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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!
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
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
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
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
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
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
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
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
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
LHA is fine until there moved onto UC that’s when the fun starts
it’s a nightmare