Buying a second house question

[henry d]

We have had a chat with someone in the business and they also came up with another thing, what if we buy now and house prices drop due to B or whatever? So we are going to wait, thanks for all the advice.

[blackbird]

I think that would be a wise move as god only knows what the next few years might bring with Brexit.

[Mungler]

Indeed, sit tight and be ready to move quickly if an opportunity arises.

Edited March 13, 2019 by Mungler

[Mice!]

3 hours ago, henry d said:

We have had a chat with someone in the business and they also came up with another thing, what if we buy now and house prices drop due to B or whatever? So we are going to wait, thanks for all the advice.

Probably wise given what's going on. When we moved back from Scotland years ago we rented and spent the 6 months looking at houses and sorting things, much less hassle.

[henry d]

We have been looking for 4 months or so, have a few places we like and watch out for suitable properties. Our time line is to be actively seeking a property in about 13 months and looking to move in July 2020 onwards. If we need to we can live at our daughters place, or my sisters for a short while if we need to sell first and buy later, but houses in our local area sell fast as there are 2 new build areas that are really costly nearby for similar sized property

[rimfire4969]

We bought a second place and to be completely honest I had forgotten all the things you have to pay for including the extra Stamp Duty. Ours is a holiday let and as long as all the bills are covered we are very happy. 

[100milesaway]

Put your present home in your wife's name and buy the new house in your name, and then put your wife back onto the deeds when you move in. Everyone is allowed legally to own 1 house this works well if you live in a trusting relationship, but should be OK as both properties are worth the same,..... from Auntie.😉😉

[sle]

6 minutes ago, 100milesaway said:

Put your present home in your wife's name and buy the new house in your name, and then put your wife back onto the deeds when you move in. Everyone is allowed legally to own 1 house this works well if you live in a trusting relationship, but should be OK as both properties are worth the same,..... from Auntie.😉😉

Do they not class that as tax evasion or fraud?

[100milesaway]

😉😉😉

[silver pigeon69]

On 04/03/2019 at 18:03, team tractor said:

My bills are £250 a month just to leave my house empty and that’s a 4 bed . Most council taxes only go 6 months rates reduction if empty .

 

 

80,000 mortgage is £550 roughly a month over 15 years . 

There are exceptions/exemptions. If your doing "renovations" you can extend it, they may want to see the work and the important factor seems to be that you do NOT have a toilet.

11 hours ago, sle said:

Do they not class that as tax evasion or fraud?

Evasion or Avoidance? 

One is legal

 

[henry d]

1 hour ago, silver pigeon69 said:

There are exceptions/exemptions. If your doing "renovations" you can extend it, they may want to see the work and the important factor seems to be that you do NOT have a toilet.

 

That is an interesting point, thanks!

[henry d]

Update

Well it looks like we are going to miss an opportunity. We saw a really nice property that needed little done to it and had a mortgage advisor find a BTL mortgage. We had been poked by the sellers estate agents over the past week and yesterday they said they had another buyer put in an offer.

The process has been hard due to the terms that the seller put on the property but it has been good overall as we can use the things that we have learned to help us when we are ready to leave this house and move in about a years time.

I'm still doing the sums but it doesn't look good for us and although we really liked the place a lot we are sure that we will find something when the time comes.

[Teal]

Wouldn't be the first time an agent tries to take a bid from a wall. Plenty fall through so don't worry too much, and remember there will always be another property.

[henry d]

Absolutely!

I have backed out of the process, it was an online auction, but explained why in an email and said that if things changed they should get in touch. If one were so inclined it would be easy to have a ghost bidder to increase the bids as the sellers don't have to accept it. 

[ph5172]

1 hour ago, henry d said:

Absolutely!

I have backed out of the process, it was an online auction, but explained why in an email and said that if things changed they should get in touch. If one were so inclined it would be easy to have a ghost bidder to increase the bids as the sellers don't have to accept it. 

I looked at a property that was offers over - then went to a ‘modern auction’ basically sealed bids over a set amount with the buyer deciding if it was enough

didnt even bother replying to the phone calls. 

[Mungler]

I could tell a few stories about auctions and sealed bid processes; the summary is rarely straightforward....

[rimfire4969]

I have bought land at auction not a house, to be honest one of the most nervous heart pumping moments of my life. 

If you go the auction route check, double check and get someone professional to check the buyers pack.

[henry d]

4 hours ago, Mungler said:

I could tell a few stories about auctions and sealed bid processes; the summary is rarely straightforward....

Fortunately in this process it was open to anyone wishing to bid, after registering, as it is online so we knew what the other bid was.

