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  • Property Yields

    50% less net profit for established landlords



    My fellow member Jonathan Clarke (JC) mentioned something very important in response to my Citywire thread.

    He said that the old established landlords could make 50% less net profit in the years ahead

    I have to agree with JC and it got me thinking and I started looking at some of my other investments outside of BTL

    In Dec 2015 I had a fund value in my ISA of  £101,000 invested in a range of managed funds. I have just checked the value.

    Today and the fund value is just over £120,000.  It works out that I have made a yield of around 6%.

    But you have to remember the past year has not been good in the Stock Markets worldwide

    In August 2018, the fund Value was £129,000 so I am not glossing up the Figs

    But even with the fall in the market my fund over 3 years has still performed around 6% Tax free

    This 6% is worth around 10% to a 40% Tax Payer without a lot of effort

    This is the very reason I have moved away from leveraged BTL

    For me its just not worth the stress of Taxation and Regulation and every day hassle of BTL

    Unless I see a really super deal in property ... I'M OUT!

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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.

    ``Unless I see a really super deal in property IM OUT``

    Exactly . So completed last week on a 3 bed semi

    PP   210K will spend 12K then worth 250K

    Within 8 weeks a 28K gross gain

    No glossing of the figs - Just lots of glossing required

    I`m still in


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

    If I could see a deal as you have outlined and the yeild was good why not buy

    but you will pay a lot of tax just buying and then when you sell you will pay a boat load more

    I can stick 40k in a pension and it won’t cost me a penny in tax infact the tax man gives me 40% for doing it


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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.


    Yes agreed tax is annoying - but its always there

    If the yield was just an average 5% yielding 300 pcm would  you buy though just for the 28K gain ?

    Or would you reject it because of that 5% yield and buy a 10% yielding 600 pcm different property

    300 pcm difference between the two is 3600 pa

    That takes 7.7 years to catch up what can be done in 8 weeks

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


    Do you not see the dangers of more taxation and regulation

    and of course a rise in intrest rates JC

    I know I favour long term fixed rates which is a good hedge aginst rate rises

    but we are an aunt sally when it comes to taxation and regulation

    and that’s my point it’s shifting sands and you can’t build a house with doggy ground

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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.

    Yes dangers are all around but they   always were there and always will be

    Everything is threatened if it gets too good . Property got too good

    So if pensions and shares are seen to beat houses  the pendulum will swing back

    When the homeless situation becomes worse which it will do - they will ease up on us

    But these things take time

    People need houses before they need pensions and share certificates

    Thats why my council offers me 2.5K up front as an incentive to take their homeless

    No one offers me 2.5K to buy a share certificate


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

    Sounds hard JC but I don’t take the homeless

    but in Newcastle the council pay a grant to update a property that has been void for six months  and you don’t have to home the homeless to get it

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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.

    Its a business decision at the end of the day but if I can do both I will, as it feels good

    Homeless have the government as their solid financial backer guarantor

    Better sometimes that a guy who works for a seemingly solid job but then suddenly gets the push

    Nissan in Sunderland for example


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

    In the past six months I have had more than my share of universal credit issues I have arrears big style

    so where is the govt garantour when I needed them

    still going on and no end in sight JC

    no thanks a big no to UC

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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.


    Agreed UC is a nightmare so APA`s are a must

    Vast majority of mine are still LHA all paid direct to me so much easier to track


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


    LHA is fine until there moved onto UC that’s when the fun starts

    it’s a nightmare

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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.