Any Buy to Let Experts? Good and Bad Experiences Sought

[Bold Seagull]

We did have plenty of social housing but someone sold a lot of it off incredibly cheap….

 

[Herr Tubthumper]

For what it's worth I think there should be a balance of private and non-private renting. I'd tax BTLers to make it less profitable/favourable and bring in rent controls to stop private rent spiralling out of control.

 

[Triggaaar]

I'm an advocate of social housing. Whilst I do not wish to speak on anyone's behalf I think he's agreeing with me.

When asked "who is going to provide private rental if you exclude anyone who borrows money to buy property?", you said "The same way as before BTL's were opened up to the mainstream?" and Ernest said "The government build enough social housing to house everybody" - that's not the same.

 

[Diablo]

For what it's worth I think there should be a balance of private and non-private renting. I'd tax BTLers to make it less profitable/favourable and bring in rent controls to stop private rent spiralling out of control.

Don`t know why you think buy to lets aren`t taxed...they sure are..

 

[User removed 4]

How are you meant to save any substantial amount of money (i.e. the 20k required for a deposit) when you are spending £800 on rent a month, try renting a single flat anywhere in Brighton for less that £750 a month, it is not possible. Then for most of Brighton you can stick £70 CT a month of top of that. And then Bills and then any transport you need for work because Brighton has barely any non service level jobs.

Then move somewhere cheaper but still accessible to your workplace, you're not being forced to live in Brighton are you ?whilst I appreciate its a lot more difficult to get on the ladder than when I was younger , you're response does give the impression that you're not willing to make any sacrifices at all , whereas even in the eighties you had to save and prioritise to get your deposit.

 

[Herr Tubthumper]

When asked "who is going to provide private rental if you exclude anyone who borrows money to buy property?", you said "The same way as before BTL's were opened up to the mainstream?" and Ernest said "The government build enough social housing to house everybody" - that's not the same.

But the government has built piles of social housing in the past, and before BTL, so this could be seen as part of my suggestion could it not?

 

[Herr Tubthumper]

Don`t know why you think buy to lets aren`t taxed...they sure are..

To clarify I meant increase tax to make it less profitable/appealing.

 

[Triggaaar]

But the government has built piles of social housing in the past, and before BTL, so this could be seen as part of my suggestion could it not?

I don't believe it was your main suggestion - before BTLs were available, the government was not sorting out the housing of millions of people by building social housing. And I don't think Ernest was suggesting it was either - I think Ernest was suggesting it as a way forward now, but he was replying to my post about your comment on the past.

 

[Diablo]

To clarify I meant increase tax to make it less profitable/appealing.

Are you saying buy to let business should be taxed more than any other business ...

 

[HantsSeagull]

For what it's worth I think there should be a balance of private and non-private renting. I'd tax BTLers to make it less profitable/favourable and bring in rent controls to stop private rent spiralling out of control.

most buy to let landlords have buy to let mortgages. the only way landlords are making any money is due to the current low interest rates. even then after you have deducted all the service charges, maintenance costs, letting agent fees and mortgage interest, the amount of profit is pretty low. you then have to pay income tax on that profit - probably at 40% and then when you sell the property you have to pay capital gains tax. so what extra tax are you planning to impose on us UK residents and tax payers, who happen to be BTLers, from your Germanic utopia?

 

[The Antikythera Mechanism]

Are you saying buy to let business should be taxed more than any other business ...

I think you'll find that those that advocate heavier taxes on BTL are those that pay the least tax themselves, ironic isn't it?

 

[Hampster Gull]

Not sure there is anything wrong with a good private rental market to sit alongside a good social one. As with most things neither are perfect in real life and could be improved, in this case through regulation focused on minimising landlord abuse and by the government supporting more building projects. I stumbled into two BTLs which i still have and have had a good experience. I rent at below market rate to minimise voids and to give value for money and in one place have had a tenant for 9 years. He is a builder and knows he has a fair rent so fixes things around the place. I can see how it could all go wrong though.

 

[Vegas Seagull]

Then move somewhere cheaper but still accessible to your workplace, you're not being forced to live in Brighton are you ?whilst I appreciate its a lot more difficult to get on the ladder than when I was younger , you're response does give the impression that you're not willing to make any sacrifices at all , whereas even in the eighties you had to save and prioritise to get your deposit.

Indeed, cake & eat it...all that was/is needed is to share £400 pm saved = £20k in 4 years...I had been an owner for a decade by early thirties & saving £250pm at the same time for the next bigger house @ 30

 

[warmleyseagull]

Tips:

1) Buy a book - I bought Successful Property Letting by David Lawrenson. Mostly irrelevant to my case, but the bits that were relevant were well worth £9.99;
2) Buy somewhere you know;
3) Ignore advice not to buy new: yes it is more expensive but also more desirable and (should be) maintenance free and likely to increase in value more quickly;
4) Agents charge a lot for nothing. You can advertise using an online service like landlord direct that get property on Zoopla and Rightmove. You then do the showing round and negotiation (I like to do that anyway so I see the prospective tenants) and online agent will do references and tenancy agreement. Costs £35 rather than £00s and you save the tenant paying fees.
4) Golden rule is to avoid voids - many landlords think they have done a great deal by, say, getting £50 more pcm on a £1000 pcm flat by waiting 2 months, forgetting it takes over 3 years to recover the difference.

 

[Herr Tubthumper]

Are you saying buy to let business should be taxed more than any other business ...

No. One way is to remove interest as an expense. This will increase the tax on many BTLs and put a curb on borrowing.

 

[Herr Tubthumper]

I don't believe it was your main suggestion - before BTLs were available, the government was not sorting out the housing of millions of people by building social housing. And I don't think Ernest was suggesting it was either - I think Ernest was suggesting it as a way forward now, but he was replying to my post about your comment on the past.

I simply said go back to what it was like before BTLs. I didn't have a main suggestion.

 

[Herr Tubthumper]

Not sure there is anything wrong with a good private rental market to sit alongside a good social one. As with most things neither are perfect in real life and could be improved, in this case through regulation focused on minimising landlord abuse and by the government supporting more building projects. rs. He is a builder and knows he has a fair rent so fixes things around the place. I can see how it could all go wrong though.

I agree with this.

 

[Diablo]

No. One way is to remove interest as an expense. This will increase the tax on many BTLs and put a curb on borrowing.

Remove interest as an expense on buy to let would put most out of business would make any with any borrowing less profitable so would slash the amount of tax paid on BTL profits.
Removing interest as expense on business in general would cripple the economy faster than anything investment would dry up. I`m no economist but Low interest rates are here for a reason...

 

[Lower West Stander]

Not sure there is anything wrong with a good private rental market to sit alongside a good social one. As with most things neither are perfect in real life and could be improved, in this case through regulation focused on minimising landlord abuse and by the government supporting more building projects. I stumbled into two BTLs which i still have and have had a good experience. I rent at below market rate to minimise voids and to give value for money and in one place have had a tenant for 9 years. He is a builder and knows he has a fair rent so fixes things around the place. I can see how it could all go wrong though.

Absolutely this.

I have 4 BTLs and this is exactly what I do too. I've also done away with agents (who I think are a waste of money if you live locally) and have passed on the reduction in fees to the tenants. I know all the local tradesmen who can fix most problems arising quickly and have a good relationship with my tenants who I think are getting a good deal.

Sure the system is open to abuse, but please don't tar us all with the same brush.

 

[jimbob5]

2 points
Property Prices are artificially inflated
Whoever is in Government will do anything to keep it that way, ostensibly via the Bank of England.