chem1st Posted September 30, 2013 Share Posted September 30, 2013 Enslaved via property... Link to comment Share on other sites More sharing options...
skinz Posted September 30, 2013 Share Posted September 30, 2013 Its time we had a law to stop the greedy people that already own property from outbidding the less well off that don't yet own their own home. If you're rich and earned it why should they not be able to spend it on whatever they want..not their fault that mostly people can't afford to match their bid, is it? Sorry, just went into HH mode.. Link to comment Share on other sites More sharing options...
angos Posted September 30, 2013 Share Posted September 30, 2013 Totally understand why people invest in property. In an environment like we have it's a rational choice for many people but doesn't make it right. It's a sign that something is badly wrong with traditional savings, pensions and investments. It shows that people are hacked off with financial institutions and it shows a lack of trust. I don't think you can blame the financial institutions for low interest rates, it was government policy that caused the low interest rates and subsequent housing bubble. Link to comment Share on other sites More sharing options...
Cyclone Posted September 30, 2013 Share Posted September 30, 2013 Its time we had a law to stop the greedy people that already own property from outbidding the less well off that don't yet own their own home. How exactly would you write such a law? Link to comment Share on other sites More sharing options...
angos Posted September 30, 2013 Share Posted September 30, 2013 If you're rich and earned it why should they not be able to spend it on whatever they want..not their fault that mostly people can't afford to match their bid, is it? Sorry, just went into HH mode.. For the same reason rich people shouldn't be allowed to buy and hoard all the food and water. During the war when food was scarce it was rationed, if it hadn't been prices would have escalated and only the rich would have been able to afford it. ---------- Post added 30-09-2013 at 08:05 ---------- How exactly would you write such a law? Planning would be a start, if you want to buy a property to rent out or use as an holiday home making it a requirement to obtain planning permission for a change of use would give the council the power to stop housing being used as investments for the wealthy. Link to comment Share on other sites More sharing options...
geared Posted September 30, 2013 Share Posted September 30, 2013 The article says they are buying up commercial property, it doesn't mention housing is being bought. That makes much more sense than a hedge fund buying up dilapidated terraced houses in Rotherham. Link to comment Share on other sites More sharing options...
Cyclone Posted September 30, 2013 Share Posted September 30, 2013 Requiring planning to convert the use to letting is an interesting idea. A council could then monitor and control the rental market. You might of course then end up with accusations of restricting the market in order to drive up rents... I'd suggest that BTL is self limiting, in that as more rental housing exists, the rental return is suppressed and the ROI falls and so it becomes less attractive. This only becomes distorted when a housing bubble is driving the capital value ahead of inflation and people basically speculate on that bubble with no real care about the ROI. Link to comment Share on other sites More sharing options...
I1L2T3 Posted September 30, 2013 Author Share Posted September 30, 2013 Requiring planning to convert the use to letting is an interesting idea. A council could then monitor and control the rental market. You might of course then end up with accusations of restricting the market in order to drive up rents... I'd suggest that BTL is self limiting, in that as more rental housing exists, the rental return is suppressed and the ROI falls and so it becomes less attractive. This only becomes distorted when a housing bubble is driving the capital value ahead of inflation and people basically speculate on that bubble with no real care about the ROI. Hmmm. Just had a thought. If you had cash and enough to buy an asset in the expectation of a significant capital gain a year down the line then you would take good care of that asset. Is it possible that people might buy property and never rent it out at all? After all if your primary expectation was capital gain rather than an income flow you would want to keep your asset in prime condition for when the time came to sell it. Obviously a property isn't like an antique or car you can put in storage but a small team of people could keep quite a few empty properties ticking over. Link to comment Share on other sites More sharing options...
Vague_Boy Posted September 30, 2013 Share Posted September 30, 2013 Its time we had a law to stop the greedy people that already own property from outbidding the less well off that don't yet own their own home. Removing the tax breaks enjoyed by Buy to Let landlords [LINK] and making sure that they pay the required tax on the earnings they make might be a start. Link to comment Share on other sites More sharing options...
Cyclone Posted October 1, 2013 Share Posted October 1, 2013 Hmmm. Just had a thought. If you had cash and enough to buy an asset in the expectation of a significant capital gain a year down the line then you would take good care of that asset. Is it possible that people might buy property and never rent it out at all? After all if your primary expectation was capital gain rather than an income flow you would want to keep your asset in prime condition for when the time came to sell it. Obviously a property isn't like an antique or car you can put in storage but a small team of people could keep quite a few empty properties ticking over. I'd suspect that the potential gain from letting it and doing the required maintenance would be sufficient to tempt most investors to actually let it out. Why not take the income when it's available in addition to the capital value accruing. ---------- Post added 01-10-2013 at 09:15 ---------- Removing the tax breaks enjoyed by Buy to Let landlords [LINK] and making sure that they pay the required tax on the earnings they make might be a start. The only one of those that is a 'break' is the extra allowance against capital gains if you previously lived in the let property. The fact that costs and losses are deducted from the income the property makes before tax is assessed is standard for every business in the country (and indeed most of the world). What do you mean about making sure they pay the required tax? If they simply weren't paying then the 'tax breaks' in the article would be irrelevant. HMRC are quite keen on chasing people who don't pay their tax. Link to comment Share on other sites More sharing options...
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