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stuckin2up2down

Are The 118 Croud Geniuses Compared To The Average Btl Joe?

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In my experience they are.

I know at least a dozen people into BTL, they have no clue over section 24, basel III, most haven't declared the income for tax and are wasting the surplus money they get in income on IO mortgages on cars / holidays / other expensive possessions.

They all seem to believe they will just fix again at a low rate and if not they can just sell

All it needs is for a crackdown on tax evading landlords, a ever so slight change to IR or LTV and they will go under.

I can't see how a huge crash isn't going to happen with hundreds of thousands of amateur landlords like them.

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They're not geniuses, but they are happy with the amount of risk involved.

Thats pretty much what this comes down to.

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In my experience they are.

I know at least a dozen people into BTL, they have no clue over section 24, basel III, most haven't declared the income for tax and are wasting the surplus money they get in income on IO mortgages on cars / holidays / other expensive possessions.

They all seem to believe they will just fix again at a low rate and if not they can just sell

All it needs is for a crackdown on tax evading landlords, a ever so slight change to IR or LTV and they will go under.

I can't see how a huge crash isn't going to happen with hundreds of thousands of amateur landlords like them.

I'd agree. The II8 lot have an awareness of how fcked they're likely to be, which is a headstart on your average Joe. I know quite a few BTL'ers as well. I don't socialise with any if I can help it because their moral compass is set adrift of mine, but I do keep "friendly" tabs to see how they're thinking. Heard it all... "It won't pay 40% tax because I'm only a 20% tax payer". "It won't affect me because I don't even make a profit". "I was going to put the rent up anyway".If I had that many chips stacked on black, then I'd at least understand wtf is going on. It'll make the run up to 2020 more interesting.

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Well relative genius, obviously not actual genius as they borrowed alot on shaky grounds.

Glad its not just the BTL people I know that are totally ignorant and have zero finincial understanding other than their 2% fix for 2 years, then what?

Most BTL people seem to by like that mumsnet poster who "I have no idea what the tax changes are, but im not selling my BTL im in it for the long term".

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