Reply to: Buy to Let situation is sad

[SueEllen]

Switzerland is (rightly) picky who it lets in. Nobody goes their and gets free housing, dental, medical, education and income given out free of charge. Why do you think all those immigrants gather at Calais and not the Swiss border?

If you watched any of the recent refugee programs the only ones who want to come here are the thicker ones.

The ones with fluent English, degrees and skills in something useful want to go to another European country.

So I suspect it's not the free housing, healthcare etc that is drawing them but the fact they are told you can get a job in the UK with few skills and the police will not hassle you all the time.

[Fred Bloggs]

Switzerland is (rightly) picky who it lets in. Nobody goes their and gets free housing, dental, medical, education and income given out free of charge. Why do you think all those immigrants gather at Calais and not the Swiss border?

[Einstein Jnr]

Switzerland has a population made up 25% of immigrants. UK is what, 12%?


Correlation between number of immigrants and house prices? Number of immigrants in London is heading to 50% as average house prices have rocketed to over 520K. Compared with the rest of the country which has a much lower immigration density and much lower house prices.

[BrilloPad]

The UK is in a mess because of the banks.

Nothing to do with the morons who run the country then.....

[garnet]

May be not so sad situation. Look into liferent (Scotland only?).

[NotAllThere]

Switzerland, like Japan, does not have a huge immigrant influx.

In particular, it does not have influx of immigrants who are crims.

Switzerland has a population made up 25% of immigrants. UK is what, 12%?
Switzerland has accepted a higher number of refugees as a proportion of the total population than the average across Europe. The UK has accepted considerably fewer.
Switzerland has low crime overall, but a disproportionate number of convictions are of immigrants.

The main reason in the house price difference as quoted in the two currencies is the exchange rate.

The Swiss franc strengthened greatly during the banking crisis as it was seen as a safe haven for investors. Switzerland was not so badly affected by the banking crisis, because, by and large, it does not have a credit economy. E.g. getting a mortgage isn't easy (you need 20% deposit, and interest payments must be less than 1/3 of your income at a notional interest rate of 5%). For BTL, you need 50% deposit.

Nothing to do with immigrants, criminal or otherwise. The UK is in a mess because of the banks.

[northernladuk]

What could possibly go wrong

Have to admit that was exactly my initial reaction as well but don't know enough about it.

[SlipTheJab]

From the article:

Fret not though, because there’s a solution via us and the largest provider of limited company buy-to-lets which allows the property to be owned by a wholly owned subsidiary of your contracting company. This not only allows contractors to benefit from the relief on mortgage interest, but also allows the deposit funds to be transferred in a manner which creates no further tax liability. In a nutshell, it reduces the costs of both funding and running the buy-to-let.

What could possibly go wrong

[NickNick]

A what?

From the article:

Fret not though, because there’s a solution via us and the largest provider of limited company buy-to-lets which allows the property to be owned by a wholly owned subsidiary of your contracting company. This not only allows contractors to benefit from the relief on mortgage interest, but also allows the deposit funds to be transferred in a manner which creates no further tax liability. In a nutshell, it reduces the costs of both funding and running the buy-to-let.

[unixman]

The average Japanese who bought at the peak of the market in 1990 still has a house worth less than what they paid for it.

I was referring to the UK market.

[northernladuk]

A what?

[KentDogWalker]

If anyone here has done a buy to let (via subsidiary company) I would like to talk to you)

[SueEllen]

Switzerland, like Japan, does not have a huge immigrant influx.

In particular, it does not have influx of immigrants who are crims.

25% of Swiss residents are immigrants.

And the fact that Japanese women tend not to want to have children explains why immigrants also don't want to move there.

[KentDogWalker]

Property will always be fine as long as you keep it for long enough - at least 5 to 10 years, say.

I am one of the fools who has been saving for his whole life. Wish I had gone into BTL insted. Not for a quick profit, just long term security.

At the moment, my savings allow me to be on the bench without drawing benefits I am entitled to, doing the gov a favour. Ok ok I still thing saving is good, but strewth.

Yeah sounds good via the subsidiary approach, although I doubt you could transfer funds to the subsidiary to be invested in property as an expense (ie saving corp tax in the parent comany)?

[BrilloPad]

There's never been regular extended fall in house prices in the UK. However, past performance is not an indication of future performance.

In 1996, the average house price was about 500K CHF. Now it's about 400K CHF. See, it's happening already! Meanwhile my house was 450K GBP, and now it's about 800K GPB.

I'd sell and move back, but the UK is cold and wet.

Switzerland, like Japan, does not have a huge immigrant influx.

In particular, it does not have influx of immigrants who are crims.