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Personally, the only thing that would make BTL attractive to me would be the leverage, albeit if I had the assets to cover the debt. Most other things about it are negatives: tax status, ongoing costs, illiquid, not diversified, and so on.
You may find a property with a decent return, but I would think there are far better alternatives out there if you were planning to purchase a BTL outright with cash.
Learning more about equities and the tax status of various investments (including BTL) would be helpful.0 -
findingtaxtaxing wrote: »Yes, I'd use an agent to fully manage things. I don't have the time or knowledge to do everything myself.
Letting agents often have little knowledge too. They're just good at sounding like they do.0 -
Now is not a good time, particularly if you are in the 40% tax bracket and it will only get worse next year.
The tax increases for landlords, just don't make it worthwhile anymore. I make a profit on my flat, but with the government taking 40% for tax and the remainder to pay off the mortgage (you can only deduct mortgage interest), I'm actually cash poor each year for having the BTL and have to subsidize the flat."No likey no need to hit thanks button!":pHowever its always nice to be thanked if you feel mine and other people's posts here offer great advice:D So hit the button if you likey:rotfl:0 -
I am a landlord and we are doing all right. The properties are all managed by an agent. 3 agents in total for 3 sets of properties in different areas. We didn't buy the cheapest houses in an area. We have more than one property. I did a lot of research before buying to find a gap in the local market.0
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Are you in your "forever home"?
If not I would not consider entering into the rental sector.
Moving will attract higher rate stamp duty as you would own an additional property and the duty would almost certainly outweigh any income from the rental for maybe a considerable period of time
I am another who has been down the LA route and now finds it easier to manage without them.
Look into tenant find only contracts with agents they tend to give you more flexibility going forward especially if you are confident about arranging your own repairs etc.in S 38 T 2 F 50
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Think of it as a business, not an investment. If you want to run a business, being a landlord is a gentle introduction. If you just want a return on your capital, I think it's a very poor choice.0
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Long term your likely to get just as good, or even better returns, from a well managed and diversified stocks and shares portfolio, with none of the hassle involved with being a landlord.0
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Long term your likely to get just as good, or even better returns, from a well managed and diversified stocks and shares portfolio, with none of the hassle involved with being a landlord.0
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But as an investment houses are as safe as it gets pretty much. Name me a time in history when prices went down and stayed down? They always recover.
Keep your nerve during recessions.0
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