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House Price Crash Forum


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About Phlash

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  1. Homeowners on interest only in the news today... Mortgages: Nearly one million 'face difficulties' http://www.bbc.co.uk/news/business-34144333
  2. All loans being on a repayment basis is a great idea. Thumbs up to that. All of those factors you mention I would agree cause a significant barrier to entry. I will read the links with interest.
  3. What I meant by resulting in more corporate Landords, is that BTL investors may opt to transition portfolios and new purchases to a corporate structure, where they can enjoy Interest tax relief and 18% tax on their property income. That could result in more cash staying in the corporate structure and not being distributed out by means of dividend for spending in the wider economy than is currently the case when owned privately. Small BTL landlords will obviously not take a corporate restructuring step, and these landlords may indeed be thinking of selling as is the case from conversations I have had with people. So, I was pressing on a transition point and not on the behaviour of existing large corporates. However, on the large corporates point, their hand if they chose to focus on this sector, will now be stronger in a 1 on 1 scenario with BTL landlords. Buying up portfolios may be an option for them but certainly I would agree that they would my go surfing Rightmove. If the Government really wants to target landlords and support First Time Buyers, then a Universal Licensing scheme that charges everybody and does not discriminate based on capital ownership structures may be more effective and could bring in more £££s. If the result is a more professional and better provision for those renting then I am for it. How a whole scale shift away from BTL could feasible be achieved I am unsure, unless the Right to Buy concept is given full backing.
  4. I do have to stop contributing today now. But, in short. I like to try and make incremental changes to my social environment. That actually means getting involved with the current status quo that I have problems with and trying to influence it. My decision making process has been based on that. You may collectively disagree with me and that's ok, but there are some wild presumptions in just a few posts that quite honestly are probably not how you would go about the conversation if we were sat at a table having a pint discussing these views. It makes it very difficult to engage therefore regardless of unknown motive. I will now enjoy my day off work where I try and help the long term unemployed back into work, that's my accountancy role, and enjoy my 10th wedding anniversary.
  5. Actually I saw google analytics And that traffic had come from HPC. Maybe you might humble yourself now please. Too many assumptions and your missing a good conversation potentially.
  6. Oh dear. Diversity needs welcoming in the world. Not thrown out the moment someone says hello. It stimulates good debate and collective decisions in the world will likely be better. If I need to be the new focus of stored up anger on the forum as I saw before, then I guess I should have know better! Interestingly, yes micro financing is taking off. Investors are beginning to use it... Look at all the crowd funded property companies setting up. Can owner occupiers try the same maybe? Anyway, I find the below topic more interesting, but it's funny that you didn't 'dig up this dirt' on me! http://www.comfortlettings.co.uk/blog/2012/04/08/is-growth-forever-possible
  7. I won't be able to contribute further today but I'll check back in on the conversation.
  8. Haha! I'll explain a little then! I have a engineering degree, but I'm a Chartered Accountant. I setup a letting agency when I finished my Chartered Accountancy exams as a bit of an entrepreneurial venture. I was on HPC a lot back in 2006. I was a student then, lived in some damp houses, rented from some terrible landlords. So I decided enough was enough. I developed a couple of dilapidated properties, the kind you can't get mortgages on and rented them to students. I decided I wanted them managed in a way that I would have wanted as a student. Comfort Lettings was born. We turn away more landlords than we take on, they must meet our demands on quality and sign up to our ethos. I decided, that my HPC type frustrations (c.2006) were better resolved on the inside so to speak. As a point to note... I think this latest tax change is likely to result in more corporate landlords and as that starts happening it is less likely that that housing stock will return to the owner occupier world.
  9. You've shown in a couple of posts that you just do not fundamentally understand the business model. Earlier in the chain a poster talked about 5-6% yields. Meaning 5-6% multiplied by the house value. £100k house = £5-6k yield. You talked about 10% on costs, which is a completely different measure (that is a cost plus method), they were talking about 'yield'. Your statement about students is also incorrect. In many City locations, students will rent the property a full rate for the full 12 months. HMO landlords therefore avoid regular voids, they can also predict their cash flow because they sign students up 6 months in advance of when the move in. £4-500 per month bills is just plainly absurd. HMO rules haven't been tightened per say, the planning laws have....these are the most significant development for HMO's. BUT it has absolutely no effect on CURRENT HMO's, who automatically get given their C4 planning category. A lot of people who BTL do also budget for voids, and have disposable income to compensate voids if needed. On the CGT point. It is only paid on GAINS i.e. when you've made money on the sale of the house. It does not kill anything, it just means the seller gets less in their back pocket, you can never make a cash loss from effects of CGT!!! Your rant is pure scare mongering and is the kind of thing heard down the pub, based on unreasoned over egged 'estimates'. The figures in a lot of BTL scenarios do still stack up for investors. To think that this is now the end is a mistake.
  10. Well, if it happens, I'll be the first to eat my hat!
  11. It's a giant leap, and not one that I think the Tories could reasonably make. There are in the region of 4m HRTPs, a good majority of which probably vote tory, lets assume half. That's ~20% of the votes that the Tories received. I don't think it's likely that they would agree to such a policy when it would detriment 20% of their support!
  12. OP....."When the new rules come in". Scare mongering. The current rules still hold true, higher rate tax relief on pensions is tapered away from 40% relief to 20% between the income band £150k-£180k from April 2011. That is the current rules, see here: http://www.tltsolicitors.com/resources/publications/pensions/pensions_archive/higherratetaxreliefjuly09 To suggest that policy talk is anywhere close to "When the new rules come in" is ludicrous. Its even more absurd to think that the Tories would agree to higher rate pension relief being scrapped, thats where their votes come from!
  13. LOL - since when did I say anything about decades!! If he wants to invest his cash, and not have to put it in a bond for 3-5 years to achieve 5%, he has an alternative.
  14. I'm looking for that amount of cash. You could draw up a contract with me, and I'll give you 5%, the terms can be more in your favour obviously. But I would need some notice of when you would want it back, in order to plan appropriately. Anyway, I doubt you'll take it seriously, but hey, if you do we can arrange - PM me. Micro - financing, the new era!
  15. Well, this is all contrary to Roger Bootle's opinion. He says, 1% or lower for the next 5 years, and certainly no short term rises.
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