How does Buy to Let END!

[JohnnyB]

58 minutes ago, Wight Flight said:

Good luck with this...

https://www.property118.com/rents-to-rocket-by-20-as-landlords-pay-higher-mortgage-costs/

Raising rents is easy. Getting the tenant to pay it, or the new tenant to even start paying, is the tricky bit.

[Wight Flight]

Little video showing how fucked they are.

https://www.property118.com/bank-base-rate-rise-worked-examples-for-landlords-new-video/

[Bear Hug]

1 hour ago, Wight Flight said:

Good luck with this...

https://www.property118.com/rents-to-rocket-by-20-as-landlords-pay-higher-mortgage-costs/

My rent has gone up by 1.9%, and that's now set until Mar 2024. I am more hopeful than ever since joining tos 15 (or maybe even 20?) years ago. 

[spygirl]

7 hours ago, Wight Flight said:

Little video showing how fucked they are.

https://www.property118.com/bank-base-rate-rise-worked-examples-for-landlords-new-video/

Our barristers each carry £10,000,000 of Professional Indemnity insurance and prepare each case as if it will be investigated by HMRC.

And they will.

Fuckwits must thinks the barrister indem covers them ffs.

The incorporate yo avoid tax doesn't work. Houses have to be sold. Then the ltdco needs a mortgage.

 

[spygirl]

8 hours ago, Wight Flight said:

Little video showing how fucked they are.

https://www.property118.com/bank-base-rate-rise-worked-examples-for-landlords-new-video/

That's fuckwitted.

One, hows a fucking LL going to borrow 2.5m of LtdCo with *no* past of running a LtdCo?

Two, hes assuming a linear rise in SVR. Once loans start going bad then rates are going vertical.

[eek]

On 17/12/2022 at 17:47, spygirl said:

Our barristers each carry £10,000,000 of Professional Indemnity insurance and prepare each case as if it will be investigated by HMRC.

And they will.

Fuckwits must thinks the barrister indem covers them ffs.

The incorporate yo avoid tax doesn't work. Houses have to be sold. Then the ltdco needs a mortgage.

 

Why do you think the Barrister's are involved - they introduce a tax avoidance scheme to attempt to avoid paying a second lot of stamp duty. I suspect it doesn't work but HMRC rarely rush to investigate such things - they just wait and send the letters out just before the 4 / 6 year deadlines are hit. 

[spygirl]

22 hours ago, eek said:

Why do you think the Barrister's are involved - they introduce a tax avoidance scheme to attempt to avoid paying a second lot of stamp duty. I suspect it doesn't work but HMRC rarely rush to investigate such things - they just wait and send the letters out just before the 4 / 6 year deadlines are hit. 

Barristers will offer you an opinion.

UKGOV will give you the law. And if UKGOV doesnt like it, itll change or make a new law.

As a rule, barristers are always looking for work - so many of them around at the mo.

And most are not very good.

The more sticks you get, the dumber the legal eagles.

Buster appears to have have got into bed with a clueless collection of fuckwits.

https://www.lawgazette.co.uk/law/fake-lawyer-jailed-for-eight-years-after-92000-fraud/5062522.article

According to Gloucestershire Police, Cremin’s credentials appeared legitimate as he was listed as an 'advocate' on the website of Cotswold Barristers, based in Cheltenham. The conviction for pretending to be a barrister was not related to his name appearing on the website. The fraudster also falsely claimed to have a law degree from the University of London.

https://www.lawgazette.co.uk/law/fake-lawyer-michael-cremins-dark-past-revealed-/5062724.article

 

 

 

[sancho panza]

On 17/12/2022 at 09:48, Wight Flight said:

Little video showing how fucked they are.

https://www.property118.com/bank-base-rate-rise-worked-examples-for-landlords-new-video/

The money shot at 3.30 is something else. 

 

I'd forgotten that they'll lose the personal allowance at £100k

[spygirl]

From my post from TOS on credit deflation  thread ...

Came from a FB LL group.

Public.

https://www.facebook.com/groups/1447111702109702

A Group for discussing UK Landlord related topics, share experience and guidance positively - but do so whilst giving credible sources and avoiding ‘opinion based nonsense’!

Then falls into legal advice from a man in the pub by the fruit machine - Legally, you can shoot a welshman with a bow n arrow, on a Sunday, providing you are wearing odd socks. Fact!

Made up of 3 types - morons, subcontinentals and EEers.

