The joy of being a landlord

OspreyO said:
I've only skimmed the studies. Maybe other studies have different outcomes. But the long term studies I read suggest that shares or property do similarly in the long term with property doing better in general.

I think personally property is less risky. But rental isn't simply property it also business with cash flow. I would say the rental part of property is high risk. Problem with a tenant has the potential to negate returns on rental income. So you could argue having property you don't rent has a similar return in the long term for far less work.
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What buy and don't rent out, in the hope that the market raises to sell on for a profit?
I'm thinking more of a steady income stream to subsistence my pensions.

Surely buying a plot of land with no houses, which was a "thing" a while back would be better and buying a house? there's barely any upkeep costs... a business man has purchased most of the land around my village and just holding it, he made a tidy profit on some of it when HS2 was planning to use some of it, but when HS2 plans got changed; I believe he brought the land back at a much cheaper prince.
 
OspreyO said:
I've only skimmed the studies. Maybe other studies have different outcomes. But the long term studies I read suggest that shares or property do similarly in the long term with property doing better in general.

I think personally property is less risky. But rental isn't simply property it also business with cash flow. I would say the rental part of property is high risk. Problem with a tenant has the potential to negate returns on rental income. So you could argue having property you don't rent has a similar return in the long term for far less work.
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As a real world example I had a BTL for 5 years (accidental landlord) and as a rough guide I made about 20% in capital appreciation and a 4% rental yield (gross). Over the same period my SIPP increased around 50%.
 
slinxy said:
What buy and don't rent out, in the hope that the market raises to sell on for a profit?
I'm thinking more of a steady income stream to subsistence my pensions.

Surely buying a plot of land with no houses, which was a "thing" a while back would be better and buying a house? there's barely any upkeep costs... a business man has purchased most of the land around my village and just holding it, he made a tidy profit on some of it when HS2 was planning to use some of it, but when HS2 plans got changed; I believe he brought the land back at a much cheaper prince.
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People have different end goals. And it depends on what the market is doing.
 
Personally buying a do up house 5 years ago was a good investment considering the value of the house increase almost by 45% after renovation and capotal appreciation. Now thinking of pulling equity out for 2nd house do up to potentially rent out or sell. It depemd i sippose on what people want to do as i loved the process of learning to plaster, paint and decorate, and fix things. What a saving over hiring trade people to co.plete the jobs
 
OspreyO said:
You're over sharing. Some people don't get its a business. They don't want to get it. They aren't really interested in the business of it.

It's the same on other forums. Only place you can discuss business is business sites or financial sites.
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It is a business to you, a home to the renters. That inconsistency is the problem
 
D.P. said:
But there might be less renters and more hole owners, which will be good given the UK's complete lack of proper renter protection
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But there will still be not enough housing for everyone. The problem remains just shuffled around a bit. Watch out for the massive dormitories of shoebox flats get built, owned by faceless companies backed by foreign money. The renters lot will get worse
 
D.P. said:
But there might be less renters and more hole owners, which will be good given the UK's complete lack of proper renter protection
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I take it you mean less renters and more home owners. I don't think there's 1 policy to make more homeowners and the UK population had 900,000 immigrants last year and year on year. With about 500,000 leaving. While new house builds is slightly over 200,000 per anum. All that adds up to an increased demand for homes with a decreased supply.
 
hurfdurf said:
Reeks of poor me poor me nobody but other LL's understand us misunderstood Landlords! They don't even want to listen to us!
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Reeks of hard of reading.

No point explaining something to people who either don't understand or don't want to understand.

Expecting social or public housing from the private market is fundamentally flawed.
 
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My dad died in November last year and as part of his estate is an unoccupied for 30 years 2nd home. Its uninhabitable but in a pretty handy part of town and has been valued at probate at 175-190k. I thought it was going to be plain sailing helping my mum out sorting the estate but now my brother has stuck his oar in about this house. His plan is to lease it to the local council for 5 years, who will do it up and guarantee income for 5 years.

It looks to me like THE worst idea I've ever heard in my life but he's getting increasingly adamant to the point of really stressing my mum out. He also lives about 4 hours drive away so presumably is expecting either me or my mum to sort it out going forward.

Not only will it bring CGT into it in the future, your also at the complete whim of whichever sort of individual the council put in there.

Has anyone ever given this sort of scheme a go?
 
rhobbyh said:
My dad died in November last year and as part of his estate is an unoccupied for 30 years 2nd home. Its uninhabitable but in a pretty handy part of town and has been valued at probate at 175-190k. I thought it was going to be plain sailing helping my mum out sorting the estate but now my brother has stuck his oar in about this house. His plan is to lease it to the local council for 5 years, who will do it up and guarantee income for 5 years.

It looks to me like THE worst idea I've ever heard in my life but he's getting increasingly adamant to the point of really stressing my mum out. He also lives about 4 hours drive away so presumably is expecting either me or my mum to sort it out going forward.

Not only will it bring CGT into it in the future, your also at the complete whim of whichever sort of individual the council put in there.

Has anyone ever given this sort of scheme a go?
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I mean... as already said unless he is an executor then the power is with you / your mum (could mean awkward Xmas day dinner however)

but is it such a bad idea? if the house is a wreck now then so what if you get bad tenants. the council will do it up and give you 5 years guaranteed income and at the end of it you will likely have a house in better shape than it is now .

long term I have always gone on the notion that property is a fairly safe bet.

sorry for your loss..... nothing brings out the family tensions more than money unfortunately. IF you or your mum really dont want the hassle then tell your brother it's all on him..... (but the money still goes to your mum of course)
 
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