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With such negative comments all the time you will do us all a favour bye .
It’s sad when you make it personal
i have no intention of leaveing tribes because I give an alternative view
I am realistic that’s why I am successful in bussinss
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.
As an experienced landlord I welcome D_L's comments because she gives her own opinions, which are based on a wealth of experience and knowledge in both property and investing, so, for me at least, keep it coming D_L!
As a novice landlord I wouldn't have the knowledge and awareness of the pros and cons of property investment without DLs warts and all comments. Long may they continue.
One of my favourite sayings is that "the truth does not care for anyone's opinion".So while some may think DL's opinion is "negative", if it is reality born out of many years experience, then it's not negative, it's just the truth.I have learned a great deal from DL and she has added such massive knowledge and experience to the PT databanks that, whether you agree with her or not, you should listen to her, test her opinion against your own, and then make up your own mind from there.If you still don't agree with her, then that is your choice and of course entirely up to you, but you would be unwise to dismiss it out of hand for being "negative" imho. Being realistic can never be negative.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
In business, I look at what I have to do to make a net profit and how much effort in need to inject to get the net profit
Why do we invest in property ?
The reason is because we all live in one and understand historically it’s been a good investment
Our mothers and fathers and family all made money so we see it as a good bet ... and for the past thirty years it was a good bet.
The past performance is not going to happen again
We have seen rapid house inflation which will not be repeated in the coming years
Cheap money will not last forever and then we have a govt hell bent on making our lives harder with taxation and regulation
The basic factors of housing shortage ect will hold up prices but it will not be high growth
Today in BTL you need to press for a hard deal and a good yield and be a good property manager
It’s changing fast and we have to think about the effects of taxation more than ever
We inhabit a sector which we are not to be encouraged to be part of.
I don't think I agree with that - it's affordability that primarily drives house prices, if affordability reduces house prices must fall or not sell.
Landlords have been able to afford more because lending has been based on rent levels, owner occupiers borrowing is based on salary and therefore less affordability, landlords withdrawing from the market will result in house price falls.
Falling interest rates has improved affordability - especially for landlords - increasing interest rates will reduce affordability
Quantitative easing resulted in lower interest rates, that will be reversed at some stage and will push up interest rates and reduce affordability
Help to Buy has improved affordability and therefore also pushed up prices, when that is withdrawn it will have a negative affect on the market
However the government may introduce more market stimulants to disprove the above.
Surely one has to consider leverage,
If you are a 40% tax payer and invest in an ISA you invest 60% of your income and earn tax free say 6% (6% on 60% is 3.6% for every £100 you earn). However if you do a buy to let you can have not 60% but 240% working for you. So even it’s a measly 3% yield (excluding capital growth) that’s still 7.2% (240% x 3%) compared to 3.6%. Take off tax and even with s24 one is better off in yields in terms of income. However income analysis is a narrow approach. The question should be about capital values, hassle, risk and diversification.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)