Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Dom " at "01/10/2015 - 17:35":

Thanks Dom.
We were wondering how come the petition was doing so well today. It's certainly a missed opportunity for the DPS - I wonder how many landlords the TDS has in comparison?? I'll look forward to seeing it!

Reply to the comment left by "Mark Brown" at "01/10/2015 - 00:10":

Not making a point about the debt. I am trying to illustrate all the political rectoric by GO is for votes and makes more sense to the voting masses. That is why you will get vanilla responses.

I believe that Interest only will stop, Rates will rise and Equity Release will stop. The government are trying to take the sting out of the market, reduce the risk of leveraging on low interest rates and fast.

Talk of morals but it seems to me you feel tenants should be taxed, cash LLs should be taxed infact the only 'victim' is someone in your very exact situation.

My rents are lower than market to encourage good faith from tenants and also reduce voids. Cash LLs are not in a morally superior position as you think I suppose. Cash LLs present a Risk but a different risk and I believe the tax change is to mitigate the leveraging risk. I plan for 45% tax on all rental, investment or unearned income ur income with no NI removed.

Assets values are hugely inflated as cash searches for a yield. That includes equities and property. The collapse of the China stock market is only on the drop of massive and much higher gains. But being able to borrow to purchase assets (like property) presents a double risk when interest rates inevitable rise.

Appreciate the suggestion about lowering rents to force you out of business. If you increase yours by 34% I shouldn't need to. And joking apart - these comments are not what I think is right and wrong (or moral or not)...but a statement of what I believe the government thinks it is doing. I don't think the threats will achieve what you believe they will.....I genuinely think they only re-enforce the argument of those who believe the government should ensure only those financial robust enough to face into tax changes, rates rises, legislation changes.

New buy-to-let deal escapes George Osborne's landlord tax
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11901157/New-buy-to-let-deal-escapes-George-Osbornes-landlord-tax.html

I attended another Property Seminar recently namely Reading Pin organised by Prospect Esate agency.

I spoken to 19 People in total and asked their views, regarding new tax legislation every single one of them stated that it does not affect us at all.

3 of them had not heard about it. One in particular stated that, my Income is just under threshold @ £42k and he will look to keep it at that level. He had property portfolio of 21 properties and he indicated that, he reinvests all his profits back into property by repairs etc.

I made my representations that he would be pushed into higher rate tax payer as a result of new legislation and he got a bit agitated and said, I was totally confused and suggested that I should change my accountant.

He has further confirmed that he has not and would not sign petition as it does not affect him.

I just smiled and in fact I feel pity for his ignorance.

The moral of story is more than 90% of landlords have not got a clue that it will affect them.

This is the second property seminar I attended and I had exact same feedback:

That is the reason petition numbers are low as people do not understand that it will affect them.

Reply to the comment left by "Saeef Khan" at "01/10/2015 - 19:04":

Saeef your findings are similar to mine. The problem is that this is not a new tax, a fact which has escaped many. It is merely disallowing an expense. Maybe it has exactly the same effect as a new tax but it is not and hence escapes the 100 day pledge

Reply to the comment left by "Saeef Khan" at "01/10/2015 - 19:07":

I wonder if any of them have ever heard of Pastor Niemoller. Astonishingly self-absorbed attitude, isn't it?

Reply to the comment left by "Ros ." at "01/10/2015 - 18:00":

The Truth here is 90% of Landlords are not Landlords
Most look upon it as pin money or a pension when they get old sell up pocket the lump sum and retire to a beach
I think a large number don't declare to HMRC anyway
The Landlords who know what I about to happen have choices to make
1 Sell Up
2 Put up rents
3 Transfer to a Ltd co
I will not do Number One on my list ???
so its a mix an match
The only good thing is we have a period of time to make plans
From what I have found chatting with
Mortgage advisors
some accountants
Estate Agents
Some Landlords
IFA,s
they are Zombies who are walking into this with there eyes shut because there are a basic rate tax payer
I am honestly shocked by the lack of knowledge
if this is the standard of our currant business they deserve every
thing they get
And then they will moan NO ONE TOLD ME who can I blame
I know one thing when the Idiots sell up and leave we will have a better type of professional Landlord
Property prices will fall
Rents will rise
and if you are good at business you will make a lot of money with in a LTD Co
I have given up trying to giving advice as its pointless

Reply to the comment left by "David Price" at "01/10/2015 - 19:20":

True right David.

Reply to the comment left by "Saeef Khan" at "01/10/2015 - 19:04":

Very selfish attitdue he has , what about supporting fellow landlords.

Never do a JV with this guy!