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Hi all. I have read immense amount of negativity over the Personal Finance UK Reddit community, who say that the days of BTL are numbered.Property investment had been a long-term plan of mine, especially after reading Rob Dix's book and Property Magic by Simon Zutshi. But now, having read the negativity over on Reddit, I am having second thoughts. They make some good points.
I love the idea of quitting my job to either run HMOs, BTLs, flipping and long-term capital gain - anything where I can be my own boss - but these doubts are clouding my judgment. I was hoping you fine experts could show me the other side of the coin.
Hi Alex and welcome to the tribe.There is no doubt that it is more challenging to build a property portfolio now, than it has been for a long while. Having said that, for those who understand and overcome those challenges, and structure their business accordingly, there is still plenty of opportunity.These threads should assist you in believing in property:9 irrefutable reasons why property is still a viable investment + Landlord Survival See if those 9 reasons still hold true for you.See also -Reasons I am feeling positive about BTL!View PRS changes through a positive lens Being positive about BTL long term POSITIVE Reasons for Property - IB+ 12 positive things to do today to break "property investor's block" & move forwards.Is BTL dead or am I just late to the party? I hope those help for starters?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I think you would be the best placed to outline what people on Reddit are saying? So people can offer their thoughts.
The basic one gets on a spreadsheet, make sure it makes financial sense and only make decisions that you are confident in.That have good rental yield (and a perhaps good chance of capital appreciation or value can be added).
_________________________________________________________________________My posts are not financial advice, just a rambling guy passing time on a coffee break.The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance._________________________________________________________________________
I have said in the past BTL is a very young Business Opportunity
some of us have been investing long before the AST
The AST change the face of being a Landlord
what I am saying is just because we have opportunity now and in the past is no guarantee we will have a business as we know it in the future
we are not liked by any political party so we have no support
we make money because of a property shortage
So If we look to the future I can see two things if the Tories come to power and that is much more regulation an more taxation
I see three things if corbyn come to power Much Higher Taxes and Much higher regulation
and a system where you customer can force you to sell to them
If I was setting out today I would hedge my bets invest in other assets and BTL
But dont bet your shirt on BTL it may not be here within 5 years as we know it now
we have had it too good for too long the process has already started an it will carry on
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 agree. I think the "Passive income" appeal of property is probably going to come to an end sooner or later under all this regulation and taxation. People who were lucky enough to build their passive income portfolio 20 years ago or more will be able to live off the income, but it seems to me the nature of the beast is changing.
I still think there is money to be made in property, but perhaps not through vanilla BTL strategies, despite the fact we have never had it so good with interest rates.
And hedging into other assets, I would agree is sound advice.
I mean to be fair it's a LOT of work to buy, refurb, refinace a property just try and pull £300 a month cashflow out of it. and with S24 even that will be cut down. There's probably easier ways to make that money elsewhere.
I think if you have the Drive an commitment BTL can still work
at one time I would pop in a 15% Deposit No Stamp duty valuation for £250 solicitor £300 and I had a new BTL I put in 13k
Today its a differant story for a modest purchase of an 80k property I injected 25K
You need about double the funds you once did
and then you have to deal with Taxation and Regulation
It can be one but you need a lot of cash and then If you have the cash would it not be easier and more tax efficient to invest elsewhere
I think we have an election around the corner that alone could be a game changer for BTL if Corbyn and co come to power
If I was new to the game wait until the election is over and see who comes to power
I could find you 10 people who are negative about BTL . They would bring you down
I could find you 10 people who are positive about BTL . They would lift you up
The human mind is strong. Value yours and work on it
Some people around though will be emotional vampires though
Give them a wide berth as they will drain you dry
Speak to those who are doing what you want to do and follow their example
In 20 years someone will be a multi millionaire through property who only has 25K today
Just make sure you are one of those in with a shout.
Jonathan Clarke. http://www.buytoletmk.com