Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Kathy Evans" at "17/07/2015 - 22:08":

Hi Kathy

It is very early days so wait and see what will happen get a good accountant or follow this forum . Someone some where will come up with something.

The one that will help you is if the goverment do not do this rectrospectively and only from 2017 which is a very valid argument.

Reply to the comment left by "Matt Cole" at "18/07/2015 - 18:45":

Hi Matt

You're in luck.

The first budget busting tax solution I came up with for landlords following the budget suits your circumstances perfectly - please see >>> http://www.property118.com/budget-busting-landlord-tax-solution/76249/
.

If one is to start looking at discrimination between btl landlords and Ltd company Landords. .. perhaps we should also look at the much favourable financing rates offered to the private landlord

Hi all,

As I am just now still starting my property investments (I have just one studio flat owned outright) and am about to buy another property now (house two bedrooms midlands, at 70K with a 30% deposit)..

...basically I need to keep my earnings (including wages from work) below 43K per year...

would it be better to invest in lower priced properties (in the North??) around 50K or below, good deposit, low mortgage, higher rental yields, or...

120K (for example) property 25% deposit, 5-6% yields and see if the whole budget fiasco for BTL is revised or sorted??

I really do not know the correct course now.

Form a company now or reduce my earnings (my wage already eats up a large part of the 43K) and keep my investments in property to the required minimum.

Not sure, any comments would be appreciated thanks.

Reply to the comment left by "Ros ." at "18/07/2015 - 22:16":

I particularly like the use of the word "CRIME" when discussing the proposed theft from our business, this crime reminds me of when the Cypriot government stole money out of it's customers bank accounts a few years ago. I hope this government becomes an embarrassment around the world. As far as I'm concerned the damage is already done and I have now lost a huge amount of respect and trust for our leaders. You can dress the name up of theft anyway you want but it's still theft. I would have been much happier if they had put the tax rate up to 60% as everyone would have to pay it. None of these changes should be applied to existing business owners and at least that would have been fair play as each person could decide if they wanted to purchase another property. Personally my tax bill will double, does that mean that I am paying 80% tax? I always build in a cash safety net for the unexpected and after all my due diligence what will happen if interest rates rise sharply? My safety net is being stolen! I would never have dreamed that a British government would do this to it's people.

Reply to the comment left by "Vero streetflat" at "18/07/2015 - 19:19":

Vero....well summarised. The problem up until now is that we have had a system that encouraged over leveraging. Debt is what brought on this recession. The proposed changes does not break the btl model....It just focuses people's minds on running a more sustainable model. The issue is.....is the 4 year period sufficient time to allow those that have o er exposed them selves sufficient time to allow themselves to reorganise their portfolios? It's no different to the thousands of Small businesses (me included) that have been hit by the dividend tax just introduced.....or the millions of working people who have had their pension ages lifted (both private and state). Tax is in constant flux ....fact of life.

Reply to the comment left by "Monty Bodkin" at "19/07/2015 - 10:00":

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Monty Bodkin says: 19/07/2015 at 10:00
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Reply to the comment left by “Vero streetflat” at “19/07/2015 – 09:48“:

To clarify, in case of confusion, I was of course referring to the capital repayment part of my capital repayment mortgage. This is not tax deductible.
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So why would landlords with capital repayment mortgages only be mildly affected? Their situation is entirely dependent on the amount of interest payable not the type of mortgage.
Asking again, are you a landlord?
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How strange that you quote my post that includes this:
“I collect the rent, I pay the tax”
yet ask:
“Asking again, are you a landlord?”

To clarify, in case of confusion, the answer to your question is:
Yes.
I am and have been a landlady for 15 years.

Have a lovely day now.

Hi everyone, I am new to this forum, I have been following this thread, keep up good work.

Reply to the comment left by "James Tallis" at "19/07/2015 - 12:08":

Lenders assess risk and form products that will work in the market place, to gain business thaey need to be competitive. Put all BTL interest rates up and 2 things happen, the BTL sector dies shortly after Rents going through the roof ...some tell me if i have got this wrong.

Reply to the comment left by "Vero streetflat" at "19/07/2015 - 12:58":

I am and have been a landlady for 15 years.

If that is true then I apologise.
At least some good has come of this budget if it has led to you joining property118.