How does Buy to Let END!

[Boon]

Maybe for the amateur, leveraged, accidental landlords. But then I feel the government were never on their side.

No doubt there will be those that they can put the house into a limited company to claim back mortgage interest but refinancing at a higher rate means that the rent needed isn't achievable by the market. 

As usual most people will still be bullish, I could imagine next year there will be a few London new build flat owners like this:

https://forums.moneysavingexpert.com/discussion/6399944/negative-equity

They will blame the government but nobody will point out to them it was their own gamble, they could have sold but chose to be landlords, waiting for the market to recover.

 

[HousePriceMania]

[No One]

On 25/03/2019 at 00:30, macca said:

“What happens to generation rent!”

When they retire with tiny pensions and can no longer afford to pay their MASSIVE rent, never mind their food, gas, electric, water, council tax! 

The landlord will have had their houses paid for, but through the labour of their tenant..

Who pays/or doesn’t pay for the tenant to live thrive and survive? 

What if they need a nursing home? How do we fund that? They don’t have a house to sell? 

Can the tax payer afford to fund 100’000s/millions of poor tenants?  

[With a crooked smile]

On 03/11/2022 at 12:39, Boon said:

No doubt there will be those that they can put the house into a limited company to claim back mortgage interest but refinancing at a higher rate means that the rent needed isn't achievable by the market. 

As usual most people will still be bullish, I could imagine next year there will be a few London new build flat owners like this:

Personal example one flat no mortgage, second flat rented out 1300 pcm mortgage approx 370 pcm (fixed for 5 years approx 1 year ago) that flat was bought about 2004/5 about the same time the Countofnowhere made a huge deal of the fact he had sold to rent. 

 

Whoops...

[Bobthebuilder]

1 hour ago, With a crooked smile said:

Personal example one flat no mortgage, second flat rented out 1300 pcm mortgage approx 370 pcm (fixed for 5 years approx 1 year ago) that flat was bought about 2004/5 about the same time the Countofnowhere made a huge deal of the fact he had sold to rent. 

 

Whoops...

If I remember correctly, the Countofnowhere was not even posting on TOS in 2004/5, he arrived about 2007.

[Boon]

TBH I reckon everyone might get another opportunity....

I myself bought 2006 and was almost squeezed out during the GFC, had negative equity and was on SVR. What saved me was a combination of interest rates going to zero, but HTB also lifted new flat prices to £250k making houses more expensive just by comparison. 

I think the bottom was around 2010, so in 7 years the house value doubled from the bottom. I would say most places in London did at least this, the nicer areas even more. Someone I used to know bought in Hampstead, supposedly cleared £1m in profit, retired and moved abroad.

We are still in the early innings really as the year on year stats are positive, IIRC in the GFC it went down to about -15%. I suffered more than most because I bought at the peak, and I overpaid in retrospect, so I think my place was down about 20-25%

Could similar props save people this time around? Certainly it is very likely that rates will tumble back down eventually, and also a prop for the housebuilders can come back in.

But those things seem impossible to put in while the housing indices are positive,inflation is still high, and the US are still in hawk mode. By 2024 all those factors likely to be gone.

[With a crooked smile]

1 hour ago, Bobthebuilder said:

If I remember correctly, the Countofnowhere was not even posting on TOS in 2004/5, he arrived about 2007.

That's quite possible,  I was repeating what I heard in here previously and that could be incorrect.  So long since I looked at that site.

[With a crooked smile]

1 hour ago, Boon said:

TBH I reckon everyone might get another opportunity....

I myself bought 2006 and was almost squeezed out during the GFC, had negative equity and was on SVR. What saved me was a combination of interest rates going to zero, but HTB also lifted new flat prices to £250k making houses more expensive just by comparison. 

I think the bottom was around 2010, so in 7 years the house value doubled from the bottom. I would say most places in London did at least this, the nicer areas even more. Someone I used to know bought in Hampstead, supposedly cleared £1m in profit, retired and moved abroad.

We are still in the early innings really as the year on year stats are positive, IIRC in the GFC it went down to about -15%. I suffered more than most because I bought at the peak, and I overpaid in retrospect, so I think my place was down about 20-25%

Could similar props save people this time around? Certainly it is very likely that rates will tumble back down eventually, and also a prop for the housebuilders can come back in.

But those things seem impossible to put in while the housing indices are positive,inflation is still high, and the US are still in hawk mode. By 2024 all those factors likely to be gone.

I sold a starter home at the end of 2010 and bought a big upgrade (sold 175k bought 352k despite what you might hear lending seemed fairly easy we were offered about 100k more than we needed and we wouldn't have realistically been able to afford the extra 100k) approx 6 or 7 months later (mid 2011). 

It wouldn't totally surprise me to see Mirras come back or some other wacky scheme. 

For me the biggest elephant in the room is energy prices.

[Bobthebuilder]

4 minutes ago, With a crooked smile said:

I sold a starter home at the end of 2010 and bought a big upgrade (sold 175k bought 352k despite what you might hear lending seemed fairly easy we were offered about 100k more than we needed and we wouldn't have realistically been able to afford the extra 100k) approx 6 or 7 months later (mid 2011). 

