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BrilloPad
22nd April 2016, 11:36
First-time buyers need £90,000 salary to pay off Help to Buy loan in five years (http://www.telegraph.co.uk/personal-banking/mortgages/first-time-buyers-need-90000-salary-to-pay-off-help-to-buy-loan/)

While buyers can get the loan the same way they can get any mortgage, with a loan-to-income test, the huge size of the loan means even those on high salaries will struggle to pay it off during the interest-free period, which lasts for five years after the loan is taken out.

And once the interest-free period is up, the charges amount to thousands every year - and if the property increases in value, so does the government's share.

---------------

So in 2018, the government is going to become a homeowner on an increasing scale? Personal debt will soar?

The government will then have a vested interest in maintaining high house prices? And there will be a lot more wage slaves?

Hopefully AtW will be along shortly to point out the solution to this.....

vetran
22nd April 2016, 11:40
<Diety> know why the help to buy goes above £200k.


They should help those in social housing to buy not youngsters living with 1% ers.

AtW
22nd April 2016, 11:54
Hopefully AtW will be along shortly to point out the solution to this.....

Build more houses?

Do what it takes to get 1 mln new houses made every year - create state owned company to do that if necessary, re-introduce national service with option to either go to Iran spot targets for RAF or do your dues building houses in UK.

d000hg
22nd April 2016, 12:02
Surely this is boom for BTL owners since in a few years everyone will have no option but to rent?

AtW
22nd April 2016, 12:06
Surely this is boom for BTL owners since in a few years everyone will have no option but to rent?

Removal of tax relief is going to affect a lot of landlords, kicking in next year.

d000hg
22nd April 2016, 12:06
Removal of tax relief is going to affect a lot of landlords, kicking in next year.

If their margins are that thin, they aren't doing it right.

sasguru
22nd April 2016, 12:16
Removal of tax relief is going to affect a lot of landlords, kicking in next year.

The government is going about this exactly the wrong way.
Those who have one or two BTL properties for their pensions have an incentive to keep the properties in good condition and develop good relationships with tenants.
These are the people who will be affected and sell up.
The big landlords who own large amounts of properties and run them as a business, will buy them up for cash, get a monopoly and hike up rents.
Tenants will lose out.

What they should have done is beef up rental conditions, even introduce price caps as they do in New York for example, realising that in a world city you need housing for the low paid too.

bobspud
22nd April 2016, 12:20
Build more houses?

Do what it takes to get 1 mln new houses made every year - create state owned company to do that if necessary, re-introduce national service with option to either go to Iran spot targets for RAF or do your dues building houses in UK.

Would you want to live in a house built by someone that very grudgingly got out of bed to build it? I have seen what skilled trades can do when they are ******* idiots let alone one that is conscripted and an unwilling toss pot to boot...

I also think that this 1 million houses thing is a ploy. I am sure that for every kid trying to buy their first house there will be someone who is either moving into a retirement home or more likely a coffin... its just that the sodding places are too expensive for anyone to buy...

The other problem is we do not need 1,000,000 homes built where most of them are nowhere near a job that pays enough to buy it. We need affordable first time property that is price controlled. not £1.5mil flats...

BrilloPad
22nd April 2016, 12:22
re-introduce national service with option to either go to Iran spot targets for RAF or do your dues building houses in UK.

Or do chores for the establishment?

BrilloPad
22nd April 2016, 12:23
I also think that this 1 million houses thing is a ploy. I am sure that for every kid trying to buy their first house there will be someone who is either moving into a retirement home or more likely a coffin... its just that the sodding places are too expensive for anyone to buy...


People are living longer. And there is more immigration. Apparently, more people are getting divorced too. :rolleyes:

sasguru
22nd April 2016, 12:24
I think the rental sector is here to stay, maybe even as the mainstream option.
Will take people a while to get used to it.
There needs to be more legislation to protect both landlords and tenants, so that it becomes a flexible, attractive alternative to buying for young people.

AtW
22nd April 2016, 12:40
Rents will go up.

