BTL in 2011 - worth the hassle?

[BrilloPad]

..a share can go to 0, but the Dow Jones or FTSE has never gone to 0.

Thats beause as soon as a share likes ropey it gets replaced.

Soon the fFTSE will be full of undertakers and supermarkets. And Indian restaurants where they guarantee clean spoons.....

[bobhope]

Property values can fall, but share prices can and do fall to zero. The downside in property is limited; you can of course limit the downside in shares but that costs and so the return is not so good.

Ho ho ho. You've obviously never looked at property in Detroit then.

[BlasterBates]

Thats beause as soon as a share likes ropey it gets replaced.

Soon the fFTSE will be full of undertakers and supermarkets. And Indian restaurants where they guarantee clean spoons.....

probably
...yeah what happened to ICI, and the rest of 'em

[SuperZ]

just keep going up the property ladder buying bigger houses.
You get the enjoyment of a big house but then when you retire you down size to a nice bungalow.

A problem with that is you`re throwing money away each time you climb the ladder (estate agent costs, stamp duty). Buy a big house early on that should last a lifetime and handle future family expansion. That comes with additional risks (high mortgage repayments when young), but I`d rather take that risk than throw 5-10% of the property value away each time the ladder is climbed another step.

I`ve bought a few smallish properties, moved on from each but kept each previous property that have formed my BTL portfolio. I don`t want to sell any

Personally I prefer other forms of investment but property should be part of a balanced investment portfolio.

[MrNoMotivation]

A problem with that is you`re throwing money away each time you climb the ladder (estate agent costs, stamp duty). Buy a big house early on that should last a lifetime and handle future family expansion. That comes with additional risks (high mortgage repayments when young), but I`d rather take that risk than throw 5-10% of the property value away each time the ladder is climbed another step.

I`ve bought a few smallish properties, moved on from each but kept each previous property that have formed my BTL portfolio. I don`t want to sell any

Personally I prefer other forms of investment but property should be part of a balanced investment portfolio.

I agree. I've gone from a 2 bed flat to a 4 bed semi. Next move will be a 4 bed detached with extension potential ie. a 5th bedroom with ensuite (loft conversion). After that it's the bungalow.

P.S I can't be bothered with holidays home or BTLs. Too much hassle with both and a holiday home ties you down to 1 place. Hotel or rent a cottage - I like to do as less as possible when I go on holiday.

[GreenerGrass]

It's the leverage which really makes it for property though.

I know you can leverage shares but that is really risky whereas because property is naturally more long term and you're locked in the leverage isn't so bad if everything starts going wrong.

This is the crucial thing, leverage. Also its all very well socking £1000 a month into a SIPP when you are in a contract, but the moment you are out of one then you can no longer contribute. Most projections are unrealistic if based on you sticking in £1000 every month until retirement, so you have no idea what pot you will end up with even if you could predict the average % growth.

Meanwhile even if out of work your tenants would still be paying your BTL mortgage for you, well, two thirds of them....

[Lockhouse]

The thing about BTL is after 20 years someone has effectively bought you a house and all you've had to do is put up a deposit and experience a bit of hassle. No brainer IMHO.