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Thread: BTL timebomb

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    First-time buyers need £90,000 salary to pay off Help to Buy loan in five years

    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.....

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    <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.
    "If you didn't do anything that wasn't good for you it would be a very dull life. What are you gonna do? Everything that is pleasant in life is dangerous."

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    Quote Originally Posted by BrilloPad View Post
    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.

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    Surely this is boom for BTL owners since in a few years everyone will have no option but to rent?
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    Quote Originally Posted by d000hg View Post
    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.

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    Quote Originally Posted by AtW View Post
    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.
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    Quote Originally Posted by AtW View Post
    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.

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    Quote Originally Posted by AtW View Post
    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...

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    Quote Originally Posted by AtW View Post
    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?

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    Quote Originally Posted by bobspud View Post
    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.

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