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  • Buy-to-Let

    Corbynomics and the impact on Buy to Let

    From what I can sew Jeremy Corbyn will be PM before 2022.  What difference to you think he will make to the B2L market? Obviously he is on the record for.some of this but I believe we will see the following

    * rent controls (ave actuals rather than inflation caps - Labour is currently reviewing these policies)

    * wealth tax on 2nd, 3rd etc properties and even high corporation tax and CGT for investment properties held in a limited structure

    * levies at local council level (Labour councils are currently being stuffed full of Momentum members in anticipation of the glorious day)

    The left wing has never been a great respecter of property rights and I wouldn't expect Corbyn to be either.  I also believe they will go for "shock and awe" - the Spectator has an interesting article about the First 100 Days. 

    He will attempt to capture the establishment before it catches up with him.  I am laying my plans accordingly, but very interested in the view of others, particularly anyone who was around in the 1970s.  From discussions with my mother there is a sense of deja vu perhaps. 

    Could be a lively thread .....

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    Yep reckon you are correct

    Corbyn  will decimate the rental sector.

    There will be a mass selling up by SE LL  desperately seeking to get something  out of their endeavours  from the past 20 years

    Paying CGT to a Tory Govt will be seen as getting off lightly to escape S24 and future Corbyn taxes.

    The political pain of a 70's style Labour Govt is going to be visited on the middle classes.

    Especially  those with property assets.

    The reason!?; because that is where the money is!

    Taxing the property owning middle classes til the pips squeak is what is going to happen.

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    So may be its time to sell up and invest the money in another country.whilst we still can.


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    Hmm!!

    I certainly  consider you could be onto something.

    At least getting out of the game but with most of your profits is well worth considering

    Do you really wanted to be the fatted  calf ready for slaughter by Labour?

    It would be worthwhile getting out of the game  and stashing the cash.

    Then wait to see the outcome of the GE.

    Personally I would consider buying a larger residential property with BTL profits  and take in lodgers

    I wouldn't  be concerned about the RFR Allowance

    Should be able to charge £600 per room or £800 for a couple in 1 room.

    In 5 years time that should have  brought in about £75000 tax free if you 'forget' to inform HMRC of any rent in excess of £7500 per year.

    I don't know about you but as the years roll on I find that I tend to 'forget' things!!!!!

    Investing in a larger residential property can give substantial  CG and great lodger income

    Of course any homeowner may choose to rent a property and only occasionally reside at the residential property or perhaps just spend many days in a month visiting and staying with friends!

    As yet we don't have HMRC checking how many days you spend at your residential property.

    So that is where I would park BTL profits

    A large residential property  which can cope with lodgers.

    When property prices plummet then remortgage to pull out residential equity  and return to the BTL game  or convert the resi mortgage to a LTB  one and buy a new residential property.

    LL  need to lock in gains.

    The only way to do this is to sell up.

    LL  have to gamble  and hope they make the correct decision.

    The only issue that is causing a problem with exit strategy is property is not selling as recently  discussed in the media

    80000 A LL who can't sell and now entering the lettings market fraudulently as very few of them will seek CTL etc.

    But then there are millions  of fraudulent tenancies  and LL.

    This caused by LL  letting to HB tenants etc.

     If I was able I would sell all my properties  and buy one large property

    Not bothered about future potential  CG as that is a distant  prospect.

    Income is where it's at.

    Lodger income being the best sort.

    Just look at spareroom  and see what a room can achieve.

    That could be the deciding factor to sell up your BTL properties and invest in being a live-in LL

    Yes a big personal domestic  privacy issue  but think of the £15000 tax free per year

    Well worth the loss of privacy! !

    If it beats Corbyn from robbing you then such a privacy sacrifice will need to be made.

    I know Vanessa has lodgers and seems to manage the situation very well!!!

    So perhaps lodgers are the new BTL

    LL  will just be live-in ones

    Returning to Rigsby times!!!

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    I wonder how many '1-day-a-month' live in LL's there are in the UK? You'd have to nominate one place as your electoral role home, but other than that????

    PB, why don't you rent yours out and lodge round at Vanessas?!

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    Oh yes there is probably a lot of it going on.

    I'm sure I can't be the only one who can see the benefits of such.

    I guess it all depends on domestic  circumstances.

    If a partner has their own property you can visit him/her a lot while still living at  your resi.

    Providing your entire domestic circumstances  are plausibly at your resi property then it is relatively easy to beat the system using the lodger strategy.

    But it is one way of preserving BTL profits while still receiving lodger income.

    It would be pointless selling up and sticking the money  in a savings account.

    Big houses always seem to have buyers.

    I doubt many do all this though as domestic circumstances  are just not compatible.

    Then of course there is the Corbyn thing

    He has got to consider  large homeowners as a cash cow to squeeze more tax out of.

    I know Labour were looking a CT revaluation factoring in garden size; quality of views etc

    Something that would hit the county set big time.

    But short of selling up and renting I can't see how one could escape Corbyn apart from leaving the country

    I believe Mr Alexander of property 118 has done just this and is currently  renting in Malta while he gradually sells of his stock for maximum CG effectiveness.

    GR is too stupid not to vote for Corbyn

    History isn't something that concerns them.

    They all think we had it easy back in the day with our now resulting expensive  properties.

    Conveniently forgetting we had 15% IR and roaring inflation

    My first house I had £10 remaining at the end of the month after all bills

    Couldn't   even afford contents insurance and then I got flooded out 2 weeks after I had moved in!!!

    Eventually won a claim against a pipe manufacturer

    Took 4 years though!!!

    Perhaps take your BTL profits and invest in bitcoin! !!!!

    There will be many drawing up defence plans against a Labour Govt which I fear we will have here and possibly sooner than we thought; the Fixed Term Parliament Act being shown to mean nothing.

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    Back to the thread - I feel 4.5 years until the next GE (maximum = 5/5/2022) is a long time in politics.

    Corbyn will be 73 by then and does the UK really want a geriatric in charge?

    I certainly won't be selling up, as there's no way I'd be able to buy what I did, where I did, and for how much I did again.

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    Adam. I think you are spot on here. The tories know they are trapped here with a weak leader they will take this parliamentary term the full length I don’t think a vote of no confidence will end it sooner as there is enough support to keep her in (just). We may see a Rees Mogg coronation that’s the only curveball I can envisage.

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    Could the Tories reinvent themselves as New Labour!?

    After all they did rather well to stay in power for so long

    If the CC hadn't happened they would still be in power.

    The Tories will need to lurch to the left if they ever hope to attract sufficient  votes from the snowflake generation

    I just don't believe the Tories have it in them

    They are somewhat weary after trying to manage  the damage Labour inflicted on the UK economy with mass uncontrolled  immigration  being the major one and which has caused most of the problems  in the housing market.

    The Tories are receiving no thanks for trying to manage the UK debt burden

    They might as well just go spending mad and when Labour takeover  just leave a note saying  as per your last  note of there being no money left well there is still no money left; Good luck!

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    I am going to turn this around

    When the conservatives came to power I like I think Most Landlords expected them to be our friends

    The opposite is true they have stabbed us in the back and a great number of other small business too

    We are  trying to predict what Labour will do when they come to power

    its impossible to predict none of us saw S24 PRA Stamp Duty and Letting fees Banned

    we may all have a shock maybe Labour will not do the things as we predicted we got it so wrong with the conservatives


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    Learn Change and Adapt ?????

    It is not that likely that Corbyn will ever be PM. He was a long way from it last time despite the terrible tory campaign. Next time they will do better.

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