Izzie Aslam
New Member
Hello Investors
Quick blog to wrap up the festive season. I will try to keep this short and simple.
Everyday we are hearing various information regarding potential interest rate increases next year. house prices increasing at a rapid speed, supply not meeting demand, stamp duty increases etc.
Well this is my view its simple interest rates have been low since march 2009 so only one way to go is up so who are the winners and losers?
America had increased its rates first time in a decade this doesn’t mean we will or should but what it does signal that a change is about to happen in the next 12/18 months in the UK. So at the same time the government is trying to increase its powers or at least hand down its powers to make BTL less profitable as the years go on but I really see this like a game of chess it checkmate really.
If buy to let slows down there could be serious consequences as there will be no buyers so if you have nothing to buy you have nothing to rent out, so the UK lacks housing by a considerable margin, so whatever targets the government has set to build more houses every year its not enough as population is increasing faster than the government is making more houses.
Increasing stamp duty for buy to let will only make landlords increase their rent and charge additional fees e.g parking permit. But the whole point the buy to let is booming is because first time buyers (FTB) cannot save and buy, as wages are stagnated, unemployment levels are still quite high so its taking longer to save and buy so every time you are ready to buy the house prices are going up so you have to save more so what’s really happening is every time you are getting close to having the money to buy the market is moving much faster than people are saving.
So buy to let landlords who are experienced will find other loop holes and operate more as a company rather than building an individual portfolio what this also means is making buy to let more stringent its not helping or even reflecting to help first time buyers the government has its own agenda here.
What really needs to be done is stamp duty for first time buyers need to be removed completely, also deposits needs to be relaxed and interest rates needs to fit for purpose according to each individually borrowing circumstances
please share your thoughts ?
Quick blog to wrap up the festive season. I will try to keep this short and simple.
Everyday we are hearing various information regarding potential interest rate increases next year. house prices increasing at a rapid speed, supply not meeting demand, stamp duty increases etc.
Well this is my view its simple interest rates have been low since march 2009 so only one way to go is up so who are the winners and losers?
America had increased its rates first time in a decade this doesn’t mean we will or should but what it does signal that a change is about to happen in the next 12/18 months in the UK. So at the same time the government is trying to increase its powers or at least hand down its powers to make BTL less profitable as the years go on but I really see this like a game of chess it checkmate really.
If buy to let slows down there could be serious consequences as there will be no buyers so if you have nothing to buy you have nothing to rent out, so the UK lacks housing by a considerable margin, so whatever targets the government has set to build more houses every year its not enough as population is increasing faster than the government is making more houses.
Increasing stamp duty for buy to let will only make landlords increase their rent and charge additional fees e.g parking permit. But the whole point the buy to let is booming is because first time buyers (FTB) cannot save and buy, as wages are stagnated, unemployment levels are still quite high so its taking longer to save and buy so every time you are ready to buy the house prices are going up so you have to save more so what’s really happening is every time you are getting close to having the money to buy the market is moving much faster than people are saving.
So buy to let landlords who are experienced will find other loop holes and operate more as a company rather than building an individual portfolio what this also means is making buy to let more stringent its not helping or even reflecting to help first time buyers the government has its own agenda here.
What really needs to be done is stamp duty for first time buyers need to be removed completely, also deposits needs to be relaxed and interest rates needs to fit for purpose according to each individually borrowing circumstances
please share your thoughts ?
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