Any ideas/tactics to counter future extra costs of owning buy-to-let properties

22
Edited by:"davewave"Found 15th Dec 2017
Sooo...

* Mortgage interest relief removal kicks in soon.
* Possible incoming Corbyn government may...
___1. Increase tax on higher rate taxpayers
___2. Add extra taxes for buy-to-let landlords
___3. Cap rents
* Interest rates creep or shoot up


Anyone planning to sell up to avoid getting crushed or exploring other ideas?

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telegraph.co.uk/inv…at/

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22 Comments

Corbyn couldn't beat the worst Tory government in living memory. He's not going to win on a 'bash the rich' platform.

Original Poster

HotEnglishAndWelshDeals14 m ago

Corbyn couldn't beat the worst Tory government in living memory. He's not going to win on a 'bash the rich' platform.

----------------

SHELTER CEO disagrees...

A lengthening of tenancies to five years and inflation-linked controls on rent rises within those agreements is already established Labour policy. But Mr Corbyn, giving his address to party members in Brightonyesterday, suggested Labour would go further and directly limit rent based on models adopted in other countries.

Polly Neate, chief executive of Shelter, said this would result in a reduction of rental property.

Speaking on the Radio 4’s Today programme, she said: “What ends up happening is landlords will just sell because they can’t make any money.

“That actually exacerbates the crisis, because you end up with an even greater housing shortage.”
Edited by: "davewave" 15th Dec 2017

davewave17 m ago

HotEnglishAndWelshDeals14 m agoCorbyn couldn't beat the worst Tory …HotEnglishAndWelshDeals14 m agoCorbyn couldn't beat the worst Tory government in living memory. He's not going to win on a 'bash the rich' platform.----------------SHELTER CEO disagrees...A lengthening of tenancies to five years and inflation-linked controls on rent rises within those agreements is already established Labour policy. But Mr Corbyn, giving his address to party members in Brightonyesterday, suggested Labour would go further and directly limit rent based on models adopted in other countries.Polly Neate, chief executive of Shelter, said this would result in a reduction of rental property.Speaking on the Radio 4’s Today programme, she said: “What ends up happening is landlords will just sell because they can’t make any money.“That actually exacerbates the crisis, because you end up with an even greater housing shortage.”




No she doesn't.

davewave26 m ago

HotEnglishAndWelshDeals14 m agoCorbyn couldn't beat the worst Tory …HotEnglishAndWelshDeals14 m agoCorbyn couldn't beat the worst Tory government in living memory. He's not going to win on a 'bash the rich' platform.----------------SHELTER CEO disagrees...A lengthening of tenancies to five years and inflation-linked controls on rent rises within those agreements is already established Labour policy. But Mr Corbyn, giving his address to party members in Brightonyesterday, suggested Labour would go further and directly limit rent based on models adopted in other countries.Polly Neate, chief executive of Shelter, said this would result in a reduction of rental property.Speaking on the Radio 4’s Today programme, she said: “What ends up happening is landlords will just sell because they can’t make any money.“That actually exacerbates the crisis, because you end up with an even greater housing shortage.”


If landlords suddenly start selling and flood the market house prices will drop, this will allow more first time buyers which in turn will free up houses on the rental market.

Original Poster

SOUTHWALES7 m ago

If landlords suddenly start selling and flood the market house prices will …If landlords suddenly start selling and flood the market house prices will drop, this will allow more first time buyers which in turn will free up houses on the rental market.


Unlikely a massive drop in London, demand is v. High.

davewave22 m ago

Unlikely a massive drop in London, demand is v. High.


This is were I would argue that there is more negatives than positives to allowing mass immigration, but then I will probably just be shouted down as being racist, I am not against immigration, but I am against allowing large numbers of immigrants when we are putting a strain on all our services, all it is doing is making more people in the UK financially worse of as most of there income is spent on increased mortgage and rental costs. I guess some people would argue though that it is getting millions of immigrants out of poverty when they come to the UK for a better life.
Edited by: "SOUTHWALES" 15th Dec 2017

SOUTHWALES39 m ago

If landlords suddenly start selling and flood the market house prices will …If landlords suddenly start selling and flood the market house prices will drop, this will allow more first time buyers which in turn will free up houses on the rental market.


Not necessarily. The modern first time buyer market is also flooded with people who feel aggrieved that they can't have a 50" 4K TV, iPhone X, Full Sky package, the latest computer games on preorder, 2 foreign holidays a year, a night out in the tiles every Saturday and then, without sacrifice or savings, be gifted a Mortgage by the government.

I know this, as my Facebook friends list is full of Corbyn-championing people who I grew up with that have this attitude.

If he does win a snap election, he will only last one term as the majority of his voters will be disgruntled when they don't suddenly get guaranteed £10/hr and a free house to own. Sad, but true.

