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To be honest.
If you want less rentals and more home owners, make CGT 0% on selling a property.
You will see a flood of properties on the market.
I have a few properties I make nothing or next to nothing a year due to mortgage and maintenance that I rather just sell, but don't because of the CGT.
Sometimes you have to suck it up, I am taking the hit and getting out.
Yes i have thought about it, but the profit from the property, can't use to buy another not even close, so doesnt make sense in that sense
I get what you are saying.
What some people do is to use some of the proceeds to top up SIPPs and get the 40% or 20% tax breaks , so you can claw back some of the cgt via pension contributions.
If you're paying CGT it means you still have a profit of some sort. Get out of property and stick the equity in an index fund. Nowadays you'd do better
But your asset is accumulating value?
Thats the reason i have kept hold it for so long.
So you're not making nothing or next to nothing?
I think a deal would help people exit and enter home ownership.
How about sell to your tenant for 0% capital gain. I could offer a decent discount.
Yup
Tenant even wants to buy it, but the CGT from purchase price +refurb cost to sale price will basically break even.
Already claimed tax relief on the renovations in previous tax years.
This was the tories idea. They reduced it and more properties were sold. Liebour are fucking stupid.
If you are disposing of a business then you can claim entrepreneurial relief and only pay 10%
We did it with an air BnB, but check with an accountant.
It would only be a couple from a larger portfolio that i would sell, as the area is high end without the high end rent.
Ah, no dodging it then.
Makes sense really. If the goal of Labour is to get more property into the hands of owner occupiers, why make people less likely to do what you want (sell).
This only works if they tax income from rent to death, and then you're only really going to see "why are they coming after a small guy like me with just 5,10,20 properties. Go after the big guys...."
The problem is if there’s a mass exodus of landlords then them people will never be able to buy because their rents will increase even more due to lack of supply and that’ll only increase the housing issues.
The way to get more property into the hands of people who want to buy their own home is to help landlords to invest in new estates with criteria/amount of homes going to affordable housing and first time buyers. Without private investment there will be no extra house building. So if property is disincentivised as an investment then it’ll have negative effects on the market for owner occupiers.
"The way to get more property into the hands of people who want to buy their own home is to help landlords"
lol
Honestly, this thread is hilarious.
That's the most backwards ass take I've yet seen. Bravo sir.
Please Keep it Civil
There won’t be a mass exodus of landlords due to not changing cap gains tax
Where does the house go if a landlord sells up, if not on the property market as either a house for sale or a rental?
Rentals are lived in more densely.
That’s true renters tend not to have spare rooms and studies etc there is data on this somewhere
Sorry, I don't understand your reply.
If a 2 up 2 down property was leased, the landlord sells - either to another landlord or a homeowner, the property is still there. The previous poster was suggesting that the supply disappears when a landlord sells.
Literally no one has ever suggested that the property disappears, to suggest that is not honest.
Rental properties are lived in more densely, as in, more people, on average, live in rentals than owner occupied. Go and find a data source you personally trust and then find their data on this. The data will back this up as fact, because it is just that, fact. Your made up example of a house being rented or not isn’t big enough thinking, you need to zoom out. You aren’t looking at one house, you are looking at millions.
If a rental becomes an owner occupied data shows us that if this is done, let’s say 100,000 times over the country, less people will live in those 100,000 houses after the sale than before. Therefore, the number of rentals has gone down less than the amount of rental demand. When supply goes down less than demand goes down, prices go up.
The post you are replying to says if rents go up, people will find it harder to buy.
> if not on the property market as either a house for sale or a rental?
The property market is a vague term, you have the ownership market and the rental market. You can move properties from one or the other and it has negative or posative effects in each market.
Whats to be remembered is the actors in each market are not the same actors. Every landlord selling up, does not mean every tenant comes a homeowner.
It will make it easier for the "top few" tenants, but most are just homeless.
Thanks for clarifying. Learning new things every day!
They didn't 'spare' anyone. They just had it explained to them that their idea was fucking stupid and they'd end up actually losing money.
God help us
Fingers crossed my landlord sells the place I'm renting to me
That’s because most of the cabinet are landlords and second home owners
Protecting themselves
It's weird, actions are taken that on the face of things appears like a step in the right direction, but in reality it harms us all.
So property may transfer between landlords and homeowners, but rents will go up, demand for buying property will go up, so higher rental and property prices, further damage to our cost of living.
Get rid of planning laws I want to build a block in my massive long garden.
Honestly so disgusting I have no words. The only way to give homes to the people is to disincentive home ownership as being an investment product. Nothing else will work. On our best day we won't be able to build homes fast enough to meet demand with all our house builders firing on all cylinders. Not without steps being taken to free up already existing homes from the clutches of landbarons and investment corps.
What this also means is a CGT raid, inevitably, on business owners as they are the only piece still on the board given that literally every other class of person has now been exempted. Business owners WORK for their gains, but yeah, let's go ahead and saddle them with the tax burden to fill this 20 bil hole and leave the layabout inheritance class alone! Not even a business owner but it's still true.
There is the flip, that less investment properties equals less private properties to rent and rents rise, we have experienced that and are now paying a very high rent for a pretty average house just because so many landlords have pulled out in the area already, unfortunately the corporate landlords BTL properties don't meet our requirements some are stuck to fight over what little private properties are left. Whilst we do want to buy a house, there will always be situations where people will need to rent for points of their life.
Punish pensioners and not people with second properties or buy to let's, what the fuck happened to the labour party
Means tested benefits isn’t punishing pensioners
The means testing barrier was so ridiculously low, plenty of other way to go about this without massively impacting people this winter. Why not reduce the amount if two claimants live at the same address? Last time I checked heating a place with 2 pensioners costs the same as heating the house for one.
I've said this in other posts, people dont even understand how the state pension works, if I retire next monday and im eligible to claim state pension, I get £3000 a year more than someone that retired in 2011. The 2011 pensioner and me are paying the same prices for EVERYTHING.
"punish"
I feel bad for pensioners that really need it but every pensioner I've met just refers to it as the "holiday fund" so shrug
Plenty that really need it and now won't get it, no time to plan to cover those costs either, all with energy bills rising. Let the land lords and 2 home owners feast, unbelievable . no wonder they polling worse than the Tories.
That's not being pushed though is it.
The eastern leg of HS2 was crapped smdie to costs. It wasn't to "punish" people from Nottingham and Sheffield
Punish is the wring word, it negativity impact people
Plenty in need lost out, paying the highest energy prices in Europe too
The perception of the Labour Party is different from the reality of the Labour Party for years, dont worry their marketing will kill this realisation next election.