How does Buy to Let END!

[Boglet]

20 minutes ago, spygirl said:

Thast tends to be cause they are all self employed which is a posh word for not paying tax.

And they sinktheir money into property.

Fuckwits.

 

To be fair, one thing they do right is set up their affairs to pass wealth on in the family. 

[JoeDavola]

49 minutes ago, spygirl said:

National Residential Landlords Association (NRLA)

A group with about as much public sympathy these days as the Billionaires Submarining Association

Edited June 23, 2023 by JoeDavola

[belfastchild]

On 18/06/2023 at 07:43, spygirl said:

The utilmate is if you have not released/not been filling in a tax return/using accountant  that and you owe a few years back tax - several 10k to low 100ks.

I went on a one day Revenue course down in their offices when I started my business back in 2002. One of the guys on the course asked a load of quite in depth questions. About 4pm he admitted he was a builder who had a rental property that he hadnt paid tax on in 8 years and wanted to know how to come clean.

Id love to say he was taken away through a one way door and we never saw him again but they were decent enough with him and arranged another meeting where they could come to some arrangement as he had come clean (eventually).

I suspect there are lots who havent paid tax at all, ever, or have written down a lot of stuff you cant write down (just going on personal anecdotes people have told me down through the years).

[spygirl]

3 minutes ago, belfastchild said:

I went on a one day Revenue course down in their offices when I started my business back in 2002. One of the guys on the course asked a load of quite in depth questions. About 4pm he admitted he was a builder who had a rental property that he hadnt paid tax on in 8 years and wanted to know how to come clean.

Id love to say he was taken away through a one way door and we never saw him again but they were decent enough with him and arranged another meeting where they could come to some arrangement as he had come clean (eventually).

I suspect there are lots who havent paid tax at all, ever, or have written down a lot of stuff you cant write down (just going on personal anecdotes people have told me down through the years).

O fcouse they were decent. 

They are about to get a lot of money from him.

HMRC dont want blood or death.

They want cash.

 

[JoeDavola]

4 minutes ago, belfastchild said:

I went on a one day Revenue course down in their offices when I started my business back in 2002. One of the guys on the course asked a load of quite in depth questions. About 4pm he admitted he was a builder who had a rental property that he hadnt paid tax on in 8 years and wanted to know how to come clean.

Id love to say he was taken away through a one way door and we never saw him again but they were decent enough with him and arranged another meeting where they could come to some arrangement as he had come clean (eventually).

I suspect there are lots who havent paid tax at all, ever, or have written down a lot of stuff you cant write down (just going on personal anecdotes people have told me down through the years).

NI is full of those types.

When I got a new washing machine installed, two blokes turned up - the washing machine installation expert, and his mate who was the dogsbody who just helped him lift the thing. Bloke didn't seem like the full shilling as they say...

...until he casually mentioned to me that he owned 10 houses that he'd bought at a fraction of their value from some Irish bank or something. I forget the details; this bloke didn't have a proper job as such but he did somehow have 10 houses.

You reckon he was bothering with a tax return? Was he fuck.

[belfastchild]

1 minute ago, JoeDavola said:

NI is full of those types.

When I got a new washing machine installed, two blokes turned up - the washing machine installation expert, and his mate who was the dogsbody who just helped him lift the thing. Bloke didn't seem like the full shilling as they say...

...until he casually mentioned to me that he owned 10 houses that he'd bought at a fraction of their value from some Irish bank or something. I forget the details; this bloke didn't have a proper job as such but he did somehow have 10 houses.

You reckon he was bothering with a tax return? Was he fuck.

Ive told the story before about people thinking I was mad not to go for the full covid loan and using it to put down as a deposit on one or more btl apartments/houses.
That 2% interest rate was only on the covid loan part, I must be the only daft fucker actually paying mine back.

[montecristo]

7 hours ago, belfastchild said:

Ive told the story before about people thinking I was mad not to go for the full covid loan and using it to put down as a deposit on one or more btl apartments/houses.
That 2% interest rate was only on the covid loan part, I must be the only daft fucker actually paying mine back.

Make that 2 daft fuckers.  Get nowhere in this world being honest it seems.

[azzuri82]

11 hours ago, belfastchild said:

Ive told the story before about people thinking I was mad not to go for the full covid loan and using it to put down as a deposit on one or more btl apartments/houses.
That 2% interest rate was only on the covid loan part, I must be the only daft fucker actually paying mine back.

Nope - this daft fucker has already paid one back in full on one business/company (since wound down) - and the other company BBL is being paid down month-to-month.

I took the loan/s to save/build the businesses at the time - and fully intend to pay them back. It's not my money.

