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Death of buy-to-let: landlords wake up to Osborne's 150pc tax; (Unless you don't need a mortgage)
Topic Started: Aug 24 2015, 01:38 PM (220 Views)
papasmurf
Senior Member
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An interesting news item from the Torygraph pointed out to me on another forum. If you are a filthy rich housing landlord you won't be effected by Osborne's policy but if you are a buy to let landlord with a mortgage you will be:-

https://uk.finance.yahoo.com/news/death-buy-let-landlords-wake-073348828.html

Death of buy-to-let: landlords wake up to Osborne's 150pc tax
Telegraph
By Richard Dyson | Telegraph – Fri, Aug 21, 2015 17:55 BST

Buy-to-let investors paying more than 100pc of their profits in tax are already selling up

Hundreds of thousands of landlords and their accountants are digesting the impact of George Osborne’s shock tax change unveiled in the summer Budget on July 8.

The tax increase, on which there was no consultation, will be phased in from 2017 and fully implemented by 2020.

The change was unexpected, and the new regime is highly complex, so investors and their tax advisers are only now fully grasping its effects. Many investors remain unaware of the change, or underestimate its severity.

All higher-rate taxpayers who own buy‑to‑let properties on which there is a large mortgage will pay substantially more tax. Some current basic-rate taxpayers will also be hit, because the change will push them into the higher-rate tax bracket.

Those who are worst affected will see:

● the actual tax they pay on their investment rising twofold or more;

● the tax rate payable rising above 100pc, meaning that more than all of their profit is paid in tax;

● a degree of tax that pushes them into loss, making their investment financially unviable and forcing them to increase rents sharply or sell.

Scroll down for a worked explanation of the changes.

What is also becoming clear is that worst hit will be those modest, middle-class savers who have prudently chosen to invest in buy‑to‑let, often alongside pensions and Isas, as a means to supplement their income.

The mechanism of Mr Osborne’s tax attack is the removal of landlords’ ability to deduct the cost of their mortgage interest from their rental income when they calculate a profit on which to pay tax.

So very wealthy landlords who do not need mortgages are untouched.


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RJD
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Prudence and Thrift
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Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios? Can anyone identify one? All those I know or have known use Bank financing to the limit of what is made available and for some that is/was their undoing.

I note Mr Smurf lets himself down by inserting the words "filthy" in front of rich. Know where you are coming from don't we.

There was I thinking that you supported the idea of higher rate Taxpayers contributing even more towards the running of the State? Next you will be posting on the iniquities of the Bank Levy.



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papasmurf
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RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?
I suggest asking the Torygraph, because I did not write the article, I used filthy rich because this is an instance of just what they are.

This one seems to be an example:-

http://www.bbc.co.uk/news/uk-25631605

Kent landlord evicts 200 housing benefit tenants

6 January 2014 Last updated at 20:13 GMT


A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


Fergus Wilson has issued eviction notices to every one of his 200 tenants who receives housing benefit.


Edited by papasmurf, Aug 24 2015, 02:07 PM.
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marybrown
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papasmurf
Aug 24 2015, 02:07 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?





A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


I can't actually understand that... unless of course it is cash in hand and therefore untraceable.. ;D
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HIGHWAY
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papasmurf
Aug 24 2015, 02:07 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?
I suggest asking the Torygraph, because I did not write the article, I used filthy rich because this is an instance of just what they are.

This one seems to be an example:-

http://www.bbc.co.uk/news/uk-25631605

Kent landlord evicts 200 housing benefit tenants

6 January 2014 Last updated at 20:13 GMT


A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


Fergus Wilson has issued eviction notices to every one of his 200 tenants who receives housing benefit.


Old news,,
I think the guy blames IDS,so no doubt he's a pal of yours
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RJD
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papasmurf
Aug 24 2015, 02:07 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?
I suggest asking the Torygraph, because I did not write the article, I used filthy rich because this is an instance of just what they are.

This one seems to be an example:-

http://www.bbc.co.uk/news/uk-25631605

Kent landlord evicts 200 housing benefit tenants

6 January 2014 Last updated at 20:13 GMT


A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


Fergus Wilson has issued eviction notices to every one of his 200 tenants who receives housing benefit.


I know why you use the term. However, I find the article, provided by you for some obscure reason, academic rather than referring to actualities. Just look at the Balance Sheets of such businesses and I doubt the you will find that many are not heavily leveraged by Bank Debts. As for the majority of Landlords well theuy only have 1 house to let.

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Tigger
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RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios? Can anyone identify one? All those I know or have known use Bank financing to the limit of what is made available and for some that is/was their undoing.

I note Mr Smurf lets himself down by inserting the words "filthy" in front of rich. Know where you are coming from don't we.

There was I thinking that you supported the idea of higher rate Taxpayers contributing even more towards the running of the State? Next you will be posting on the iniquities of the Bank Levy.



You didn't read the article did you? Check it out.
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Pro Veritas
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Anything that takes properties out of BTL, no matter how rich or mortgaged to the hilt the non-occupier-owner is, and back into the market for people looking for a house and a home, rather than an investment is very much a good thing as far as I am concerned.