3 hours ago, rimfire4969 said:

I have bought land at auction not a house, to be honest one of the most nervous heart pumping moments of my life. 

If you go the auction route check, double check and get someone professional to check the buyers pack.

Very true, we were given the legal pack and we would have had a full survey done and the lenders would do a survey too.

[Vince Green]

On ‎04‎/‎03‎/‎2019 at 21:01, Lloyd90 said:

Sadly he will now have to pay tax on the “income” before any mortgage interest taken out ... makes it hardly worth it for lots of people these days. 

Yes there are literally thousands of previously rented out properties pouring onto the market at the moment as landlords try to escape the new tax rules. Its caused the market to slow down considerably and driven down prices as well. When prices are going down nobody buys because the are anticipating another drop.

A lot of estate agents and letting agents won't survive the fallout because it will take years before the market picks up again

Edited May 30, 2019 by Vince Green

[Lloyd90]

11 minutes ago, Vince Green said:

Yes there are literally thousands of previously rented out properties pouring onto the market at the moment as landlords try to escape the new tax rules. Its caused the market to slow down considerably and driven down prices as well. When prices are going down nobody buys because the are anticipating another drop.

A lot of estate agents and letting agents won't survive the fallout because it will take years before the market picks up again

 

Yes and Council’s are trying out already that they are already noticing rises in homelessness. 

People who previously rented having difficulty finding new places, supply is drying up. 

 

Its hardly a shocker. They’ve made it a painful environment for private landlords, now they’re all leaving the councils have no housing stock for them. 

 

Funny though that the new rules don’t apply to the big companies, housing associations etc, who are the same thug on a bigger scale. 

[Vince Green]

2 hours ago, Lloyd90 said:

 

Yes and Council’s are trying out already that they are already noticing rises in homelessness. 

People who previously rented having difficulty finding new places, supply is drying up. 

 

Its hardly a shocker. They’ve made it a painful environment for private landlords, now they’re all leaving the councils have no housing stock for them. 

 

Funny though that the new rules don’t apply to the big companies, housing associations etc, who are the same thug on a bigger scale. 

The landlords that remain can pick and chose their tenants so any tenant with a bit of bad history is never going to have a chance of renting anywhere. Unless they go over to 'the dark side' and rent from the slum landlords, cash in hand, no paperwork no safety checks etc.

Basically we have gone back 100 years. If Corbyn gets in and carries out his pledge to make it impossible for landlords to evict (bad) tenants, no landlord is ever going to take the risk.   

Edited May 30, 2019 by Vince Green

[Lloyd90]

5 hours ago, Vince Green said:

The landlords that remain can pick and chose their tenants so any tenant with a bit of bad history is never going to have a chance of renting anywhere. Unless they go over to 'the dark side' and rent from the slum landlords, cash in hand, no paperwork no safety checks etc.

Basically we have gone back 100 years. If Corbyn gets in and carries out his pledge to make it impossible for landlords to evict (bad) tenants, no landlord is ever going to take the risk.   

Indeed. 

Shelter however are still blaming private landlords for homelessness, and council housing departments are still giving out the advice to tenants not to leave a property even if unable to pay the rent. They tell them the landlord has to evict them or they don’t qualify for emergency housing. 

I saw one bloke write about having to evict a tenant, 9 months behind on the rent. He said the council phoned up saying they would do anything to avoid the eviction going ahead just let him know what was needed. 

He said to them “no problem, just pay off the 9 months of missing rent, and ensure the housing money is paid direct to me in future, not the tenant”. 

Apparently they said “oh we can’t do that!” And that was the end of that convo😣. 

[Sciurus]

Am I alone in thinking that sometimes Shelter does more harm than good?

By demonising landlords who’s houses have been trashed and are owed thousands in unpaid rent and supporting bad the tenants, who did the damage in court. Why are Shelter (& councils) surprised that landlords refuse to take on such tenants again?

In my view, Shelter should provide accommodation themselves or at least guarantee the rent and deposit for homeless people.

[Yellow Bear]

11 minutes ago, Sciurus said:

Am I alone in thinking that sometimes Shelter does more harm than good?

By demonising landlords who’s houses have been trashed and are owed thousands in unpaid rent and supporting bad the tenants, who did the damage in court. Why are Shelter (& councils) surprised that landlords refuse to take on such tenants again?

In my view, Shelter should provide accommodation themselves or at least guarantee the rent and deposit for homeless people.

Quite easy   "Socialism is great until you run out of other people's money to spend"

[henry d]

Thanks for (most of) the replies, can we get back on topic please?