X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    Where will landlords be in 5 years?



    I look at my business and I think of my plans for the next five years

    With the grace of God I will be 66 in five years time and I look back at the past five years and think how BTL has changed

    It feels as though a day doesn't go by when there is not a change of regulations or some form of taxation

    I have been buying a few high yielding property for two reasons - on the surface it looks like a good deal 8% yield etc bought at BMV

    But am I buying a problem ?

    I predict a lot of things in our sector most of it bad and I am sure I drive a lot of PT members mad when I am so negative

    My own business view has never been negative but I feel this is changing, even in my own business

    We have a Licence scheme on its way and Rent Control within 5 years

    Just as this is starting to bite I start taking my pensions

    I am so pleased I have made provision for my old age away from BTL

    Because I am starting to think Its time to stop building a Business in the UK

    I always thought being a Landlord was the perfect job for me

    But I am getting weary of the attacks and the changes my business faces day after day

    I could fully understand the changes if they were for the better

    But I really think 95% of the changes in the past 5 years are making the sector worse ....

    4
    1

    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 don't think that we should take this personally, the country on a whole is shifting to the left and we are like many others baring the consequences. You only need take a look at how the media is commenting on Mr Trump to see how our country is selling itself short. We need a strong leader to start rebuilding the country and its pride once more,  The cycle will turn and the fittest will come out on top.

    1
    0

    I have a strong business my cash flow is good and my LTV is around 55%

    But I cant see a good future

    It would be good to see a change of direction from our masters

    The UK is in a bad place your right there

    I will stay as a Landlord and work around the changes but its like walking in mud

    not much fun just work


    2
    1

    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 have a strong business my cash flow is good and my LTV is around 55%

    But I cant see a good future``

    I always feel its  a state of mind  for you DL . I wish you didnt see it that way but you do

    I can take one letter out of the above statement and it completely changes its meaning 

    Cant to can .

    That statement then more or less describes me

    You are still restless and I think if you had 25% LTV and double your cash flow you would still be restless.

    Work on that state of mind  and you will hopefully find some peace

    The money is relatively irrelevant now that you are financially free

    4
    0

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

    Thanks for the supportive blogg I know in my heart you are right x

    0
    0

    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.

    One of the ongoing business exercises any business should do is a SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats.

    Have you done one recently for your business DL? And include yourself in the SWOT as you are the driver of that business.


    0
    0

    I do this quite a lot I think its important to look at what IFs?? or So Whats ??

    DL

    0
    0

    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 don't believe the country is lurching to the left, certainly if you are outside of London and the major cities the overall sentiment is still more centre right.

    The next parliament is again likely to be hung again and weak, in the event of a Corbyn Government it is going to be constricted by the EU in terms of some of his "economic policies" and the chaos will undoubtedly soon result in another General Election as it dawn's on the duped youth that there are no free Unicorns.
    4
    0
    The sector is going to go through major changes, in 5 years the “accidental” landlord will be finished or doing it to earn nothing, making tax digital, quarterly and then monthly tax billing will be with us eventually (though not in 5 years ). The regulatory burden is going to increase for both lease and freeholders, the latter will mean huge cost increases for many who have flats in blocks with less than diligent management at the moment.

    This alone will lead to the stagnation and likely fall in value ,for many converted flats especially. Once the grenfell report is finally over and done with there will be a review of fire safety standards, ( as the fire safety order act was around 2005 probably overdue along with lacors guidance). Enforcing these changes will be another reason for national licencing of wholesale local borough wide schemes. ( expect we’d all rather be under a single set of rules rather than be at the whim of individual councils).

    My more cynical side suspects that the changes to CGT over the years were the precursor to all these changes, if we still had index linking or the sliding scale , i’d guess many more landlords would be exiting the sector and even without the additional 8% , it would still be considered carefull. But the current rates mean that selling up is not a simple financial decision and so prevents too much property being dumped  on the market too quickly, this ensuring there is a supply of rented property and prices remain reasonably stable.

    The big investors are not going to be interested in much of the low end property in the sector and certainly won’t be for single units.
    In some areas conversion back to large homes will be an option, the boom in commercial to residential is going to be another problem area for the market, where the units were initially done for the rented sector. 

    Maybe not in 5 years , but by 10 , a landlord not turning over around 80k is not going to earn 50k and that will include little in the way of mortgage debt. I’d guess 20 units plus will be a self sustainable business in the long term, but it will be very hands on or require very comprehensive managing agents.

    Flats in general will be a real problem, houses much less so and be the obvious choice for a sustainable long term business plan. Owning blocks outright will be another way forward.

    Once licencing is in place , it will move towards spot inspections of both the let units  and office premises.

    The market will fragment to those that supply at LHA rates then a big jump to a completely different rental sector. The LHA market will quite possibly benefit from some form of reliefs until such time ( though possibly never) social provision catches up in terms of supply.

    As for the countries political leaning ( sweeping generalisation warning) , we’re currently being bullied and coerced by a left leaning elite and liberal class, that are generally based in the big urban areas ( london especially) and have done well for themselves from the public and private sectors  whilst benefitting from massive rises in property prices and inheritances of property in same areas. Financially detached from reality they have time to develop their viewpoints and have the time to push them within the circles they mix.

    Where as for the vast ( relatively silent majority, until given the opportunity “brexit) this majority have not done anywhere near as well, have more traditional views and want to get on in life, most don’t want to be reliant on the state preferring to do it themselves , the whole idea of tax credits and top ups is for many alien and unwanted, though as time passes and it becomes the norm no doubt things will change.

    But in general most people would prefer to earn their own living and keep enough of it to provide for their kith and kin. There’s a call for fairness not handouts, Farage sees this and plays to it.

    BUT, the financial  realities of the modern world means that governments are desperate for every penny they can squeeze out of us directly or not , there is no long term view which makes Westminster malleable to the views of those that promise them power and money to squander.

    The hare-brained idea of allowing 30 somethings to use their pensions to provide a deposit on property is one , going against the message of many years regarding longterm saving for the future, and allowing deposits to be funded from effectively untaxed income and investment gains. 

    There being so few untouched stashes of liquid wealth its not surprising labour cannot resist the urge to cast their beady eyes on that held in property etc.

    Landlords are just a very easy and unloved target for the changes to come.

    But in all we hear there is nothing said about seeking out those that evade legislation, its all about the easy pickings.
    5
    0

    The next five years?

    Will continue to develop the business as long as it's still challenging and fun. I personally feel optimistic we can weather the changing political and economic conditions. Not just survive but thrive as others fall by the wayside.

    To me, being in business is a bit of an adventure. If it was all plain sailing, would would be the point of it?

    Onward and upwards!

    Ed

    2
    0

    LETS MAKE HOMES by treating landlords as partners, tenants as customers & every property as our own."

    http://www.letsmakehomes.co.uk