[Wight Flight]

1 hour ago, azzuri82 said:

Nope - this daft fucker has already paid one back in full on one business/company (since wound down) - and the other company BBL is being paid down month-to-month.

I took the loan/s to save/build the businesses at the time - and fully intend to pay them back. It's not my money.

The opposite view is everyone else got given free money.

We are the only mugs that are expected to pay it back, and the ones that actually lost more than most.

[wherebee]

3 hours ago, azzuri82 said:

Nope - this daft fucker has already paid one back in full on one business/company (since wound down) - and the other company BBL is being paid down month-to-month.

I took the loan/s to save/build the businesses at the time - and fully intend to pay them back. It's not my money.

I would disagree. 

It is money from tax your previously paid, which if you don't take will be spunked on wars, woke, and useless invaders.  I have said it before - the only chance for a better future for our kids and grandkids is to make the 'free shit machine' crash and burn so horribly that we get a very hard landing.

[Heart's Ease]

 

Have we met this BTL genius before? The algorithm threw him up.

Interesting video. Works in an office (PAYE?), but is working hard to replace that income with BTL rent and longer term capital gainz.

He walks us through the cost of refurbing the terrace in the thumbnail.  He paid £50,000 for it, and used a bridging loan at one point wtf. £575 pcm rent achieved for about eighteen months.  Nearing the end of his two year fix he served a S21 on his tenants so he could fix the problem with the property.

The problem being damp, because he'd had a cheapo felt roof put on the flat roof extension and it had peeled back during high winds (paid £650 for it), and not had a damp proof course put in (there's a picture in there of the bottom of the walls being knocked back to brick).  He knew the house was damp, but thought that 'good airflow' would sort that out.

Has welcomed the lesson (£8000 to put right) and now sold it on to someone else.  Reckons £23000 'profit' after all expenses removed, minus the £8000 for the remedial work.

His longer term plan is to refurb and flip houses for profit, and wait for mad capital gainz on his BTL rentals.  Interestingly there's no mention of HMRC in any of his calculations.

I enjoyed it immensely and have subscribed.

 

[JoeDavola]

7 minutes ago, Heart's Ease said:

 

Have we met this BTL genius before? The algorithm threw him up.

Interesting video. Works in an office (PAYE?), but is working hard to replace that income with BTL rent and longer term capital gainz.

He walks us through the cost of refurbing the terrace in the thumbnail.  He paid £50,000 for it, and used a bridging loan at one point wtf. £575 pcm rent achieved for about eighteen months.  Nearing the end of his two year fix he served a S21 on his tenants so he could fix the problem with the property.

The problem being damp, because he'd had a cheapo felt roof put on the flat roof extension and it had peeled back during high winds (paid £650 for it), and not had a damp proof course put in (there's a picture in there of the bottom of the walls being knocked back to brick).  He knew the house was damp, but thought that 'good airflow' would sort that out.

Has welcomed the lesson (£8000 to put right) and now sold it on to someone else.  Reckons £23000 'profit' after all expenses removed, minus the £8000 for the remedial work.

His longer term plan is to refurb and flip houses for profit, and wait for mad capital gainz on his BTL rentals.  Interestingly there's no mention of HMRC in any of his calculations.

I enjoyed it immensely and have subscribed.

 

To be fair £575 a month on a £50K house would be a cracking return, much better rental yield than most houses.

[AlfredTheLittle]

8 minutes ago, JoeDavola said:

To be fair £575 a month on a £50K house would be a cracking return, much better rental yield than most houses.

Assuming he's only put in 10% he'd be charging more rent each year than his entire deposit. Can see then why it worked great when interest rates were low and property prices rising, but hopefully that's now changed for good.

[Heart's Ease]

I have just watched another one. Again a fascinating insight as he's so keen to show the working out. This one is about stress testing. He notes that his inspiration is his grandfather, who flipped houses for profit until....he lost everything in the early 1990's crash.

 

Figures only include servicing the mortgage and no voids, maintenance, insurance, tax taken into consideration.

 

 

Edited June 26, 2023 by Heart's Ease
Better screen grab with percentage rates he's using in the calculations on top

[leonardratso]

lets hope his grandads fate awaits him.

cunt.

I think if that was my landlord id probably have beaten him to death by now.

Edited June 26, 2023 by leonardratso

[JoeDavola]

45 minutes ago, Heart's Ease said:

Figures only include servicing the mortgage and no voids, maintenance, insurance, tax taken into consideration.

Yes the fact that he isn't taking maintenance into account is mental. New boiler, roof repairs, new washing machine...what about gas inspections and stuff like that every year.

