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  • Property-a-holics

    50% of current landlords say BTL is now toxic



    Half of current landlords would not enter the buy-to-let market for the first time now.

    Rather than invest, they would stay out of the market, citing government intervention, regulatory changes, economic uncertainty and a lack of returns.

    Out of 738 landlords asked for their opinions, 40% said they would still invest in buy-to-let, saying it provides better returns than other types of investment and they believe property can still deliver capital growth.

    Only one in four landlords said they intended to increase rents over the course of the next 12 months, while a majority of landlords believe they are renting out at least one of their properties below market rental value.

    Half (51%) called for the Government to U-turn on policies designed to squeeze private landlords – specifically, the 3% Stamp Duty surcharge on the purchase of buy-to-let properties, and the phasing out of mortgage interest tax relief.

    The landlords were taking part in a poll commissioned by mortgage lender Foundation Home Loans.

    Source article

    Obviously 738 of 2.5 million landlords is a very small survey, so not sure how accurately it reflects landlord sentiment.

    On an anecdotal level, Property Tribes has never been busier and we have new landlords joining every day who are just starting out.  They understand the challenges and are seeking to educate themselves to overcome them, but they still want to invest in property.

    If you are a new landlord starting out, please let us know your thoughts on this topic!

    SEE ALSO  -         Graham Rowan - "BTL in 2019? I'm out!"

    UP NEXT -             State of BTL - No more "Rich Dad, Poor Dad"

    DON'T MISS -        Let's hear your CURRENT BTL success stories!

    NOW WATCH:

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    My own findings are from Agents and Mortgage Brokers is new purchases for BTL have fallen off the cliff

    Brokers I find are busy with Remortgages 

    BTL has a tail wind Bank Rates are Low and folk are looking for a better deal to provide and income or a Pension or a nest egg to pass on

    But the Tail wind can give a false impression A great number of  potential Landlords just see the History of BTL and House Prices and they come to BTL thinking what was achieved in the past 20 years can and will happen again

    A new BTL Landlord can make money but they need a lot of Money in the bank to start with and that is a major difference from 20 years ago

    My own feeling is large Landlords will get larger they should have larger Bank Accounts to fund Deposits and Fees

    This, in my opinion , is the 40% who say they will buy

    Taxation and regulation has effected the Market

    But If you really want something and you're dedicated, the prize of wealth is there for the ones who have a large cash pot now.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Well said DL.  Still plenty of opportunity for those with a large starting cash pot who educate themselves and structure their business in the most efficient manner possible!

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    My findings are the ones who are expanding are the ones who treated BTL is a business from the start

    We will see what I call the "Dinner Party Landlord" stagnate or leave in general.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Common sense as usual from DL. 

    I started as an accidental landlord 16 years ago, and added several properties 11 years ago. The objective was pension not making a living. I was fortunate in my London flat increasing in value, but those up North haven't (gone down!). 

    Because I am approaching retirement, I wanted to reduce my tax liability, and the combination of s.24 and London mortgage and high rental income gave me a big problem. So I've sold my London flat and did OK. But instead of going to a ftb as the government expected, it went to an older couple who had downsized to the country and simply wanted a London pad. 2 much needed beds lost to the prs. 

    So, back to the point about making money. Yes, you do now need a sizeable cash pot to play with, and I currently have that. But I've decided not to invest in more BTL, at least for now. I'm waiting to see what Boris does.

    And if I do buy again, it will be through my Ltd Co, and with a mortgage I can set against tax. Or I may just buy a lovely place by the sea, and make a few quid as a holiday let when we are not there.
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    Exactly what I was going to put - saved me a lot of typing there!

    Great post!
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    I love a dinner party - pass the grilled prawns please! and am still here still doing it...

    DL you are right, you need cash. That doesn't really exclude anyone who could have been a landlord before (except from some rare periods where lending was out of control), you have always needed assets or income to borrow money. If you have income, you can create cash. It's the age old formula:

    Income - Expenditure = Cash or Debt. We get to choose.

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    Im desperate to buy more currently, but must admit ive never looked as far away from usual 3 mile area as there's just nothing worth buying currently, even big national agents are 40% down on stock compared to last year. Its a funny time at the minute.

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    I didnt see the word Toxic in there maybe i missed it ?

    Toxic means poisonous .

    So  40% of the minute  0.04%  LL`s surveyed are still investing in BTL

    So they are deliberately killing themselves it seems .

    I don`t think so . Must be a typo surely

    For Toxic - read - Non Toxic

    Invest today!

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    Jonathan Clarke. http://www.buytoletmk.com


    No mention of "toxic" in the article.  Please forgive the artistic licence used in the title JC.  I was struggling to find a title that fit in the number of characters available!! Smile

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    Ooh perfect reasoning V . I like it

    Fortunately one doesnt have the restraint of characters in the free text reply space

    And as I`ve just renewed my  artistic licence last week l will make an edit .. So here goes

    50% of current landlords say BTL is now intoxicating  :-) 



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    Jonathan Clarke. http://www.buytoletmk.com