adam prospect

Registered with
Monday 3rd August 2015

Latest Comments

Total Number of Property118 Comments: 37

adam prospect

18:14 PM, 17th November 2016, About 5 years ago

Summer Budget 2015 - Landlords Reactions

Thx Jon. Yep close to this and have sold what I needed to to minimise impact. That was 'my reaction the the 2015 budget' and I sensed there was more coming...I still do.

Appalled. I didn't apologise for C24. Retrospective will keep the banks oiled and increase the government coffers at what is a reasonably low politically low risk.

Even if rents rocket and evictions start....that (politically) will be on landlords not the government. Give them an opportunity to turn the screw completely to help 'solve the housing crisis' by removing the 20% tax deduction. And if LLs sell and no-one can afford then prices fall - more votes. And if prices hold steady then status quo.

Not meaning to be controversial or troll just sharing a what a ' political mind' may think and I am a LL with some debt.

My views do differ from the majority. When this came in I honestly felt the gains I had made would come to an end eg National insurance on rent, no personal allowance on rent etc.

So when this came i understood it's political justification and have paid down debt and condolidated quickly. Not smug....just knew from experienced from other ventures this would not revolve around my business plan indefinitely.... Read More

adam prospect

17:12 PM, 17th November 2016, About 5 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "17/11/2016 - 12:06":

Had to check progress due to numerous updates today.....I try every few months to see what has changed in the thinking.

''The deduction of our interest is a GAAP. Again you have failed to say why you think GAAP should no longer apply to individual landlords''

The reason why Mortgage Interest is to be treated differently for BTL Landlords than it is for other businesses is because the business model approach to debt is different.
1) Interest Only has been overused
2) Taking equity from properties to purchase the next uses capital growth to expand rather than taxed income.
3) In theory this is a limitless system where 2 million LLs could own 10 houses each and buy all the housing stock using borrowed money
4) House prices are too high and there is a social impact on an increasing generation of people who wish to politics is kicking in.

I think from a pure accounting process it is does seem unfair. They should have brought in MMR for BTL and regulated the debt and removed all interest only mortgages. But this way BTL LLs keep the debt, banks keep the profit and the government keeps the tax and maybe some extra votes.

Not a tenant tax, not even a landlord tax....this is a tax on debt. If I were incorporated and trading in residential rentals with large mortgages I would be worried that they might be next...although the income tax, dividend and NI rules etc may protect them from political interference to some extent.... Read More

adam prospect

21:40 PM, 22nd June 2016, About 6 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Kathy Evans" at "22/06/2016 - 16:41":

Hi Kathy
If you have bought in an area which is below the prices you paid 10 years ago...then I agree the drops will not be near 30%. The drops I talk about are proportionate to the increases we have seen. Some will see large falls, others little or no falls.
If a LL has seen no increase in prices it does mean decisions made can be reversed without CGT - those who have seen increases and have taken that equity out are most at risk.
Those buying with yields below 5 or 6% are also at risk - paying too much over the past few years without protection against a decent return will be a problem for them.
You are right re the market - rather than see real drops often it stagnates because sellers choose not to take losses. Buying at current prices with yields as low as 2% will present some real challenges for those LLs. Plenty out there who will benefit from others misfortune....not a moral judgement either way...just is what happens.

Awkward...yes. I have sold some already and still have some debt. My return on that debt after the taxation changes is not good enough - so I want to sell and have no debt at all. Wasn't my plan so it is awkward.

The supply in rents will fall to where it was a few years ago. The demand is the demand and another issue - addressed by another solution. Removing owner occupied homes to give to BTL landlords to let to tenants is not an answer to supply.

The 'bitter few' and the 'majority who do not want falls' is where we disagree over which is the larger proportion.......the momentum has been swinging for sometime in the areas where prices have run away from reality.... Read More

adam prospect

5:50 AM, 21st June 2016, About 6 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Mark Shine" at "20/06/2016 - 23:27":

None...not defending the other forum.

Also I see that if the purpose of all this is to cut lending then limited companies appears to be a rather large and obvious loophole.

If lending and purchases shift across to limited companies then, like the government, I guess the other forum will get to them in time.

C24 could be forgiven as seen by some as having 'unintended' consequences but stamp duty was a clear sign of intent.

I will stay being a LL but I now have less. My intent will be to cash up as places fall empty. Might do the odd development or refurb to sell, but only if I can make the same return as I would pre stamp duty change. If I can't someone else can buy it for a higher price and take the risk for a lesser margin.... Read More

adam prospect

23:12 PM, 20th June 2016, About 6 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Mark Shine" at "20/06/2016 - 21:10":

“Debt and the impact it has on prices”
– I take it you are not saying this is not applicable to cheaper owner occupier debt?
It is not just the price of the debt it is the amount you can borrow that impacts on house prices
I earn £2k a month I can borrow £80K....maybe £100k.
If my rent is £2k a month I can borrow £320K...oh dear.
OO drive demand....but BTL is driving some insane prices.

“Make no mistake rents will be driven by affordability rather than what a Landlord feels they need to charge.”
– Yes, but nevertheless do you agree that C24 may exert some upward pressure on rents? Many LL, myself included, rarely increased rents previously.

Me some back rents may go up if that is what LLs choose to do, I tend to hold rents for good tenants beause a void and decorating job takes a long time to make back in increased rent...but new rents will be what they are.

“No need to build houses..” “..rental market should stay static…”
– I take it you are assuming there will be zero population growth and also that FTB’s will be snapping up sharer rental properties (ie HMOs)?

So the demand is the demand....BTL is shifting the demographics and sectors but not creating stock. BTL may have encouraged building...but without it builders will still build. Prices and land will drop accordingly to maintain the real economy, profit, wages and tax.

“Corporates next…..”
– will believe it when I see it. Why ‘next’ as opposed to simultaneously. If the latter was done, then C24 would have perhaps been a little more plausible in July 2015?

Because it would require a change to the progressive tax system we have for personal tax. Both get 20% relief...the same. Of course I realise the impact hits those pushed into HR tax brackets...but that is the HR tax bracket not a difference in relief. The next step will be a look at whether 20% relief is removed...thats when the limited companies will come into it.

I know everyone on here things I don't own property but I do. My appetite to defend myself and BTL is low....I have seen this coming for a while. I know LLs impacted, LL not impacted, tenants who are happy with the changes, tenants who are unhappy.
Anything that enables some correction to these prices (even at a cost to myself) is not something I can argue against. My kids are lucky because I know I can leave them a house when they themselves retire....but I have no idea how families who are not as privileged will cope...and I can't imagine how they feel.

Appreciate all the threads and comments but this one was LLs reactions to 2015. And I know as a LL I am not the only one who has reacted in this way. If everyone did what I had done then 10% of the population would own the whole housing stock...and the budget made me question not what we had done but the direction it was going.... Read More