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B.t.letters, The 'long Term' And C.g.t. Changes

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It is interesting when you read forums like this and read comments like this:

Is it time to get out of buy to let?

dunx1: "I think it has been a good run on buy to let but I am selling the rest of my BTL after the tax changes later this year.

One of the main issues is that defaults on rent will probably get higher as lending tightens further and I don't want the hassle of this. Also I can see a reverse in immigration if jobs do start to dry up a little. Also I think the price declines may be longer and more painful this time than expected. all IMHO but there were a lot of people who make money on the way up but not that many who are smart enough to say thank you and cash their ticket before things change...

best of luck!"

Molly's dad: "Yes if you are in it for the short term capital growth. I dont see the stellar increases continuing and the market with flatten out for the next few yrs.

No if you are in it for the long term and for the cash flow as rentals will increase. She has got to be the most successful BTL'er in the UK, JUdith Wilson, has now 700 properties worth £250+ Million and when did she start?............."

(more on these two on the main boards)

So bearing in ming the 'long-term' argument, the CGT changes as of 6th April and the fact that NI could be one of the most exposed areas in the UK to price falls, will we see the 'rush to sell' very soon as others here have mentioned previously?

It would be really interesting to hear the thoughs of 'long term' NI BTL investors, especially those who bought from late 05 onwards, just how long is long term? :blink:

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I think if April does trigger the great BTL bailout, the prices could plunge even quicker than they have been recently.

It could get really messy and the real losers will be you average owner trying to sell, without much of a clue (ie. they don't watch the market closely). No matter what we think of the wisdom of BTLers (esp. those late into the market), I'm guessing they will soon realise en-masse before the rest of the sheeple do, slashing their prices to get out.

At least seasoned home owners with a bit of equity in the house, will not be hurt financially by the above turn of events (they will just have failed to capitalise on their "investment", by STRing). I should imagine those who have only been in the housing market for 5-10 years or so and have used their house equity like an ATM are going to really feel the sting. I predict that they will be in crash denial for the longest time, will not be able to sell their house at the price they expect and will be trapped in negative equity (or worse) for years to come.

Edited by Traktion

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  • 293 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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