I have a feeling their tenants fall in the same groups too.

This is who the banks have lent millions too.

If I could Id be shorting CovBS.

Some selections.

I'm after some advice - Our tenants moved out recently and it wasn't until we were doing property checks, etc. that we realised we had forgotten to put their deposit into deposit protection scheme (moved in just as Covid started). We returned their deposit in full even though there were several issues at the property which should of affected the amount of deposit returned but because it was our error we returned it full and gave them a good reference to their new landlord. A few weeks on we have received this. Can anyone explain or know why they have a stated 3 tenancies? 6 breaches? They only ever signed one tenancy whilst there and they have lost their copy of the tenancy... Any advice greatly received

Akshay Patel

Ignore it or just reply saying it has been returned and if their client wishes to pursue it further a counter claim will be made for the damages to the property during the tenancy which you have evidenced that are in excess of the value of the deposit.

 

Jo Perkin

Akshay Patel great advice from Akshay here. I’d also recommend saving the money you’ll get rinsed on instructing a solicitor and pay a letting agent. This thread of comments is an exceptional example of why landlords should use a high quality letting agent.

 

 

Murtaza Ali

Akshay Patel absolutely the WRONG ADVICE -

PLEASE PLEASE DO NOT TAKE ADVICE FROM PEOPLE WHO HAVENT BEEN THROUGH THIS.

I have been to court for this process , I have a current claim against a landlord for this exact thing.

a) the reason there are multiple claims , is everytim me the tenancy ended it’s counted as a new tenancy .

Do not ignore ,

 

Dave McGraw

Murtaza Ali can i ask why you did this? What did the landlord do to deserve this?

 

 

Murtaza Ali

Dave McGraw landlord never protected the deposit and then when returning the deposit kept 3/4 of it becuase he made up a load of excuses. I found of from his previous tenants that he did it to them also.

 

Please help!

I am a student that naively let my home to a single mother of 3 whilst studying to only learn that I cannot come back to my own house!

When commuting costs became agonising and university work became more demanding I and others joined hands to rent a place closer to the university. To fund the shared acc I placed my home address on rent. Naively I did this in a rush so I could concentrate on my studies. Now I learned that there are so many laws governing the rights of tenants. I now have a situation where the tenant has become aware that I wish to return to my home address. I informally approached her in May 2022 – nearly 6 months before the end of the tenancy to let her know that at the end of the fixed term I would like to return. This was agreed verbally.

Since May 2022, the following matter have unfolded:

1. The tenant suggested that she will get council house, so she called the local council – the council advised her to remain in private housing – check for legal compliance.

2. The tenant then conveniently reports disrepair of the property – she also messaged me suggesting repairs such as wallpaper and paint – I felt this was not my responsibility – nevertheless I still sent tradesman to view and she refused to let them in – all notices to visit were given, again albeit verbally.

3. The council then get involved suggesting I am some sort of rogue landlord and have not complied with health and safety – they informally suggested that I repair some stairs that has gaps and 1 light that was leading to the basement – nothing too onerous.

4. I arranged the repairs with tradesmen, she again refused entry, a few weeks pass the tenant reports boiler problems/heating/structural literally everything that would be a landlord problem – this triggered a full review from the council.

5. Council issues an improvement notice – on literally every issue in the house. These were not there prior to the tenant’s occupation so evidently damaged or neglected by the tenant – to clarify no there are no issues with heating/boiler/electrics or structural in the notice.

6. After speaking with the council who were very unhelpful with me – I arranged a tradesman and them to come out at the same time – now I am getting repairs done.

Issues that I have now

- I provided the tenant with relevant documents included a valid EIRC, EPC, GAS Cert and How to Rent guide – she denies this.

- The tenant was not in the country, so her brother arranged the agreement.

- The tenancy agreement states that deposit was taken of £700, (I am aware of the deposit scheme) – however what happened is that the agreement was signed by me and the tenant. The tenant brother then suggested that he will get paid next week and therefore will pay the deposit then. This did not happen. No money was transferred – although all rent was paid directly into my account.

- The tenant is now suggesting that they want to move but need a s21 notice to make them homeless – my understanding is that they can’t be homeless until I take then via the full eviction process? – if they simply leave on the notice then the council are advising them that they making themselves intentionally homeless and giving them more ammunition about how they can stay lawfully in my house for longer or until they sign off following the repairs.