The worst thing is, if you have worked hard to save and get a mortgage, the change you suggest could backfire and bankrupt those who worked hard and would see their equity plummet into negativity. That's the problem with some of the championed Corbynistic values - they don't take from the rich and give to the poor, they target the people who have worked harder on less (imo).
Edited by: "chuffedfox" 15th Dec 2017

chuffedfox19 m ago

Not necessarily. The modern first time buyer market is also flooded with …Not necessarily. The modern first time buyer market is also flooded with people who feel aggrieved that they can't have a 50" 4K TV, iPhone X, Full Sky package, the latest computer games on preorder, 2 foreign holidays a year, a night out in the tiles every Saturday and then, without sacrifice or savings, be gifted a Mortgage by the government.I know this, as my Facebook friends list is full of Corbyn-championing people who I grew up with that have this attitude.If he does win a snap election, he will only last one term as the majority of his voters will be disgruntled when they don't suddenly get guaranteed £10/hr and a free house to own. Sad, but true.The worst thing is, if you have worked hard to save and get a mortgage, the change you suggest could backfire and bankrupt those who worked hard and would see their equity plummet into negativity. That's the problem with some of the championed Corbynistic values - they don't take from the rich and give to the poor, they target the people who have worked harder on less (imo).



property equity is unlike other forms, just remember if the effect you predict does occur it means a few things such as;
the property you wish to move up the ladder too will also be cheaper for you to buy and when you get old and infirm the government will get less cash as they sell your house to pay for your care

maddogb8 m ago

property equity is unlike other forms, just remember if the effect you …property equity is unlike other forms, just remember if the effect you predict does occur it means a few things such as;the property you wish to move up the ladder too will also be cheaper for you to buy and when you get old and infirm the government will get less cash as they sell your house to pay for your care


It also means that the mortgage I currently have would not only be greater than it's value, but also the LTV would go up massively and I'd be paying, essentially, to rent my house at am extortionate rate; just without having a landlord to fix things when they go wrong.


It's not like I can simply call it "quitsies" with the bank.

chuffedfox21 m ago

It also means that the mortgage I currently have would not only be greater …It also means that the mortgage I currently have would not only be greater than it's value, but also the LTV would go up massively and I'd be paying, essentially, to rent my house at am extortionate rate; just without having a landlord to fix things when they go wrong.It's not like I can simply call it "quitsies" with the bank.



what?? is this a wind up? sounds gibberish with an agenda there

maddogb11 m ago

what?? is this a wind up? sounds gibberish with an agenda there


Why is it a wind up?

I have nearly £140k mortgage on my house, which I paid £155k for (about the cheapest you get in my area).

If my house value drops below £140k, I owe more on it than what it's worth, thus I'll be trapped. I'd have no equity, so couldn't sell or remortgage, I'd soon go past my fixed rate and end up paying through the nose in interest.

You don't sound like you know how mortgages work.

chuffedfox16 m ago

Why is it a wind up?I have nearly £140k mortgage on my house, which I paid …Why is it a wind up?I have nearly £140k mortgage on my house, which I paid £155k for (about the cheapest you get in my area).If my house value drops below £140k, I owe more on it than what it's worth, thus I'll be trapped. I'd have no equity, so couldn't sell or remortgage, I'd soon go past my fixed rate and end up paying through the nose in interest.You don't sound like you know how mortgages work.



my apologies, i paid off my mortgage a few years ago and forget there are many people forced to overextend themselves but to be fair you are paying the price you agreed, its not anyone's fault but your own if things change slightly and you haven't taken that possibility into account or you gambled.

I think the removal of the mortgage interest tax relief is only applicable to those on the higher 40% tax band rate.

I think a good way to relive pressure on the housing market would be to allow more residential static caravan sites, I am not talking about using them like council housing but allow working people to buy and live in them. static caravans these days are better and more luxurious than most houses. Plus you are not building on the land as such.

They can be much nicer than living in a town centre

32752470-ECsQd.jpg

Just don't do it, get out now because landlords are fleeing the market. Housing prices are going to tumble in this sort of property over the next 5 to 10 years. I find it interesting that economist expect the bitcoin "bubble" to colapse but have no opinion on the housing bubble. It was created by people buying council homes and it will fall by government building council homes. I'm not saying a crash exactly but the good times are certainly over and when you mix in the interest rate could be 5% very quickly it's not a market for the future.

The trouble is most caravan parks have a covenant on them that they can only be lived in 48 or 50 weeks of the year. Nowadays new caravans have heating and are well insulated but to live permanently in them all winter .... I don't know if I'd like the idea of that.
People want bricks and mortar not timber and aluminium/plastic.

Re housing prices, my take on it is whilst demand outstrips supply the market will always be buoyant and that goes the same for rental prices.
I recently rented out a 2 bed flat that got into a rent bidding war on the price. Monthly rental will be determined by renters demand, rather than opportunistic landlords. the landlords charging too much will only be left with empty properties.

