Buy to let stamp duty surcharge and other related news

[MarillionFan]

I see. The thing I'd love to see is something more transparent, I don't know what this would be called - more like a cooperative or is that entirely different? e.g. the value of your 'shares' would directly be based on the value of the portfolio and the rental income in the bank. If a house is sold, the funds go in the collective 'pot', etc.

Maybe I should launch it as a plan B. Who wants to invest £30m seed money?

It's not new. But in a case like this the whole thing is not very liquid. Hence they get set up were people buy shares and have divvies.

I'm still trying to get my head around these VCT, EIS & SEIS Compared

Venture Capital Trusts (VCT), the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS)

Each of these are tax efficient methods for backing companies, where you can get tax relief. When i read up on it, they're supposed to be for high risk investments, but some clever clogs were creating funds / investments which were really super low risk. ie. Buying commercial property and renting it out.

In this case the growth / divvies are small but the personal tax relief huge, so you make your money there.

Better to get invested that way.

[Martin@AS Financial]

Lenders won't allow you to add SDLT to the loan, not any more anyway. So it's effectively another lump sum that you need to have saved up front, hence why so many BTL investors are up in arms about it (see Martin's £22k example ).

BTW there are ways to buy shares of houses. I can't remember what these companies are called now but you can invest in 'shares' of rent-profitable houses. Not one for me, I might add.

You won't be surprised that I don't agree with your view on property as an investment for the middle classes. Yes, property has risen in price due to cheap printed money but there is a real underlying asset and the income from it.

The government has virtually decimated every single investment that the middle classes can make, and pensions aren't worth (or won't be worth) the pot you'll be left to p1ss in. The stock market is running on fumes, against propped up global intervention.

So how will anyone fund themselves in retirement? You've got to think of something right?

It's pretty bleak isn't especially when you receive emails like this as well from Nat West:

"Savings interest rates in the UK marketplace have been going down for some time now. Because of this we're reducing the interest rates on your variable rate Cash ISA from 1st December 2015.

Based on your balance on 16th October 2015 your variable interest rate will be changing to 0.25% AER/Tax-free p.a.

We hope you'll want to keep your Cash ISA with us but, because we're making a change, you have the option to close your account or move your money elsewhere – if that's what you decide please let us know and we can help."

[d000hg]

Stick it in a 1-2-3 account at 3%

Buy Euros, the rate is great and surely will fall as the UK unravels.

[ChimpMaster]

Stick it in a 1-2-3 account at 3%

Buy Euros, the rate is great and surely will fall as the UK unravels.

Buy the $ and sell the Euro I would have thought, given the way that the 2 economies are diverging.

[MarillionFan]

How to invest in Britain’s booming property market | Daily Mail Online

House funds piece today in Mail.

[PurpleGorilla]

Buy to let stamp duty surcharge and other related news

How to invest in Britainâ€[emoji769]s booming property market | Daily Mail Online

House funds piece today in Mail.

I really wish BTL would just foxtrot oscar.

[Martin@AS Financial]

I really wish BTL would just foxtrot oscar.

The way things are going, you may get your wish.

As of Friday, Coventry Building Society are joining the ever growing list of lenders that are tightening their BTL lending policy.

Up until recently, most lenders required you to put down a 25% deposit when buying a BTL. The rent had to cover the mortgage by 125% at a nominal rate of 5%. On a loan of say £400,000, the rent had to be a minimum of £2083pcm.

Recently we have seen with many lenders that if you put down 25% deposit, the rent now needs to cover the mortgage by 125% at 5.5% - £2291pcm. This is unless you have access to a 35% deposit which only the wealthy will have access to. Those with over 15 properties will also avoid the stamp duty increases so you can see very clearly that BTL ownership is being taken out of the hands of the aspirational middle classes.

[PurpleGorilla]

Good news, but the horse has bolted.

[BrilloPad]

The way things are going, you may get your wish.

As of Friday, Coventry Building Society are joining the ever growing list of lenders that are tightening their BTL lending policy.

Up until recently, most lenders required you to put down a 25% deposit when buying a BTL. The rent had to cover the mortgage by 125% at a nominal rate of 5%. On a loan of say £400,000, the rent had to be a minimum of £2083pcm.

Recently we have seen with many lenders that if you put down 25% deposit, the rent now needs to cover the mortgage by 125% at 5.5% - £2291pcm. This is unless you have access to a 35% deposit which only the wealthy will have access to. Those with over 15 properties will also avoid the stamp duty increases so you can see very clearly that BTL ownership is being taken out of the hands of the aspirational middle classes.

That is not even close to commercial property. 40% down - mortgage rate of 10%.

[MarillionFan]

I've found the same thing. Lenders have removed all of the decent deals.

This is bound to have a knock on effect with falling house prices at the lower end next year.