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Pytyr

Btl Squealing From The Blog.

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BTL Piggy sqealing article (don't bother reading, usual lies.)

Followed by a great comment from Bilbob. Written with passion.

Excellent News, rejoice for your childrens sake. B2L is a social evil which polarises society. Rents will increase and the specter of 'Rachmannism' will return if not already (check wiki Rachmann) B2L is still not taxed properly, many loop holes. UK House prices must fall to be affordable. BoE, IMF, Council of Mortgages, Dr Roubini (dr doom) Halifax etc etc all agree with this.

1) The UK House Price Ponzi scheme need cleaning up, the Illness must stop, It only hurts your own children. Local Authorities told to reduce affordable social house building prgms - Spending Cuts will increase social rents to 80% in return Local Authorities enabled to build 130,000 (if they get the money) new social homes but we need 50,000 a yr minimum. Shelter IS a major political issue but little is done because of Greed!

2) 55% of house sales have been to Investors (B2L- or is it social genocide) which Govt has does nothing to abate, only encourage. As Govt, BOE want you to buy, spend and not save hence the low savings rates aimed purely at propping up house prices which the BoE know is not sustainable - giving investors time to bail out - but mainly only to protect banks property assets.

3) Agvge age to save for a deposit for a house is now 37/38 unless you get a 20% down payment from bank of Mum/Dad

4) Land Reg confrm B2L have taken out of supply 'over' 1,000,000+ homes, so more forced to Rent impacting supply/demand, UK Housing turned into a Commodity to be traded! Local Authority building prgms cancelled as part of cut backs, to prop up house prices and banks asset sheets, new prgm based on funding through increased rents.

Yet 50-60% of all B2L homes are 1st time buyer homes/market reducing supply to the most important section of new buyers. Turning them into cash cows for this social evil

5) Rents are rising, this is seen as a wonderful positive thing for investors. Rents will continue to rise, as rates rise and Govt will do Nothing until its too late and the dirty deed is done. Helping to make the LAs rent rises more acceptable.

Extreme social issues possible. Check out Rachman on Wiki for what happened in the 50/60s -history repeats itself

6) LAs gave grants to property speculators to renovate/build and then rent home back to LA for thier clients. Yet LAs could become the preferred B2L a tenant would want to rent from and the LAs could make a profit (less rent cost) as B2L do (5-10% yield on investment) adding more money to LAs budgets to build more affordable homes or reduce your council tax,

7) Tax on Profit from 2nd++ homes (GCTax) still very low with many well publicised loop holes to evade paying (or reduced) GCTax when selling a 2nd property. Even the Spending Review ignored putting CGTax back to where it was in 2008 to increase revenue to treasurey where this extra money could then be sued to fund more social housing. We know there will be Cuts, Taxes for most others (not B2L profits) will rise, VAT etc. No plans to increase stamp duty for either Foreign buyers or B2L but 1st time buyers may lose thier Stamp Duty benefit in next Budget in April.

7a) Reduced Tax bill for B2L. Yes!, 1st time buyers get no real support, just higher interest rates, but B2L do get Tax Relief on their mortgage costs, 1stimers dont!, House Flipping (MPs expense scandal) to avoid GCtax still done as loophole not closed, many many ways to avoid or reduce your tax burden if yr a property developer/B2L. 1st time buyers you have None.

7b) B2L. get Tax benefits on loans, as a B2L is more tax efficient. Anyone with a buy-to-let property can claim tax relief on the mortgage interest. e.g for B2L better to increase borrowing on a buy-to-let property and then take that money and reduce the mortgage paid on your residential home, where no tax relief is granted. To do this you open a business bank account and making sure all rental money and expenses go in and out of this account. You can use any profits made on the rental business to reduce your own mortgage, which would be a tax-efficient way of structuring your borrowing.

7c) A buy-to-let home when held in joint names is sold, you are able to use both spouses' CGT allowance. This means up to £20,200 of capital gains can be realised before you pay tax, rather than just £10,100." 1st Time Buyers get Nothing, but Higher lending rates!

Your Govt does nothing to correct this inbalance, than reduce Stamp Duty which is lost in higher payments. B2L get their tax benefits every year! Yet Now you have the Spending CUTS, increased taxes yet there is a discrepancy, B2L profits get off scott free! and will increase Rents, making your children Cash Cows for the rich while everyone else suffers

8) Property Speculators/B2L can get re-development grants of upto 50% from Local Authorities for property when they rent out to LAs tenants

8a) Govt want to support B2L investors and Not Savers as they inflate House Prices, buy up stock and so give them Tax advantages but Not your children. Other than reduced stamp duty on 250K which amounts to about 3K enough for some carpets But B2L Get FAR Far more every year!!

