Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 9 years ago 9619

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Budget 2015 - Landlords Reactions

The concern is;

Budget proposals to “restrict finance cost relief to individual landlords”Summer Budget 2015 - Landlords Reactions

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17:00 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "unahb1 " at "29/07/2015 - 16:55":

unahb1 ..and everyone else ... any groups or sites promoting the petition need to be logged so we can update them withthe new petition ...maybe email them to Mark to keep or just note yourself and post link to new one when available

Appalled Landlord

17:03 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Roanch 21" at "29/07/2015 - 16:28":

The article features a man who wanted to buy a property to live in. It said “He had a decent deposit and looked at lots of new-builds in “up and coming areas” [in London] but found that, within such developments, most of the stock had been sold to overseas investors and what was left “wasn’t great”.” So he was squeezed out of the London market by foreigners.

This week I saw David Cameron on TV making a speech in which he said he would welcome more foreigners buying property in London. Brilliant!

I read somewhere that foreigners will not be subject to the “restriction on relief”. Does anyone know if this is true?

Connie Cheuk

17:06 PM, 29th July 2015, About 9 years ago

OLet's not slam the first-time buyers. We were all first-time buyers once. The article proves the attraction of buy to let, which enticed us all, too. The government, sticking their oar in, is trying to make it less attractive, not a viable investment, and trying to stir up ill feelings by blaming landlords for first-time buyers not being able to buy. There are expensive areas and cheaper areas, and there's the joy of mobility. London was, is, and probably always will be expensive. I had to move out to buy. No big deal! My lungs are cleaner for it!

There is not a shortage of housing in many areas, and houses are very affordable, but there are other factors affecting buyers. Those areas have to rely on buy to let investment. Osbourne has definitely not thought this through beyond London!

17:57 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Connie Cheuk" at "29/07/2015 - 16:29":

Next up ...ask your mortgage broker if his procees of "due diligence" covers the effect of the position the borrower will be in in 2020, then suggest he checks his personal professional indemnity insurance is a robust policy !

Dr Rosalind Beck

17:59 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "unahb1 " at "29/07/2015 - 16:55":

I wouldn't worry too much. We will be approaching all the landlord bodies anyway and it doesn't take someone a minute to sign again. We're going to be aiming at thousands in even the short term.
There is no way of speeding it up anymore. The Petitions Committee has been told and we have to wait.

Appalled Landlord

18:06 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Phil Landlord" at "29/07/2015 - 09:50":

Hi Phil

You wrote:

“Thoughts on this are that “no other business” buys appreciating assets on interest only basis to maximise the leverage this provides.

Ie I buy a £200k machine in my factory – the business objective is to repay the debt in that in 5 years before I need another machine in say 10 years.”

You are comparing apples and eggs.

Presumably no-one would lend you the money on an interest-only loan to buy a machine because it would depreciate to scrap value in 10 years and the lender would be left with no security. Therefore you are forced to set your prices high enough to ensure you make sufficient profit to be able to pay the principal during its useful life. Both the interest and the cost of the asset are allowable deductions in calculating your profit.

This is not the case with property. If the value depreciates we cannot deduct the loss from our income. And if the value appreciates we have to pay capital gains tax when we sell.

It is the very fact that property is an appreciating asset that permits lenders to give us interest-free loans. We did not force them - the lenders chose to do so. This, presumably, was with government approval. If they had not done so there would not be so many blocks of flats in the country as there are now, inadequate though their number still is. By increasing the size of our loans we increased the number of homes in the country.

Appalled Landlord

18:11 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Phil Landlord" at "29/07/2015 - 10:01":

Hi Phil

You wrote:

“So I advocate higher tax….but keep the calculation as is it…then levy a charge on AFTER if you are a HRT. Also Interest Only mortgages to cease moving forward…and for all debts to move to capital and interest over a period of adjustment. Ruins my plans – but I get why that is.

Imaging I will be on my own on this…..”

In advocating acceptance of the levy I think you will indeed be alone on this forum.

Connie Cheuk

18:13 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Appalled Landlord" at "29/07/2015 - 18:06":

The only way it may depreciate is if it is a leasehold property...or there is a downturn...

A loan secured on a business? The business should appreciate in value? Just a thought that may not be so apples with pears...? The appreciation is the value of the business, surely...

syed shah

18:30 PM, 29th July 2015, About 9 years ago

Dear all

Considering the email which I received from Megan shaw which I originally posted, it showed all rents totalled up. I read this accountants website on how the new measures will calculate , very confusing as its shows 50k as basic rate !!
Can someone pls take a look please ?

http://www.dalbeath.co.uk/buy-to-let-mortgage-interest-tax-relief-how-will-it-work/

Connie Cheuk

18:44 PM, 29th July 2015, About 9 years ago

Reply to the comment left by "Appalled Landlord" at "29/07/2015 - 18:11":

Hi Appalled Landlord,

I think Phil Landlord was not advocating the levy in answer to my comment.

I think any sort of levy would be a government punishment. The "levy" is already there - in higher tax for higher earners. This change in rules makes no sense whichever way it's looked at because of the sheer unfairness.

Interest only has been worked into landlords' strategies, and lenders are fine - happy to lend on that basis, know they'll get back plenty, government was fine with it until this sudden itch in their pants.

No-one wants this levy - it's not how taxation should be. It's to fill the government coffers and akin to monarchs who raised taxes to build up dwindling funds.

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