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Its was sad to see us lose our case yesterday in court
And I belive there will be little change to S24 in the comeing months
so where will this leave the BTL world
My own thughts are the Bad Points as follows
1 If you have a Salary and a full time Job you will be in real trouble
2 If you have no other income other than BTL you will manage
3 If you want to start in BTL in your own name you will be very limited
4 If you do go down the Company route you will have double Taxation
My own thoughts The Good Points
I can see rent rises
Tenant demand will rise as Landlords are forced to sell
If you can weather the storm ahead and survive you coud still make money in the BTL game
The apathy in our world is quite remarkable still
I use a Large Accountats Practice and there Tax Advisor told me I am there only Cliant to be doing anything about S24
99% of Landlords still dont understand or want to understand S24.
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.
Yes I agree rent will go up.
The Government's answer to rents going up will be RENT CONTROL.
Check me out at: http://www.LordLucan.com
If you have read my Bloggs you will see I agree with you
Liveing Rents have been talked about and I would be suprised if it did not happen
Can you imagin the Nightmare that will be in the SE
I also belive we could see a property crash in the SE too
Sure could be - but - as Ive wrote about before Rent Controls Dont Work.I donnt think the cival servants ( the real controlers of government policies ) would put such a thing forward to a Conservative Government.Even Left-Ed Miliband proposed rent-control light in which it was no rent rises on existing tenants - well most dont raise rents on existing tenants (pre Clause 24) anyway.
THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED. DO NOT SEND PRIVATE MESSAGES.YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001
It is sad, bad, but for me the only viable longterm option, solution to the current trend is to go largely debt free, which is not possible for many I guess.
Despite all the doom and gloom property always has and always will be a good investment. If you are lucky enough to have a pot of cash sitting in the bank then investing into a BTL property is still a very good option. Positive cash flow and long term capital growth are still there so be positive, take appropriate advice and move forward.
The problem is we dont know which laws will change next
Im keeping my cash out of BTL for now
Time will tell on this and the clock is ticking
Unfortunately none of us can predict the future in life or in business.
If i had £25000 sitting in the bank today i could leave it there and enjoy 1% bank interest.
Or i could buy a house for £100000 in 20 years this will hopefully be worth £200000 plus i would of earnt cash flow from the rents. I wont bother to do the maths but i really dont see how any changes could stop this from being a wise investment with my £25000 today...
Everyones situation is different which is why advice is very important before doing anything...Just be positive.
I am personaly Positive about my future in BTL
But I fear for the BTL Bussiness in Genaral
There are other investment apart from a bank account
I favor Pensions and ISA and thats where my money is going at present
although the stock market is at all time highs and I have made more money in the past year Tax Free which BTL could have never given me
My Returns this year is in double figs
But I agree with you BTL long term is a very good investment
and I wont be selling any property other than to my own Ltd Co
But we will have working Landlords who will pay Tax on No Profit in point of fact it may run at a loss??
and this is the issue and investment is only worth something when you see the profit in your own bank account and not in the HMRC account
If a working landlord is going to be running at a loss then they need to re evaluate whether BTL is right for them. Nobody has to stay in the game if they dont want to. You are able to sell your property and move forward from there. It may not be what you originally planned to do but as said before no one can predict the future, No business will run for 25 years or more without set backs along the way. BTL is no different.
The numbers either work for you or they dont.
For many landlords the choice is not property or a 1% bank account, it might be additional property or paying down debt costing an average say 3%More importantly if a landlord can pay down debt to the 60% or 65% band they could potentially access cheaper loans so their effective return on the sum they pay down can be much larger. For instance one of my properties had a LTV of ~68% so I paid that sum down to 65% exactly. It was aprox £9k to pay down but the difference meant annually my annual interest payments fell by over £1.5k so the effective return on my £9k was over 15% pa at least for the two years fixFurthermore many of the larger landlords are already doing quite well with equity of multiple millions. Such landlords even without the changes to taxes and rules should be looking at preserving wealth more so than expanding it. If you have £10m then doubling it to £20m is not going to change your life but if in trying to double it you risk losing £9m of that £10m then its a silly bet.