Buy to Let - Humour Me

[DimPrawn]

looking to the future am considering possibly getting into BTL

I've heard it's the future...especially as many are leaving the market.

Interest rates aren't going to rise in the UK, we've had our Japan moment. Immigration will rise not fall, Brexit or no Brexit. MIMBY's and planning departments will ensure feck all housing stock is built.

I'd say bloody good idea.

[scooterscot]

Last credit crisis in the UK you've got to look back to the 1930's, recognise a pattern? You think interest rates are not going to rise uncontrollably again?

[ChimpMaster]

Consider the expected yield. 5%?

Interest rates are going to be beyond that number a in year or so anyway. You may as well leave your money in the bank. When interest rates move back up the BTL market will slump.

[stonehenge]

Put your money in bitcoin.

[fiisch]

I suppose my thinking is along the lines of further diversifying (i.e.: equities and BTL) and that along with a yield of 5-6%, there is a potential for capital gain in regards to property price, and being able to use leverage to further increase property portfolio. That coupled with the fact that potentially, if the company-to-company loan is a viable option, makes BTL seem an attractive option, particularly for a contractor.

Then again, granted equities need a lot less administration and demands on mine/my wife's time, but as someone fairly new to investing, I suppose it's easier to wrap my head around a tangible bricks and mortar investment rather than scary stocks...!

[Hobosapien]

The benefits of BTL have eroded but if not needing a mortgage it may still make financial sense.

The government has targeted amateur BTLs forcing many to exit the market, especially if over-leveraged. Read up on 'section 24' for the full details. Some have moved their properties into a Ltd but that has CGT and other implications.

New buy-to-let tax: how it works and how to beat it

Restricting finance cost relief for individual landlords - GOV.UK

I'd keep an eye on the state of BTL into next year and see what else the government proposes that may affect such an investment. There's already the additional stamp duty land tax on additional property purchases beyond your main residence.

Also need to work out yields and assess whether property investment will give significantly better returns than say a stock market tracker, when both property and stock markets look to be in 'correction' territory.

[scooterscot]

Consider the expected yield. 5%?

Interest rates are going to be beyond that number a in year or so anyway. You may as well leave your money in the bank. When interest rates move back up the BTL market will slump.

[fiisch]

How are you at bleeding radiators?

I'm absolutely hopeless, but that's what a managing agent is for...

[BR14]

How are you at bleeding radiators?

[fiisch]

Do you like movies about Gladiators?

Never seen it....

[northernladyuk]

Ask your f***ing accountant.

[AtW]

Do you like movies about Gladiators?

[northernladuk]

Stick to IT you melt.

[Old Greg]

I've had an end of year review of our finances, and looking to the future am considering possibly getting into BTL. This is very much hypothetical at the moment, and not something I would be doing in the immediate future. I know the question of BTL has been asked multiple times, and I'm on dodgy ground asking this in the General forum, but here goes....

I already invest via pension / S&S ISA, but looking at other ways to generate passive income for the future. I am aware that BTL market currently is not very appealing for many investors right now, but if there was a notable property market crash and you had spare funds you were willing to "gamble" over a longer term, BTL seems as sensible a gamble as any....

I have tried the Search function and have seen many threads around this, with the general consensus being don't do it/the interest free company to company loan is a bad idea, but I'm struggling to find posts around the why.

Would anyone care to enlighten me?

"You're an idiot" / "ask your f***ing accountant" / "stick to IT you melt" replies gratefully received.

You're an idiot.

[fiisch]

I've had an end of year review of our finances, and looking to the future am considering possibly getting into BTL. This is very much hypothetical at the moment, and not something I would be doing in the immediate future. I know the question of BTL has been asked multiple times, and I'm on dodgy ground asking this in the General forum, but here goes....

I already invest via pension / S&S ISA, but looking at other ways to generate passive income for the future. I am aware that BTL market currently is not very appealing for many investors right now, but if there was a notable property market crash and you had spare funds you were willing to "gamble" over a longer term, BTL seems as sensible a gamble as any....

I have tried the Search function and have seen many threads around this, with the general consensus being don't do it/the interest free company to company loan is a bad idea, but I'm struggling to find posts around the why.

Would anyone care to enlighten me?

"You're an idiot" / "ask your f***ing accountant" / "stick to IT you melt" replies gratefully received.