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  • Tax

    I shoud not have remortgaged in the past



    I was looking back over the past 15 years of my business and I ran to a conclusion that I should have not remortgaged in the past

    Looking at the mess S24 has put me in, I have had to re-organise my business to avoid about 50% of the new taxation

    A major fact was I remortgaged and took out equity and used the funds for new deposits

    Of course I now own assets and they have made money but I I had saved deposits I would have not had a Major Issue with S24 Taxation

    I'm quite sure long term my own Business will work out well

    But going forward If I were to invest in further BTL I would save deposits and move forward

    At present I know the new flavour of the month is buying via a company and that is fine for now But will a future Govt Tax Ltd Co who invest in Residential Property Higher

    The bottom line I think Is borrow as little as you can and Don't Remortgage out

    The debts I have paid off with Landlord Shuffle ect is really the deposits I should not have borrowed in the first place

    But I was greedy and wanted to play the game of "Rich Dad Poor Dad"

    So I have no one else to blame than my own judgment ...

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    That's a very honest assessment Disy, all credit to you,

    The Housing market was I think, overheating and some slow-down may not have been a bad thing.

    But the massive and sudden braking on the system by Sec 24 was way over the top and I think was more for govt Revenue than any intelligent measures to address the  market.

    Sec 24 is in the news on Property Eye this morning as Landlords passing on their increased Tax burdens in rising rents ( No sh*t  Dick Tracy ! )

    I fear for the sector and renters who will / Are ultimately suffering.

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    Thanks Chris

    My own view is the storm is building and Landlords should have been planning for this long before on if they are effected by S24 & PRA rules

    Sitting depending on rent rises and property prices rising in my opinion is folly

    This is going to be a period the likes we have never seen before

    I thought The crash in 1991 and 2007 were hard to navigate round? but this is something quite different


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I think the exact opposite.

    Im glad I remortgaged to buy more because they have gone up very considerably in the past 5 years especially in bristol.

    If I have to sell to reduce the mortgage debt so be it but I will use the gains to reduce the overall debt.


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    I know I would never do it again

    I have 10 years left before my Tracker Mortgages are due to be repaid and the NE prices are rising

    I never minded taking the risk but s24 has shown me that the risk can come from our own Govt 

    Thank Goodness I don't need to remortgage now

    and that's maybe because I did Remortgage in the early 2000,s

    all I know is its no fun seeing neg equity




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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Prices have been rising aggressively for sometime. I think they have stopped now but now is a great time to get out of property. 

    Right when s.24 bites and at the top of the market.

    property is selling easily in my area

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    Rents are falling almost across the board according to this article released today:

    https://uk.reuters.com/article/uk-britai...KKBN1HW35N

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    That article does not say "across the board" and this one based on the same report says they are actually rising in 4 out of 12 regions

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    Give it another month or two. It is the direction of travel that we should be looking at.

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    I`m still glad I remortgaged to release equity

    It enabled me to build and build and i will never regret that

    Yes sec 24 hurts but as a proportion of turnover its still manageable

    And I have 6 years to restructure using various options

    And Ive done that more or less in the almost 3 years since it was announced 

    Sec 24 is in its 1st of 4 years so even those who are unaware have time to adjust when they get the 1st tax bill 

    100% profit of 100K is good if you buy cash 

     50% profit  of 400K is better though if you leverage at 75% LTV 

    In fact you can be  100% better off  by remortgaging - So use remortgaging yes as an effective tool to grow

    Just don`t overdue it in the current climate .

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    Jonathan Clarke. http://www.buytoletmk.com


    I do not believe there was anything wrong in releasing equity in a controlled and sustainable way.

    The issue was that many people bought poor quality properties and over-milked them, only to find that property prices dropped and they were in negative equity.

    As a result of the "Rich Dad Poor Dad" methodology, many landlords will now find themselves in negative equity and possibly negative cash flow.

    They have likely only survived this long through low interest rates.  Now S24 is going to hit them hard.

    However, it seems lessons have not been learned - this headline from the Daily Mail today:


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