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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Wrong landlords getting targeted!

161 replies

Guiltydilemma · 30/03/2016 11:20

I know as a landlord I'm unlikely to get much sympathy but feel that myself and my husband are in that bracket that always end up giving to the economy but never getting anything out of it and the the new tax rules for landlords are just the icing on the cake!
We both work and earn just enough not to be eligible for any tax credits and live in a very expensive city which is where we grew up. Average house price for 2 bed flat is about £300k!
We inherited a little money and decided to invest in property as this is the only way I can foresee us being able to help our kids on the ladder, help them if they want to go to university etc. without our help to live in the area they've grown up it will be impossible. we don't earn much and don't get any help from the government apart from child benefit despite our small flat costing 9 times what our combined salary is. We have high mortgages on our rental properties and residential home and now the government is going to screw us over taxing us to the hilt on these! On the other hand my friend who has several buy to let properties mortgage free is going to be unaffected by the new tax rules! How is that fair!!! For this that aren't aware of the way the new rules are going to work the government are going to decrease over the next few years the amount of mortgage interest you can offset as an expense! Grrrr

OP posts:

expatinscotland · 30/03/2016 12:53

First World problems . . .

BishopBrennansArse · 30/03/2016 12:57

People making a life essential (housing) profitable and an 'investment' is why the cost of living is so high and where it all went wrong.

If this means less BTL and in return lower house prices and lower rents then I welcome it.

Buckinbronco · 30/03/2016 12:57

Personally OP I have a real problem with people like you being landlords.

It's not personal to you but you shouldn't be the people answering the housing crisis with second homes you can barely afford. I imagine the government are trying to tax you out of business to make way for more corporate landlords.

It's no secret this government want to push homeownership and they best way to do that is by ie... Rental provided by housing associations who can use the rent to build more properties to sell. And then sell their rental properties under right to buy. They don't want people living in rentals like the OPs.

astitchinwine · 30/03/2016 12:57

So sell them op.

The reason your kids won't be able to afford homes is partly because of people like you!

If your mortgages are high, you're only earning just enough to get tax credits (!) then you probably shouldn't be a landlord

NewLife4Me · 30/03/2016 12:58

I think if you have this sort of money you should be paying and I'm a LL who invested an inheritance too.
It's mortgage free and very small and cheap, but looking after my money for now.
Have just accepted an offer and hope to buy another one with extra bedroom as 3 beds in demand in our area.
No, i won't gain much from it either as any profit will pay mortgage on our other property. It's my choice though and it's the risk you take, anything can change.
I'm hoping as mortgage free property I can find somebody who is struggling to find somebody to accept hb.

Original poster

Guiltydilemma · 30/03/2016 12:59

Ok Everyone!! I'm very fortunate and should get taxed loads and will from now on just think stuff the kids!! Fingers crossed for them I snuff it young like my inlaws and then they'll hopefully be able to share our residential property! Fingers crossed they don't want kids of their own!!

OP posts:

Original poster

Guiltydilemma · 30/03/2016 13:02

Astitchinwine- please read thread properly before commenting. We want too much to get tax credits! :-)

OP posts:

Original poster

Guiltydilemma · 30/03/2016 13:02

Sorry earn too much to get tax credits!

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Buckinbronco · 30/03/2016 13:02

Why can't your children just buy their own houses? Like you did? Not sure why you're condemning them to a life of poor wages and assuming that nothing will change in the next 20 years

astitchinwine · 30/03/2016 13:04

You said you earn 'just enough' not to get tax credits. 'Just enough' isn't nearly enough to be a landlord IMO

I know a lot of people on high incomes who wouldn't be landlords

Owllady · 30/03/2016 13:05

If they have kids of their own, maybe they could claim tax credits and rent one of your properties with the help of housing benefit?

astitchinwine · 30/03/2016 13:07

Hahahaha Owllady

Yes that'll do it - get regular tax payers who also can't afford to buy to subsidise those earning less to rent off the BTLers who don't want to pay the tax needed for the housing benefit needed to rent their investments

That's the whole problem summed up

Original poster

Guiltydilemma · 30/03/2016 13:07

The average house price for a 2 bed flat is £300k- 9 times a teachers salary! Fingers crossed they're a brain surgeon Buckinbronco!
Is it a bit of gamble to assume things will change in 20 years rather than trying to budget to help them??

