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  • Buy-to-Let

    Financial independence and building portfolio


    I think that many landlords entered the BTL game to achieve financial independence and escape having to rely on their day job. I think a passive NET income of at least £2000-£3000 a month would give the average person a sense of financial freedom.

    I recently started a thread asking whether multiple btl's or a single btl is best. If you were starting with an investment pot of £50k  example. How best could one scale up to purchase more properties and achieve a a rental income of £2-3k pcm? How many years would it take?

    Many thanks


    My advice would be to advance with great care

    Some of us have been luck to be in the right place at the right time

    Personably I think the BTL world has changed so much that is has become for some of us that we are now in the wrong place and the wrong time

    The days of a small man and women with 50k in the bank now building a business is over

    My own feelings are the Golden days are finished

    so proceed with great care and borrow as little as possible

    The Next Govt will show us all what they have in mind so stand back and watch what happens


    Learn Change and Adapt ?????


    Forgive me for being a bit dim when it comes to politics but isn't the next election in 2022. That's a lot time to wait to see what happens. Thanks


    I cant give you anymore advice than I can

    You have seen what Govt Policy has done so far

    and It haven't helped you or me to build a business with leverage

    I think the attacks on our sector are at an end for now

    The Tories will not reverse S24 Stamp Duty ect

    they will give the General Public some tax brakes as the next election approaches

    But the next govt will hammer this sector

    You and I are not wanted to provide homes

    BTL was born in a very different time from where we are now

    There has to be more taxation and more regulation

    The Tories have proved they don't want leveraged Landlords

    We are yet to see what Labour wants But Labour is no friend of the Landlord

    Proceed with great care  the Rug could be pulled from us all in the next parliament

    BTL has been to easy and too good The Gravy train is now slowing and it may come to a Halt where we all have to get off

    I would dearly like to be proved wrong and I hope I am.


    Learn Change and Adapt ?????

    If you think you can make your fortune by letting property and get out in only four years, you are very much mistaken.  4 years is not a long time in the property, the entry and exit costs are high when compared to other investments.  Property letting should be regarded as a long-term investment 10+ years absolute minimum.

    I agree with DL the days of entering the lettings business with a relatively small amount of money and continued increased leveraging to build a portfolio are well and truly over for the foreseeable future.

    I don't think there will be any capital growth, more likely depreciation over the next few years, especially as S24 is fully implemented and interest rate start to rise.

    I am already noticing a lot of properties with reduced prices on Rightmove and Zoopla..


    Currently there is a big chance of getting an election earlier with the issues the current government is having around Brexit. We never know what will happen at the moment.

    I agree with DL, the golden time of property is gone and the stress free passive income is no longer possible.

    About 5 years ago it were my goal to have 10 properties and then “retire “ but because of s24 this goal is no longer possible and I have setup a company and need to get economy of scale and now believe I need min 20 properties.

    With all of those properties comes work. Find a tenant or chase useless agents. Get the annual gas certificate, fix the issues on the properties, sorting out finance do various test for local licensing etc. Property is not a passive income.

    in the old days property would increase in value easily by 10% now we are lucky if we get 5% annual increase.

    If you are looking for passive investment pick a tracker fund and you will do better than many LL in today’s market.

    It is a hard fact, but the truth.



    I would go for multiple units. My own process is 3 bed family homes, usually ex local authority, bought for <£95k and let for £575pcm, put on 5 year fixed mortgages at 75%LTV at <2.6%. Falling prices will have little impact, as they are already low, and where I am buying I am not seeing this happening. My experience is good, and although as I build the portfolio it isn't really generating much income, I can see it will once I stop buying houses. To achieve £3kpcm I would expect you'll need >8. Also, remember your building portfolio operational losses will be rolled over to the next year.

    Multiple units give a lot of flexibility - a small increase in rent over a large quantity of units doesn't upset any tenants, and gives the landlord a healthy income boost.

    You will probably have to fund procurement from other funds though, so a decent paying job will expedite the process. Unless you fancy turning 2 beds into 3 and re-financing etc.

    I am definitely going to continue to build and invest in my portfolio.

    Good luck


    The strategy I used  for years and its good

    Can I ask are you investing in your own name or via a company

    and if you are investing in your own name are you not effected by S24

    2.6% on a 5 year fixed is that correct  ????? on a 75% LTV


    Learn Change and Adapt ?????

    Yes, section 24 does impact me. I can offset the staggered year on year % increase by an adjustment in the monthly rent. What it means is the margins don't grow as they would have in the past by increasing rents, however it can be stabilised or grow more slowly. For me, the key is to set it up with decent margins built in, and plan for a rent increase (which is small) every year. This way I know what I will end up with, at least for the duration of the mortgage product. Obviously excluding maintenance issues and tenants not paying etc.

    As it happens I run a LTD for my main business, the portfolio is held personally.

    Yes,  I have nearly all locked in at <2.6% now @ 75%LTV. I think the next lot may be around 2.69% though as 5 year fixes are on the move up.


    I can see where your coming from

    I have just checked the 75% Mortgages 5 years and your quite right 2.6%

    I haven't purchased since Osborne changed the rules

    But I have sold property to my company and the rates are higher than 2.6%

    I would imagine there must come a time when you would stop buying in your own name

    S24 effects me a lot but I hold a lot of property

    Going forward I think the Govt will increase S24 and remove all relief of interest

    I just don't trust them one bit.


    Learn Change and Adapt ?????

    Hi Yieldinvestor

    I couldn't agree more with the other people posting here.

    There are few areas where both the tory and labour parties agree, and that is to punish landlords and to tax them out of the market. Sadly they are in-line with the public opinion. I think they are making a massive mistake as the PRS has a huge role to play and it will, no doubt, backfire in years to come. But that's life. If the current round of tax and regulatory changes don't work then they will introduce more and more until it does

    In addition to that, being a landlord is not a "passive" investment. You have the responsibility for your tenants' housing, as well as dealing with the occasional awful tenant and where the law is stacked up against the (good) landlord.

    I am also having to get local authority licences which are a nightmare as (in my area) there are different rules for different wards and these seem to change on an annual basis.

    I got into this market years ago when the returns were good, but in the past couple of years I have sold a lot and I am not looking at re-entering for the time being (certainly not in the next 5 years).

    Finally, of course, you are dealing with declining property prices so (in my opinion) a house price bargain now will look expensive in a few years time.

    You would think that this reduction in supply would enable existing landlords to charge more rents, but I am finding that my tenants' incomes are not increasing and they simply cannot afford more. This is compounded by the benefit cap where my social tenants are having their housing benefit cut back massively, so they cannot afford the rent either. I also think that Brexit will have an effect and fewer immigrants will be coming to the UK - again reducing demand.

    I would strongly consider other investments