Wilmslow/cheshire

[scimus]

Hey; I am not judging you. You work hard, prepared to travel for that work (my family doesn't like to), early 30s, and you seem to be in a very have solid financial position.

Are you aware of the proposed tax-changes with expenses for contractors? Might be worth keeping an eye on if you do a lot of travelling. I set it out on this thread.

With all the changes, including on BTL finance, it could turn soon (year or two). eg yesterday in the FT; Osborne shakes buy to let to its foundations - FT.com

Thanks for the info. As far as I understand, the changes to tax relief on expenses won't affect limited company contractors outside IR35 so fingers crossed I should still be fine.

The FT article is old news. The professional BTLers will largely be fine. Incidental landlords on low profit margin will be hit the hardest and they might start to sell to cut the losses. However you never know if that's gonna trigger a price reduction chain effect or if you'll just have a supply issue matched by low demand. I don't really think if I'll be interested in the BTLers' stock of flats, new builds and studenty areas etc.

But you're right there's no real hurry.

[Venger]

Thanks for the info. As far as I understand, the changes to tax relief on expenses won't affect limited company contractors outside IR35 so fingers crossed I should still be fine.

The FT article is old news. The professional BTLers will largely be fine. Incidental landlords on low profit margin will be hit the hardest and they might start to sell to cut the losses. However you never know if that's gonna trigger a price reduction chain effect or if you'll just have a supply issue matched by low demand. I don't really think if I'll be interested in the BTLers' stock of flats, new builds and studenty areas etc.

But you're right there's no real hurry.

If you say so; although the professional landlords I'm reading posts from on BTL/Landlord forums are talking about their own financial oblivion and bankruptcy.

50 properties+, top cars, private plates, lovely own homes.... legacy planning, life a dream before the budget. To this.

http://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-243/#comment-61566

Some of them are already bringing their own homes to market at above the £500,000 level. Maybe you don't want to buy one of the BTLers that the BTLers begin to unload, but they may bring their own homes to market too. Then we have something in budget to encourage downsizing, and values move at the margin.

[scimus]

Interesting...I wonder why one who has a sizable portfolio like this doesn't already hold all these properties in a company structure...

I have friends in London who knew a lot of BTLers and most aren't concerned. I don't know whether it's to do with lack of understanding or if the particular group are in better financial situation than others.

Many did say the new rule seems increduless and they expect it to be overturned or at least modified. I know most people here will disagree but from a business point of view it doesn't really make sense and is retrospective affecting decisions made a long time ago based on a different logic and model...oh well that's another debate for another day.

[Venger]

Interesting...I wonder why one who has a sizable portfolio like this doesn't already hold all these properties in a company structure...

I have friends in London who knew a lot of BTLers and most aren't concerned. I don't know whether it's to do with lack of understanding or if the particular group are in better financial situation than others.

Many did say the new rule seems increduless and they expect it to be overturned or at least modified. I know most people here will disagree but from a business point of view it doesn't really make sense and is retrospective affecting decisions made a long time ago based on a different logic and model...oh well that's another debate for another day.

Like the vast majority of them. BTL had significant tax/profit advantages over incorporating, to this point anyway.

Most of them aren't concerned, because in my opinion, they don't understand the implications yet.

Well in that case you don't understand political risk. No one asked/forced them to borrow to BTL. Different logic where they have been a driver of upward prices. Does it interfere with your Wilmslow planning? Good luck and goodbye.

[scimus]

You may well be right. I was only mentioning what my friends had said and it's all very comfusing to me.

The only reason I've taken an interest is that it's similar to the contractor expense issue.

There is nothing generous about the expense 'tax relief' or the mortgage interest 'tax relief'; it is standard practice for all businesses to offset costs before profit is calculated. The current proposal is to tax turnover, which is unheard of in business.

Running a business always carry more risks than a job. But some of the recent political changes seem very business unfriendly. Mind you I'll have much bigger tax bill on dividends next year. You can't blame me for getting a little bit upset? :-)

[Venger]

BTLers are not businesses and never have been. It's been know for ages they are treated as quasi business/investment. See loads of HMRC files about it.

It was their own decisions to assume they would always be given such generous tax-relief breaks, in a system which gave them the advantage to outbid FTBs.

They are investors.

It's friendly to my real business, and I welcome the BTLers getting stuffed over at the margin. HPC is coming.

[Venger]

They've been trying to sell this house (footballer style) for quite some time.  I don't know if the 2009 price was for that house, or a plot and a new build, or a plot and 2+ house new build.

Archive of listings

http://www.zoopla.co.uk/property-history/34-fletsand-road/wilmslow/sk9-2ab/29352277 

Quote

 

07 Jul 2009	Detached, Freehold	£2,050,000	Land Registry
15 Jun 1998	Detached, Freehold	£500,000	Land Registry

 

Quote

CONDITIONAL LOT - RESERVATION FEE APPLIES
GUIDE PRICE £1,650,000. FOR SALE BY PUBLIC AUCTION 27TH OCTOBER 2016 AT ...........

This property is for sale by the Conditional Method of Auction which is not to be confused with our traditional auction. 

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=47210275&sale=74198175&country=england

 

 

 

Pic 10 of the actual listing.. someone here just said, "I don't think the headboard is big enough."

http://www.rightmove.co.uk/property-for-sale/property-45013467.html

As well as other cold criticism - size and look of the house - naffy looking fittings in areas, and some rooms need cleaning (panels) and 'why don't you just go to a gym.' 

Obviously totally out of our price range - even if I were ultra financially wealthy would still only want normal house - but just keeping eye on possible market weakness.

[scimus]

Can't believe it's been a year since I last posted here. Bought a house in North Bramhall and had an extension built to it. Doing pretty well at the moment with lots of equity in the house and still have 200k+ savings in personal and business accounts. Now the problem is how to invest all this money, with ultra low interest rates (couldn't believe it when it last dropped) and stocks at their highest and BTLs supposedly doomed :-).

[EmmaRoid #FBPE#JC4PM#GTTO]

On 17 December 2016 at 5:59 PM, scimus said:

Can't believe it's been a year since I last posted here. Bought a house in North Bramhall and had an extension built to it. Doing pretty well at the moment with lots of equity in the house and still have 200k+ savings in personal and business accounts. Now the problem is how to invest all this money, with ultra low interest rates (couldn't believe it when it last dropped) and stocks at their highest and BTLs supposedly doomed :-).

 

Juanchor.