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  • Buy-to-Let

    The old chestnut: Property vs. Shares



    I was out for Dinner last night with a Retired Accountant who I have not seen for a long time

    As per the norm we got chatting about Business and Politics and BTL

    We started to talk about strategy and wealth and I came a conclusion:  If you have little money in the Past BTL was a very good way for the poor investor to make a lot of money

    Just look at the King of BTL - a teacher who created  a very large BTL business

    The road the Teacher took is now in general closed but when he did expand he did it and good luck to him

    Today is very different and you need a lot more cash to get BTL off the ground with PRA etc lending is just not as easy as it once was and with the need of large sums of cash it will push the small investor to one side in general

    If you have large sums of cash and maybe working and maybe a 40% tax payer I think most now would opt for the quite life of Equity Investment it can be structured to gain Tax Relief or with a Tax Shield.  But even if you were to pay tax on dividends or growth of stock its far more tax efficient than BTL

    The rich will invest in property and they will invest in BTL

    But the rich have the cash to by Property with cash and thus avoid S24 creating a Company ect

    I honestly believe we are in a sector which has had its best

    BTL is now falling out of favour just as House Prices are falling

    Of course the Equity investments are falling at present but I wager this:

    If you put a million pounds in property today and you put a million pounds in equity's in five or 10 years time the equity holder would have made more money with a lot less work

    Especially in the Political environment we are in at present which is going to take years to sort out

    At least with equity I don't need to invest in the UK I can invest worldwide and leave the UK to muddle through the mess we have today.

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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.

    Conclusions are  organic .

    In 2016 I concluded BTL was the very best from 1996 to 2016

    But I had good capital growth and good yield so i cant complain

    2007 hurt but crashes are to be expected anyway so 2008 - 2010 was great as well in compensation

    2015 it tailed off because of S24 SDLT etc etc . But thats old news now

    So that conclusion on its effect  was parked in my mind 3 years ago now

    Now its about 50% as good as it was in that 100% heyday period but still a great investment

    Because  50% is still far far better than keeping money in a building society and doing nothing

    If you have had 100% and you now have 50% its a downer if you are a glass half empty person

    If you have had 1% and you now have 50% you are in heaven still and your glass is half full

    That`s why BTL is not dead by any means but to some who had 100% it may feel like it

    That historic baggage can bring them down if they let it

    But to someone who starts today they dont have all that historic baggage

    They have yet to make a million so are upbeat and positive

    And  BTL god bless it  - still offers them that route to riches

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


    The Jc a smart investor will not leave there money in a building society

    they can invest elsewhere worldwide in point of fact and in property  too if they want to

    BTL was a working mans investment opportunity and as you say half as good as it was

    and that’s my point

    a BTL investor has to work just as hard for 50% of the profits

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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.


    The problem I see in the UK is there's very few ways of making big money legally within say a 10 year period.

    There are lots of ways of making small amounts of money, that can end up like a full time job for part time money. A lot of 9-5 jobs are like that in reality, and with very little at the end when it comes to retirement.

    Shares and property are pretty much it now to make some big money. Shares need massive amounts invested to get any form of annual return, whereas property can be set up from the start to get a certain amount back each month - the costs and benefits are known up front if you do the research.

    £100k + stamp etc put into the right SE property can net you £1500pcm, plus you have the potential for CG.

    I don't know what figure you'd need in shares to get back £18k net per year YOY but it would be more than the BTL figure. From my AIM research it would be £300-400k and that is a large amount of money in anyones book.

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    Hello Adam

    "£100k + stamp etc put into the right SE property can net you £1500pcm" Please could you post an example of how this could be achieved in the South East. Thank you TMM.

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    That's for you to work out I'm afraid as there's no shortcuts in this game. I give out information willingly on here as most others do, but it's taken many years to learn and many £ lost working it out. I don't charge for this information, it's all on this forum amongst many other useful snippets, so please do some research.

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    The £100k is the cash deposit plus SD...

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    Thank you for your reply LandyLordy. I'm a SE (London commuter belt) landlord of 15 years. I obviously phrased my response to Adam incorrectly, I should have been more direct e.g. "I don't believe an 18% net return on your investment is possible in the SE at this time!"

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    To be fair TMM - many queries/replies here would need so many caveats/extra data that they would run to the length of a small novel - so as to adequately cover all bases.

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     "I obviously phrased my response to Adam incorrectly, I should have been more direct e.g. "I don't believe an 18% net return on your investment is possible in the SE at this time!"

    No, you phrased it as well as some one could, that wasn't willing to put the effort in to find out. It's a shame you don't believe something is possible. It's not as if I'm doing anything amazing like curing the common cold!

    It's just taken research, loads of it.

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