Phil321

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About Phil321

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  • About Me
    Apocalypse Now!
    HPC: They told me that you had gone totally insane, and that your methods were unsound.
    118: Are my methods unsound?
    HPC: I don't see any method at all

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  1. I agree and it extends beyond this. If a LL did not declare rent previously they (wrongly) may have argued it did not make much difference once you allowed for mortgage interest, wear and tear etc. Therefore they never 'bothered'....whoops sorry what's the fine? However S24 means the rent is added to income (less repairs etc) to begin with. So if this is now £10k that impacts benefits, rate of tax bracket, personal savings allowance, child payments to ex partner and the overall 'gross income declaration'. So NOT declaring it is now material non disclosure and fraud. It will be a deliberate omission which means potential jail. Some may still not declare.....but the bar just moved up enormously from 'pretending it was a misunderstanding' to tax/benefit/CSA fraud and that is a 'sleepless night' non declaration.
  2. You, plus several others are bang on here. Whilst S24 may not fully kick in for 4 years the tax returns next year (ie 18/19) will create a stir. So if rent is £10k and mortgages are £9k then the whole tax return issue is a simple £1k add....and with some poetic licence many won't have even bother because they are making little or no money (despite tax returns currently being required...it's easier to claim ignorance when non submission is not hugely material). Suddenly there is £10k to place on a tax return...the whole investment becomes really transparent to HMRC and also the BTL'er. And if someone was a non tax payer (eg £1k profit and little other income...because other partner earns the employee money) then the whole business starts to say they are earning £10k this, as you suggest, impacts on all sorts. It becomes a lot of work for very little money...that is currently the case but this shines a light in it and many may even start to employee accounts for £350 a year to just help with returns. Easier to take any gain in HPI and get out. Another thing is many may not be affected but those that are definately affected will be holding multiple properties and therefore the number of properties (and potential sales generating a crash) is higher than the number of landlords effected. All of this based on 0.25% too....when rates lift slightly it could cause panic and if they raise properly to say a historical modest of 4% then many of the leveraged are doomed when combined with S24.
  3. I can't condone this disrespectful discussion and other comments made about this picture it just is not fair. That poor dumb animal's smelly exposed bum hole is on display and captured in a way which I am sure none of us would like to be photographed. .........still the dogs 4rse looks ok. 😆😆
  4. 😆Rent always covers interest. Just the small issue of interest rates....but that's best not mentioned either. As a member of the dark side I can (and absolutely do) face anyone head on who thinks this Ponzi scheme is fail safe. They think I will advocate my position but far from it. Interest rates, S24 and regulation is going to be a killer for some...Yep, their houses may always be worth 'something' but the negative cash may mean they will wish their houses really could disappear like shares can. Many bankruptcies occur due to cash flow rather than perceived underlying wealth. But I wouldn't mention that either..... 😆😆
  5. The Housing Crisis....100 years on...

    I dodged a bullet on that one then. I always wait till dark and dump on my neighbours lawn. 💩😉
  6. The Housing Crisis....100 years on...

    I agree and the generation above could help by leading by example. It's a horrid little set up I see with only the occasional glimpse of some truly inspirational people (all ages...and all wealth brackets). Zombie spending, drives zombie working, drives Zombie living. And yet I guess Zombies believe they are happy....so they continue. Must dash I need to buy some crap I don't need that an tv advert I saw with a lifestyle slogan actually said I needed.
  7. The Housing Crisis....100 years on...

    I am an advocate of those trapped by the year they were born, their student debt, the daft house prices they face and the lack of hope it generates. Yearn for a decent crash to level the playing field. But agree re the iPhone. I live in a privileged little town where 40 something parents earn > national average, have the Lexus 4x4 and the Fiat 500 and buy iPhones, (maybe another fiat 500) and designer rubbish for their teenage 'purchase monsters'. Many teens drinking frappicinnos 5 days a week, an abundance of £20 notes from BOMAD and going to the Everyman cinema in Friday's (£16 a seat) because only losers go to the £5 Odeon. Sad parents generating tax for the government and teaching their little ones how to spend money and to follow in their footsteps. Circle of 'new' life Chance of revolution - 0.000% Chance of opting out of buying stuff - even less. I generalise of course but it seems the 'poorer' families are generating the genuinely intellectual young breed....whether they are allowed to influence the countries future or the 'teen pop X factor kids' will be an interesting 30 years to play out.
  8. I like these pods. But can't we create little cardboard boxes on the river bank for £800 pcm? Maybe a communal toilet in a wasteland. London is looking so far from reality it is balmy. My experience for employees is a massive shift for agile working, conference calls, web meetings.....maybe one day a week in the office. And if you work in Costa in Nottinghill then not sure just how that person survives. When rates go up I think we will hear to pop up here in the North (which in many places is only back at 2007 levels). This may not be borrowed money but higher rates will expose these very poor yields which might seem 'okay' at the moment based in BoE rates and past HPI. We don't need pods but we need lower prices and looking at other threads a drop seems to be gaining some welcomed momentum.
  9. No just agreeing because you agreed with me....but your second points articles precisely my own experience. Cash BTL'ers, grumpy scrooge type traditional landlords have watched the madness HPI in as much bewilderment as many of the young and excluded. The leveraged entitled 118'er buying at daft prices and just interested in grabbing property expecting HPI forever are a common enemy. No business sense, no understanding of the impact they have had on prices and genuinely they seem to think they are 'helping provide houses'. The old cash landlord didn't pretend to be anything other than looking for a return on their own cash. The 118'ers just seem to think they are owed a tax break, owed a living, don't drive prices and if they sold there would be mass homelessness. IT'S NOT THEIR PENSION BECAUSE ITS NOT THEIR MONEY...they just dont get that. Many of the cash LLs I know have taken a CGT hit and sold a few....because prices are so high, why wouldn't they? Price crash please...2018/19. We cant disenfranchise a whole younger generation.
  10. Obscene house prices do my nut because...

