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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
astitchinwine · 30/03/2016 13:18

How exactly are you going to live in all your properties? You're going to commit fraud aren't you?

Tell you what - young people earning an honest wage and renting property honestly and independently without financial support from mummy and daddy should be applauded.

Fed up of scheming idiots like you. No sympathy whatsoever. I hope you sell your property and it goes to someone who has a clue. And I hope someone reports you for fraud.

BarbarianMum · 30/03/2016 13:19
feellikeahugefailure · 30/03/2016 13:19

This is clearly a reverse.

However I notice a few posters with the "houses will never fall in value" matra and "you are selfish for wanting an affordable house" are btl people. Quelle surprise.

amicissimma · 30/03/2016 13:20

This reply has been deleted

Message withdrawn at poster's request.

ZiggyPantaloons · 30/03/2016 13:20

Did you buy the property recently? Without checking up on the planned tax changes? You've made a business decision and you need to consider it as a business. It really does sound as if you thought it was an easy and safe way to secure money, but if you still had a mortgage on your own property and you're not well off you should have prioritised that debt first. I think you've been ill advised. Or not sought any advice ...

MaidOfStars · 30/03/2016 13:20

What if your children don't want to live in the same city in which they were born? In my circle of friends, I know very few who live in their home city.

If they're sensible, they'll cement a good earning potential then ship up north.

Buckinbronco · 30/03/2016 13:21

Guilty dilemma what government subsidy? That's not what shared ownership is.

Shame you didn't get 100% mortgage, you could've made a shit load more money in such a high value area. I bought 3 flats in London and made a fortune.

wasonthelist · 30/03/2016 13:22

Well the government would love to see the plebs (us) rowing with each other - ideal for them. As for "first world problems" - correct, so what?

MaidOfStars · 30/03/2016 13:22

And as for the original moan, I could couldn't care less about a landlord with more than one rental property moaning about having to pay more money to the government. The BTL market needs reining in. The easiest way to do that is to make it financially unattractive. The people that hits the most are those at the margins i.e. you.

Original poster
Guiltydilemma · 30/03/2016 13:22

I wint be living in them all at the same time! Just for a year in any one as that will entitle me to be capital gains tax free if I sell within 3 years. I ace done my homework despite what you may think!Shock

OP posts:
LaurieFairyCake · 30/03/2016 13:22

Right, this is why you have no sympathy from me and why all your extra properties should be taxed til you can't keep them.

Your children are not better or more worthwhile or will work harder than my children so why should you increase the inequality between your children and my children by using your inherited wealth to give them a massive advantage ? So big an advantage that the gap between rich and poor is the greatest it ever has been in any western country at great detriment to the fabric and cohesion of society

You're the problem - you just don't realise you are.

Bearbehind · 30/03/2016 13:23

5k will provide you with a deposit for a buy to let in South Yorkshire. Not everyone lives in the SE.

But the OP does so what relevance is what you can buy in the north? Hmm

austounding · 30/03/2016 13:23

YABVU. BTL investments are just that - investments. They come with risks. You are not entitled to an easy ride because you don't take benefits and want to provide for your children....

You are very fortunate to have received that inheritance and bought multiple properties. Your friend is even more fortunate to have mortgage free properties. It's not particularly pleasant of you to compare yourself to her and complain that she is getting an easier time than you. I'm sure someone who has no properties and no inheritance could say the same of you.

MaidOfStars · 30/03/2016 13:23

One has gone up £70k in the last year!!

Do you have any idea how this sounds to a lot of people here?

Buckinbronco · 30/03/2016 13:25

Guiltydilemma it doesn't work like that. HMRC dont have a stringent list of do's and donts you adhere to to get away with tax.

They are perfectly entitled to identify your moving every year as capital gains tax avoidance and charge you it anyway.

Even so, you'll likely find that capital gains tax rules will change a huge amount before you die but you're not very good at planning for tax changes are you?

Original poster
Guiltydilemma · 30/03/2016 13:25

Mades of stars I'd be happy for them to move somewhere cheaper. They can always sell up and invest elsewhere.
No bank would let you have three 100% mortgages at the same time so you are obviously talking crap buck!!

OP posts:
Buckinbronco · 30/03/2016 13:28

I didn't say they were at the same time did I?

MaidOfStars · 30/03/2016 13:28

So if they move somewhere cheaper, your two bed flat is no longer nine times a teacher's salary. So all this handwringing "won't someone think of my children" is bollocks.

Original poster
Guiltydilemma · 30/03/2016 13:28

I didn't mean to brag as its really not my style but felt the need to defend myself when I was getting slagged all the time for "my business decisions".
Buck the rules may change but there are usually loop holes and I will try my best to did them. Gift money/property to kids and out live the 7 year rule maybe??

OP posts:
RaskolnikovsGarret · 30/03/2016 13:31

Lots of people don't have BTLs for their children. You are very fortunate.

Buckinbronco · 30/03/2016 13:31

loopholes are easily exploited by experts because they are smarter than HMRC. You are not an expert and it's unlikely you can afford to pay one.

londonrach · 30/03/2016 13:32

I dont think moving between your btl would stop the tax op as its one of things they look at closely and if they feel you doing it to avoid tax might fine and tax you. You need to talk to a tax advisor. If i ever had spare money dh and i would never invest in property as its a horrible way of making money on other people. However we seen it from the other side as someone who rented for 14 years in a rising market.

MaidOfStars · 30/03/2016 13:32

I'm a nice landlady that would feel guilty having to kick out a couple of single mums and their children from my properties
My irony meter has exploded.

You don't feel any guilt about being part of a machine that has priced them out of the market in the first place?

EssentialHummus · 30/03/2016 13:33

Just for a year in any one as that will entitle me to be capital gains tax free if I sell within 3 years.

If you're doing it for the sole purpose of avoiding CGT, it's fraud, OP. I'm sure you've found in your research that HMRC checks this kind of thing, especially when it's one move after another after another.

I'm a LL (I posted above re your costs), and I hate the (sometimes mindless) demonisation of LLs. But from what I can gather, you jumped in with both feet and bought something fairly expensive, so margins are tight, and you're now going to get hit harder than your friend or other LLs with more equity and lower costs. And you're now talking about getting out of paying CGT. I just think you made a poor decision in either your choice of BTL or buying one to begin with in your circumstances, which has made you more exposed than others to what the govt. is doing. And yes, saying "I'm a landlord" on MN is like a red rag to a bull. I don't think what the govt. is doing is going to change things in any meaningful way, but you (and me, and others, who knows what the future holds?) may be collateral.

nanetterose · 30/03/2016 13:34

I have no idea why you posted.

Really.

It reminds me of someone complaining because they ate they wrong thing for supper last night...that they chose!

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