OP posts:

fredfredgeorgejnrsnr · 30/03/2016 13:07

You made a poor business decision, failing to anticipate the risks, or plowing on regardless. You need to acknowledge it was a poor business decision, and that it was your mistake.

Look back at your business plan, look how this change in tax relief, is actually much less of an impact on your business investment than other more likely activities - and if you can't find your business plan, realise that this business was not for you, and be glad you've not lost more of your children's inheritance.

53rdAndBird · 30/03/2016 13:07

Nobody's saying "stuff the kids". But, come on, you have to see that the next generation who'll struggle to buy isn't just your kids - it also includes the kids of those of us who can't afford to own several houses as BTLs, and would quite like it if BTL as an investment strategy wasn't hugely inflating the housing market.

Theodolia · 30/03/2016 13:08

God, BTL landlords are the most whiney people around, aren't they!

Original poster

Guiltydilemma · 30/03/2016 13:09

Ole lady it is a great idea however tenants and housing benefit claimants shouldn't be related.

OP posts:

Buckinbronco · 30/03/2016 13:11

They'll have to move elsewhere then won't they? I have just bought a house for £300k and I am not a brain surgeon. It's perfectly do able on a decent wage. We all got on the property ladder with 100% mortgages. I'm sure at some point in the next 10 years the banking industry will think up a way to lend more Money to people to buy houses. They could look at shared ownership or any number of help to buy schemes. Better than relying on mummy surely?

Original poster

Guiltydilemma · 30/03/2016 13:13

Hah I knew I was going to get loads of sympathy when I started this thread. Business is still viable despite tax increase but as my original post asked are the government targeting wrong people?? Ps I plan to live in all my properties to avoid capital gains. One has gone up £70k in the last year!! Feck me thank god I bought it or my kids would have completely missed the boat xx

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whattheseithakasmean · 30/03/2016 13:14

You inherited 'a little' money. Enough money to invest in BTLs doesn't sound like my version of a 'little' inheritance - but then, I expect to inherit fuck all.

You came into unearned money and now have the cheek to complain about being taxed on your attempt to make more money out of your windfall? Yeah, lots of sympathy, playing the world's tiniest violin.

stayathomegardener · 30/03/2016 13:16

Buy to letters get shafted by unexpected goverment tax changes it is a risk they take.
Renters get shafted by unexpected rent increases or evictions...

Swings and roundabouts but I know which option I would choose.
BTL landlady here.

NewLife4Me · 30/03/2016 13:16

Guilty, why don't you sell one of your properties and pay off a mortgage, i don't understand.
We all want to help our children, and i expect others could get hefty mortgages for other properties but they don't as you obviously have to earn enough to pay for them.
If your flat is costing you so much sell the properties and pay for your flat.
Then from the saved mortgage invest in property in a cheaper area.

Buckinbronco · 30/03/2016 13:17

How can you live in all your properties? You don't know so much about tax do you?

People are saying the government targetted exactly the right people, to discourage unprofessional and cash poor landlords providing housing to potentially vulnerable people.

BumbleNova · 30/03/2016 13:18

No OP - we are all agreeing that the government ARE targeting the right people.

I'm so glad you are also planning on avoiding capital gains tax, of course, why pay your fair share?

You seem to be completely willfully ignoring that there are other very effective ways to save for your kids without having BTLS.

Original poster

Guiltydilemma · 30/03/2016 13:18

So buckinbronco they are best to expect subsidy from the government rather than a helping hand from parents that's good for the economy!
I didn't have a 100% mortgage even before inheritance as I had the brains to know I'd get a better interest rate, would pay a mortgage indemnity fee and be less inclined to suffer negative equity if I did. To think I've had my investment sense questioned!

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