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  • Buy-to-Let

    My three phases of BTL

    Wow - No one surely could have   predicted that

    Interest rates going up!  . I was positive they would be  going down

    You must have inside knowledge I reckon !

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

    My three phases are as follows:

    1.  2004 to 2009 - Build portfolio

    2.  2009 - 20015 - Consolidation - sold 4 under-performing properties.

    3.  2015 - present - Batten down the hatches, build up cash reserves, pay down consumer debt, sell one more property, up-grade existing stock.

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    Vanessa, can I ask, did you sell your northern properties and kept the London ones? Thanks

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    We couldn't sell the Northern properties as they had decreased in value.  We sold 3 flats in London that had huge service charges and a 2 bed flat in Slough that had always had poor quality tenants and a lot of turnover, although had gone up in value quite significantly.

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    Sort of same here

    1) 1996 to 2008 build a solid portfolio (plus a random experimental house in 2015)

    2) 2008 to 2017 Hold all BTLs bringing them up to scratch and sell 2 high value main/former main residences to buy one better main residence and hopefully never incur CGT on it.

    3) 2017on - Totally lost.  We have what we have and it is what it is. I have paid down as much debt as possible. The Govt seems to have made sure that I can't realistically sell anything and actively look to buy potentially better, or even actively purchase any more improvement projects.  They took away indexation allowance and taper relief and bumped the stamp duty right up such that a CGT/stamp duty/legals turn around on flipping and replacing any of our properties worth £500k to £600k throws away about £100- £150k.  Buy a new project and the govt takes most of the potential profit on the day you complete.  At the moment I am turning a long held 2 bed house into a 3 bed but it isn't exciting me much.  I really miss the buzz of employing people and transforming places but I am not going to take the risk now for no real reward.




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    " I really miss the buzz of employing people "

    I don't!

    This is the part I dislike most when it comes to property. I don't even look at anything now that I can't do the majority of it myself and with a trusted electrician and plumber and that's it! By far its the most stressful part of the job for me.

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    Hi James

    I really understand the points you have made

    I miss the buzz to of new Projects The Govt are set on really slowing down BTL especially Leveraged BTL and I agree when you look at the amount of tax which is paid buying property and then the CGT you pay when you sell it leaves so little profit for the risk and the time you put into a project

    I have a project on at present and it will take me 4 years aprox to finish is and I think that will be my swan song in the BTL world

    I loved the Buzz doing the deal and then employing contractors to see the project finished

    It was a bit of a Drug for me and I have to go cold turkey (not Easy)

    I too now hold and manage what I have dealing with the every day stuff a Landlord has to deal with Which is not always pleasant

    I had a long term Tenant pass away and I am arranging a Funeral and sorting out there estate as I am the executor this is really nitty gritty stuff that has to be done and it keeps me busy

    I have settled now and that's fine I don't like it but I have to go with the flow

    I am now a Manager No longer an investor

    BTL has become a Job and that's Boring after the 20 years I have had

    Im not just going to work for 40% of what I earn and that's the base line for me

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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.