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[Finance] Buy to Let Mortgages
- Thread starter Renegade1
- Start date
Historically correct....................although a mix is probably best for most people. Interesting data here :
https://propertymoose.co.uk/blog/stocks-and-shares-vs-uk-property-investment-graph/
- Thread starter
- #83
Really?Are you sure?
- Thread starter
- #84
I wouldn't touch stocks and shares.For a start I know little about them.If I was loaded I would mix it about a bit but am not.
House prices can't keep going up at the same rate forever though....
Property historically a sound investment but so many other factors to consider apart from pure value - liquidity, income, interest rate volatility (recent years have been very, very low and stable - not guaranteed to remain so). Not sure if the additional 3% stamp duty is having much effect yet ?
- Thread starter
- #87
They don't have to forever.20 years is cool by me.
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- #88
You can make alot with stocks and shares and in a short period of time but for me it's too risky and as I said I know zilch about them.I'm happy to play it safe with property.
Not at all for me - very much a long term thing to avoid short term volatility. I'm no expert either, so I always use funds rather than direct equities.
- Thread starter
- #90
Well it seems you know about stocks and shares and where to put your money but I don't.As you know stocks and shares are almost like gambling.
Nothing like gambling........
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- #92
Let's say you had 100k.Where would you put it,what returns would you expect,in what space of time,and how safe?
Tricky Dicky
New member
Really ? I'm not getting out, and I don't know of any others who are. I don't take advantage of my tenants, I keep my rent down if I can, but it returns me a decent amount, so I'm happy.
I've talked about this on here before and I am sure people can find better, but I've used The Share Centre and taken my full ISA allowance and used it against their pre-packaged Stocks Share ISA. Given mine are long term investments I have taken a 'Adventurous' profile and on most of my years allowances I've seen around 15-30% growth since they were taken out.
https://www.share.com/accounts/isa/ready-made-isa/investment-choice/
Anyone coming into it now is facing stamp duty surcharge and the prospect of slow capital growth for a while.
One you have a tenant, your profits will probably be eroded by changes to the tax system being phased in , in the four years heading up to 2020.
That’s not to say it can’t work, especially if you already have a place and longstanding tenants - sounds like you have a good arrangement , Tricky.
But any new btletters, thinking it’s easy money should do their homework.
Also If you’re buying a flat watch out for length of lease (plenty running down in Bn) and management charges.
A btl I bought in 2006 has done me ok but the tax changes mean it won’t be viable by 2020 . Also the management company changed and trebled maintenance charges. These are the main reasons I accepted an offer last week.
As for tenants - they can be great but can be a nightmare. You will be surprised how few rights you have if a tenant plays up. For example when a tenant handed in their notice I arranged viewings but when I spoke to her to arrange access she said no, no to any access for viewings at any time. no reason given.
Turns out tenants can do this. That meant I couldn’t do viewings til after she’d gone. The flat ended up being empty for 6 weeks.
I only say all this as a friend of mine was going on about buying a btl and had no idea about the realities and tax changes etc. It was frightening , how little he knew given the money he was considering ploughing in. Go in with your eyes open.
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....and all tax free in the ISA wrapper.
I don't disbelieve you - have stats been released showing they're getting out, or is that just what's stated in the media or what?
Viable? Rents have increased since then, property prices have doubled, how is it not viable? I bought a btl in 2006, and the rent could be 3 times the current mortgage.
Uncle C
Well-known member
Sadly we are not talking about people who bought quite a few years ago, but deluded idiots today who still think its viable.
The weak £ post Brexit vote has given huge growth in uk equities prices. It was a one off.
But graphs over any medium to long term timescale, show residential property in SE England destroys everything else on capital appreciation. Simple principle of supply & demand - nimby councils and communities fight all developments, whilst the population keeps increasing as do the number of family units.