9b) One Kent couple knowing of the tax benefits in a rising market had 857homes as B2L. Saying they were doing a social service in providing rental homes. Could be argued to reduced housing stock in that area thereby increasing prices males more profit etc. This is the Illness of B2L and the UK House Price Ponzi scheme that is set to crash.

9) Outlook for 1st time buyers, Grim, Mortgage lending reducing. But for B2L lending up beat as money is becoming available as property prices fall. Long term investment view as Rents rise, so do yields. Taxation CGT still low; 2008 40%, 2010 10-28% plus loopholes!

10) Property expected 'not' to crash and burn as most bloggers would like, but reduce as Govt BoE prop up prices then bumble along, Propped up by Govt policy, BoE practises, with media hype paid for by Vested Interests. Cuts, unemployment, social unrest, Un Fairness in the Cuts affecting the lower end of the property/wealth pyramid will be a counter to this.

11) Outook, melancholy and grim with no Govt plans at all (not within their ideology) to address one of the most urgent social issue in our society as a whole, besides employment, which is, Shelter, Affordable homes, a policy to Reduce house prices. The UK House Price Ponzi scheme fed on greed and fiscal policy which is seen and felt by millions as a social evil where our energy and money should be spent on a sustainable future, shelter, affordable homes, family value, social responsibility.

12) Priced Out younger generation continue to vote for Govts that make them B2L Cash Cows supporting unknowingly (as no overall view) the govt support to B2L that makes them cash cows, encouraging property speculation, with high unaffordable prices. Its where 'they' want you to be - think about it.

13) Un lucky for some 'Holiday Homes'Tax benefits still not curbed. Holiday home ownership continues to Decimates rural communities where locals have less buying power but city workers buy up local housing with no governance/controls by local / central Govt. Lots of Tax benefits yet again. Tax advantages include as example, a holiday property only has to be available for letting for 140 days, and actually let for just 70 days in any given year, before the owner qualifies for beneficial tax treatment.

This includes: 1)the ability to offset excess property expenses, including mortgage interest, against other income at the landlord's highest rate of income tax

2)a capital gains tax (CGT) rate of just 10% on profits realised on the sale of the property

3)the ability to defer CGT by reinvesting into new qualifying property, and to make gifts within the family without a CGT charge.

Local 1st Time Buyers, you as usual get nothing! to combat this where many holiday homes are in the 1st time buyer price range. Oh except Stamp Duty when property is under 250K so you can buy carpets/Flat TV. You get this Once!, holiday home owners, B2L get it Every Single Year! Govt do this knowingly.

Background.

Cuts in Law and Order, Defence, Health, Falling house prices (as if they must always rise), the Big Society Fairness is in the News But the 'cons' on UK House prices, affordable housing, social responsibility, Homes to support the younger generation is not. What happened to True 'fairness' to our children and grand children, gone because of self fish greed/ B2L is no different same as Investment bankers bonuses. Why is nothing done?

Why not, is strange as there are millions of votes to be won, Because the Younger Generation do not organise themselves and use the immense power they have. Your votes count which is why Labour is now make Housing an issue, Affordable homes? means crap 'rabbit hutches' just to prop up the market. But recent Govts when in Power has done very very little about it as it did not suit them.

MPs expenses scandal reveals the advantages of MPs buying a 2nd homes in London. Has this been properly addressed yet? Whatever happened to 'house flipping' to avoid GCT - answer nothing.

The Winter of Discontent is here But even worse I suspect will be, Rents, which have risen already and will rise more and more as mortgage interest rates rise then B2L landlords will use this as an excuse to blame the bad banks for their rent rises. Or sell Up as less tax to pay now.

Unemployment will increase with more uncertainty. Govt will do Nothing of any real value to abate this ongoing anti social evil, as the many vested interest are all interconnected, to support at all costs the great UK House Price Ponzi Scheme.

Yet You the younger disenfranchised voter, get nothing other than being Cash Cow to investors or debt slaves to Banks. Who say they are forced to invest and (as they are doing a great social service in providing rental properties!) buy up 1st timer properties as keeping money in the bank at 2% interest aint worth it when you can get an 8%yield on B2L. But then this IS Govt/BoE deliberate policy, affecting millions of voters (now under 40yrs old).

So maybe you would want to join the campaign at PricedOut web site, do something complain to your MP at 'writetothem' web site. Or assume you get what you vote for?

Well done Billbob!

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I mentioned a few days ago how some people were saying these reforms were good for BTL and that private sector would support (and benefit from) the demand.

Do you guys think there is any truth in this? Very concerning development if so.

