BTL - long term winner?

[crankedup]

Most people know how tough it is for the majority of first time buyers in the housing market. Those who are unable or unwilling to raise a deposit for a house purchase increasingly turn to the private rent sector for home provision. As oft reported the BTL market is still booming and continues to offer a good investment for landlords.
Any changes on the horizon?

[Hoofy]

I wonder if at some point, someone will bring in a law stopping people having more than a couple of BTLs or putting in taxes that kill profits. If all BTLs were suddenly dumped on the market, the supply would make prices reverse at least a little.

[Art0ir]

House buyers under 30 (as a share of all house buyers) is at an all time low.

What do you think?

[BoRED S2upid]

Hoofy said:

I wonder if at some point, someone will bring in a law stopping people having more than a couple of BTLs or putting in taxes that kill profits. If all BTLs were suddenly dumped on the market, the supply would make prices reverse at least a little.

That would take a brave or very stupid politician how many people have BTL's as part of their pension? An instant vote looser.

I can't see it changing for the long term it's a mindset now for a lot if people that they will rent for life especially in places like London.

[Axionknight]

Hoofy said:

I wonder if at some point, someone will bring in a law stopping people having more than a couple of BTLs or putting in taxes that kill profits. If all BTLs were suddenly dumped on the market, the supply would make prices reverse at least a little.

Greater taxation and a clampdown on avoiders is coming IMO, the government will be rubbing their hands at all the folk piling their money into BTL investments, give it a few years until the cash cow is well and truly fat and then bang, they make their move.

[98elise]

Axionknight said:

Hoofy said:

I wonder if at some point, someone will bring in a law stopping people having more than a couple of BTLs or putting in taxes that kill profits. If all BTLs were suddenly dumped on the market, the supply would make prices reverse at least a little.

Greater taxation and a clampdown on avoiders is coming IMO, the government will be rubbing their hands at all the folk piling their money into BTL investments, give it a few years until the cash cow is well and truly fat and then bang, they make their move.

Why do you assume BTL landlords are avoiding tax? Mine are all accounted for properly on my Tax return, and I pay tax on them. If HMRC knows of people avoiding taxes, it would act now and get the money now.

Income from BTL is taxed just like any other income.

[Mark Benson]

98elise said:

Axionknight said:

Hoofy said:

I wonder if at some point, someone will bring in a law stopping people having more than a couple of BTLs or putting in taxes that kill profits. If all BTLs were suddenly dumped on the market, the supply would make prices reverse at least a little.

Greater taxation and a clampdown on avoiders is coming IMO, the government will be rubbing their hands at all the folk piling their money into BTL investments, give it a few years until the cash cow is well and truly fat and then bang, they make their move.

Why do you assume BTL landlords are avoiding tax? Mine are all accounted for properly on my Tax return, and I pay tax on them. If HMRC knows of people avoiding taxes, it would act now and get the money now.

Income from BTL is taxed just like any other income.

Duh! Because all landlords are evil scum who light their cigars with £50 notes and put them out with the tears of their downtrodden tenants.




I know I do.

[Axionknight]

98elise said:

Why do you assume BTL landlords are avoiding tax? Mine are all accounted for properly on my Tax return, and I pay tax on them. If HMRC knows of people avoiding taxes, it would act now and get the money now.

Income from BTL is taxed just like any other income.

Avoiders, as in, those who are avoiding, not that ALL are avoiding. Unless you are saying that every BTL landlord in the land is on the financial level, so to speak?

Jesus.

[anonymous-user]

Art0ir said:

House buyers under 30 (as a share of all house buyers) is at an all time low.

What do you think?

The UK has roughly 70% home ownership, compared to France around 60%, Germany 50% and Switzerland 40%... What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

And in answer to Cranked... beats BARC or TSCO!

Edited by anonymous-user on Tuesday 22 July 16:17

[Hoofy]

Mark Benson said:

Duh! Because all landlords are evil scum who light their cigars with £50 notes and put them out with the tears of their downtrodden tenants.