- I feel the relationship has now broken down irretrievably and wish to move back into my home.

- The tenancy agreement has expired – various certificates are also expired

- I am 21 years old not some major landlord with loads of money and need some serious help.

- Please don’t sit on a high horse with condescending comments – thanks in advance

I think this is the poster -

 

Hà Thu

Collette Lord hi just being naive here, court fee is £355 so why would it cost at least £1000?

Thanks

 

And the original thread that drew me in -

Giacomo Colangelo

 

  ·

I'm new in this group. What you recommend to do? I own a flat where the mortgage rate expired. It's now on variable rate at 8.51%. £1288pm (use to be £489 6 months ago on a discounted deal). I cannot sell the flat as it got

 

In the 90s crash there were a smallish number of OO, living in the house, working through the high rates.

This time theres LL from Fucknowistan, highly leveraged IO loans with rentals, let to other fucknostanis.

 

 

 

[MrXxxx]

 

https://www.youtube.com/watch?v=qp5hxHPlTq8

 

Rather ironic second clip given the guys main Youtube channel!

Edited December 29, 2022 by MrXxxx

[spygirl]

Bear with me ...

End of the sub-zero bond yield era

For now . . . .

https://www.ft.com/content/b9748a4e-cefd-4b61-a8fb-9d405b62b020

So .... close to risk free at 4%

What yield does io btl need to be priced at 15% 20%??

 

[MightyTharg]

On 05/01/2023 at 19:57, spygirl said:

Bear with me ...

End of the sub-zero bond yield era

For now . . . .

https://www.ft.com/content/b9748a4e-cefd-4b61-a8fb-9d405b62b020

So .... close to risk free at 4%

What yield does io btl need to be priced at 15% 20%??

 

If a risk free non-inflating asset is paying 4% and inflation is 10%, then a BTL needs to be priced at -6% to match it (if you ignore the obvious fact that Properties tend to increase in value by more than inflation).

There’s never been a better time than now for BTL - negative rates, record rents, and a nice little dip in purchase prices.

[spygirl]

4 hours ago, MightyTharg said:

If a risk free non-inflating asset is paying 4% and inflation is 10%, then a BTL needs to be priced at -6% to match it (if you ignore the obvious fact that Properties tend to increase in value by more than inflation).

There’s never been a better time than now for BTL - negative rates, record rents, and a nice little dip in purchase prices.

Properties dont do no such thing.

Never have.

If that was true then HPE would be massive, ever increasing.

 

[Formerly]

6 hours ago, MightyTharg said:

If a risk free non-inflating asset is paying 4% and inflation is 10%, then a BTL needs to be priced at -6% to match it (if you ignore the obvious fact that Properties tend to increase in value by more than inflation).

There’s never been a better time than now for BTL - negative rates, record rents, and a nice little dip in purchase prices.

I love to hear reasoned arguments that challenge my own. This doesn't come close.

[Lightscribe]

8 hours ago, MightyTharg said:

If a risk free non-inflating asset is paying 4% and inflation is 10%, then a BTL needs to be priced at -6% to match it (if you ignore the obvious fact that Properties tend to increase in value by more than inflation).

Nope, maybe in disinflationary cycles not in inflationary cycles.

House prices are linked to credit availability and affordability not supply and demand (that only matters when credit is cheap and plentiful).

In your example you haven’t factored in negative equity, higher BTL rates, s24, regulation costs (efficiency upgrades), voids, not being able to evict and repairs.

It’s a lose - lose game from here which is why they are leaving in their droves.

Only the thickies and the own outrights will be left, but they will be the next ones to go once the inflation cycle is bedded in, house prices are confirmed in a declining trend and the likes of a wealth tax on additional properties comes in.

[MightyTharg]

8 hours ago, spygirl said:

Properties dont do no such thing.

Never have.

If that was true then HPE would be massive, ever increasing.

 

I don’t know what HPE stands for, but here are the figures:

https://www.thisismoney.co.uk/money/mortgageshome/article-10893633/How-high-house-prices-theyd-matched-inflation-1952.html

With inflation houses would cost £63,300 instead of £275,000. So your long-term landlord has made more than £200,000 plus whatever he’s made from negative rates, negative taxation and whatever the tenant has paid him.

