Discussion
I am considering a new BTL, it’s in one of the best areas of the city. One apartments very rarely come up for sale. As in once or twice in a decade.
Most flats in the area are bigger 2 beds plus but maybe £300k more expensive.
It’s a nice flat, it’s not big but in fantastic location well decorated etc.
Net return is not 6% so not great, but not terrible.
Most flats in the area are bigger 2 beds plus but maybe £300k more expensive.
It’s a nice flat, it’s not big but in fantastic location well decorated etc.
Net return is not 6% so not great, but not terrible.
nikaiyo2 said:
I am considering a new BTL, it’s in one of the best areas of the city. One apartments very rarely come up for sale. As in once or twice in a decade.
Most flats in the area are bigger 2 beds plus but maybe £300k more expensive.
It’s a nice flat, it’s not big but in fantastic location well decorated etc.
Net return is not 6% so not great, but not terrible.
Good for you, sounds like a great thing for you to do, thanks for telling us.Most flats in the area are bigger 2 beds plus but maybe £300k more expensive.
It’s a nice flat, it’s not big but in fantastic location well decorated etc.
Net return is not 6% so not great, but not terrible.
Lol I posted from a train and kind of missed the point! So apologies for the nonsense OP.
Is now a really bad time be buying? Is everything really frothy at the moment? Is the SDLT going seem like peanuts compared to what’s coming?
Hence a lot my waffle about the flat lol. If it was not for this specific location I would wait and see... but I think it will sell fairly quickly.
It’s in Old Portsmouth
Is now a really bad time be buying? Is everything really frothy at the moment? Is the SDLT going seem like peanuts compared to what’s coming?
Hence a lot my waffle about the flat lol. If it was not for this specific location I would wait and see... but I think it will sell fairly quickly.
It’s in Old Portsmouth
I'm a small time BTL investor, personally I'm waiting for the current bubble to burst and will be looking to buy next year after the stamp duty benefit is over. Any savings on SDLT will pale into insignificance once the economy takes a dive following mass redundancies, Brexit etc. I will definitely keep buying but now is not the time in my opinion. Also with all of this covid stuff I'm going to be focusing on family homes with gardens for a little bit. Current project is a renovation that should end up with me having two nice holiday cottages which deviates from my usual student lets. I'm expecting house prices to take a dive next year.
nikaiyo2 said:
Lol I posted from a train and kind of missed the point! So apologies for the nonsense OP.
Is now a really bad time be buying? Is everything really frothy at the moment? Is the SDLT going seem like peanuts compared to what’s coming?
Hence a lot my waffle about the flat lol. If it was not for this specific location I would wait and see... but I think it will sell fairly quickly.
It’s in Old Portsmouth
Yep rubbish time to be buying, brilliant time to sell anything you want to get rid of. I'm in Leeds though so might be a completely different picture where you are, but its mental at the minute, particularly for btl stuff. My sisters flat sold for 140k, she only bought it 18 months ago for 108k. 14 viewings in 2 days and 3 asking price offers. Is now a really bad time be buying? Is everything really frothy at the moment? Is the SDLT going seem like peanuts compared to what’s coming?
Hence a lot my waffle about the flat lol. If it was not for this specific location I would wait and see... but I think it will sell fairly quickly.
It’s in Old Portsmouth
I can almost guarantee OP your net return will be less than 6%.
You should also factor in the possibility that your tenant may not pay rent/cause damage/dispute deposit/refuse to leave after you've served correct notice.
Obtaining possession is lengthy and costly.
I have BTL's - great in a rising market with good tenants, considerably less so when the taxation regime, if you're leveraged, works against you and the law favours the tenant.
You should also factor in the possibility that your tenant may not pay rent/cause damage/dispute deposit/refuse to leave after you've served correct notice.
Obtaining possession is lengthy and costly.
I have BTL's - great in a rising market with good tenants, considerably less so when the taxation regime, if you're leveraged, works against you and the law favours the tenant.
Bumblebee7 said:
I'm a small time BTL investor, personally I'm waiting for the current bubble to burst and will be looking to buy next year after the stamp duty benefit is over. Any savings on SDLT will pale into insignificance once the economy takes a dive following mass redundancies, Brexit etc. I will definitely keep buying but now is not the time in my opinion. Also with all of this covid stuff I'm going to be focusing on family homes with gardens for a little bit. Current project is a renovation that should end up with me having two nice holiday cottages which deviates from my usual student lets. I'm expecting house prices to take a dive next year.
This was my exact thoughts tbh, been building a war chest. I sold all my what I call rental only property in 2015-16 as I thought a crash was coming 
It’s just where this flat is, it’s great and they never come up. The return is not great but it’s way better than a bank.
nikaiyo2 said:
Bumblebee7 said:
I'm a small time BTL investor, personally I'm waiting for the current bubble to burst and will be looking to buy next year after the stamp duty benefit is over. Any savings on SDLT will pale into insignificance once the economy takes a dive following mass redundancies, Brexit etc. I will definitely keep buying but now is not the time in my opinion. Also with all of this covid stuff I'm going to be focusing on family homes with gardens for a little bit. Current project is a renovation that should end up with me having two nice holiday cottages which deviates from my usual student lets. I'm expecting house prices to take a dive next year.
This was my exact thoughts tbh, been building a war chest. I sold all my what I call rental only property in 2015-16 as I thought a crash was coming It’s just where this flat is, it’s great and they never come up. The return is not great but it’s way better than a bank.
Factor in repairs, maintence, tenants not paying, nose dive in property values and so on, 6 percent net i just wouldent bother for, not for the hassle.
BTL works well for me, have 14 plus an office building...just bought two more over summer.
In it for the long term, if values go down a bit, it won’t be by much on apartments. Rents will remain the same anyway so return won’t be hit.
It may not be for everyone, but over 7 years, I’ve had one month’s void rent period on one apartment.
I refurbish myself, keeps costs down and I also enjoy it, having been in the industry my whole life helps..
Manage yourself, meet prospective tenants yourself, get proper references and credit checks, look after the property and tenants and it will pay dividends.
It’s still easily the best return I can get without risking a lot of capital.
We split earnings between us to make use of tax allowances.
For us it works, it doesn’t for everyone.
In it for the long term, if values go down a bit, it won’t be by much on apartments. Rents will remain the same anyway so return won’t be hit.
It may not be for everyone, but over 7 years, I’ve had one month’s void rent period on one apartment.
I refurbish myself, keeps costs down and I also enjoy it, having been in the industry my whole life helps..
Manage yourself, meet prospective tenants yourself, get proper references and credit checks, look after the property and tenants and it will pay dividends.
It’s still easily the best return I can get without risking a lot of capital.
We split earnings between us to make use of tax allowances.
For us it works, it doesn’t for everyone.
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