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Another Nail In The Btl Coffin

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"more good news for HPC although increase in loans up to 40% in London for right to buy is not so good"

At least it's new build only. The government uses the community infrastructure charge on new build homes to pay for shiny new railways and landbanking house builders.

It'll be interesting to see how existing housing competes.

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Irate BTL landlord on R4 Moneybox Live just now. Described 3% increase as "legalised theft...taking from hardworking people to give to ne'er-do -wells.."

He was told his upcoming purchase of a fifth BTL (at £300K) would cost him an extra 9 grand. Not a happy man...

Edited by juvenal

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Im surprised you didnt hear my nuclear guffaw when I heard for the 3% charge on btl.

as I always said its a fixed asset and the government is going to nail them into the ground. I don't even know if the gov cares about housing they just see a fat pig that cannot move and want a bite.

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Im surprised you didnt hear my nuclear guffaw when I heard for the 3% charge on btl.

as I always said its a fixed asset and the government is going to nail them into the ground. I don't even know if the gov cares about housing they just see a fat pig that cannot move and want a bite.

Your guffaw was drowned out by Krusty's scream as she hurled her pashmina across the room.

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As the Government is fast running out of cash it is bound to go for whatever it can get. Once BTL has been soaked dry then it will come for owner occupied homes. The beast is addicted and cannot be satiated. Until there is a total break down the UK is stuck in the spiral of death.

How does this nonsense work? Can you buy a property and live in it for a week and so avoid the increased stamp duty?

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How does this nonsense work? Can you buy a property and live in it for a week and so avoid the increased stamp duty?

It's not targeted at BTL explicitly - just any second (or more) home. That's the beauty of it - it should be very easy to enforce and will have wide-ranging impact beyond just BTL, particularly in areas blighted by second home (non-BTL) owners, of which there are many.

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Just shows the London bubble market is overvalued by at least 40%

Just shows the London bubble market is overvalued by at least 40%
Just shows the London bubble market is overvalued by at least 40%
Just shows the London bubble market is overvalued by at least 40%

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Irate BTL landlord on R4 Moneybox Live just now. Described 3% increase as "legalised theft...taking from hardworking people to give to ne'er-do -wells.."

He was told his upcoming purchase of a fifth BTL (at £300K) would cost him an extra 9 grand. Not a happy man...

That's what all taxes are. Does he somehow think he's exempt, because he's providing a "service"?

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Irate BTL landlord on R4 Moneybox Live just now. Described 3% increase as "legalised theft...taking from hardworking people to give to ne'er-do -wells.."

He was told his upcoming purchase of a fifth BTL (at £300K) would cost him an extra 9 grand. Not a happy man...

******* ****

Crash em.

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A couple could still own one home each, and avoid it then?

What an excellent idea......

Save the BTL tax but get hammered on inheritance x2....

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A couple could still own one home each, and avoid it then?

fine one joint......or two, one in one name the other in the others name......no problem.

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Irate BTL landlord on R4 Moneybox Live just now. Described 3% increase as "legalised theft...taking from hardworking people to give to ne'er-do -wells.."

He was told his upcoming purchase of a fifth BTL (at £300K) would cost him an extra 9 grand. Not a happy man...

What is wrong with these people. It won't affect his purchase so long as he can complete before April.

He should be happy - he's got his assets and the Chancellor has just made it more difficult for others to compete.

Now it might mean that prices of BTL type properties might go down 3% (or even 12% as it is a leveraged purchase) - but presumably it is a business and he should be able to cope with all sorts of problems without becoming all emotional. Anyway, they're all in it for the long term, so what do they care about the asset prices going down - they'll still get the income*.

*oh yes, forgot, they'll not be getting so much tax relief (tax credits, if you will), so they might not be taking so much money home.

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Reposting from the scum thread because the threshold detail hasn't come up here yet:

According to the Spending review and autumn statement 2015 the "tax on buy-to-let" (h/t George Osborne) of 3% additional SDLT on rental properties and second homes will come into effect as of April 2016 and will have a much lower threshold than standard SDLT, being payable on any qualifying property purchase that exceeds £40k:

Stamp duty land tax: additional properties – Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016. The higher rates will be 3 percentage points above the current SDLT rates. The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda. The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate. The government will use some of the additional tax collected to provide £60 million for communities in England where the impact of second homes is particularly acute. (5)

:D

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Astute politics by George Osborne.

By limiting the 60 million to English communities, he will provoke a backlash from Welsh politicians.

So, while everyone is squabbling about Welsh affairs, Ros and her mates will be left behind a wall of noise, artificially generated by George

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Quote from original article: "Commercial property investors, with more than 15 properties, are expected to be exempt from the new charges."

(before I start I'm anti HPI BTL etc.) So if you're a common pheasant you have to pay more Stamp Duty for BTL or further properties. But if you are big business you pay less Stamp Duty for further properties. Why stop there? Why not make small business pay more tax than big business? and make incomes tax bands inversely proportional?

So now, houses may become cheaper and large companies can start buying. The real concern to me is how much this new competetive advantage to big business offsets the advantage to the single home buyer. I hope it doesn't.

Either way, in principal its is wrong. Have I missed something? what do you think of this?

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Either way, in principal its is wrong. Have I missed something? what do you think of this?

BTL is the last dumb as shit boom lending product. Letting mugs play the housing market leveraged with £3 of borrowed money for each £1 of their own (75% LTV) is a recipe for disaster. What requires explanation is not the creeping barrage driving mugs out of leveraged property investment in November 2015, seven f**king years after the banks blew themselves up with shit like this, it is the fact that we had to wait six f**king years for them to start the shelling.

What you are missing is that interest-only lending to mugs to bet on house prices with essentially unlimited amounts of credit money (as we creep up on the zero bound) able to chase essentially fixed supply is a recipe for financial instability.

I think it's f**king brilliant. In principle and in practice. Sitting ducks, sitting pheasants. It's all the same to me, provided they get grapeshot.

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So, husband lives in one house, wife rents and they let the second house out?

But they will not be able to get an interest only BTL mortgage. If she buys one, it will be a full repayment mortgage based on her income alone. The lender will also ask questions when she claims that she wants to live apart from get husband.

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