Sunday, Mar 23, 2008
BTL offload unrented properties thank to CGT changes
Guardian: Tax changes fuel great escape from buy-to-let
It is a self fulfilling prophecy. These b@stards know that they have to beat the Buy-to-Loser next door. Sell quick! "Buy-to-let investors across the UK are telling estate agents to offload their properties to take advantage of new tax rules. They are deciding to offload properties that are perhaps not in the right locations or those that are the wrong type and don't fit any longer within their portfolios.' Basically they are offloading the lemons bought at the peak of the market, before banks start repossessing. AH HAHAHAHAH HHAH. Enjoy the benefit of LLEVVERAGE in an illiquid market: meet your margin calls and Happy Easter, BTL!
Posted by confused76 @ 09:48 AM (533 views) Add Comment
7 Comments
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1. Cheekie Charlie said...
'For longer-term investors, I doubt the difference between the new rate and what it is now is a sufficient incentive to do so. I expect you will instead see a churn of property from newer investors to those who have been in for a while.'
Just the odd million lemmings who naively joined the race for a lifetime of debt last year alone.
2. Jimmyb said...
I can't imaging anything but carnage from these new build flats. It has been said on here before but this is our sub prime only ours will be with the middle classes.
3. planning4acrash said...
Just looked at propertysnake.co.uk its ballooning, and more to the point, many properties have been on the market now between 200 and 300 days. This is when things start to get interesting!
4. Brian T said...
At the risk of stating the obvious... before someone's liable for Capital Gains tax, doesn't there need to be a Capital Gain? If you're selling at a loss, it hardly matters what the CGT rate is. 8-/
5. new user 2007 said...
I was scared that the govt was telling BTL since October that if they waited they would see their tax charge cut. At the time I believed it hoped that that would stall BTL selling in a stagnating and falling market until April, and by then the market would pick up.
The cynic in me thought that it would then reverse the promise to cut the tax to stop BTL selling. I was surprised it did not, given its commitment to rising house prices....Darling admitted a stable market is rising prices, proving that they only pay lip service to improving affordability ( their version of this is us becoming debt slaves).
BUT it just dawned on me that the govt has run out of money:) The corporate tax take is about to fall (City), as is VAT (consumption) and personal taxes (slowing wage growth). Just as costs aer about to rise (unemployment benefits). It therefore needs BTL to sell to realise the CGT:)
In my area of London Asking prices are FINALLY starting to fall. Sellers have waited since August and no one has been buying. The stock is going up. I have looked at snake and some of the houses say on the market for three months...I saw them on property sites 6 months ago when they had been on the market for months.
6. Pelethar said...
If this does result in a rush of BTL properties coming onto market, this has to be good news for any number of reasons, not least of which is the point that these are likely to be flats and smaller houses, ie lower than the national average property price, so will lead to some meaty monthly falls in overall asking prices.
7. Stevie Dee said...
@new user 2007.. great comments. Adam Smith talked about the "invisible hand", whoever thought of this world domination business, control, etc were simply deluded. I does not mean no pain or hardship for others. But what I expect is a return in the end to what we know as society & civilized values.
CGT before April or After, 18% or 40%, yes the government have run out of money, but one thing we have to remember that these brokers, politicians & lawyers all have families, children, relatives, etc. Now failure is apparent, it is in there "self interest", to make some sort of amends.
Just a thought, slate it if you want.
Come down Zacchaeus, down from the tree!
http://en.wikipedia.org/wiki/Zacchaeus
Happy Easter