Risk

IveSeenTheLight

grizzly1911 wrote: »

For a "professional" but I am sure there are many amateurs out there who hope for a capital gain as part of the equation at some point.

Let's be clear, every asset owner would like to gain from the capital once sold off.
It's just not part of the calculation during the rental business.

It may of course needs to be a calculation if considering getting out of the investment, for CGT purposes.

IveSeenTheLight

Graham, still wondering in terms of risk, lending and borrowing: -

IveSeenTheLight wrote: »

Graham, can I ask you? What investment would you recommend in the current market that provides a return with a reduced risk basis?

Sorry to keep bringing it up, but I am genuinely interested to know if you have an alternative proposal.

purch

Risk is often a very misunderstood concept.

A 100% LTV mortgage could easily be less risky than a 50% LTV one.

Risk is also measured in many different ways, for many different reasons.

Most of the reduction in lending by Banks and others is matter of solvency, not risk.

chucknorris

Thrugelmir wrote: »

Any Landlord that works on 52 weeks of rental income a year is odds on to hit trouble at some point in time.

I've been a landlord for almost 22 years and during that time I have held an average of about 4-5 properties and I have never experienced a rental void. Other than self induced voids (3 times) whilst I refurbished properties. I used to factor in rental voids annually in my appraisals, but now I only factor one in every 5/6 years for redecoration/other work.

I'm not saying landlords don't have rental voids (they do) but I am disputing your reference to 'any landlord' it depends on the location and how you operate (I don't try to milk it, I am quite happy to be slightly under the market to secure better tenants and avoid rental voids) the London market is good and has been for most of the last 22 years.

chucknorris

dryhat wrote: »

I'm making a nice 7% return on lending to small businesses.

Much better than BTL and much less hassle.

A decent BTL investment over the long run will easily provide more than a 7% return, unless you don't know what you are doing and/or buy in an area with low yields.

purch

chucknorris wrote: »

you don't know what you are doing

There are plenty of amateur BTL numpties who fall into that category :eek:

chucknorris

purch wrote: »

There are plenty of amateur BTL numpties who fall into that category :eek:

I'm not saying that there aren't, but I'm sure that you don't invest badly just because other fools do.

Graham_Devon

IveSeenTheLight wrote: »

Graham, still wondering in terms of risk, lending and borrowing: -



Sorry to keep bringing it up, but I am genuinely interested to know if you have an alternative proposal.

I dunno why you are asking me this?

It's a bit random old fella.

dryhat

armour wrote: »

Congratulations, you're making a nice fat profit and helping SMEs at the same time.
Could you give some more details as I'm looking for a "risk free" home for my BTL profits.

This is a good place to start ...

https://www.fundingcircle.com/


Obviously these schemes wouldn't suit your average BTLer because it is not a leveraged investment and you need to have some money of your own.

chucknorris

dryhat wrote: »

This is a good place to start ...

https://www.fundingcircle.com/


Obviously these schemes wouldn't suit your average BTLer because it is not a leveraged investment and you need to have some money of your own.

How much do you have to put in? We are expecting to put in at least 110k on our next investment property (if/when a suitable property becomes available):

£82.5k - 30% deposit
£13k - allowance for initial work
£8.25k - stamp duty
£3.5k - fees (solicitor, val, mortgage etc)
£3.5k - furniture

Surely the minimum investment isn't more than 110k!