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House Price Crash Forum

SteveB

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About SteveB

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  1. Remember they have to pay 40% CGT on those gains, so no where near a million ! I think banks do invest in property, but the problem with it is that it is such a long term investment. If the market runs in cycles this current one hasn't really started on the downward slope yet after 10 years. If you were to invest now you might not see the return you talk about for 20+ years. In the mean time your 150k in deposit money could have done better elsewhere.
  2. I'm not sure how it applies if you set up a property letting company. On a personal level each property is treated seperately. So you can't offset losses on one property against another, although ultimately all profits end up in the same pot. Yes I am talking about BTL not holiday homes. You are correct these can be offset against other incomes.
  3. The loss can be carried across to the next financial year. e.g. you made a loss of £100 in year 1 and a profit of £200 in year 2. You would pay tax on £100 in year 2 (year 2 profit - year 1 loss). What you can't do is subtract any loss from any other earnings. So if you made a loss on a BTL and you earn a salary as well you cannot subtract the loss from your salary.
  4. I think you are a bit confused. You don't get any money back just tax relief off the amount of profit you need to pay tax on. With a BTL you get tax relief on the mortgage interest payments. e.g. mortgage interest payments £300. Rental income £500. You would only pay tax on £200 not the full £500. In the scenario you describe there are no profits, so no tax to pay anyway, although I don't think anyone is stupid enough to make the investment you describe.
  5. Why not ? I'd say working at 16 in probably the most junior position (where you get all the c**p jobs) would be hard work. Don't look down on them just because they didn't go to university. Come off it student life isn't exactly hard graft is it if you are honest with yourself. You are not worse off than if you had left school with nothing, your earning potential and career prospects are a lot better, you just have to be patient. I saved for 5 years after leaving university, then bought a pokey 1 bed flat in a c**p area and moved up the ladder from there. Don't expect things straight away j
  6. If you read my post properly you would see that I thought going travelling was a good idea. I was just pointing out that there was perhaps a less risky way of doing it. Enjoy your travels, I know I did.
  7. I still don't understand why people have such a problem in believing that people will hold onto BTLs as long as they remain affordable.
  8. I'm glad everything has worked out for you. Selling your home for a profit, travelling the world on the interest (I presume), coming back home after a 30% drop in prices and buying a bigger home with the proceeds. No wonder you are so pleased with yourself. Excellent. Accept nothing has happened yet. Here is another scenario. There is no crash. You have your large chunk of money, but no job, so you can't get a mortgage for at least 6 months. You are off the property ladder and now have to rent, but oh you don't have a job, mmm. I think you are taking an unecessary high risk gamble. What wo
  9. As you say there will always be movement because all houses move in the same price direction. As long as you are not in negative equity you can still move. This to me doesn't point to a flood of cheap property though. It would not create a surplus of supply that would potentially keep prices low. Sorry l'm enjoying this discussion, but have got to go now, bye.
  10. It depends on whether you think the majority of these investors are looking for short term gain or as a long term investment though. I don't know the figures (I can't read their minds), but I think it's the latter.
  11. 5 people. Sure people are looking to sell now, but prices are still high. Will they still sell if there was a crash though or sit tight and ride it out ?
  12. I totally agree. Could a situation arise though that resulted in the house prices falling, but hardly any property to buy because as I stated people don't have to sell ?
  13. ...what are you basing this assumption on..?? Just through the people I know who have bought investment properties. Despite what some people think on this forum, they are simply tring to secure a future where they don't have to work in B&Q to supplement their pension !
  14. I don’t agree with this theory that a price crash would mean lots of houses flooding the market. AS LONG AS INTEREST RATES REMAIN LOW. Homeowners who make up the vast majority would still be able to afford mortgage repayments, so would not sell. I think the majority of BTL investors are in it for the long term and again as long as the rent was covering the mortgage would not sell.
  15. I bought in August 1999 and was fearful that I was buying right at the top of the market. The media at the time was certainly negative towards further rises.
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