Summer Budget 2015 – Landlords Reactions

If we look across the Atlantic to the USA you see the Donald Trump is very much in the lead and likely the next president of the United States. We all wished her an Arab Spring saying the elite old way is no longer a good way. Donald Trump is doing the same in the USA unsearlting the scimbags with sraight talk. The UK needs a Donald who knows lower tax gets growth and growth gets more revenue. Where is our Donald to say it like is is and to unseat our gang of dead swine fornicating over privileged idiots?

Reply to the comment left by "Markb " at "01/03/2016 - 15:34":

Has anyone asked Richard Branson or Alan Suger ....'cos right now Boris is what we are likely to get !

Reply to the comment left by "Markb " at "01/03/2016 - 15:34":

I really don't think a Donald Trump would be our saviour!
God help the US if he gets elected....

Markb,
Don't patronise me I fully understand what's going on. You are ripping off your tenants, You say you increased the rents by 15% to test the theory that you can, that's fine but don't try to justify by saying it's to part compensate for the 10% loss on wear and tear, you only need to increase rents by around 2% to do that. Using your figures your rents will increase by over 50% in four years not 35%.

Reply to the comment left by "Jack Craven" at "01/03/2016 - 17:55":

Well, when finance costs were disallowed in Ireland, rents rose by around 50% in three years. Although those of us in the know are starting to increase our rents incrementally now - I've increased some of my rents by more like 3-5% as a result of C24 and will keep us this kind of level of increase over the next few years - there are many landlords who were falsely reassured by GO's spin. They will realise the truth of how this will affect them further down the line and may then attempt quite dramatic rent hikes, probably along the lines of what occurred in Ireland. With the help of others on this site, I wrote about this issue here:

http://www.property118.com/uk-rents-set-sky-rocket-osbornes-tax-grab/83275/

In terms of us ripping off our tenants, we are in new territory. We never imagined we would be the only business singled out in the UK to be taxed on the essential cost of setting up and running our businesses. The notion of being taxed on our profits but not being allowed to offset the costs of producing those profits is obviously farcical. It is therefore specious to try and accuse landlords of doing the wrong thing when they try and protect the viability of their businesses. Remember, the money raised will mostly be going to the Exchequer. Landlords without mortgages and/or companies might more justifiably be accused of 'cashing in' on this; not leveraged landlords, however. There is nothing to reproach us with.

George Osborne is this Spitting Image caricature of Nigel Lawson brought to life: https://youtu.be/8xFdfc4VnL8

Reply to the comment left by "Jack Craven" at "01/03/2016 - 17:55":

I will have to pay 45% tax on the 10% lost furniture allowance so I will have to increase my rents by 4.5% just to stay even. In addition a 1.3% increase overall to cover inflation results in a total increase of just under 6%. Add to the a 4% increase to cover the losses which will accrue from Universal credit (a guess but likely to be much higher) and an immediate 10% increase is required just to stay even. Clause 24 is in addition.

Now if I was incorporated I agree a 2% increase would cover the extra tax plus of course the 1.3% for inflation.

Reply to the comment left by "Worried by Budget " at "01/03/2016 - 17:07":

The problem is that unless we get a British Donald - maybe a Richard Branson.... our options are not "more of the same" but "exactly the same!"

I don't know why people say "god save us if Donald gets elected"... that seems to me to be somewhat of a media driven un-researched position / opinion. Again, we are all entitle our own opinion but not our own facts!!! If one delves beyond what we are fed by the media and learn the facts you may find you quite like Donald Trump and what he is saying. I am afraid to say it makes sense.

I think some time on the "naughty step" for the class of politicians garbage and whipped idiots is preferable to an all out "western spring". two party politic has had its time and we need our elected MPs to fight for us not their party. They are serving the wrong masters and always will.

Political correctness has an endpoint and that end point is disaster. I like a man that says Jobs are coming back to the USA and immigration is going to be controlled and I am going to make deals that work not that just appease. Smooth politicians give us hope and noting of substance and as the bumpers stickers in the USA say "How is that Hope working out for you?" I like a guy that knows a rising tide lifts all boats not just a select well connected few and so works to raise the tide.

Pertinently to us landlords and our economy... I like the thought of our national finances being run by a guy who has made his fortune and worked for a living all of his life - over an idiotic pompous self-righteous aristocratic history student. I favour the guy who actually has employees of all stripes and pay grades and knows how to tickle them all in to collective productivity.

Why is running a country any different from running a company. The only difference is the benevolence required in a country.

God help us if we don't get a Donald I say.....

Where we invest is a mix of owner occupiers and tenants, the latter withlandlords ranging from absentee single property, to some who are also resident.

Some tenants eventually buy, even from their own landlord. Contrast that healthy and dynamic picture to that evisioned, or at least eabled, by the corporate whole development purchase or build where no asprant ftb will stand a cat in hells chance.

Similalry not all landlords are the same with differing standards of decoration, furnishing and of course, rent levels. In the corporate structure it is likely to be more of a case of "any colour you like so long as it is grey" and so if you fall out with the single landlord for any reason a whole development is lost to you.

Wasn't ftb and assistance suppposed to be the genesis of the recent policies from Mr Osbourne?

Reply to the comment left by "Jack Craven" at "01/03/2016 - 17:55":

No Jack. 15% + 8.5% + 8.5% is a compound increase of 35% or there abouts... Sorry it is just simple maths and I am happy to show you how that works if you'd like. (yea that is patronising you in case you wondered)

Jack... i am not justifying myself to you far from it. I am giving an honest answer. I have a large portfolio and have not increased rents in part as I have been happy to live off what i was making. Part of what i was making was the 10% W&T. I managed, repaired and replaced but what was left of the W&T pot when that was done, was legally mine and so i spent it. Which by the way was a good sum of money. The 10% W&T has gone and so I either need to live without it or replace it - in part... No apology sought there... Just again simple fact and honesty.

Someone asked a genuine question "why we were raising rents now" and I answered it honestly. I don't apologies if you feel patronised. to the contrary, I hope you now undressed a bit abut rental increments and the trie effect of the Tenant Tax. You will in time, if you are a landlord, understand that you too will have to calculate what you need to do to stay in business. You may have to increase more or less than me but increase you will....If you don't, then you will not be in business rather quickly, old chum!. (yea... I did it again)