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  • Buy-to-Let

    The downside of BTL not talked about enough?



    I visit quite a few Facebook pages and other Landlord web pages and I thing I notice is they seem to have more Landlords who admit to having problems more than are reported on Property Tribes.

    Why is this ???

    I think PT will have its fair share of members who are in distress, but they don't seem to report it on PT

    This is just a sample from a FB page this morning :

    Claire Fraser

    6 hrs

    I’m a BTL LL with a small portfolio of 8 properties 2x1 beds, 3x2 beds, 1x2bed house, 1x4 bed house, 1x 5 bed HMO

    The downside? I’m so skint, was so inexperienced, unprepared for the squeeze on LLs, I remortgaged my residential mortgage (the HMO) and guess what? I’m now living in rented accommodation!! How has this even happened to me? ???

    Answers on a postcard to;
    #illneverownmyownpropertyagain

    I feel there is nothing wrong admitting things are not going to plan -  it's healthy.

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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 think you have highlighted the value of the PT community. There is so much knowledge and so many resources there is no reason that a landlord can't find a solution, or even better, prevent a problem.

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

    Martin H. Fischer

    Could it be that some people do not treat being a LL as the business it is? If a LL receives 500pm in rent, they need to understand that its not 500 profit.

    A business plan is so essential and If done right, it can be a very profitable venture. 

    If done wrong, it can be a struggle.
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    Financial Consultant working with Property Tribes Financial Services.

    BTL Specialists.

    Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - austyn@ptfs.co.uk     07500 871209

    I agree with your views

    But Landlords have seen the Carpet pulled from there feet with S24

    A well run business can go from profit to a loss in short time when regulation and taxation changes specially when its retrospective

    The same can go for lending a short time ago 85% LTV was the normal in the BTL world

    Lenders have now change it to 75% LTV

    I know being in the north that some of my Loans will come to an end in 7 years and if we dont have capital value rises I will have to pay down Interest only loans down to make them fit the new lending criteria

    I always read in Bloggs that Interest only is the only way to go in BTL 20 years ago

    I am not sure today in 2019 that this is quite correct today

    Changing Policy and Taxation can effect Business and this is why I think we are seeing landlords in distress It may not be in the public domain on multi media but I am sure its there in 2019.

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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 the changes in the law around property finance s24 rules have had a huge impact. 

    We also thought we were doing what all successful professional investors did 10/ 12 years and set up interest only mortgages, yet in the north in the main, we are still waiting for the value of houses to increase to make all this worthwhile ?
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    Don’t get your point. IO is still about being more tax efficient. Capital gains has the same impact on a repayment of an IO mortgage.
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    My point is that to negate some of the impact of s24, the ideal solution would be to sell some of our properties however, due to lack of capital appreciation and amount owed, we can only hope that the situation changes as we have been waiting for values to increase since the crash ?.  This has been the downside of btl and our experience. I hope you are in a better position.
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    Ok understand. Fortunately I have had some gains, but I’d be holding anyway as I buy on yield. Gains will come - I guess the question is how long can you survive with limited positive cash flow?
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    Mine 1st flat hasn't gone up since 2004 when I bought it but has been great for rental and regular cashflow. I've just bought my 2nd flat up there but I not expecting any growth, just focusing on the cashflow.

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    Absolutely, the north has not hardly had any increase for 10 years, yield is okay but terrible capital appreciation (Teesside area)

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    I agree if someone purchased property between 2005 and pre crash 2007

    they will be lucky to see the price they paid then

    The problem was the NE doubled in price from 2000 to 2005 and then doubled again for 2005 ish to the Crash of 2007

    I can recall all the new build City Center property going up and up then the crash and 50% of the value went over night

    I am looking to buy 3 bed houses now but I cant find what I am looking for at the right price

    My gutt feeling is over the next 5 years Property prices in the NE will rise it will be slow but they will go up

    But your so right if you have purchased with a good yeild the horizon looks good


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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.