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I mentioned a few days ago how some people were saying these reforms were good for BTL and that private sector would support (and benefit from) the demand.

Do you guys think there is any truth in this? Very concerning development if so.

Yes they are good for BTL. I imagine that was the whole point of them.

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WTF is brilliant about a long, incoherent and sub-literate comment?

A rant only works when it's well-enough written to hold a reader's attention.

Indeed, I got irritated by the lack of stringing a sentence together ability pretty quickly.

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WTF is brilliant about a long, incoherent and sub-literate comment?

A rant only works when it's well-enough written to hold a reader's attention.

You missed my point. Yes, it's not well written and could do with editing and better structure. That would be the intellectual response, one your english teacher would be proud of. This is a cry from the heart. It's written with venom. This is a visceral response to a blandly written justification of a social menace. This guy is as mad as hell and he doesn't want to take it any more. You can feel the anger, I bet he was frothing at the mouth and shouting at the computer while typing it.

Glorious.

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I mentioned a few days ago how some people were saying these reforms were good for BTL and that private sector would support (and benefit from) the demand.

Do you guys think there is any truth in this? Very concerning development if so.

I think an efficient private rental sector is a good thing and there is nothing wrong with laws enabling this

what is a bad thing is a banking-stucture that encourages leverage and speculation at the expense of actual investment, I suspect the days of very high BTL leverage are over, so find it hard to dislike these points above

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I mentioned a few days ago how some people were saying these reforms were good for BTL and that private sector would support (and benefit from) the demand.

Do you guys think there is any truth in this? Very concerning development if so.

Check out your local LHA rates and multiply he shared room rate by 2,3,4,5 and any number above that.

All properties with more than 1 bedroom yield more via rent if they are HMOs.

Planning permission to convert a property into a HMO is no longer required as Conservatives changed the law last month.

Enter the period of the tenement and slums.

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Lots of under 35s will be in shared houses together that is for sure.

they already are - just the ones with jobs who pay taxes so far tho'

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The short version, as I read it, is that after the review it now makes more sense than ever to buy a BTL.

Building programmes have been stopped as part of the cost cutting so the supply issue is to be maintained by the government.

It is easier than ever to convert a house to multi occupancy and will now be easier than ever to fill a house with tenants. Especially those under 35.

BTL is still not taxed and looks about the most tax efficient investment that can be found to use someone elses money yet reap all of the rewards.

Can the review prevent a crash? I dont know but it seems more possible than I first thought.

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I mentioned a few days ago how some people were saying these reforms were good for BTL and that private sector would support (and benefit from) the demand.

Do you guys think there is any truth in this? Very concerning development if so.

As far as I can see this is going to hit BTL by having people on housing benefit having to share houses, it means that there will be more houses to rent that are empty. which should start a price war.

some BTL landlords may just sell up.

one of the other things it may convince youngsters to stay with parents If they are going to have to share a house. at least it makes working look more attractive.

Edited by gf3

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The short version, as I read it, is that after the review it now makes more sense than ever to buy a BTL.

Building programmes have been stopped as part of the cost cutting so the supply issue is to be maintained by the government.

It is easier than ever to convert a house to multi occupancy and will now be easier than ever to fill a house with tenants. Especially those under 35.

BTL is still not taxed and looks about the most tax efficient investment that can be found to use someone elses money yet reap all of the rewards.

Can the review prevent a crash? I dont know but it seems more possible than I first thought.

It might mean that the poorest properties which are bought to be split into HMOs might gain in price relative to the next rung up. It won't have any effect on the HPC of typical single family residential properties.

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It might mean that the poorest properties which are bought to be split into HMOs might gain in price relative to the next rung up. It won't have any effect on the HPC of typical single family residential properties.

Those are the types of property than will be converted to HMO's.

It's more profitable to convert than to build. If you convert 3 bed houses, you can push up the value of them.

With nothing been built and demand rising, the people will squeeze into HMOs which were once family properties.

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Those are the types of property than will be converted to HMO's.

It's more profitable to convert than to build. If you convert 3 bed houses, you can push up the value of them.

With nothing been built and demand rising, the people will squeeze into HMOs which were once family properties.

at least 3 to a house though, so not many needed

and what happens to the houses they currently rent, they'll also be split into HMOs, so overall it reduces demand for hosues

Edited by oldsport

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they already are - just the ones with jobs who pay taxes so far tho'

Yeah, along with over-50s who work hard and pay taxes ...

Could end up back in that game myself yet. As could anyone without security.

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Yeah, along with over-50s who work hard and pay taxes ...

Could end up back in that game myself yet. As could anyone without security.

true

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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