AtW
22nd April 2016, 12:42
Would you want to live in a house built by someone that very grudgingly got out of bed to build it? I have seen what skilled trades can do when they are ******* idiots let alone one that is conscripted and an unwilling toss pot to boot...

No problems, get highly motivated immigrants then. It's not about solving unemployment, it's about building lots more houses cheaply.


The other problem is we do not need 1,000,000 homes built where most of them are nowhere near a job that pays enough to buy it. We need affordable first time property that is price controlled. not £1.5mil flats...

1 mln houses worth £100k each max - nice income to Govt that will allow to reduce income tax rates.

sasguru
22nd April 2016, 12:47
Rents will go up.

Need rent controls in London like NY, but by enacting policies that will concentrate rental property into the hands of large business, the govt. has achieved precisely the opposite effect.
So, yes, on current policy, rents will go up.

unemployed
22nd April 2016, 12:51
The government is going about this exactly the wrong way.
Those who have one or two BTL properties for their pensions have an incentive to keep the properties in good condition and develop good relationships with tenants.
These are the people who will be affected and sell up.
The big landlords who own large amounts of properties and run them as a business, will buy them up for cash, get a monopoly and hike up rents.
Tenants will lose out.

What they should have done is beef up rental conditions, even introduce price caps as they do in New York for example, realising that in a world city you need housing for the low paid too.

wow i actually agree for once :D

AtW
22nd April 2016, 13:51
Need rent controls in London like NY

You mean by crime? :eek

vetran
22nd April 2016, 14:28
If their margins are that thin, they aren't doing it right.

what if they aren't making 40% profit currently then they deserve it :facepalm:

Its not Dodgy Agent its BTL.

The interest only Mortgage is £1000 and the rent is £1200 if you factor in non payers, empty and refurbishing once every 2-5 years its just breaking even or losing a few hundred quid a year.

Once you get established or if you bought a while ago then you may well be doing ok.

vetran
22nd April 2016, 14:29
wow i actually agree for once :D

indeed who has SAS's logon details?

AtW
22nd April 2016, 14:45
The interest only Mortgage is £1000 and the rent is £1200 if you factor in non payers, empty and refurbishing once every 2-5 years its just breaking even or losing a few hundred quid a year.

What would your mortgage be at normal 6-7% interest?

PurpleGorilla
22nd April 2016, 15:56
Stop foreign investment

Stop uncontrolled immigration

Tax BTL

Move to cashless society and tax the millions of polish plumbers and builders paying zero tax.

AtW
22nd April 2016, 16:00
Stop foreign investment

You mean stop foreigners buying UK gilts? :rolleyes:


Stop uncontrolled immigration

It is controlled.


Tax BTL

Income from BTL already taxed.



Move to cashless society and tax the millions of polish plumbers and builders paying zero tax.

Thanks to high taxes and high cost of living (linked to it) people are already cashless and got very little in their bank accounts either - big debts as well. I don't think it's polish plumbers' fault...

MrMarkyMark
23rd April 2016, 01:29
FTFY


Once you get established or if you bought a while ago, or if you inherited property, then you may well be doing ok.

Thought you were in the game now, d000hg :D

MrMarkyMark
23rd April 2016, 01:33
Stop foreign investment

Stop uncontrolled immigration

Tax BTL

Move to cashless society and tax the millions of polish plumbers and builders paying zero tax.

You're joking, right?
Probably the worst idea, in the world, ever.

fool
23rd April 2016, 10:12
<Diety> know why the help to buy goes above £200k.


They should help those in social housing to buy not youngsters living with 1% ers.

What if those 1%ers arent giving those young folks any money? Dont get me wrong, they usually do, but you're screwing over those who don't.

Also most of these tests are based on income. You can easily earn 1% and be nowhere near 1% of wealth. Its fairer just to deflate the balloon.

AtW
23rd April 2016, 13:43
Its fairer just to deflate the balloon.

You can deflate balloon, but demand will only increase, it will get re inflated very quickly.

High interest rates necessary to deal with it, and building of at least 1 mln new houses every year.

