Residential buy-to-let - now more attractive?

Residential buy-to-let - now more attractive?

Author
Discussion

srebbe64

Original Poster:

13,021 posts

238 months

Wednesday 10th October 2007
quotequote all
I was thinking today, that now that CGT will be reducing to 18% it makes the buy-to-let sector more attractive. The thing that's put me off in the past is the 40% CGT applied to the capital gain on the disposal. Also, presumably there are other people out there like me, so that could increase demand and therefore increase house prices. Anyone else got a view?

scotal

8,751 posts

280 months

Wednesday 10th October 2007
quotequote all
The problem at the moment Srebbe is making the numbers add up form a financing point of view. Rental calcs have been stretch by the rise in property values alongside the relative stagnation of rental income.
It can still be done, but its certainly not a no-brainer.

srebbe64

Original Poster:

13,021 posts

238 months

Wednesday 10th October 2007
quotequote all
Yeah, I realise that. But I'm thinking it's good to have lots of eggs in lots of baskets, in terms of investments. What with the reduction in CGT it makes something I've always been unimpressed with (BTL) look a little more attractive. I've got a number of commercial properties (yielding 8%+) and I'm thinking a range of investments including pension, commercial, resi property and a few other things is a reasonable spread.