    😉 Thanks. Wasn't a challenge was genuinely me misreading it.
  11. Obscene house prices do my nut because...

    Bit lost...so why is it incorrect? Aren't we both saying it's harder today?
  12. Stubborn Sods

    Mine have been through contacts and purchased from other investors. Enquiries to neighbours who aren't motivated is probably a waste of time...you are then buying on their terms. To be precise I can give my last example. 3 guys own maybe a dozen properties all bought in the 80's and they are badly maintained but functional. One is an accountant, one a lawyer type and the other in finance...I am not even convinced these properties are their main source of income in their retirement. Investor 3 had died and unthinkably to the other 2 his widow wanted some cash...so they need to sell. An estate agent 'friend' let me know 2 houses they might sell...one for £350k (7 flats large crack on building with massive potential but needed £200k investment). The other was 3 flats from a converted Victorian terrace new boilers but all very very scruffy, needed a roof and the rear projection wall needed tying back into the main body of the building and they wanted £250k. Neither had planning (not a problem because converted in the late 70's) but no building regs. I bought the second one for £210k (spent £10k on repairs) and the neighbouring property had sold at £410k in fair condition. In mine the first floor had a tenant not paying and was known for dealing in drugs despite this being a super area. No mortgage, no MEW'ings, no nonsense....took 6 months to agree the price then bought in about 3 weeks. Why would they sell cheaply? ...because both buildings needed investment, had some issue with them and as it later transpired they paid £25k in 1985 for mine! And they sold the other on the open market after another year of debate and the widow demanding a second sale...offers over £350k and it went for £550k to some amateur numpties who, to be fair, made a nice job of the place and probably made £100k from a £800k total investment....but what a risk at that price. The widow was right, these guys were old, never realised any gains, the houses were horrid, hassle and not something she would want to be associated with. The yields could be doubled but they needed money which the 3 original investors were not capable of bringing themselves to spend. I had been offered a house from a work colleague whose sister was desperate to sell and feared repossession...bad karma if you abuse a friend or associate so I don't touch these. It was 'worth' £175k, she would have taken £125k so I contacted that same agent and they had an open and honest discussion. He sold it on the open market in a week for £155k with an exchange and completion within a month. I was never a big player but I was honest and therefore opportunities from other investors came my way normally via agents or directly from those investors who needed money. The most annoying thing agents say in a bouyant or firm market when they get a low offer is 'I'd buy it myself for that'.....genuinely I must have had 3 examples where after 6 months they have come back to me with an acceptance and their tail between their legs....and I rarely would stand by that offer. "Too late buy it yourself" I am thinking....but I normally would say I had found something else so could only now afford it at £X price. There are dozens of examples and opportunities over the past 20 years. People definitely forget what happens when the market is quiet and someone needs to sell quick. That time will come again and the key is not to be fussy (if money is the driver). Trickier if you intend to move the wife and kids in of course 😆. I am now no longer buying ever again...the impact of leveraging and daft prices make the situation unfair on a whole generation and owner occupiers....but I am sure opportunities for real investors and OO alike will come again.
  13. Obscene house prices do my nut because...

    Obscene house prices do my nut in because..... my experience advice re being frugal (keep the old car, shop around, just buy what you need) isn't enough for my kids to achieve their goals (aged 27 and 31 with kids themselves). They work hard, pay lots of tax and still struggle. Student debts and daft house prices make it feel 'impossible' to get out of the position they find themselves. It's such a shame because I am 'only' 49 and it wasn't easy for us...but it WAS achievable with some very hard work and some sacrifice. But without hope...the priorities and lessons that I learned re hard work and saving are now Understandably diluted. HPC needed to make it achievable again for a hard working average couple to have a decent house for their own family in the area they need to live.
  14. Stubborn Sods

    I live in an area where reductions are unheard of......but that doesn't mean they don't happen just no one hears about them. My purchases have been either massive reductions following my offer or an off market purchase where next door has been double the price I pay. It is all about patience and when money is the only driver, it's about not being fussy. One flat (overlooking the town centre gardens) was £210k...my 'enquiry' at £150k was rejected and I bought at auction for £122k. A house sold for £410k as I bought the neighbouring town house (albeit a tad rough, some wall tie issues and needed £10k in a roof and pointing) for £210k. The 118'er does understand this...they consider property as an investment regardless. But I considered property as a potential investment due to a very inefficient market. No transparency and out of towners (or local high earning dual income families) just buying because they like the colours, the bath fittings or fireplace. Balmy. Investors are 'trade' but the 118'er formula has blindly bought at 'retail' prices on interest only where someone else's wage pays the mortgage...so they care less about true value but expect a long term growth. I hope everyone holds out for proper prices supported by local wages and then we can see a genuine crash reflecting regional variances.
  15. I mentioned Neverwhere and Mr Panza. But should have acknowledge a great post and find in the first place by original poster. For me it further clarified it is not the borrower who is 'subprime' it is the debt itself. Ie low income, one mortgage, struggling to get by...that's a long term situation that has always existed...thode loans aren't great but the economy factors it in. The subprime was speculation and leveraging which bring the % of poor loans to an unacceptable level based on greed and prices which are not underpinned. And I see that in the UK today.....it's just a question if time.