Any Buy to Let Experts? Good and Bad Experiences Sought

[looney]

Parasite Capitalism with no social welfare value, no wealth creation value and regressive wealth redistribution, I mean whats not to like about these charming opportunists whos primary skill is being in the right place at the right time with a good enough credit history and unphased by beggar my neighbour economics.

The original idea behind this was it would be a tool for pensioners to secure their old age not as a credit fueled feeding frenzy.TBH I think its days are numbered as it will be a victim of its "success" and become politically unpalatable.


It was labour that brought this is yes?

 

[Biancazzurro]

As now seems pretty standard the old get richer and the young get poorer:

In its latest forecasts for the housing market over the next five years, estate agent Savills calculated the private rental market would account for 24 per cent of households in 2019, up from 20 per cent, while owner-occupiers would fall from 62 to 59 per cent. In the 35 to 49 year olds age group, the agent forecast 31 per cent growth in private renting to 2019, against continued growth in owner-occupancy among older age groups who benefited from the historic upsurge in capital values. (http://www.ft.com/cms/s/0/5eea0166-7567-11e4-b1bf-00144feabdc0.html#ixzz3NxmzgB2i)

 

[Ding Dong !]

Happy New Year All

I've thought about going down the buy-to-let route for some time now and, if brave enough, will make 2015 the year I commit!

Throughout the normal course of life, I've bought and sold properties (sole residences that I've lived in) and am now in the fortunate position of having a sizable amount of equity.

Rather than ploughing it all back into another residential property, I'm considering downsizing my residential property and using most of the equity to purchase a flat to rent out. (I'd still need some of the equity as a deposit on the residential property which would have to be mortgaged.)

As a beginner landlord, I would use a letting agency to manage the tenants etc. How astronomical are their fees?

I don't have a very high risk appetite; I've worked too hard for too long to risk losing it all now, so I'd want to play it as safe as possible, i.e. flat near Brighton station. But I'm petrified that tenants will trash the place and I'll end up spending any profit on repairs, or worse, end up in debt.

I'd still be working so looking to do this as a sideline to boost my woefully inadequate pension fund!

I do have an appointment with an IFA next week to discuss financials, but just thought I'd try and get some personal experiences, both good and bad, from the wise owls of NSC. Would you recommend it? Have you done and wished you hadn't?

So please share your thoughts, by PM if preferred. I would appreciate it.

Many thanks in advance.

Unable to advise on what you should and shouldn't do i'm afraid, however as a Locksmith, I'll be able to assist with gaining access and changing the locks ( with bailiff in tow for an eviction) when your tenants haven't paid the rent for XX months !!!

Just be aware, It happens a lot !!!!

 

[Diablo]

I would offer three pieces of advice.

1. A good tenant is better than a good rent. (If you go for top rent you may get lucky but will prob only have short term tenants so lots of changing/empty months etc)
2. Employ agent to find tenant do all checks hold deposit etc but then DIY. If property in good shape there should be no problems and you gain the 8/10% that Agent charges.
3. Unless you know what you are doing buy freehold property..not leasehold.

 

[Mr Bridger]

As now seems pretty standard the old get richer and the young get poorer:

The young will have to wait a bit until they're older before they get richer then, instead of having instant gratification.

I always thought thats how it worked, you work hard through your life , by working, investing, taking the odd gamble here and there ( some you win, some you lose).
I always thought you did this , so you could retire and have a relatively comfortable standard of living and maybe, just maybe leave something for your kids and grandkids when you leave this earth.

Apparently, this is criminal to some w@nkers on here, who either are hypocritical just to suit their own political views or just simply don't like to see other people succeed.

 

[Butch Willykins]

It always puzzles me that banks are quite reluctant to lend to younger people (with excellent career prospects ahead of them), but are more than happy to lend to older people, many of whom can't actually service their BTL debt out of their own income, so instead the BTL borrower gets those very same youngsters to pay off their mortgage for them. Which is fine with the bank!

 

[Shoreham Gull]

I have a BTL property for 6 years..

Like Ding Dong says, I had tenant not pay for rent for 2 months , even council told me to let them stay longer so they could help them move on.. ( problem was letting agent was told No DSS , but they done what they liked ). A few words given to tenants and they lefted quick and stole curtain poles, sky dish, fittings and tie backs, what ever they could steal...

You will Hate:
Tenants ( not all )
Letting agents ( had bad experience which now don't use, liars )
Any problems with property

Tenants will hate you too because you own the rented house, meaning your a millionaire and some try to Mugg you off!

 

[Gary Hart's Stalker]

Thank you all for your input, especially to those that have offered personal experience advice. Certainly some food for thought.

 

[Herr Tubthumper]

thats all very well to say, but how would you frame such a tax to avoid those who circumstances mean they rent out a property? or other landlords for that matter, who is going to provide private rental if you exclude anyone who borrows money to buy property?

The same way as before BTL's were opened up to the mainstream?

 

[Triggaaar]

The same way as before BTL's were opened up to the mainstream?

What, we use normal mortgages and everyone ignores it.

We also have more immigrants living here and needing to rent than we used to.

 

[Ernest]

What, we use normal mortgages and everyone ignores it.

We also have more immigrants living here and needing to rent than we used to.

The government build enough social housing to house everybody and then BTL vultures can rot

 

[Triggaaar]

The government build enough social housing to house everybody and then BTL vultures can rot

So you disagree with Herr Tub then?

 

[The Antikythera Mechanism]

The government build enough social housing to house everybody and then BTL vultures can rot

Could it be that you're POTLESS?

 

[Curryisgreat]

Depends, at 55 why not, if you have £ 50k , 12.5k tax free, 37.5k say 20% = £ 7500 you can access £ 42.5k of it and use it to build up a property portfolio whereas with an annuity especially if you are single you wait until 65 and if you die it ends up with the company, this way people will have a meaningful asset to pass on

How can you take 37.5k at 20% tax, given the 20% band is only £31865?

 

[Shoreham Gull]

The government build enough social housing to house everybody and then BTL vultures can rot

Do you think government, mp's etc don't have rental properties? ( what about there second homes lol )

Are they going to build billions of homes to drive down valve on what they own ( rich get richer and all that )

 

[Ernest]

Do you think government, mp's etc don't have rental properties? ( what about there second homes lol )

Are they going to build billions of homes to drive down valve on what they own ( rich get richer and all that )

Which is where it is wrong as they have a vested interest in the present system using government money in housing benefits to subsidise their BTL empires.

 

[Westdene Seagull]

How can you take 37.5k at 20% tax, given the 20% band is only £31865?

You've forgotten to take into account the personal allowance so 40% kicks in at 41k

 

[Diablo]

Social housing = Subsidised Housing paid for by taxes inc successful buy to let investors .

 

[Curryisgreat]

You've forgotten to take into account the personal allowance so 40% kicks in at 41k

I should have perhaps offered the clarification thatthe maximum that could be taxed at 20% is 31865. I aapreciate that it is possible an individual may have some 0 rate band still available but this unlikely for someone contemplating taking their entire pension pot out as US is suggesting.

I think it is very unlikely that individuals will choose to pay 40% tax just to jump on the btl bandwagon when they could manage their drawdown over more than one year to avoid paying higher rate tax.

 

[Herr Tubthumper]

So you disagree with Herr Tub then?

I'm an advocate of social housing. Whilst I do not wish to speak on anyone's behalf I think he's agreeing with me.