Is Buy to Let still worthwhile

eviled

eviled

eviled

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Obviously there has been some big changes to tax relief on BTLs, but was wondering if anyone with experience still felt them worthwhile?

I have my own house with a same mortgage, a commercial property with a mortgage, pensions and stocks and shares.

TIA
 
robfosters said:
Wouldn’t it be wise to see what happens with brexit and the next GE before even thinking about any property investment?
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On the flipside, all this unknown makes it probably a very good time to be a buyer. Prices are generally falling.

I'd say the get-rich-quick scheme of property holding is pretty much gone in this country. The ease that the boomers made money out of property was (hopefully) a one-off for a single generation due to massive inflation and terrible private rental sector rights.

That said, you could probably still do better than the pathetic savings rates.
 
Scam said:
On the flipside, all this unknown makes it probably a very good time to be a buyer. Prices are generally falling.

I'd say the get-rich-quick scheme of property holding is pretty much gone in this country. The ease that the boomers made money out of property was (hopefully) a one-off for a single generation due to massive inflation and terrible private rental sector rights.

That said, you could probably still do better than the pathetic savings rates.
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Boomers didnt do any better than my generation (b1985), if you consider that i entered buying property in 2008 post crash and have now seen over 100%. I am not sure whether my sons generation (b2014) will fare better but i dont feel hard done by in comparison to my parents gen at all.
 
With the increase in stamp duty and more laws that add extra red tape I don't think it's worth it. Perhaps, if you inherited a big cash lump sum or similar it might make it a bit more worth it otherwise probably not.
 
We’re just coming to the end of a first year of owning a holiday let, which has been an interesting and positive experience so far. In choosing it we made a point of it being something that we and our families would also want to get use out of, and we certainly have. Maybe an alternative to BTL, albeit one with higher initial and ongoing costs.
 
MissChief said:
BTL should be banned. Half the reason for the housing market being the way it is is BTL.
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BTL (let) is one thing, but the other BTL (buy to leave) is the one that boils my ****. It means that houses are being bought by investors who leave them empty and they go up in value. This contributes to the shortage of property and the wider homeless problem.
 
MissChief said:
BTL should be banned. Half the reason for the housing market being the way it is is BTL.
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A shame that BTL isn't the same as it was when I first bought a home in the 1990s, a 50% deposit on commercial loan rates was the norm. I wouldn't have a problem with that!




Jez said:
Boomers didnt do any better than my generation (b1985), if you consider that i entered buying property in 2008 post crash and have now seen over 100%. I am not sure whether my sons generation (b2014) will fare better but i dont feel hard done by in comparison to my parents gen at all.
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There has been a colossal amount of both Government & Bank of England meddling in the housing market since 2008, I am amazed it has been able t stay afloat so long under such artificial support.
 
Yes it is considering that having cash/shares at the moment is risky with our impending market crash next year ;-) just need to be careful with tenants!
 
As everything in life, risky.
If I had the money to buy outright, maybe. Mortgage, not brave enough. Way too many tenants who will destroy the property, few thousands to remove them, few thousands to refurb after them.
And considering the raising costs of living, quite few people may face problems paying their rents.
Or you can simply see an opportunity where other people see problems.
 
Jez said:
Boomers didnt do any better than my generation (b1985), if you consider that i entered buying property in 2008 post crash and have now seen over 100%. I am not sure whether my sons generation (b2014) will fare better but i dont feel hard done by in comparison to my parents gen at all.
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Boomers benefited from rising stock prices all the way upto the financial crisis particularly from around 1980, a reasonable 3 bed property could be purchased for around 2-3 times a full time workers annual wage in the year 2000, now you need similar money just to get into a one bedroom flat.

a lot of areas in the uk still down on the 2008 peak in terms of price, Maidstone, Liverpool, parts of Scotland.
 
Jez said:
Boomers didnt do any better than my generation (b1985), if you consider that i entered buying property in 2008 post crash and have now seen over 100%. I am not sure whether my sons generation (b2014) will fare better but i dont feel hard done by in comparison to my parents gen at all.
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You must be in London the magical money factory.

I know people that bought a house for £490k just before the crash. Today it's worth £380k even after 13 years. They will never sell it for a profit in their lifetime. It also needs a lot of work and money to get it back to like "new" when they bought it new kitchen, full lick of paint, new carpets, etc.
 
Psycho Sonny said:
You must be in London the magical money factory.

I know people that bought a house for £490k just before the crash. Today it's worth £380k even after 13 years. They will never sell it for a profit in their lifetime. It also needs a lot of work and money to get it back to like "new" when they bought it new kitchen, full lick of paint, new carpets, etc.
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Home counties, London has actually done a lot better still than where i am (Oxfordshire).The market has gone really quiet at the higher end in the last couple of years albeit still probably at 100% over the trough of 2008, probably due to all of the obvious external factors affecting everybody right now.

That is unfortunate for your friends, there was a lot of seriously overinflated (especially new or nearly new build) stock around in areas which do not have the natural demand of the home counties. Adding to the natural usually very bad value of these type of properties and you can see how people end up in situations like that. I have always gone for properties requiring heavy work or near total rebuild hence the market seeming very good during my adult life.
 
We've got two BTL properties and for me it has been worthwhile, however with the changes to stamp duty etc now it may not be. I used to manage them myself but with working full time I've had them fully managed now as it's less hassle for everyone. I wouldn't go back to self managed as it's nice not to be the point of contact, a good agent is worth their weight in gold too! We've just had a fire in one property though and it's damaged part of the kitchen, luckily the insurance will pay out for the fire damaged parts but we're having to get lots of other stuff done so the new kitchen doesn't look rubbish that the insurance won't cover so you have to bear in mind unexpected scenarios which could cost money.

Resident said:
Exactly this. To solve the other half a national licence scheme for landlords.
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Liverpool already has a landlord licensing scheme.
 
Pawnless Endgame said:
BTL (let) is one thing, but the other BTL (buy to leave) is the one that boils my ****. It means that houses are being bought by investors who leave them empty and they go up in value. This contributes to the shortage of property and the wider homeless problem.
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It's going to be interesting post Brexit (if it happens). On one hand the market will probably tank and a lot of people will be in negative equity. In the other hand the pound exchange rate will be so dire that it'll attract even more foreign "investment" (IE buy to leave)
 
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