Buy to let - residential v commercial property
Discussion
I am keen to get on to the BTL bandwagon and have around £150k that I would like to invest in property for long term gain (not short term make a quick buck type of investment).
I've seen a few people I know recently get themselves in to buying commercial property and then letting these out and they seem to have done extremely well.
ON the other hand I also know people who have 10-15 BTL residential's and they also seem to be happy with what they are doing.
If I did get in to residential I have seen a few starter properties at the £150k mark which currently have a yield of around 6% - it would be fairly low risk as I could buy two of these with a minimum deposit and not worry if they were vacant for long periods as could easily afford the mortgage anyway...
Any thoughts from the experts? Thanks folks...
I've seen a few people I know recently get themselves in to buying commercial property and then letting these out and they seem to have done extremely well.
ON the other hand I also know people who have 10-15 BTL residential's and they also seem to be happy with what they are doing.
If I did get in to residential I have seen a few starter properties at the £150k mark which currently have a yield of around 6% - it would be fairly low risk as I could buy two of these with a minimum deposit and not worry if they were vacant for long periods as could easily afford the mortgage anyway...
Any thoughts from the experts? Thanks folks...
BTL is not a passive investment. Unless you pay for a full managed service from an agent (which will demolish your yield) you'll need to be managing your properties and you'll need a network of reliable contractors (e.g. plumber, heating engineer, odd-job man etc).
There are laws you have to follow (e.g. gas safety certificates, deposit protection accounts) and all sorts of ancillary costs such as landlord insurance, agents fees, and routine maintenance costs. Unless you have the time and inclination to deal with phone calls from tenants while you are on holiday about the leaking tap I would recommend seeking the advice of a property investment company.
I've been in BTL for 10 years and, while the capital gains have been terrific, I'll be selling up over the next year (and handing back much of those gains in CGT) tenants can be a major ball ache.
There are laws you have to follow (e.g. gas safety certificates, deposit protection accounts) and all sorts of ancillary costs such as landlord insurance, agents fees, and routine maintenance costs. Unless you have the time and inclination to deal with phone calls from tenants while you are on holiday about the leaking tap I would recommend seeking the advice of a property investment company.
I've been in BTL for 10 years and, while the capital gains have been terrific, I'll be selling up over the next year (and handing back much of those gains in CGT) tenants can be a major ball ache.
audidoody said:
BTL is not a passive investment. Unless you pay for a full managed service from an agent (which will demolish your yield) you'll need to be managing your properties and you'll need a network of reliable contractors (e.g. plumber, heating engineer, odd-job man etc).
There are laws you have to follow (e.g. gas safety certificates, deposit protection accounts) and all sorts of ancillary costs such as landlord insurance, agents fees, and routine maintenance costs. Unless you have the time and inclination to deal with phone calls from tenants while you are on holiday about the leaking tap I would recommend seeking the advice of a property investment company.
I've been in BTL for 10 years and, while the capital gains have been terrific, I'll be selling up over the next year (and handing back much of those gains in CGT) tenants can be a major ball ache.
+1There are laws you have to follow (e.g. gas safety certificates, deposit protection accounts) and all sorts of ancillary costs such as landlord insurance, agents fees, and routine maintenance costs. Unless you have the time and inclination to deal with phone calls from tenants while you are on holiday about the leaking tap I would recommend seeking the advice of a property investment company.
I've been in BTL for 10 years and, while the capital gains have been terrific, I'll be selling up over the next year (and handing back much of those gains in CGT) tenants can be a major ball ache.
Although I would have struggled to have worded it as well.
W4NTED said:
I am keen to get on to the BTL bandwagon and have around £150k that I would like to invest in property for long term gain (not short term make a quick buck type of investment).
I've seen a few people I know recently get themselves in to buying commercial property and then letting these out and they seem to have done extremely well.
ON the other hand I also know people who have 10-15 BTL residential's and they also seem to be happy with what they are doing.
If I did get in to residential I have seen a few starter properties at the £150k mark which currently have a yield of around 6% - it would be fairly low risk as I could buy two of these with a minimum deposit and not worry if they were vacant for long periods as could easily afford the mortgage anyway...
Any thoughts from the experts? Thanks folks...
Hi AlanI've seen a few people I know recently get themselves in to buying commercial property and then letting these out and they seem to have done extremely well.
ON the other hand I also know people who have 10-15 BTL residential's and they also seem to be happy with what they are doing.
If I did get in to residential I have seen a few starter properties at the £150k mark which currently have a yield of around 6% - it would be fairly low risk as I could buy two of these with a minimum deposit and not worry if they were vacant for long periods as could easily afford the mortgage anyway...
Any thoughts from the experts? Thanks folks...
I've just tried to pm you but you're not set up to receive messages on here. I can help with BTL advice, let me know if you want a chat sometime.
Cheers
Put the money in your newly-established SIPP and, subject to previous years unused allowances, get IT to buy commercial property for renting. The rental income will NOT be regarded as contributions.
You cannot put residential property in the SIPP but you can put residential land with planning permission ..... so long as you don't activate it
You cannot put residential property in the SIPP but you can put residential land with planning permission ..... so long as you don't activate it
Gassing Station | Finance | Top of Page | What's New | My Stuff