Buy to let fever?

wisbech_lad

Tassotti wrote:

okay...been overcome by the doom mongers.

Portfolio for sale....Value £7300000


Passive Income £8k per month

Going to take the profit( 3.2 million) and invest in gold

Any advice on stocks and shares?

Did you tack on an extra zero by mistake...? 7.3m quid, 96,000 nett income a year = return of 1.3%.

Even if it is calculated as 96k on 3.2m equity - a yield of 3% is pathetic

You would do better with index linked gilts!!!!

annimarri

Don't believe in luck! It's just hard work, determination and staying focussed. Oh, and taking opportunities as they arise.

Good luck fellow property investors! Long live BTL!

meanmachine_2

If it isn't luck - coinciding with a worldwide housing boom - then none of you should fear any kind of correction.

Indeed, it'll merely sort the men from the boys, the "hard-working", from the lucky. Bring it on.

So, with houses, according to the Halifax, rising 3K in one month, that is nothing to do with temporary cheap credit, but everything to do with the hard work of a new army of BTLers!

I say medals, OBEs, etc all round.

BobProperty

annimarri wrote:

Don't believe in luck! It's just hard work, determination and staying focussed. Oh, and taking opportunities as they arise.

And knowing when to sell?

Conrad

F_T_Buyer wrote:

Making money out of property is not as easy as it once was, and K&P producing a program to ramp BTL is purelly irresponsible.

Yes, Ive now sold my B2Ls and am investing abroad as the total returns should be far greater over the next 5 years. I can always re - enter UK B2L but with a lot more capital as a result of my foreign exploits.

Im very careful and thorough buying abroad, and in fact find it no more hassle than buying here.

Ive been investing in Berlin and more recently Saidia Morocco.

Conrad

BobProperty wrote:

And knowing when to sell?

I agree, but its also knowing when to buy. Those of the pessimistic persuasion always find reasons not to invest in new opportunities. They rely too heavily on logic yet history nearly always shows new investments to be illogical.

For example B2L in Ireland 10 years ago, I recall the pessimist declaring it was far too risky given the political landscape. I recall them saying mobile phones were a gimmick for the few. I recall them calling investors into Croatia in 1997 'muppets' yet those muppets have seen 400% growth.

My current pet project is Saidia Morocco. As usual the pessimists have it all wrong again and will sit this one out.

When to buy is as important as when to sell.

BobProperty

Conrad wrote:

For example B2L in Ireland 10 years ago, I recall the pessimist declaring it was far too risky given the political landscape. I recall them saying mobile phones were a gimmick for the few. I recall them calling investors into Croatia in 1997 'muppets' yet those muppets have seen 400% growth.

On the other hand 8 Track was a better quality system than cassettes and what happened to Betamax? (I'm sort of kidding )

Conrad wrote:

I agree, but its also knowing when to buy....When to buy is as important as when to sell.

The problem I see is that a lot of people have bought too late and even more people don't have a strategy for, or a defined, exit point/criteria.

Conrad

BobProperty wrote:

The problem I see is that a lot of people have bought too late and even more people don't have a strategy for, or a defined, exit point/criteria.

I agree, they arent really investors they are chancers. Investors tend to move in and out as sectors rise and fall.
Sure some property investors never sell but I suggest these are those that bought at the right time in the 1990s and therefore the yield against outlay remains good for them.

Im a serial property investor but when I tell other property people my Unit Trusts (stock market based) have out performed my property they think Im joking!

Investors IMO ought to consider all investments and not blindly follow the herd.

BobProperty

Completely agree Conrad. If you have made the decision to buy and never sell, fine. I know of people who pretty well have done that. (I think they have sold the odd property now and again but the people I'm thinking of own about 130 houses all within a few miles of each other).
Stockmarket is up about 60% from 3 years ago. Gold is around $680 from a long flat period at around $380-$400. Copper is through the roof, I heard, etc. But people are buying property with 5% gross rent return and expecting the 8% average capital growth to make them money, not realising they are buying at or near a peak in prices.
I can't remember who it was (I'll go and Google it), but a famous investor was once asked "How did you get rich?" The answer was "I sold too soon".

meanmachine_2

Conrad, I applaud your forward thinking. You are the definition of a contrarian, and it takes b@lls to be one of those.

But I'm afraid most punters invest by looking at what has already made money.

"Property in the UK has made money, therefore it will make money" etc, and that's what these programmes play on - the laziness of the herd.

I maintain that the UK property market is a busted flush on the one hand, but that it doesn't do soft landings on the other, hence the Halifax index showing the market charging headlong into insanity.

There was a chance for logic to return to the market last year, but then the MPC blew it by cutting rates.