All The Best
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papasmurf
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Tigger
Aug 24 2015, 07:21 PM
You didn't read the article did you? Check it out.
He never does, even when I put a long copy and paste.
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johnofgwent
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It .. It is GREEN !!
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marybrown
Aug 24 2015, 02:14 PM
papasmurf
Aug 24 2015, 02:07 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?





A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


I can't actually understand that... unless of course it is cash in hand and therefore untraceable.. ;D
Oh FFS if you actually read the story it would be obvious.

Since you want to be spoon fed, I shall tell you in words of one sound.

The bloke has lots of trash on his rent book now who are on the dole and some of the rent is paid by the state.

He says if he puts them out on their ear and lets ones who come from the eu who do jobs tha pay lots of dosh live there he gets paid on time and in full which os more than he gets from the scum in there now.

so he has told the brits on the dole to eff off out.

Simples
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AndyK
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Pro Veritas
Aug 24 2015, 07:31 PM
Anything that takes properties out of BTL, no matter how rich or mortgaged to the hilt the non-occupier-owner is, and back into the market for people looking for a house and a home, rather than an investment is very much a good thing as far as I am concerned.

All The Best
Doesn't work unless the deposit rate comes down to 5%.

All this does is reduce the available housing stock which increases costs for everyone.
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RJD
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Prudence and Thrift
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Tigger
Aug 24 2015, 07:21 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios? Can anyone identify one? All those I know or have known use Bank financing to the limit of what is made available and for some that is/was their undoing.

I note Mr Smurf lets himself down by inserting the words "filthy" in front of rich. Know where you are coming from don't we.

There was I thinking that you supported the idea of higher rate Taxpayers contributing even more towards the running of the State? Next you will be posting on the iniquities of the Bank Levy.



You didn't read the article did you? Check it out.
I did you obviously did not or did not understand a word of it. Which companies did it refer to?
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RJD
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Prudence and Thrift
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Pro Veritas
Aug 24 2015, 07:31 PM
Anything that takes properties out of BTL, no matter how rich or mortgaged to the hilt the non-occupier-owner is, and back into the market for people looking for a house and a home, rather than an investment is very much a good thing as far as I am concerned.

All The Best
Do you believe that people buy homes for any other reason than an investment? Surely the foolishness of many is to consider such investments the most significant components of their retirement pension plans.
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Tigger
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AndyK
Aug 26 2015, 12:08 PM
Pro Veritas
Aug 24 2015, 07:31 PM
Anything that takes properties out of BTL, no matter how rich or mortgaged to the hilt the non-occupier-owner is, and back into the market for people looking for a house and a home, rather than an investment is very much a good thing as far as I am concerned.

All The Best
Doesn't work unless the deposit rate comes down to 5%.

All this does is reduce the available housing stock which increases costs for everyone.
Really?

Does the house just vapourise if the landlord has problems with the mortgage?

Many of the young lads I work alongside have plenty of problems with dodgy and bent landlords who evict the moment necessary work needs doing on the property, I'm sure you are familiar with clause 21.

Time to regulate these parasites properly.
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RJD
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Prudence and Thrift
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Tigger
Aug 26 2015, 09:42 PM
AndyK
Aug 26 2015, 12:08 PM
Pro Veritas
Aug 24 2015, 07:31 PM
Anything that takes properties out of BTL, no matter how rich or mortgaged to the hilt the non-occupier-owner is, and back into the market for people looking for a house and a home, rather than an investment is very much a good thing as far as I am concerned.

All The Best
Doesn't work unless the deposit rate comes down to 5%.

All this does is reduce the available housing stock which increases costs for everyone.
Really?

Does the house just vapourise if the landlord has problems with the mortgage?

Many of the young lads I work alongside have plenty of problems with dodgy and bent landlords who evict the moment necessary work needs doing on the property, I'm sure you are familiar with clause 21.

Time to regulate these parasites properly.
They are regulated and you do need a Court Order to evict. Surely you do not believe everything you hear in the Tap Room (room for the tapped) down at the Old Red Nag, or do you?

Try evicting a mother with a child and see what the Magistrate has to say.

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Ewill
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marybrown
Aug 24 2015, 02:14 PM
papasmurf
Aug 24 2015, 02:07 PM
RJD
Aug 24 2015, 02:02 PM
Who are these "very wealthy Landlords" who do not use the cheap Mortgages to finance their property portfolios?





A landlord who owns nearly 1,000 properties in Kent says he would rather have eastern European migrants as tenants than people on benefits.


I can't actually understand that... unless of course it is cash in hand and therefore untraceable.. ;D
Maybe he's speaking from experience and has found that East Europeans paying their own rent tend to look after a property and cause less damage than Brits being housed at the taxpayers' expense?
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Tigger
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RJD
Aug 27 2015, 05:17 PM
They are regulated and you do need a Court Order to evict. Surely you do not believe everything you hear in the Tap Room (room for the tapped) down at the Old Red Nag, or do you?

Try evicting a mother with a child and see what the Magistrate has to say.

Once again you offer profound ignorance, and spare me the waffly imprecise cliche ridden drivel that alludes to my apparent lack of education.

Under section 21 of the 1988 Housing Act a landlord can give two months notice for the tenant to quit the property, end of. Sick kiddies or disabilities make not the slightest difference. THE LANDLORD DOES NOT HAVE TO GIVE A REASON.

File under you have no idea of what you are talking about, again!
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