Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Seething Landlord" at "29/07/2015 - 15:53":

Yes, Seething Landlord. Lobbying MPs is crucial. So far I've written to my Labour one 3 times and he has promised to ask questions of the Treasury (I supplied him with a range so he could pick and choose). I am going to arrange to see him to discuss it face to face as well. Once the petition is up and running I am going to send it to him and ask if he can circulate it to all the Labour MPs. If he says he doesn't want to, we'll find one who will. I think we should also start aiming our lobbying at the top dogs in the Labour Party. I'm open to suggestions. The only way forward for us is to focus on all the MPs of all parties. I'm doing Labour as my MP is Labour and supportive. The other challenge is to get Tories to not toe the party line. We have to appeal to people's sanity and sense of fairness and logic, in the face of this lunatic proposal.
I think it would be essential to educate ourselves a bit more, too, about the Parliamentary process as I'm sure many of us are a bit clueless. For instance, I don't know what would have happened after the Treasury Select Committee on the Summer Budget. There were some great 'witnesses' - economists - who really saw the stupidity of the proposal, but I wonder what, if any of it, was passed on the George Osborne. Can anyone enlighten me? (this will also be a good question for me to ask my MP, so no problem if no-one knows!)

Reply to the comment left by "Harold Levine" at "29/07/2015 - 15:18":

Thanks for your education on dividends. I was thinking of transferring my properties into a Ltd company as the oldest property has only had its first birthday in June, so CGT would be negligible if I did set up a Ltd. That is, rather than giving up my day job. Then I could expand rather than contract and keep more of what I feel is mine, as we all do. Whichever way, I'm willing to try...

I'm interested in how BTLers supposedly have this unfair advantage over FTBers. especially as this seems to be the crux of the reasoning for this new tax.

This article here is about a FTBer who .... "couldn't afford to buy anywhere to live in himself". http://www.theguardian.com/money/2015/jul/27/buy-to-let-pension-savings-property-amateur-investors

So how would Osbourne rationalise this case? This FTBe has been pushed out of the market by all the evil Landlords. As a result he is unable to buy a home so instead he has had to err buy a home. Hang on a mo, so he is now an evil Landlord so I guess he has priced himself out of the market.

My rationale: he couldn't afford to buy a home where he [b] WANTED [/b] so he chose to buy a home where he could afford one. This shows that if he [b] needs [/b] a house he can afford it, but the one he [b] wants [/b] is in just about the most expensive city in the world and err rather expensive. There are plenty of houses for FTBers - they are just not in the places that the FTBers want and the ones they want are rather expensive. Just the same as my own situation 20 years ago when I was a FTB'er. And just like my parents situation 50 years ago when they were FTB ers. But luckily I wasn't so fussy in the end, and we were a working couple which helps obviously, and we put up with a bloody long commute, missed out on holidays, and took evening jobs.

'Try telling that to the young people today and they won't believe you'. I've just realised I am one of Monty Pythons 4 Yorkshire men. https://www.youtube.com/watch?v=Xe1a1wHxTyo

Reply to the comment left by "Trendo " at "29/07/2015 - 14:43":

Trendo, my mortgage adviser hadn't a Scooby, either. I did have an interesting conversation and sent him links to the website, the Dave and Margaret example, and Mark Alexander's calculator spreadsheed. It's surreal - almost like I'm dreaming this up and I need to be on here for verification! The rest of the country seems to have blinkers on!

Reply to the comment left by "Roanch 21" at "29/07/2015 - 16:28":

And this won't actually help people like the guy in the article as he said that the new builds he looked at had been bought up by overseas investors (and the big guys - Ltd who won't be affected?).

OK, a house price crash might help him BUT those in low priced houses would probably be in negative equity and unable to move and house builders wouldn't be building as many new builds - not very nice or otherwise. So still no better off. He could probably rent somewhere nice on his own.

40 years ago we couldn't afford to buy until we moved to a cheaper area. My Mum and Dad lived in one room when they were first married (a bit longer ago!). Some people just think that they should be able to have everything right now without any sacrifice - and you can't.

Reply to the comment left by "Connie Cheuk" at "29/07/2015 - 16:29":

Yes, Connie.
And I'd like to give three cheers to Mark for having set up this website as it is a lifeline for us all.
THANK YOU MARK!!!

Ok Paragon are waking up , they have just released a survey .....unfortunately altho they are asking the right questions ...they CANNOT get the right answers as most LL are in scooby land with no info to answer intelligently.

Your views on budget implications

Dear xxxxx

Following a recent survey we conducted about the changes announced

by the Chancellor in the Summer Budget, the results highlighted ‘that

the majority of landlords will be more cautious about future portfolio

expansion’

“For 41% of landlords the budget changes to tax treatment will not alter their plans

to buy or sell property. However, 43% of landlords will maintain current stock but

restrict future buy-to-let purchases, and 16% will reduce stock by selling some or all

of their properties”

To help us gather more information to improve the products and

services that we offer and better represent your views to the financial

services sector we would like to ask for your opinions on the following

survey questions.

Please click this link to take part in the survey

https://www.research.net/r/Paragonlandlordsbudgetimpact

We want to hear from you and appreciate your time

Kind Regards,

John Heron

Reply to the comment left by "Ros ." at "29/07/2015 - 16:42":

Should we be successful in overturning Osbourne, we should all pledge to invest or donate as a debt of gratitude. That will also keep our profits from the tax man, as I am sure joining a club or Union relating to your business is tax deductible - like Union fees?

Reply to the comment left by "Roanch 21" at "29/07/2015 - 16:28":

Yeh .... I made a post on there 🙂 and I do recognise the futility.

Torpedoed the amateur landlord indeed, encouraging them to sell to limited companies and property funds. (the property funds that your pension will likely own at some point if you have a pension)

The problem won't disappear it will simply move.

Almost all business rely in tax relief on debts accrued. Osbournes move is simply to increase the tax base in the short term giving at the same time giving an advantage to property funds and other large companies who invest in properties.

Some of whom will leverage offshore debt so they pay hardly any tax in this country.

Great spouting vile at amateur landlords. People will find, down the line, that a company who owns far more properties will give far less of a d*** about tenants than an amateur landlord would.

A fool who persists in his folly may become wise.

Now don't react - think. Will anyone be better off when larger companies and property funds own the houses instead of a smaller amount of landlords?

Perhaps a property fund is less likely to sell than a landlord.. where are your available properties then?
A limited company is eternal. Landlords generally have an exit plan which involves selling at some stage..

Rahal Uddin's petition link is going rounds in facebook in other landlord communities.. and currently at 164 signatures.. .... I know you guys are working to replace with an appropriate one's.. if possible plz try to speedy up..... the new petition..