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  • Entrepreneurs

    Discussion on Citywire - Shares vs. BTL

    This question has been posted on Citywire:

    I have c£300k to invest and I could buy a house/s where I live and rent for c12k per year after charges - c4% return. It's not without hassle, not to mention any rent defaults etc.

    As an alternative I have been mulling building a share portfolio to take income from, made up of Vodafone, Std Life, BP etc. These at current yields would produce c7% return.

    The house - would appreciate in value (over time) and is a 'safe' investment. Shares on the other hand are more volatile and I cold loose money if I sold when the shares were lower then I paid or these companies went bust (unlikely).

    The income is important as is capital preservation. I can't get any decent interest from banks etc.

    What would be the opinions of this forum be and would there be any alternative strategies that should be considered.

    Thanks 

    https://moneyforums.citywire.co.uk/yaf_p...hares.aspx

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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.

    Interesting thread, I wonder how many people on this forum who found themselves tomorrow for example with a £300k pot to invest, what would they do?

    Personally, I wouldn't be looking to invest further into BTL at this stage (43 years old with 9 properties and a modest pension pot £125k) I would be looking to maximise pension contributions, maximise ISA allowances over the next 5 years and hold a £50k cash buffer in NS & I Bonds.

    Have posted reply #15 from the thread 'Nationwides UK house prices 1975 - 2018' Nationwide Building Society UK house prices adjusted for Inflation 1975 - 2018.

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    Since 2015 I haven’t purchased a property ithis has been the longest period  that I have not leveraged and purchased more properties

    my reason is taxation

    s24 is a problem and stamp duty too

    o am not going to bust a gutt to pay 50% tax for the privilege

    I now favour pension and ISA over BTL

    none of us know what’s going to be thrown at us next

    so why risk it

    time to stash money tax free and enjoy life for this old lady

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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.


    It's funny in the replies on that how everyone is so anti BTL, especially those investors who are already landlords.  Maybe that is a sign that all the measures have now gone far enough/too far.  Once upon a time, leveraging up £300k to buy £1m to £2m of btl would have been an obvious answer.

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    For sure, 5 years ago I would have been increasing my portfolio, today I take a different view......in another 5 years it may be different again as getting closer to retirement I may be looking for an overseas property, I think as you move through the different stages of life, different things become more important.

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    Yes levarge was in the day a thing to do now it’s not

    far easier fish to fry than buying BTL

    I used to think I was shouting into the wind and it was me out of step

    the more I read the more I am convinced that pouring money into BTL is folly

    I’m no longer the loan wolf

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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.


    I feel like a lone wolf because I can't accept that property is a bad investment because of the changes in BTL. If I can get a reasonable rental return without requiring an AST, I believe that is still a good property investment, whether it is considered BTL or not, I'm not sure.

    From your many posts, I now understand the options with ISAs and pensions and how these can be used for savings and surplus income, including that generated from property but I can't quite make the leap to stocks and shares - my brain seems to have reached a limit on learning.

    With my modest capital and aspirations I hope I have a broad enough understanding to make some reasonable investments.


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    A good teacher must know the rules; a good pupil, the exceptions.

    Martin H. Fischer


    From what I can see is the established landlord who owns properties and is most  likely a higher rate tax payer are haveing a rethink about if they should invest futher cash into BTL

    the new person comming into BTL has a chance to invest

    it all depends on how old you are and where you are at present

    taxation and regulation has made me think about different routes to make money I choose other avenues 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.


    Property every time

    LL`s who have made their money in property dont like the thought of making  50% less than they did

    New LL`s who havent made their money yet are happy though to make 50% more than what they currently do

    Making 100K is better than the prospect of now only making 50K going forward

    So old LL`s naturally get a bit despondent and grumpy and disillusioned

    But likewise making 50K is better than making 0K going forward

    So new LL`s get enthused excited and have drive and ambition

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

    I think you have hit the nail on the head JC

    50% less is a hell of a drop

    this is the very reason why I am investing away from leverage BTL

    new landlords will not have that issue what they never had they never miss

    the golden days are over for the establishment landlord

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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 the golden days are over -  for now .

    Gov  have plugged a few gaps made it harder  - so we respond by having to train  harder

    PT helps with this . No PT back in my day . Swimming in the dark I was .

    PT adds value and can  teach now in a month what took me a year to fathom out

    Great money still to be made to get yourself in bronze and silver medal positions

    Everest is a tough climb yes 

    But Mount  Kilimanjaro is no  mean feat either and a perfectly acceptable achievement

    If it took a 10 year sprint  to hit gold pre Osborne -  it may take 20 years now

    Start @ 25 and you still got that gold medal  round your neck @ 45


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