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interestrateripoff

Is A Buy-To-Let Bubble The Next Scandal In Housing?

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Unlevel playing field when the deposit for a btl is borrowed from the equity of another property....100% borrowed to let out at the expense of a PAYE hard working person that has no chance of ever saving a deposit, and has no equity they can borrow against.;)

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I highly doubt the CML graph will come to be any where near the truth. The impact of the SDLT changes will knock 10s of 1000s off the monthly transactions until prices correct to a point where FTBs can enter the market in any meaningful numbers.

Interesting times (again).

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So if I have a house bought for say 100k and it increases to 120k, I take out 20k for a BTL deposit, I pay no tax on the unearned income? The 20K is tax-free, whereas the FTB pays tax to get their 20k (probably have to earn 35k to get the 20k). If this is the case then yes it is a scandal ... oh and if I never sell the BTL then there is no capital gains tax either (probably be sold after I am dead).

Correct, how can any normal working person compete with that....money from nothing and your tax for free.;)

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A scandal is some prossie shagging aorund the Russian embassy and the current cabinet.

What we'll see with BTL is an implosion and some hefty mark downs, followed by various BTL portfolios and the LL's OO being repo'd.

Thats not a scandal. Its more a lesson in investing.

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This is not clause 24.

This is some people looking at Basel 3, looking at why banks go bust - they lend to much on commercial + residential property - looking at the capital requirments that are coming in, looking at how much loans on commercial i.e. non-residential property is going to cost. and going - Oooh!

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A scandal is some prossie shagging aorund the Russian embassy and the current cabinet.

What we'll see with BTL is an implosion and some hefty mark downs, followed by various BTL portfolios and the LL's OO being repo'd.

Thats not a scandal. Its more a lesson in investing.

Great post. :D

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A scandal is some prossie shagging aorund the Russian embassy and the current cabinet.

What we'll see with BTL is an implosion and some hefty mark downs, followed by various BTL portfolios and the LL's OO being repo'd.

Thats not a scandal. Its more a lesson in investing.

Exactly, why does anyone think anything else is going to happen.

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