BrilloPad
23rd April 2016, 14:15
You mean stop foreigners buying UK gilts? :rolleyes:


Most gilts are bought by the UK government via QE.

ShandyDrinker
23rd April 2016, 14:19
Stop uncontrolled immigration




It is controlled.


With the best will in the world I think that's stretching it...

While immigration may be happening according to the laws, rules and so on, it is still uncontrolled in the sense that anyone from the EU can come into the UK and there's no way of knowing how many people can come in... hence uncontrolled.

AtW
23rd April 2016, 14:23
Most gilts are bought by the UK government via QE.

Got proof?

AtW
23rd April 2016, 14:24
While immigration may be happening according to the laws, rules and so on, it is still uncontrolled in the sense that anyone from the EU can come into the UK and there's no way of knowing how many people can come in... hence uncontrolled.

It's their legal right to come to UK, freedom of movement in EU.

ShandyDrinker
23rd April 2016, 14:34
It's their legal right to come to UK, freedom of movement in EU.

Agreed, but that doesn't mean it is controlled. In theory there is currently nothing to stop all 500+ million people within the EU upping sticks and moving to the UK hence the UK has no control over if/when/how that could happen.

AtW
23rd April 2016, 14:51
Agreed, but that doesn't mean it is controlled. In theory there is currently nothing to stop all 500+ million people within the EU upping sticks and moving to the UK hence the UK has no control over if/when/how that could happen.

It's not immigration you numpy, it's same as people moving from somewhere in UK to London.

Almost all of those 500 mln of people in EU got enough brains to know that going to UK is pretty stupid - very high cost of living, high taxes, low earnings for most, no point really.

RetSet
23rd April 2016, 14:56
First-time buyers need £90,000 salary to pay off Help to Buy loan in five years (http://www.telegraph.co.uk/personal-banking/mortgages/first-time-buyers-need-90000-salary-to-pay-off-help-to-buy-loan/)

While buyers can get the loan the same way they can get any mortgage, with a loan-to-income test, the huge size of the loan means even those on high salaries will struggle to pay it off during the interest-free period, which lasts for five years after the loan is taken out.

And once the interest-free period is up, the charges amount to thousands every year - and if the property increases in value, so does the government's share.

---------------

So in 2018, the government is going to become a homeowner on an increasing scale? Personal debt will soar?

The government will then have a vested interest in maintaining high house prices? And there will be a lot more wage slaves?

Hopefully AtW will be along shortly to point out the solution to this.....

That's Help to Buy, NOT Buy to Let. FFS, read it before you post it! :tantrum:

PurpleGorilla
23rd April 2016, 15:06
You're joking, right?
Probably the worst idea, in the world, ever.

Feel free to add any of your own ideas.

d000hg
23rd April 2016, 15:10
FTFY



Thought you were in the game now, d000hg :DI expect to sell my inherited properties but regardless, what I think is best is not based purely on what is best for my bottom line. That said I don't think the current changes make a lot of sense, though I do feel the idea everyone and their dog 'should' own a BTL is silly.

ShandyDrinker
23rd April 2016, 15:28
It's not immigration you numpy, it's same as people moving from somewhere in UK to London.

Almost all of those 500 mln of people in EU got enough brains to know that going to UK is pretty stupid - very high cost of living, high taxes, low earnings for most, no point really.

Aha... the resulting to name calling ploy.

Ok, whether immigration or migration from within one part of the EU to another it is still uncontrolled and yes, the same goes for all countries in the EU with freedom of movement of people etc etc.

If the UK was that unattractive, people wouldn't come. I've worked with plenty of well educated people from other EU countries who come to the UK for the opportunities it affords them.

Anyway... this is off topic for BTL so I'm done.

AtW
23rd April 2016, 15:36
If the UK was that unattractive, people wouldn't come.

I reckon English language is the main reason.

vetran
23rd April 2016, 22:48
What would your mortgage be at normal 6-7% interest?

the same as it is now, I fixed it for 5 years.

AtW
23rd April 2016, 22:50
the same as it is now, I fixed it for 5 years.

You dirty spekulant, repent!!! :mad