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Btl Friend Selling Out

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I have a friend who has bought 2 flats in Bristol over the past 4 years.

He asked me to look at the contract with his letting agent (12% commission) to see if he can break out of the agreement. Why? Because he is not covering the mortgage costs and is starting to lose money on his 'investments'. It transpired that he is tied in to the letting agreement for the period of the let.

He has now decided to get the flats valued with a view to selling. He has found that one of the flats has appreciated in value since he bought it on 2002; the second has lost - overall no gain or loss.

After taking account of purchase costs and loss on rental income he has made a significant loss (equivalent to 1 year's salary). He has decided to sell as there appears to be little prospect of prices rising in the forseeable future.

He thinks he will break even (ignoring losses due to cost of ownership) but has been hit with another bombshell - capital gains tax at 40% of gain. He is hoping to reduce CGT by offseting the gain on one flat against loss on the other but I am not sure if he can do this. Either way, a sorry tale. No sympathy from me.

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No sympathy from me.

Et tu Brute

CS

Seriously if your friend was driven by the thought it was a good investment then I can give him some sympathy - if he was driven by greed as many BTL'ers are the I have none and he and the rest of the greedy b*ggers they deserve all they get

"He who diggeth the pit shall falleth therein"

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Seriously if your friend was driven by the thought it was a good investment then I can give him some sympathy - if he was driven by greed as many BTL'ers are the I have none and he and the rest of the greedy b*ggers they deserve all they get

"He who diggeth the pit shall falleth therein"

What is the line defined between greed and buying something because it is a "good investment"?

In both cases the intention is gain.

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posted today on singing pig

muppets !

"My first project

I have just bought my 1st house with my girlfriend. We paid around 100k for it because it needs some work doing on it, eg a new bathroom, kitchen as well as painting and decorating.

We think that it will go for around 125-130k when it is finished.

Obviously we want to save money where we can like doing the decorating/tiling ourselves.

But it would be great it we could save money by fitting things ourselves such as the bathroom/kitchen. How difficult is it to learn to do this?

Does anyone know of any information on the net showing you how to do this?

Thanks."

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What is the line defined between greed and buying something because it is a "good investment"?

In both cases the intention is gain.

Very much down to personal opinion - some people take what they need with respect for others - whilst others will take what they can get without a care for others

If you want some definitions to help

Avarice - 1. Immoderate desire for wealth - 2. Reprehensible acquisitiveness; insatiable desire for wealth (personified as one of the deadly sins) - 3 . Excessive or insatiable desire or greed - 4. Extreme greed for material wealth

Greed - 1. An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth 2. Reprehensible acquisitiveness; insatiable desire for wealth (personified as one of the deadly sins)

Investment - 1. An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

My opinion FWIW - you can be succesful without trampling on the less fortunate on the way - many FTB'ers have been priced out by some BTL'ers whose motive was pure avarice - I could go on but this is getting too heavy for 11.30 pm

CS

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Et tu Brute

CS

Seriously if your friend was driven by the thought it was a good investment then I can give him some sympathy - if he was driven by greed as many BTL'ers are the I have none and he and the rest of the greedy b*ggers they deserve all they get

"He who diggeth the pit shall falleth therein"

To be honest he was driven by the herd instinct.

posted today on singing pig

muppets !

"My first project

I have just bought my 1st house with my girlfriend. We paid around 100k for it because it needs some work doing on it, eg a new bathroom, kitchen as well as painting and decorating.

We think that it will go for around 125-130k when it is finished.

Obviously we want to save money where we can like doing the decorating/tiling ourselves.

But it would be great it we could save money by fitting things ourselves such as the bathroom/kitchen. How difficult is it to learn to do this?

Does anyone know of any information on the net showing you how to do this?

Thanks."

Sibnging Pig? What do you expect. Should be flying pig.

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What is the line defined between greed and buying something because it is a "good investment"?

In both cases the intention is gain.

I think the distinction is clear:

My investments are "investments"

Someone else's investments are "greed" :rolleyes:

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how about this scenario

i myself have no house but a huge deposit ready for something..not sure what yet

On the other hand, my BTL friend is insistant on me buying a house while at the same time he is offloading his own BTLs... weird!

i know it is slightly different to own your own home and a BTL though.

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I think the distinction is clear:

My investments are "investments"

Someone else's investments are "greed" :rolleyes:

how about this scenario

On the other hand, my BTL friend is insistant on me buying a house while at the same time he is offloading his own BTLs... weird!

Every one of us is a hypocrite at some stage

Hippocrates would have been proud :lol::lol:

(I know he's nothing to do with hypocrasy (other than being Greek)) It's good to be able to blame someone

Edited by Cornwall Sceptic

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He doesn't need to sell in one lot to set the loss against the gain - he just needs either to make the loss in an earlier tax year, or sell both in the same tax year.

However if he sells the 'gain' one more quickly, and in an earlier tax year, he'll have to get some good advice on planning if he is to avoid tax in that year, and unrelievable losses in year two, as you can't carry back CGT losses, just carry them forward. It should be possible to avoid this, but probably costly.

BTW it's date of exchange of contracts that's the date of sale, not completion.

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  • 331 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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