Anyone still looking at buy to let?

[unemployed]

Park Royal, four houses and hotel. Mayfair, the same, plus all the utilities and three of the four railway stations on the board. Bankrupted my daughter when she landed on Park Royal, we don't talk about it despite her being 8 at the time....

Do not pass go, do not collect £200...

I'm always the iron BTW....

I know the area well .

North Ealing West Acton or hanger lane

[jamesbrown]

Save your money, property is only going one way

Down

But, this time it's different (TM).

[ChimpMaster]

I'm selling my BTL portfolio - one each year to max the Cap Gains - last one going shortly once i have negotiated a lease extension with the rip-off freeholder.

I've done well out of BTL but I made a decision to cash in the chips (and I've still got 20 years before usual retirement age)

My reasons:

- Tory government (if you can call it that) sees BTL as an area rich for HMRC to plunder
- Cant be ar**d managing tenants any more
- Can never call the top of the market but in Watford where I had most of my flats the markets gone bananas with crappy one bedrooms selling for £275-300k

I do think we've seen a peak of some duration.

Prices around my area of investment (near Heathrow) have already come down around 10% since the 3% SLDT surcharge was introduced. But then again, prices shot up around 15% YTD (Jan to April) and close to 30% in the 12 months prior. I did sell one property to take advantage of that.

The problem you will face is that the funds will sit in your bank a/c earning nothing in interest and will in fact be at risk beyond what the FSA cover, and no doubt you will have a significant amount in total.

And what do you invest it in next? Even now and if worked correctly over the next few years to account for clause 24 taxation, returns on rentals are better than anything else going. I certainly wouldn't go and stick £100k into the stock market, but I would happily put it down as a deposit on the right property.

[silverlight1]

The problem you will face is that the funds will sit in your bank a/c earning nothing in interest and will in fact be at risk beyond what the FSA cover, and no doubt you will have a significant amount in total.

And what do you invest it in next? Even now and if worked correctly over the next few years to account for clause 24 taxation, returns on rentals are better than anything else going. I certainly wouldn't go and stick £100k into the stock market, but I would happily put it down as a deposit on the right property.

I agree to some extent - I've decided to do a big extension on my current residential and this will provide some significant return. Some will go into pension to top what I might need

The rest I might just have it sit in the bank and see if there are any opportunities / if / when market dips.

i never seem to make any money on the stock market and my view is that it's only the brokers with insider knowledge that do...

[b0redom]

600k for Isleworth???

The place stinks. Mogden sewage works can be smelled over the whole place.

Shows what cheap money has done to the world.

200k houses with 600k asking prices

Yep, I don't mind admitting I was gobsmacked when the agent told me. Still it's close to the M3, M4, Heathrow, fast links into London, the hospital and the stadium so it does have some things going for it.

Even if I did sell it, what would I do with the money? There's no way I'd get anything like the income I do from the current rental agreement on any other investment I can think of. For example the money I've had in my stocks and shares ISA tracking the FTSE 100+250, has returned about 2% per year over the last 2 years.

[MattZani]

And what do you invest it in next?

Yourself? Things like taking 6 months off and go traveling, seeing the world, eating/drinking well,...this kind of tulip

That's one of the perks of contracting, is it not?

[ChimpMaster]

Yourself? Things like taking 6 months off and go traveling, seeing the world, eating/drinking well,...this kind of tulip

That's one of the perks of contracting, is it not?

:facepalm

That's the whole point of investing in income-generating assets, so that you then have passive income while you're not working, eventually freeing you up completely from the shackles of 'employment' in its various guises.

Besides, I'm guessing you're still young (and how I envy the youth ) and probably not married with kids, which would make your 6 month travel idea feasible for you. Do it while you can!

And still, hopefully you have time to learn about escaping the rat race after that.

[BrilloPad]

But, this time it's different (TM).

Its only one months figures.....

[ChimpMaster]

I agree to some extent - I've decided to do a big extension on my current residential and this will provide some significant return. Some will go into pension to top what I might need

The rest I might just have it sit in the bank and see if there are any opportunities / if / when market dips.

i never seem to make any money on the stock market and my view is that it's only the brokers with insider knowledge that do...

I did a big extension a few years ago and we have really enjoyed the extra space so it's well worth it. It doesn't generate an income of course so strictly speaking it's not an investment per se. I would advise doing a double-storey and adding a bedroom if you can, because then certainly you'll increase the value of your home far in excess of what you'll spend.

On your other points, again exactly the same for me

Yep, I don't mind admitting I was gobsmacked when the agent told me. Still it's close to the M3, M4, Heathrow, fast links into London, the hospital and the stadium so it does have some things going for it.

Even if I did sell it, what would I do with the money? There's no way I'd get anything like the income I do from the current rental agreement on any other investment I can think of. For example the money I've had in my stocks and shares ISA tracking the FTSE 100+250, has returned about 2% per year over the last 2 years.

Exactly my point above. What would you do with the money? You know west of London - you can still buy a house for £350k (so put down say £90k deposit) and rent it out for £1400 a month. Interest only mortgage of £650/month (based on £260k loan) means investment profit of £750/month. That's a 10% ROCE before extraordinary costs.

Having said that, I have just sold one house because I didn't believe that the recent price rises were sustainable.

[unemployed]

I do think we've seen a peak of some duration.

Prices around my area of investment (near Heathrow) have already come down around 10% since the 3% SLDT surcharge was introduced. But then again, prices shot up around 15% YTD (Jan to April) and close to 30% in the 12 months prior. I did sell one property to take advantage of that.

The problem you will face is that the funds will sit in your bank a/c earning nothing in interest and will in fact be at risk beyond what the FSA cover, and no doubt you will have a significant amount in total.

And what do you invest it in next? Even now and if worked correctly over the next few years to account for clause 24 taxation, returns on rentals are better than anything else going. I certainly wouldn't go and stick £100k into the stock market, but I would happily put it down as a deposit on the right property.

just split it up into 75k chunks

my cash has been earning pittance for years , who cares about investing just shove it in the bank and take it easy.

got bored of chasing money

on the flip side i could buy a btl and still live at home free , every semi i see though is 250k in my eyes and i have trouble getting over that hurdle.
whack up intrest rates to a modest 3% and falls will be at at least 30% overnight london could go down 40-50% and still be higher than 2007 !