 

[Wight Flight]

2 hours ago, MightyTharg said:

I don’t know what HPE stands for, but here are the figures:

https://www.thisismoney.co.uk/money/mortgageshome/article-10893633/How-high-house-prices-theyd-matched-inflation-1952.html

With inflation houses would cost £63,300 instead of £275,000. So your long-term landlord has made more than £200,000 plus whatever he’s made from negative rates, negative taxation and whatever the tenant has paid him.

 

@Frank Hovisi

One for you I believe?

[Formerly]

2 hours ago, MightyTharg said:

So your long-term landlord...

 

 

...is almost certainly dead if he bought in 1952.

[Formerly]

7 hours ago, Lightscribe said:

Nope, maybe in disinflationary cycles not in inflationary cycles.

House prices are linked to credit availability and affordability not supply and demand (that only matters when credit is cheap and plentiful).

In your example you haven’t factored in negative equity, higher BTL rates, s24, regulation costs (efficiency upgrades), voids, not being able to evict and repairs.

It’s a lose - lose game from here which is why they are leaving in their droves.

Only the thickies and the own outrights will be left, but they will be the next ones to go once the inflation cycle is bedded in, house prices are confirmed in a declining trend and the likes of a wealth tax on additional properties comes in.

This has been pointed out to @MightyTharg on many occasions. That he has not directly responded with why he believes what he posts and instead persists in posting, can only suggest that he is deliberately trolling or has very low intelligence. I don't believe the latter. Best not to feed him. Your efforts in explaining this are wasted.

[reformed nice guy]

3 hours ago, MightyTharg said:

I don’t know what HPE stands for, but here are the figures:

https://www.thisismoney.co.uk/money/mortgageshome/article-10893633/How-high-house-prices-theyd-matched-inflation-1952.html

With inflation houses would cost £63,300 instead of £275,000. So your long-term landlord has made more than £200,000 plus whatever he’s made from negative rates, negative taxation and whatever the tenant has paid him.

 

Using the same growth figures, the average wage in 2022 should be £15,130

https://www.thisismoney.co.uk/money/news/article-10850035/To-mark-Jubilee-70-facts-finances-changed.html

[MightyTharg]

1 hour ago, reformed nice guy said:

Using the same growth figures, the average wage in 2022 should be £15,130

https://www.thisismoney.co.uk/money/news/article-10850035/To-mark-Jubilee-70-facts-finances-changed.html

That’s kind of the point. We should all be better off, but we’re not because of various governments keeping us down. Doesn’t mean landlords haven’t made plenty of money.

 

9 hours ago, Lightscribe said:

Nope, maybe in disinflationary cycles not in inflationary cycles.

House prices are linked to credit availability and affordability not supply and demand (that only matters when credit is cheap and plentiful).

Haven’t responded to this because disinflationary cycles doesn’t mean a thing to me, nor to most people I’d imagine.

Credit is easily available at a real rate of at least -6% which is I believe the best in history (if you’re into that sort of thing).

[Wight Flight]

They still don't get it.

https://www.property118.com/is-anyone-else-annoyed-at-this-personal-guarantees-for-limited-companies/

[spygirl]

1 hour ago, Wight Flight said:

They still don't get it.

https://www.property118.com/is-anyone-else-annoyed-at-this-personal-guarantees-for-limited-companies/

Oh thats going on TOS.

Fuckwits.

 

[Heart's Ease]

https://www.telegraph.co.uk/property/buy-to-let/inside-frenzied-buy-to-let-investor-exodus/

 

Not behind the paywall.  Spells it all out very clearly.

Snipped this to show his rotation of funds.

"Henderson and his investment partners plan to sell all their rental properties and put the money in the stock market or pension investments instead. “Landlords have had a good run in the property market and enjoyed all the growth,” he says. “They can exit and put their money somewhere else but it’s the tenants who suffer when good quality rental stock is taken out of the sector.”  "

 

[One percent]

2 minutes ago, Heart's Ease said:

https://www.telegraph.co.uk/property/buy-to-let/inside-frenzied-buy-to-let-investor-exodus/

 

Not behind the paywall.  Spells it all out very clearly.

Snipped this to show his rotation of funds.

"Henderson and his investment partners plan to sell all their rental properties and put the money in the stock market or pension investments instead. “Landlords have had a good run in the property market and enjoyed all the growth,” he says. “They can exit and put their money somewhere else but it’s the tenants who suffer when good quality rental stock is taken out of the sector.”  "

 

He’s going to try and offload property with tenants in situ?   Good luck with that.