Discussion
We owned 2 buy to lets up until 6 years ago, now looking to get back in to owning at least 1 property for our future plans.
We aren't looking to gain short term, more of a long game, aiming for capital growth rather than monthly yield if thats possible. Even if it were to just wipe its nose clean at the end, our mortgage will have been paid for and we have an asset we can sell, thats the plan anyway.
Is it worth it currently?
We would consider a "do'er upper' to sell quickly and rinse and repeat but dont see much of a profit in them as we cant do the work ourselves.
We aren't looking to gain short term, more of a long game, aiming for capital growth rather than monthly yield if thats possible. Even if it were to just wipe its nose clean at the end, our mortgage will have been paid for and we have an asset we can sell, thats the plan anyway.
Is it worth it currently?
We would consider a "do'er upper' to sell quickly and rinse and repeat but dont see much of a profit in them as we cant do the work ourselves.
rufmeister said:
We aren't looking to gain short term, more of a long game, aiming for capital growth rather than monthly yield if thats possible. Even if it were to just wipe its nose clean at the end, our mortgage will have been paid for and we have an asset we can sell, thats the plan anyway.
I'm sure you can achieve this. You'll be met with plenty of demand. Always interested to see others ideas & thoughts but, in my mind if this is retirement/future planning & you’re content with looking for capital growth on a single property as what appears to be the only “pension” for you & other half it maybe looks like all eggs in one basket.
Don’t know your full circumstances but I’d maybe put more details on here where a lot of more knowledgeable folks can help give a steer or else seek advice from an IFA.
Discussions elsewhere are we all need private pensions as state one is poor & potentially not going to be available fir a long time.
Between the lines - you’ve gone from 2 properties in the past to none, & now looking to borrow for 1, so I’m betting you’ve used that capital elsewhere, combined with no pensions so guessing self employed? If not you must be missing out on employers contributions & tax relief which together are probably the best returns you’d get for retirement planning …. In my opinion)
Don’t know your full circumstances but I’d maybe put more details on here where a lot of more knowledgeable folks can help give a steer or else seek advice from an IFA.
Discussions elsewhere are we all need private pensions as state one is poor & potentially not going to be available fir a long time.
Between the lines - you’ve gone from 2 properties in the past to none, & now looking to borrow for 1, so I’m betting you’ve used that capital elsewhere, combined with no pensions so guessing self employed? If not you must be missing out on employers contributions & tax relief which together are probably the best returns you’d get for retirement planning …. In my opinion)
We are directors of a business that hopefully will
Have some value in the future, as part of our retirement plans.
We sold the other 2 properties as it started to become a stress with 2 non-paying tenants and I just had enough so sold them. After capital gains there wasn’t huge amounts in them as we were only in them a few years.
I’m looking at 10-15 years down the line to release the capital.
Have some value in the future, as part of our retirement plans.
We sold the other 2 properties as it started to become a stress with 2 non-paying tenants and I just had enough so sold them. After capital gains there wasn’t huge amounts in them as we were only in them a few years.
I’m looking at 10-15 years down the line to release the capital.
With no pension and a reliance on BTL, one thing to consider is that when you are looking to retire, property is an illiquid asset - to realise the value in the growth you would need to sell the whole property, incurring a Capital Gains charge, and leaving you with a (hopefully) large sum that you would need to invest in other ways, this would be too large to invest directly in tax free ISA's in one year.
rufmeister said:
Thanks, we don’t have a pension, do need to do something quickly, and there’s not much else I can think of.
It’s when I think of voids, repairs, non-payers etc that gives me flash backs to previous properties.
But the right property and find the right tenants and you can mitigate a lot of that. Our tenants stay on average over 5 years each. We keep rents below market rate. So why wouldn’t they look after the property and pay on time every month? If they leave it’s going to cost them more every month that’s if they can even get another property. He’s bankrupt many wouldn’t touch him. I only ever hear from them when they want to spend their own money to improve the property. It’s when I think of voids, repairs, non-payers etc that gives me flash backs to previous properties.
It’s not all doom and gloom out there.
BoRED S2upid said:
But the right property and find the right tenants and you can mitigate a lot of that. Our tenants stay on average over 5 years each. We keep rents below market rate. So why wouldn’t they look after the property and pay on time every month? If they leave it’s going to cost them more every month that’s if they can even get another property. He’s bankrupt many wouldn’t touch him. I only ever hear from them when they want to spend their own money to improve the property.
It’s not all doom and gloom out there.
Good view on it, thanks.It’s not all doom and gloom out there.
On the other hand the amateur BTL game died several years ago. Just check out how much tax you'll end up paying through your proposed project and have a glance at all the regulations you'll need to comply with.
Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
rufmeister said:
BoRED S2upid said:
But the right property and find the right tenants and you can mitigate a lot of that. Our tenants stay on average over 5 years each. We keep rents below market rate. So why wouldn’t they look after the property and pay on time every month? If they leave it’s going to cost them more every month that’s if they can even get another property. He’s bankrupt many wouldn’t touch him. I only ever hear from them when they want to spend their own money to improve the property.
It’s not all doom and gloom out there.
Good view on it, thanks.It’s not all doom and gloom out there.
As a small time BTL landlord I'm seriously thinking of selling off my properties once my fixed rate mortgages end (one of them is still on ~1.5% 
) Doesn't make any sense to do it at higher mortgage rates when you can invest the equity at 5% risk free.
This year I've already had to replace a leaky bath and deal with the consequences of the leak, will have to replace some Velux windows, paid service charges which have been inflated to over a months gross rent now, and of course paid my SA tax bill
Haven't seen much capital appreciation over the last few years either.
) Doesn't make any sense to do it at higher mortgage rates when you can invest the equity at 5% risk free.This year I've already had to replace a leaky bath and deal with the consequences of the leak, will have to replace some Velux windows, paid service charges which have been inflated to over a months gross rent now, and of course paid my SA tax bill
Haven't seen much capital appreciation over the last few years either.One thing to bear in mind is that you cannot now claim your tax back on interest payments for BTL, this has had a significant impact on affordability - you will be paying tax on income that you have had to pay out to the mortgage company.
Maybe you could purchase the property through the business, then you could claim the interest. You would then, however, have the problem of seperating the money out from the business at sale (or maybe thats actually how you get the money out, you sell it when you sell the business)
Maybe you could purchase the property through the business, then you could claim the interest. You would then, however, have the problem of seperating the money out from the business at sale (or maybe thats actually how you get the money out, you sell it when you sell the business)
rufmeister said:
We would consider a "do'er upper' to sell quickly and rinse and repeat but dont see much of a profit in them as we cant do the work ourselves.
Also, just like old classic cars, refurbed old houses can hide a lot of bodging that would be impossible to conceal when unrestored.
Panamax said:
On the other hand the amateur BTL game died several years ago. Just check out how much tax you'll end up paying through your proposed project and have a glance at all the regulations you'll need to comply with.
Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
Absolutely!Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
If there’s capacity for pension payments & tax savings.
Instead of a house deposit it’s feasible to double a lump sum in 5years….
Panamax said:
On the other hand the amateur BTL game died several years ago. Just check out how much tax you'll end up paying through your proposed project and have a glance at all the regulations you'll need to comply with.
Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
Is the correct answer.Then compare hugely tax-advantaged investment in SIPP and/or ISA. Cumulated net returns from those should absolutely obliterate net returns from BTL and, better still, you won't find yourself locked into one large and illiquid investment.
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