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Number Of 'amateur' Private Landlords Hit Record High

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I think not.

The yield where I rent is less than 1%.

Would you consider a sub let? :D

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I think not.

The yield where I rent is less than 1%.

The difference between the yield people think they are getting and the one they actually are once voids, insurance and maintenance have been factored in is significant.

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I think not.

The yield where I rent is less than 1%.

Till Mr Landlord evicts you and converts house into a HMO.

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Even the checkout man in Lidl was telling me to get into property last week. That has to be a sign.

If he's got ten BTL's and working in Lidl, then that is a sure sign! :wacko:

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So have we reached Peak BTL?

The economics make no sense to me. The old rule of thumb near me used to be £1 rent per week per £1k of purchase price (so a £300k property would ask £300pw). Now it's more like £1 to £1.5k, so you need to pay £450k to be able to ask £300pw. This means 5.2% gross yield has decayed to 3.5% in a couple of years. Surely after financing, insurance, repairs, fees, voids etc this is cashflow negative. I can only conclude people just don't care as they are so convinced of the capital gain. But as we all know eventually there are no greater fools left.

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It will click with someone in government that you can tax the hell out of BTL and 2nd home owners. Of course the legislation will take a while to come through as those in power will have to dispose of their extra houses first of all.

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The difference between the yield people think they are getting and the one they actually are once voids, insurance and maintenance have been factored in is significant.

Where I live is 5.2 gross. After agency fees and ongoing costs - that must be close to zero.

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With 525 BTL repro applications going to court every day there will always be plenty to buy,

http://www.residentiallandlord.co.uk/news/3477-social-landlord-repossessions-increase.html

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Eddie_George, on 15 Aug 2014 - 10:38 PM, said:

It will click with someone in government that you can tax the hell out of BTL and 2nd home owners. Of course the legislation will take a while to come through as those in power will have to dispose of their extra houses first of all.

It is probably starting. In Wales the new housing bill means all landlords must register (£50 per property). If managing the property themselves they must pass a "fit and proper test" and pay (£200) plus go on a training course every 5 yrs (£200).

As has been pointed out, the BTL herd have been suckling on the teat of rising house prices, housing benefit and tax advantages for years. As a potential tax target they are ideal as they're a minority and do not elicit majority public sympathy. Previous governments have introduced tax changes in other areas that caused major changes (eg Labour and removal of dividend tax credits in pension funds). It's not inconceivable that a future administration would look at changes such as alterations to tax relief - for example removing higher rate relief on BTL mortgage interest.

Registration and licensing herds the cattle into the shed. Their udders are ripe. It's only matter of time before milking commences..

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