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  • Property-a-holics

    Any point venturing into BTL as newbie?



    Hi all,

    I'm was preparing to start growing my portfolio of properties in the Midlands and NW, however, upon seeing and reading what is going on with Section 24, and the new regs, my internal barometer has slung over to the "is there any point(profit) in venturing in to this industry.

    I work a full time job and my intention was to buy 10 properties over the coming years so as to have something to retire on, but it looks as though the government is hell bent on scuppering my plans.

    I'm seeing articles on landlords dumping portfolios and of course this is ringing alarm bells for me.

    So, are they doing it to implement a short term correction, or are have they not realised how much of an impact it's going to have on the industry?

    Thanks in advance.

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    Hi Cos,

    These threads may assist your thinking:

    You would have to be stupid or brave to BTL 

    Is BTL still viable for first time landlord?

    Is BTL dead or am I just late to the party? 

    The landlords disposing of portfolios are those that built them on the old rules and landscape.

    You are coming into it knowing the new rules - the new "normal" if you prefer.

    Therefore you can set your business up accordingly, in terms of tax efficiency.

    I recommend that you speak to a reputable mortgage broker and tax advisor to work out the best way forwards for you.  The PT Brokers Team on 0333 363 6507 are on hand to support the PT community and have access to the whole of the mortgage market.  Our tax partner is Rental Income Tax Advisors or RITA for short who can also assist you.

    I would also recommend that you join a landlord association and Property Tribes members can enjoy a 25% discount off membership.

    Start out understanding you are starting a business, adopt that mind-set, and set it up accordingly, and you can still make BTL work for you.  In fact, you could perceive it that you are at a distinct advantage as you can buy discounted properties off retiring landlords, and set up your property holdings based on the new rules of the BTL game! Smile

    Hope that helps?

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    I am an old landlord and I am learning new tricks

    If you come into this sector you are entering a very political environment

    We have set back every week and we will have more !

    The answer is you you can still be a landlord but you will need deep pockets to make it work

    You need to look at strategy taxation and your customer

    It's not easy but it’s rewarding if you get it right

    Just be ready to pay tax without profit from day one and understand the new rules

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    Learn Change and Adapt ?????


    https://www.propertytribes.com/positive-r...33526.html

    As someone who tried same approach but had limited success. I think the replace my total income was too ambitious for me. But will continue to try.

    My property pension has been affected but there is still time to consider other avenues and it may still come good.

    I plan for worst possible outcome and worked backwards.

    Other reason to buy property. 

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    Coming soon Investorsk8.com

    Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs. 

    Thank you guys for the advice so far. It's great to know that there's help here.

    From what I've read so far of the small to medium BTL market, the sweet spot seems to be the HMOs of 4 tenants across a 2 story property. That way you don't need to spend on licencing etc.

    Or do I still need to do some more reading?

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    HMO is in my opinion is for experienced landlords

    stay with something simple 3 beds house

    learn the ropes see if BTL suits you


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    Learn Change and Adapt ?????


    Well, I already rent out a 3 bed semi, and 1 commercial property with 2 units in it.

    HMO is the platform I would want to get in to be I can't see there being much profit in standard rental anymore.

    I've done some research in to the HMO's and they don't look to difficult to set up. I can only assume that the hassle is in the running of them?

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    Well if you have looked into it and it’s for you  push on

    councils will take your higher yields in fees and you do relise that council tax is being looked at for every bedroom

    I suggest you talk to councils about what they want from you

    best of luck

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    Learn Change and Adapt ?????


    Every Bedroom! :O - Didn't know that.

    Better get on the phone to them. However, I believe students are council tax exempt?

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    Councils are looking at everything to get cash

    room size is also being looked st

    and you also have competition from the big players who want students in purpose built blocks

    personally I would not touch student HMO in 2018

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    Learn Change and Adapt ?????


    You've never invested in student housing though have you DL?

    This is a recent turn of events: https://www.propertytribes.com/pbsa-reports-of-empty-flats-in-plymouth-t-127635608.html

    Student LLs can make their properties as nice as PBSA and do it for a much lower price.

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