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  • Buy-to-Let

    Video - "Is BTL yesterday's investment?"

    Interesting video as to why now is not the time to get involved in BTL and why the presenter thinks "BTL is only for the brave":

    *(Moderator note:  This video was recorded in February 2016*).

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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.

    Hi Dislexic - This was filmed nearly 3 years ago although not much has changed.

    I agree - its probably not for the random investor but with with research and planning it still works. We only have 7 properties bought over 5 years although 4 of those in the last 12 months (6 BTL and one commercial) but intend to buy at least 4 or 5 more in the next year - not all BTL but a mix to balance the portfolio as it grows - a great time to buy in this BREXIT chaos I think as it will turn up some opportunities - that coupled with other accidental LL's selling due to tax issues and videos like this scaring people away from the market are all brilliant as far as I am concerned!

    The long and short of any investment is as long as you do the DD and the numbers stack up its a good investment.

    Take the new SDLT and other charges into account and if the investment works for you then do it. We know the returns are not as big as they were in the past but they are still much better than most other returns - where can you get me 12-15-18% ROI, as we do on BTL property and more on slightly bigger project like an HMO or new Build? Send me a link and I will happily investigate Smile

    Meantime good luck with your BTR's

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    It depends on your definition of brave I guess .

    If millions of people invest in BTL`s  which they still do,  it rather waters down the meaning of brave

    I was with 5 really brave people the other day . They all had BTL`s

    We didn`t feel brave - just astute . There are millions of astute people out there

    Its very old news now that BTL isn`t as good as it was

    Maybe 40% ROI is tougher now but 20% is still relatively easy and much better than other stuff on offer

    You can still also get infinity returns if you structured it right

    What is perhaps more brave ( or foolish)  is to leave your spare cash languishing in a 0.1% bank account

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


    Property is and always will be the foundation stone of any balanced investment portfolio.

    Ask the Duke of Westminster if you don't believe me.

    The difference these days I think is you CREATE your Wealth by other methods and then STORE your Wealth in Property.

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    Even the duke was effected by govt changed

    he never voted when the law changed on leasehold property he was forced to sell

    even the grovenor estate had sold property and invested elsewhere I am the opposite to you I invest BTL profits away from property now

    I will hold property but I will not invest more in BTL taxation and returns have changed and I don’t think govt is yet finished and we will all have major problems if labour come to power


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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.


    Why are you holding property in that case?

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    I am holding the BTL I own now but I haven’t purchased any more with leverage since osbourne used his powers  to try and kill off BTL so I am holding at present I just find the changes to BTL now make it not with the effort when I can get returns in pension and isa for much less work and stress

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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 get that,  but I'm asking WHY you're holding your current stock rather than selling up and investing the money elsewhere?

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    To answer your question

    If I sold I would pay a lot of CGT  and second my yields are very high

    in round figs Two Thirds of my Turn over is Profit

    of course I don't take it as profit I spend a lot on repairs ect and then I strip out the rest on my own drawings and fund Pensions and ISA

    I have done the hard work building the business for 30 years

    I think if you have been sucsessfull in business and you have the Income to invest Its wise to work smarter not harder if you understand my Point

    Let me give you an example I understand very well the use of Managed Funds and I have used them for a long time look at this link

    Its a Standerd Life Small Co Fund

    https://www.hl.co.uk/funds/fund-discount...cumulation

    You will see from fund performance that it has good years and not so good years

    But if you average out the performance you will see it returns around 10% a year

    Now I don't use that fig as a bench mark I use 5% If it makes more than that happy days I know I will never cash in my equity investments just like my BTL investments But I like to spread the risk

    But its totally tax free so its worth to a lot more

    so If I put 20k into my ISA I have a return of £1000 a year in BTL I would pay 40% tax on the profit and I have to deal with Tenant's Repairs ect ect

    The point I am driving at is Yes I will hold property But I am not investing cash into BTL because I can get a similar return with a lot less fuss

    Look at Fund smith UK Equity and see the results

    As a Landlord I know one day my estate will pay IHT so 40% will have to be paid

    If I use my Pension I can pass the funds on at a much lower rate than 40% This morning I have just seen MY DD pay a couple of thousand into my SIPP from my Company

    That's Profit from the company passed to me Tax Free Its perfect way to build wealth with out taxation

    I like property but I am not blinded by it I used to be until Osborne introduced S24 and then I realised we had become a political football

    Hope you see my point

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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.


    Fair point on CGT.

    If you had £10 million in cash to invest and no other assets, would you put the whole lot into funds then and not buy any property?

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    If I had 10 million ???

    I think a lot would depend on age and what life I wanted to live

    If I did not wish to have hassle I would invest it in Equity type products

    The super rich have done it for Generations

    If a person had 10 million to invest they would be in a situation where they would not need to work

    I call BTL the working Mans route to riches

    It is an opportunity to build wealth with effort and maybe a route out of 40hrs a week working which personally I hated

    10million would give you 5% in Equity's so an income of 250k a year would be very good  with Zero Effort

    The Govt has turned the tables on the working man BTL investor  the best days are over I know that

    But if someone is working and has a good bit of cash BTL can still work well (Just needs a lot more Planning )

    The Biggest danger for BTL now is more changes from Govt and Councils

    None of us Know what tricks they will pull to regulate or Tax Us

    I know one thing is for certain Capital Values will not rise as they have since the 1980s so capital returns will be low

    Capital Growth should be seen as a the cream on the cake

    and good principles  of Good Business will be very important

    I forcast we will see a new dawn of Landlords But before any one jumps in I would wait for an election to happen in the UK

    Otherwise they may find that there plans have been effected by the Policy's of the next Govt more than they will like

    BTL could end up in a very very dark place if Labour comes to Power and it will be in a very dull place if Tories come to power

    neither will encourage or help the Landlord

    So If you have it be grateful you have It make the most of it Batten down the hatches and keep borrowing to a Min until you see who is in power in the coming years

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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.