[Hoofy]

BoRED S2upid said:

That would take a brave or very stupid politician how many people have BTL's as part of their pension? An instant vote looser.

Or a vote winner, given that there are more people without BTLs than with.

[Axionknight]

Mark Benson said:

Duh! Because all landlords are evil scum who light their cigars with £50 notes and put them out with the tears of their downtrodden tenants.




I know I do.

Sounds like a good screw, I may have to get in on the act!

[Rude-boy]

fblm said:

The UK has roughly 70% home ownership, compared to France around 60%, Germany 50% and Switzerland 40%... What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

And in answer to Cranked... beats BARC or TSCO!

Edited by fblm on Tuesday 22 July 16:17

This.

Yes there might be changes ahead but the worst that BTL's will see is their 'tax free' interest going.

Welcome to the new/old paradigm of homeownership.

Remember that until the Glorious Maggie (blessings and peace be upon her) the renting/homeownership stats were somewhat different.

[anonymous-user]

Hoofy said:

BoRED S2upid said:

That would take a brave or very stupid politician how many people have BTL's as part of their pension? An instant vote looser.

Or a vote winner, given that there are more people without BTLs than with.

There are more people without mortgages than with, so how about a tax on mortgages would that also be a vote winner?

[Art0ir]

fblm said:

Art0ir said:

House buyers under 30 (as a share of all house buyers) is at an all time low.

What do you think?

The UK has roughly 70% home ownership, compared to France around 60%, Germany 50% and Switzerland 40%... What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

And in answer to Cranked... beats BARC or TSCO!

Edited by fblm on Tuesday 22 July 16:17

I offered no comment on the merits of such a system, only on the immediate future of the market

[TTwiggy]

fblm said:

The UK has roughly 70% home ownership, compared to France around 60%, Germany 50% and Switzerland 40%... What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

And in answer to Cranked... beats BARC or TSCO!

Edited by fblm on Tuesday 22 July 16:17

I imagine the answer is simple. Their 'problem' lies in financing someone else's loan for them, while that person sits back and makes money on the asset.

[anonymous-user]

Art0ir said:

fblm said:

Art0ir said:

House buyers under 30 (as a share of all house buyers) is at an all time low.

What do you think?

The UK has roughly 70% home ownership, compared to France around 60%, Germany 50% and Switzerland 40%... What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

And in answer to Cranked... beats BARC or TSCO!

Edited by anonymous-user on Tuesday 22 July 16:17

I offered no comment on the merits of such a system, only on the immediate future of the market

I was replying to "what do you think?"! Fact is a massive shift of 2-3 million households from owning to renting would still only take you to Northern European levels; hardly the end of the world. Only just over 1/3 of UK households even have a mortgage, lots of people flapping about nothing IMO.

[Hoofy]

fblm said:

Hoofy said:

BoRED S2upid said:

That would take a brave or very stupid politician how many people have BTL's as part of their pension? An instant vote looser.

Or a vote winner, given that there are more people without BTLs than with.

There are more people without mortgages than with, so how about a tax on mortgages would that also be a vote winner?

Not the same thing and you know it.

[anonymous-user]

TTwiggy said:

I imagine the answer is simple. Their 'problem' lies in financing someone else's loan for them, while that person sits back and makes money on the asset.

So the renter cares if the landlord has a mortgage? Weird, I never did.

[Mr Snap]

fblm said:

What is Brits problem with renting? Why are BTL's a problem and why are an increasing number of renters a problem? Doesn't seem to be an issue with the rest of the continent.

Edited by fblm on Tuesday 22 July 16:17

Because, as I understand it, leases in other countries are cheaper and set for longer terms. We have a system where house price inflation is seen as a good thing and landlords have a incentive to increase rents on a regular basis (esp as housing benefits increase to meet inflation).