Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "KATHY MILLER" at "17/12/2015 - 23:55":

The author should have focused on doing something about the wealthy OOs, if he was so concerned about the younger generation not getting on the housing ladder. They have created the main obstacle to FTBs through their massively favourable tax treatment and NIMBY attitudes.

But what does he do? He recommends that they get ever more favourable treatment and we get screwed over even more.

And, on another subject, I wonder what our friends who pray for HPC think about this report:

http://www.bbc.co.uk/news/business-35102130

I am now warning my tenants that they may have to leave next year due to the Government tax changes forcing me to sell up.It is now up to my tenants to visit their MP and ask him or her where they will live in the future.

Homelessness is the best weapon to fight back against the Government

Reply to the comment left by "Ros ." at "18/12/2015 - 00:05":

This increase will be partly due to the government giving out high loans to FTBs 40% in London. Selling off of social houses and council houses. Build to let institutions wanting better yields .

Bill, hope that is done with compassion, but that's GO for you"

Now we have LTV controls by BOE.
http://www.telegraph.co.uk/finance/bank-of-england/12056891/Bank-of-England-set-to-be-ahnded-new-buy-to-let-powers.html

FILLS YOU WITH CONFIDENCE when they said not so long ago
http://www.themortgagebroker.co.uk/bank-of-england-rejects-imposing-mortgage-ltv-limits

Oh and btw, found the source for that rogue BBC article:
http://uncyclopedia.wikia.com/wiki/Buy-to-let
Same Top notch journos!

Reply to the comment left by "Costas Tzanos" at "18/12/2015 - 00:37":

I think Johnathan's 40% return means capital growth as well as income from rents

Reply to the comment left by "Bill Morgan" at "18/12/2015 - 00:13":

I like this idea.

I will consider maybe rounding up say 6 of my tenants and taking them en masse in my people carrier to the council to one of their housing committee meetings where the public are allowed to sit in. I may take along also other adversely affected parties who will as a result of this tax financially suffer. This includes my property managers, support workers, admin bods, my gas man, my sparky, my window man, my local B&Q tradepoint guy. The list goes on...

I will flag it up beforehand to local press, MP and sympathetic Councillors. I will also invite along Shelter, Local winter night shelter charity, Salvation Army , Crisis. Food bank manger etc etc. I will have a pre printed letter for distribution outlining the reasons why they should all join landlords in a common cause in the fight against the crazy tax proposals.

I agree homelessness is one of the best weapons to fight a government with. Its an emotionally charged subject and wins the heart and minds argument. A roof over ones head is an essential not a luxury and tugs on the heartstrings. I accept my landlords tax bill increased from 10K to 50K does not win the same cries of sympathy.

I accept i will only ever gain limited public sympathy as a (perceived) fat cat landlord so let the country see us also as a vital housing provider and get those directly and indirectly affected by the knock on effect to fight alongside us for the security and welfare of their own client base.
.

Reply to the comment left by "Costas Tzanos" at "18/12/2015 - 00:37":

Hi Costas

Completed on this deal outlined below on 27/11/15 which was found via a standard High St Estate agent. I don`t personally buy at auctions as I can find elsewhere but auctions can of course be a good source as well

There are many ways to calculate yields.

Brief Example of what i meant (and Bill is right that 40% includes capital growth.)

90K property @ 75% LTV @ 4% payrate @ £600 pcm rent = £4500 pa gross cash flow . Average 5% capital growth pa = £4500 Total return pa on £22,500 deposit investment = £9,000 which is a 40% return ( This is a gross return and does not include sols fees service charges, management etc )

Beats easily 2% in a building society!

.

Reply to the comment left by "Jonathan Clarke" at "18/12/2015 - 01:39":

You have it so easy in rent profitably in MK!!!!!!!!!

Take this example of a typical investment property, 180 miles from London, I was asked if I wanted to buy.

In 2006 sold for £160k
In 2014 came on the market for offers around £165k So, being positive, you could say CGT tax free! Didn't sell, council tax had to be paid at 100% - rather than the 75% when it WAS occupied.

Rent until last Dec was just £450pm, advertised for 10 months at £550pm after previous tenant left, no takers, fn Oct finally let, believed to be for only £495

How can this make a viable return as an investment? So no new building work is being started in this area as a consequence.
PROOF:-
http://www.movewithus.co.uk/Property/Index/2582788/The-Old-Toll-House-Kington-HR5
Toll house 165k

http://www.rbbproperty.co.uk/properties/kington-property/2-bedroom-house-to-rent/06370097/headbrook-kington
For rent 550pm

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=33418125&sale=18189464&country=england
15/12/2006 160k

However there is a demand, I let a 1 bed property in the locality last month for £430 and had 6 people after it. If correctly priced in a free market it will go.

Reply to the comment left by "Chris Byways" at "18/12/2015 - 07:00":

There is incredible demand in MK, even with the huge amount of building work going on. Its an easy commute to London and there are loads of low to high level jobs in the area.
However I do understand that not every part of the country is the same.

Reply to the comment left by "Darren Bell" at "18/12/2015 - 07:29":

From the MK example:
90K property @ 75% LTV @ 4% payrate @ £600 pcm rent = £4500 pa gross cash flow . Average 5% capital growth pa = £4500 Total return pa on £22,500 deposit investment = £9,000 which is a 40% return.

Nationally:-

160K property @ 75% LTV @ 4% payrate @ £550 pcm rent (= £6,600 pa gross yield - £4,800 mortgage repayment) = £1800 pa gross cash flow . Average 0% capital growth pa = £0 Total return pa on £40,000 deposit investment = £1,800 which is a GROSS return of under 4%, or net of perhaps 1% after stamp duty solicitors, voids, council tax during void, insurance, NLA membership, repairs, fees, accountant, gas checks, electrical inspections, repairs.

So why would the owner risk an HB tenant? So with the OLRT (Osborne Landlord Revenge Tax) by 2020, tell me how much would the 40% or even 20% taxpayer owner be losing pa?

If this went back on the market for sale so the priced out FTB/renter could buy it - even if they could get a mortgage - I can't see the prices dropping as a result. Net result is far less property to rent, competition, and/or rents go up.

All this proves is that London and SE is totally different to the rest of the U.K. as you say. And GO has not thought it through, or is lying.