I bought in 2012, being self employed I thought it was going to be a tad difficult, but no, had no problem with the bank at all, probably put to much of a deposit down, with hindsight I could have bought 2.

[With a crooked smile]

Just now, Bobthebuilder said:

I bought in 2012, being self employed I thought it was going to be a tad difficult, but no, had no problem with the bank at all, probably put to much of a deposit down, with hindsight I could have bought 2.

Nice my wife has been self employed for prob 12ish years now. One good thing about it is rightly or wrongly she believes she can't get much credit. This mostly keeps her spending under control. I had her car loan in my name even though she paid it each month. I was always under the impression mortgages were more difficult.  

5 minutes ago, Bobthebuilder said:

bought in 2012, being self employed

Was self cert out the window by that point?

[Bobthebuilder]

11 minutes ago, With a crooked smile said:

16 minutes ago, Bobthebuilder said:

bought in 2012, being self employed

Was self cert out the window by that point?

I had to provide 3 years tax return statements, and show proof of deposit (ie cash ISA statement) and that was it, self cert was never even mentioned.

[With a crooked smile]

Just now, Bobthebuilder said:

I had to provide 3 years tax return statements, and show proof of deposit (ie cash ISA statement) and that was it, self cert was never even mentioned.

Pretty much the same as paye then. Last time I had to show 3 years  p60s and proof of deposit.  I had a couple more hoops to jump through as I get paid partly on commission (circa 30%) and partly in shares (to up and down to estimate I just exchange them for cash on the day they are awarded).

[sarahbell]

On 03/11/2022 at 12:24, HousePriceMania said:

Has BTL ended now ?

 

Serco to the rescue 

[macca]

On 04/11/2022 at 14:16, No One said:

Blackrock is the biggest buyer of rental property in USA, The rich want to take us back to slavery,, Who is buying UK rental properties? banks?

[spygirl]

It's like a lightbulbs gone on.

Omfg! Everyone thinks were cunts ...

https://www.property118.com/government-plots-raid-on-landlords-to-plug-50bn-black-hole/

[One percent]

9 minutes ago, spygirl said:

It's like a lightbulbs gone on.

Omfg! Everyone thinks were cunts ...

https://www.property118.com/government-plots-raid-on-landlords-to-plug-50bn-black-hole/

If government bring this in, it’s a tax on unearned wealth. Far better than taxing peoples’ wages even more.  
anyhow, by the time they come to sell, there will probably not be any profit, so no tax to pay.  

[HousePriceMania]

On 06/11/2022 at 21:28, macca said:

Blackrock is the biggest buyer of rental property in USA, The rich want to take us back to slavery,, Who is buying UK rental properties? banks?

Oddly, Sunak seems happy to devalue the £, allowing the rich Americans to buy Britain 

[Wight Flight]

the circle of life.

We have a river marina development here built just a few years back. It is a bit of a way from anywhere, but had a really good bar / restaurant as its centrepoint.

Inevitably, rather than becoming family homes, the houses (about 150 of them) all became second homes, the odd BTL and air bnb.

The restaurant closed today. Lack of off-season customers and inability to get staff (no teenagers living in the houses)

The restaurant was a large pull factor for the holidaymakers. All the properties are now worth less without it. 

The locusts killed the host.

 

 

Edited November 10, 2022 by Wight Flight

[spygirl]

10 hours ago, Wight Flight said:

the circle of life.

We have a river marina development here built just a few years back. It is a bit of a way from anywhere, but had a really good bar / restaurant as its centrepoint.

Inevitably, rather than becoming family homes, the houses (about 150 of them) all became second homes, the odd BTL and air bnb.

The restaurant closed today. Lack of off-season customers and inability to get staff (no teenagers living in the houses)

The restaurant was a large pull factor for the holidaymakers. All the properties are now worth less without it. 

The locusts killed the host.

 

 

Leeches.

Or tick, at a push.

 

[Wight Flight]

This is on the development I mentioned earlier.

https://www.onthemarket.com/details/1839631/?

was £895 two years ago. Now £1300.

Good luck with a 45% increase now that the main draw has gone.

[Boglet]

On 11/11/2022 at 15:30, Wight Flight said:

This is on the development I mentioned earlier.

https://www.onthemarket.com/details/1839631/?

was £895 two years ago. Now £1300.

Good luck with a 45% increase now that the main draw has gone.

How long ago is 'a few years'?

This looks like you mean a few decades

[Wight Flight]

1 hour ago, Boglet said:

How long ago is 'a few years'?

This looks like you mean a few decades

A lot of the housing there was built in 2016/7

No idea when that one was built.

[GTM]

What the fuck is going on with rentals at the moment? I'm seeing suitable places come up for rent, but they are looking for short term tenants. Cunts trying to rent short term until the "market recovers" and they can offload?

[Wight Flight]

32 minutes ago, GTM said:

What the fuck is going on with rentals at the moment? I'm seeing suitable places come up for rent, but they are looking for short term tenants. Cunts trying to rent short term until the "market recovers" and they can offload?

Are you in a tourist area?

[GTM]

4 minutes ago, Wight Flight said:

Are you in a tourist area?

Lots of tourist traffic in the area, but they are usually heading for the cruise ships or the Red Funnel ferry.