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So even if she has a point about getting out of direct investment in BTL - would you buy grainger ? - wouldn't you be looking to diversify out of uk property....
div yield of 2%.
oohh light my fire. not. better off buying water company shares !
e.g. 4.4% yield on Severn Trent... https://www.hl.co.uk/shares/shares-searc...y-97-1719p
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
Hundreds of thousands of landlords are planning to cash in big gains from a decade of rising property prices as the government’s assault on buy-to-let encourages an exodus from the market.
More than one in four landlords intend to sell at least one of their properties over the next year, risking a crisis for tenants, according to a survey by the Residential Landlords Association (RLA).
Nearly five million people — about one in five households — live in the private rented sector, including many families, with half of all babies now born to families living in privately rented accommodation.
There are 1.5 million landlords in Britain and they own 3.4 million properties. The RLA says that tenants face less choice and higher rents if landlords sell up, and mortgage brokers warn that buying a property remains an unrealistic option for the majority of renters. Waiting lists for social housing also remain long.
The Royal Institution of Chartered Surveyors has already warned that the imbalance between supply and demand in the rental market is expected to lead to rent increases of more than 15 per cent over the next five years.Landlords’ desire to sell comes after the government started scaling back their tax breaks, such as relief on mortgage interest payments.
From April 2020 landlords will only be able to claim relief at the basic rate of income tax.https://www.thetimes.co.uk/article/rente...-znjlzdmnq
I think we have all said this would happen
But this was the Osborne Plan
Get Landlords out they have to sell and too FTB
So the plan is working as Osborne wanted it
But it will have a knock on effect as the times has indicated less property to rent
as profitable landlords leave the sector and who can blame them
There are times when I think I should cut and run
I dont because I dont have the Capital growth to cash in so I am stuck where I am
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.
LL's would have to have owned for at least 10 years and made significant CG's to take into account the large CGT they would be taxed on the proceeds. Plus kissing goodbye to that income % for ever more. I'm not sure how long it would take to make it worthwhile buying back in at a later date?
Has anyone ever played that game and succeeded? Selling up, then buying back in and 'cleaning up'?
If a Landlord in the SE had been in the bussiness for say 25 years I would have imagined they would have substantial gains
lets say they have Five Million in Profits
They could take advice on how best to avoid CGT
but even if they did have to pay CGT they would walk away with a dam good nett profit
Pay there taxes and then sit back and take it easy
Invest there profits wisely away from property and enjoy the fruits of there labour
They could also take advice on IHT
Property is a sound place to make wealth but I think there may come a time in some Landlords lives when they have done well
and move on
The sector is not going to be as easy as it was Regulation and Taxation is going to increase so why stay and put up with the paper work and Tenants
Once a Landlord has sold they may want to come back and do it again
But at least they have a choice
BTL can be stressful and hard work at times
``The sector is not going to be as easy as it was Regulation and Taxation is going to increase so why stay and put up with the paper work and Tenants``
So a 50 yr old whose been in it 25yrs has 5 mil equity
100K income pa lets say
Sell up and that 100K income stops stone dead
So much better is to employ a property manager at 30K pa
70K income pa is quite sufficient going forward
Then in the next 25 years you now have 10 mil equity as prices will double
So by not selling up you passively make another 5 mil and secure a 1.75 mil income
The hard work has been done - Why throw it all away between 50 and 75 . Crazy
BTL is only stressful if you choose to make it stressful
Jonathan Clarke. http://www.buytoletmk.com