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Jun, 2017

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  1. #11
    Join Date
    Feb 2014
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    1,958

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    Claymore is quite correct , such phrases beggar belief , instead of saying the rent is sufficient to meet the lenders stress calculations or the figures make it a viable proposition , the exclaimed version is" the deal washes its face"

  2. #12
    Join Date
    Feb 2014
    Posts
    1,958

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    To help Valley_Commander , I thought it might be of interest that whilst researching for a portfolio remortgage of 25 properties where the current terms are due to expire within the next 5 years and the borrower is nearing 70 years young , I came across 9 lenders who operate rental stress calculations for 5 Year Fixed Rate loans ranging from 120% @ 5.5% through to a middle calculation of 125% @ 3.49% and topping at 125% @ 4.49: given that there are numerous other lenders whose maximum age is 80 rather the 85 bench mark I set for the research, I am able to confirm that similar stress calculations are available. I do accept however that fixing for 5 Years is not to everyones liking.

  3. #13
    Join Date
    Dec 2014
    Location
    Cardiff
    Posts
    19

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    Quote Originally Posted by Claymore View Post
    I think the only people who have any chance of making money out of flipping are those that don't have any finance costs and if they can increase the property value by extending etc.
    I would agree there!! How can it be that in this day of record low interest rates you cannot make any money? It's seems to me unless you have a huge wedge on your hip, the chances of making money out of property are precluded by tax tax and more tax. Additional 3% SDLT, a tax on a mortgage, Capital gains tax...the list seems endless. How on earth can you pay tax against a monthly rental income even if you've made a loss??

    Big Phil makes a budget proposal where the self employed have to pay extra NIC's and the whole country is up in arms yet George Osborne can decimate the private landlord or small time developers and it's just excepted.


    These really are sad times.

  4. #14
    Join Date
    Feb 2016
    Location
    Northern Ireland
    Posts
    164

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    I totally agree. I know loads of people in London & the likes hate landlords but to be honest my tenants say I'm great (& I choose to believe them) & I buy dumps that most people would walk away from. We had been happy covering our costs & having a bit of contingency over. However, we are going to be making a loss when the tax changes kick in. It seems you are being penalised for working hard, not buying fancy TVs or cars, investing your money & trying to build a pension for old age...bitter...a bit!

  5. #15
    Join Date
    Oct 2015
    Posts
    122

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    hopelesslydevoted,

    this is just the way it is. you took risks by buying BTL and you have to accept them now. taxes are one of the biggest in property and always have been. tbh i dont have any sympathies for you. if you bought and would be making a loss on the tax changes you should never have bought as it shows the rental yield was not enough. a poor pruchase IMO.

  6. #16
    Join Date
    Jan 2011
    Location
    Windowsill Bay
    Posts
    3,367

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    hopelesslydevoted,

    I'm feeling a bit bitter too - I did want to proceed with a few more properties but the pressure the government is putting people under and also the constent fear of "what next" are the gov going to come up with, it's probably time to start thinking about bailing out :-(

  7. #17
    Join Date
    Feb 2014
    Posts
    1,958

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    Claymore,

    Such sentiments are not lost on a number of small investors.

    Anyone interested in buy property let and located in the Welsh Valleys ??

  8. #18
    Join Date
    Sep 2016
    Location
    just over your left shoulder
    Posts
    181

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    Claymore,

    suppose you were able to buy those "few more properties" with cash rather than as BTL. Would you still be considering bailing or would you proceed without reservations?

  9. #19
    Join Date
    Jan 2011
    Location
    Windowsill Bay
    Posts
    3,367

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    Most of my properties have been bought with cash. Yes - I am still considering bailing.

  10. #20
    Join Date
    Feb 2016
    Location
    Northern Ireland
    Posts
    164

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    I was still expanding, so buying low, refurbishing & mostly remortgaging (repayment) to 65% with one at 75% (the loss maker by 2020 but a detached bungalow with garage & large garden bought for 56k). Im now paying down existing debt to around 50k on each property in order to minimise impact & the buying is certainly slowing down as the bargains arent as easy to come by now.

    I dont think I was being risky or particularly silly with mine or the banks money. If I changed to interest only for example I wouldnt be making any losses, or if I sold them I'd be looking at a good profit. I love property, landlording & making money for our familys future. Just harder to do the latter at the minute. If it wasnt for property I'd be doing a burger van or something at the weekend (....but then I'd still need somewhere to invest the dosh...) Claymore, bitter but not beaten!

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