It seems in London at least that many 2 bed flats are coming into the market from ex landlords some of which are being snapped up by end users
I have yet to see any landlords in my circle looking to add to their portfolio and most seem to want to keep things flat or sell up
Is anyone here actively adding to their portfolio and what sort of returns or reasons would they do that? 5% money in bank is hard to beat with no tenant headache so intrigued how things end up
Seems to be the beginning of the big reset but who knows
I will personally wait until all these regs are in place, nothing is carved in stone yet. It may be that the regs will suit decent LL, its the dodgy ones that have brought this upon us all, like most things in society we all end up paying for others misdeeds
I am considering buying a 3rd BTL. I have two 2-beds (London and Brighton).
I have them both on repayment mortgages and the float in the account at year end just about covers costs and the tax, no cash profit at all. (ÂŁ13k tax this year compared to half that last year).
BUT, the mortgages are being paid off, in fact i overpay by about ÂŁ600pcm, so these will be my income to allow me to retire at 55 or 60 instead of 68 when my NHS pension comes through.
I think the numbers work for me atm and i have good tenants who are easy to manage.
Certainly better than putting money in saving account. If you know your way around stock and shares, maybe something to try but for, I shall continue to buy as long as I have the deposit to pay. If you have multiple properties and think you are paying too much in taxes, then maybe it’s time to incorporate them.
I love vanilla BTL, I am in the midlands area, it works for me and shall continue on this path
until you need to evict a tenant who is happy to damage the property and stay as long as they like. Then you’ll not only be wishing you had less hassle, but wishing you had more money at the end of the process.
BTL is high risk investment and anyone who tells you otherwise doesn’t understand investing. As a result, half of our investment value is in BTL and we have equal value in cash split across about 30-40 differing kinds of investments to offset the risk of BTL.
Agree very risky. I have 4 properties and currently very good tenants but I’ve had bad ones and the stress is not worth renting out anymore. I’m looking at selling up & getting out. Live in peace! But with capital gains etc not worth selling even! I feel “stuck”. Need a financial advisor!! Anyone have a good one?
You are giving unsolicited financial advice. The truth is investing is more of psychology than science. You do what works for you and would let you sleep comfortably at night. I am sure others would do whatever they are comfortable with.
Chances are anyone who invests in any asset has some level of idea on their risk tolerance level.
I am not attacking you but am sure if you were a financial adviser, you won’t be wasting your time posting on this forum giving advise.
I would recommend you share your experience without telling anyone what to do or what is good for them.
To be fair, I don’t see any fianancial advice here. LL just shared what they do with their money. Not keeping all eggs in basket is always a safer option. Not a financial advice, LOL. But any financial advisor will tell you the same.)) And BTL is getting less and less profitable. And will continue to do so, according to Labour plans. And it IS a high risk investment. Nothing to do with psychology. Everything to do with lack of LL legal protection - which we’re going to have even less soon.
I do wonder if we should be selling. Problem is you pay CGT and more. Plus, realistic inflation is at least 10% a year, judging by the price increase on essentials and commodities. How to offset it and even save some?
You can’t tell categorically tell anyone what to do and what NOT to do. Give a generic response and share your experience if you need to.
For some people , BTL is not their only source of income. They may just be waiting for capital growth with low yield.
For some other people, BTL is their only source of income , maybe + pension or something.
Everyone has a different strategy. Some may need to diversify. Maybe move away from single let to HMO or try flats if they are already doing whole house let. Maybe stock market etc
Everyone appetite for risk is different. If it doesn’t work for A doesn’t mean it won’t work for B. Everyone needs to review their strategy periodically and decide what is working and what isn’t working.
My point is your experience with BTL is not everyone’s experience. You may not enjoy it anymore or see too many issues and unfriendly political polices etc others see it as a way to hedge their funds.
So, pay attention to how you push your opinions and experience.
Anyone who makes financial decisions based on opinions shared on a blog , deserves to loose his or her money
BTW, it’s advice not “advise” and lose not “loose”, and I know you’ll happily take that from me because I am qualified to teach you English.
Stick to the question. Most people think when they are responding to questions , they occupy the high ground to tell people what they should do and what they shouldn’t do.
Go back and read the question the user posted. And review your responses.
My point is share your experiences if you have to. Point people to resources if you can. Let them make up their minds.
Do not give definite answers as if you are an authority.
It’s Sunday. Nearly church time! You should be in church