Original Poster

chuffedfox2 h, 35 m ago

It also means that the mortgage I currently have would not only be greater …It also means that the mortgage I currently have would not only be greater than it's value, but also the LTV would go up massively and I'd be paying, essentially, to rent my house at am extortionate rate; just without having a landlord to fix things when they go wrong.It's not like I can simply call it "quitsies" with the bank.


if lots of people went into negative equity then perhaps Comrade Corbyn can nationalize all housing.

Seems he wanted to take government ownership of houses in Kensington after Grenfell, the guy is as loony left as you can get.

He makes friends with violent and aggressive left wing fascists.

His plan to loosen border controls, increase tax rates and nationalise corporations will not bring the utopia he talks about - usually lowers productivity, commerce, tax revenue and attractiveness to overseas investment. He'll be too old and rich to care though.

maddogb8 h, 52 m ago

my apologies, i paid off my mortgage a few years ago and forget there are …my apologies, i paid off my mortgage a few years ago and forget there are many people forced to overextend themselves but to be fair you are paying the price you agreed, its not anyone's fault but your own if things change slightly and you haven't taken that possibility into account or you gambled.



maddogb8 h, 52 m ago

my apologies, i paid off my mortgage a few years ago and forget there are …my apologies, i paid off my mortgage a few years ago and forget there are many people forced to overextend themselves but to be fair you are paying the price you agreed, its not anyone's fault but your own if things change slightly and you haven't taken that possibility into account or you gambled.




No, that's fair enough and I appreciate that.

My point still stands that he is readily planning to screw over the people like me who have young families and made sacrifices to make progress in life. But of course that "my own fault" isn't it - I shouldn't have made sensible choices and sacrifices in life - what I should have done is spend all my money on luxuries, moan I don't have a mortgage, then wait for a government to be voted in that will screw over everyone else just so I get a handout.


But it's both unfair and bang out of order for suggesting that "I" am to blame for the recklessness of any future prime minister.

chuffedfox49 m ago

No, that's fair enough and I appreciate that.My point still stands that he …No, that's fair enough and I appreciate that.My point still stands that he is readily planning to screw over the people like me who have young families and made sacrifices to make progress in life. But of course that "my own fault" isn't it - I shouldn't have made sensible choices and sacrifices in life - what I should have done is spend all my money on luxuries, moan I don't have a mortgage, then wait for a government to be voted in that will screw over everyone else just so I get a handout.But it's both unfair and bang out of order for suggesting that "I" am to blame for the recklessness of any future prime minister.



everyone is getting on Corbyns case for things that may never happen, and you are confusing about what you are complaining about, you were talking about "essentially" renting before, why would you consider it that?
lots of people live with negative equity and wait till the market picks up again, people are talking like Corbyn will bring about total destruction of society and property ownership will be a thing of the past, it''s all political nonsense.

look back on the history books people, its not that long ago that interest rates on mortgages were at 15% and that was under one of the longest periods of tory rule ever.

maddogb9 m ago

everyone is getting on Corbyns case for things that may never happen, and …everyone is getting on Corbyns case for things that may never happen, and you are confusing about what you are complaining about, you were talking about "essentially" renting before, why would you consider it that?lots of people live with negative equity and wait till the market picks up again, people are talking like Corbyn will bring about total destruction of society and property ownership will be a thing of the past, it''s all political nonsense. look back on the history books people, its not that long ago that interest rates on mortgages were at 15% and that was under one of the longest periods of tory rule ever.




If I went into a large negative equity, I would "essentially" be renting as I would be paying a lot of money out each month without owning any more of the house (as it would be paying off the negative equity). What I should have said is that it is worse that renting, as when you rent you're not liable for property repairs on top of it, and can leave the agreement at any time with no financial penalty.


I don't care about what the parties are called, nor what happened in the past - all I know is that the leader of Labour is dreaming up changes to the system that would put people like myself at risk of being much worse off. I voted Labour when I was younger in several elections as they had balanced and socially-beneficially policies - that's not something I see in the current administration, and all they seem to be doing is proposing changes that will benefit people who, in my social circle, seem want to punish others for having worked hard to look after their families. That's not a sweeping generalisation, but based on the attitude of the people I know. They have a really aggressive chip on their shoulder and are akin to people with pitchforks. Very off putting.

I don't want to lead this off into a general politics thread, just wanted to give my impression of how badly these changes may affect people like myself - first time buyers at the start of a mortgage with a baby to feed.

SOUTHWALES14 h, 0 m ago

If landlords suddenly start selling and flood the market house prices will …If landlords suddenly start selling and flood the market house prices will drop, this will allow more first time buyers which in turn will free up houses on the rental market.


Actually your wrong, because it will make the prices drop meaning banks will ask for larger deposits (which first timers would struggle to raise) to counter potential losses in further drops in prices or deem first time buyers too risky and limit lending.
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