I'm assuming that's a repayment mortgage he's modelling the sums on, so at least in 25 years or whatever he will own the house.

EDIT: I see someone else has called him on it:

Edited June 26, 2023 by JoeDavola

[Boglet]

To be fair, you generally really 'couldn't go wrong with bricks and mortar' for the entire period he's been alive.

Maybe he'll end up right, good knows, we've all been dead wrong for 20 years.

[JoeDavola]

1 hour ago, Heart's Ease said:

 

Have we met this BTL genius before? The algorithm threw him up.

Interesting video. Works in an office (PAYE?), but is working hard to replace that income with BTL rent and longer term capital gainz.

He walks us through the cost of refurbing the terrace in the thumbnail.  He paid £50,000 for it, and used a bridging loan at one point wtf. £575 pcm rent achieved for about eighteen months.  Nearing the end of his two year fix he served a S21 on his tenants so he could fix the problem with the property.

The problem being damp, because he'd had a cheapo felt roof put on the flat roof extension and it had peeled back during high winds (paid £650 for it), and not had a damp proof course put in (there's a picture in there of the bottom of the walls being knocked back to brick).  He knew the house was damp, but thought that 'good airflow' would sort that out.

Has welcomed the lesson (£8000 to put right) and now sold it on to someone else.  Reckons £23000 'profit' after all expenses removed, minus the £8000 for the remedial work.

His longer term plan is to refurb and flip houses for profit, and wait for mad capital gainz on his BTL rentals.  Interestingly there's no mention of HMRC in any of his calculations.

I enjoyed it immensely and have subscribed.

 

He wanted to "become financially free" i.e. retire in 5 years by doing this.

Total fucking delusion, and look at him posing in his fucking suit in front of a big office block saying that as if he's some business genius. Fuck right off.

[JoeDavola]

I actually think the shot above might be a green screen, with him pretending someone is interviewing him. Twat,

[leonardratso]

looks a cunt. A nice piece of 2 by 4 will sort him out down a croydon back alley.

[Rare Bear]

6 hours ago, leonardratso said:

looks a cunt. A nice piece of 2 by 4 will sort him out down a croydon back alley.

Or a nice piece of hickory.

 

[tank]

12 hours ago, Boglet said:

To be fair, you generally really 'couldn't go wrong with bricks and mortar' for the entire period he's been alive.

Maybe he'll end up right, good knows, we've all been dead wrong for 20 years.

I haven't been wrong.

I haven't rented for 20 odd years and, as a result, own the property I live in outright. 

Interest only BTL only works when interest rates are low. Like any form of highly leveraged speculation, it looks great on the way up but it's hell on the way down.

Edited June 26, 2023 by tank

[Rare Bear]

11 hours ago, tank said:

I haven't been wrong.

I haven't rented for 20 odd years and, as a result, own the property I live in outright. 

Interest only BTL only works when interest rates are low. Like any form of highly leveraged speculation, it looks great on the way up but it's hell on the way down.

Just like any other business. Heavy borrowing is great when things are going well and a disaster when the going gets tough.

[BoSon]

So he failed to "fix the roof while the sun was shining".

As Beany often pointed out, many in the house flipping game made a profit regardless of their efforts, while the market was rising. Let's see how they do now it's going the other way.

[spygirl]

https://www.property118.com/landlords-will-have-to-hike-rent-by-614-to-make-a-profit/comment-page-3/

Landlords in London and the South East will need to hike rents by a staggering £614 per month to make a profit when remortgaging at present rates.

This means that tenants could see their monthly rent leap from £1,498 to £2,112, on average, marking a substantial 41% increase, Hamptons reveals.

The estate agency warns that the rise would be prohibitive for tenants so many landlords may be forced to sell-up.

‘40% of mortgaged rental homes would become unprofitable’

The lead analyst at Hamptons, David Fell, told Property118: “We estimate that at a loan rate of 6.3%, that 40% of mortgaged rental homes – or 28% of all rental homes – would become unprofitable when it comes to re-mortgaging.

“This figure takes into account management and maintenance costs, but not tax.

“We estimate that an additional 18% of existing landlords would not pass a stress test of an extra 1% above this rate.”

He adds that stress testing isn’t generally applied to landlords who are re-mortgaging with the same lender – though it is generally applied to new purchases or product transfers to a new lender.

 

Yeah .. leaving out is really going to help tge figures.

The higher the rent, the higher the tax due.

 

Raising rents with s24 in place is like try to chase a carrot stuck on the end of a pole on your head.

LL has a business/position that is not viable. Its that simple.

And a loan rate of 6.4% is sooooooo 2020....