to a £2million property empire and he is sitting on a personal property portfolio worth £1million.

At least six homes owned by his firm in Oldham have E or F energy efficiency ratings — meaning they have little or no insulation and pump out tons of extra carbon dioxide.

[eek]

45 minutes ago, spygirl said:

https://www.thesun.co.uk/news/16215628/m25-property-empire-poor-insulation/

Smith, who claimed to be a brickie, was pictured among activists gluing their hands to tarmac in rush-hour traffic on Monday.

He also led a march on the Home Office yesterday, with a placard which read: “Arrested 4 times because I am mourning for life on Earth.”

But The Sun can reveal Smith is heir to a £2million property empire and he is sitting on a personal property portfolio worth £1million.

At least six homes owned by his firm in Oldham have E or F energy efficiency ratings — meaning they have little or no insulation and pump out tons of extra carbon dioxide.

Why do you think he is blocking the M25?

Their campaign is to get the Government to insulate the homes so he doesn't pay for the work.

[King Penda]

2 hours ago, Hancock said:

HMO is a hassle, can't imagine the average 60+ BTL'er wanting to deal with many of the people that are willing to live in a HMO (bedsit).

If there’s money in it they will