BTLs, are you planning to sell?

StevieJ

Gorgeous_George wrote: »

BTLs, are you planning to sell?

No, never.

If I had to reduce the rent by 75%, I'd still be happy with the income compared to original price paid. But I don't. Rents are still rising in some places though I do not doubt that they may be falling in others.

My plan is for the BTL to provide the equivalent of a week's pay (per month) for when I retire. Pensions will pay another couple of weeks (all being well). Being mortgage free should negate the need for the final week's pay.

Just need to live long enough to see the plan mature.

GG

Don't forget your state pension and possibly increased tax relief. BTW have you been in the Euromill lately?

macaque_2

Dithering_Dad wrote: »

For those who are fearful of losing their jobs, any who are in rented accomodation will stay put and those who lose their jobs might sell up and rent. Your examples seem to point towards more people renting, putting pressure on the number of rental properties available and pushing rents up.

Professional investors look at information and use it to draw rational investment decisions. Amateur landlords tend to work the other way round. They make an investment decision and then try to intepret the information in a way that supports their original investment decision.

Your response is a classic example of back to front analysis so beloved by the BTL community. You correctly observed that current events will increase demand for rented accomodation. Demand on its own however is not enough. What you need is demand combined with affordability. Rukhsana Kashmiri is a victim of this type of analysis.

Landlord Rukhsana Kashmiri is owed nearly £9,000 in rent on her property in north London, after both her tenants lost their jobs.
"I'm on anti-depressants and pain-killers, " she says. "My health is not good, and my whole body is aching."

According the the National Landlords Association, over 30% of tenants are struggling with their rent. This is essentially saying that demand for rented accomodation at today's prices has fallen by a third.

chucknorris

macaque wrote: »

Rukhsana Kashmiri is a victim of this type of analysis.

I wouldn't think she is a typical LL though, why didn't she commence eviction proceeding immediately the rent was 2 months behind. She obviously has no idea what she is doing. In the last few mins I just saw her on the BBC news, I'm sure it said/implied that she has not even started eviction proceedings.

lostinrates

chucknorris wrote: »

I wouldn't think she is a typical LL though, why didn't she commence eviction proceeding immediately the rent was 2 months behind. She obviously has no idea what she is doing.

I think resentment is many directed at the number of LL who do seem to have little idea of what they are doing but saw BTL as a quick easy and effortess financial reward with no risk and few responsibilities.
LL who know their rights and honour their responsibilities are valuable. A thread from the contributer lutton on the buying and renting board was partiticularly demonstrative of LL who not only knows their stuff but in addition seems to have excellent social responsibilty, and won my sympathy on that. There are numerous counter examples of posters who pop up to ask odd questions showing significant lack not only of higher and undemandable morality, but of basic research and understanding. Sadly.

chucknorris

lostinrates wrote: »

I think resentment is many directed at the number of LL who do seem to have little idea of what they are doing but saw BTL as a quick easy and effortess financial reward with no risk and few responsibilities.
LL who know their rights and honour their responsibilities are valuable. A thread from the contributer lutton on the buying and renting board was partiticularly demonstrative of LL who not only knows their stuff but in addition seems to have excellent social responsibilty, and won my sympathy on that. There are numerous counter examples of posters who pop up to ask odd questions showing significant lack not only of higher and undemandable morality, but of basic research and understanding. Sadly.

I agree absolutely, I saw a documentry about some idiots who saw an ad in the Daily Mail and just believed the fake valuations and rental projections and actually bought the new build flats in Leeds without even doing a desk top study never mind going there (which they didn't). Of course idiots like this would lose any investment eventually anyway as they just don't have any nous. But I don't think these are in the majority it's just that they are so stupid they attract a lot of attention.

macaque_2

chucknorris wrote: »

Of course idiots like this would lose any investment eventually anyway as they just don't have any nous. But I don't think these are in the majority

The evidence says you are wrong. The market is awash with BTLs trapped with property portfolios in a market with falling rents and falling capital values. Anyone with even the most rudimentary analytical skills could have seen this coming.

Having read these forums for several years, it has been evident that the professional landlords have already severely pruned their portfolios and are waiting in the wings with cash piles.

ds1980

Sorry felt the need just to come in on this point.....have been away for a while as these forums got ever so boring. There appears to be this saying of "professional" landlords or "professional" investors? What exactly are these? I have buy to lets and know what im doing but i certainly am not a professional in the matter?

At the end of the day there are people who know what there doing and people that don't. The way i look at it is that it's my money and i can do what i like with it.

The difference between the people that have an idea and the other people that don't is that we realise that our money is only the money we put into it in the first place and the money i get out (before tax) not the rest of which is borrowed and will comtinue to be this until it is either paid off or is given back to the bank.

Anything i do now i do myself because no one knows what will happen and most of it is down to luck no matter what anyone says. Yes you can create that luck but being in the right place at the right time will always, always be the biggest reason why anyone makes money. I am no different.

Could you tell me what a professional gambler is????

londondealer

No way in fact I'm looking for another property.

macaque_2

ds1980 wrote: »

Sorry felt the need just to come in on this point.....have been away for a while as these forums got ever so boring. There appears to be this saying of "professional" landlords or "professional" investors? What exactly are these? I have buy to lets and know what im doing but i certainly am not a professional in the matter?

At the end of the day there are people who know what there doing and people that don't. The way i look at it is that it's my money and i can do what i like with it.

Within the context of this discussion, an amateur is someone who has a poor understanding of how to conduct a BTL business and has inadequate understanding of his/her responsibilities.

Professional landlords provide a valuable service and I approve of their activities. The alarm bells go off for me when people come out with comments like "it's my money and i can do what i like with it". If you do something stupid with your money as a landlord, it is the tennants who pay the biggest price. Losing a roof over your head because a pea brained BTL had failed to get his/her sums right is a traumatic and unpleasant business.

ds1980

You've just spelt out the problem nicely. Suppose all the banks that went bust and lehman etc were all amateur outfits were they? I'm sure there are a lot of people whom trusted a certain icelandic bank but are now paying the price!

There are plenty of landlords etc that did their sums etc but then got injured at work, or got made redundant, lost a partner. Suppose these fall intot he same catergories?

What your doing is tarring everyone with the same brush. Move on and jump on the ship next time it sails by.

ps forgot to add can you tell me what a professional gambler is??