Are the eternal optimists on here still feeling optimistic?

MFW_ASAP

Crashy_Time wrote: »

Of course the fundamentals of government intervention are what has caused the indexes to stay positive on tiny sales volume, not demand. We will see how many still fancy a punt on BTL now that the goalposts have been shifted a bit.

Probably a lot more people today than yesterday given the instability of the stock market. Even with the withdrawal of a tax incentive, a lot of people investing for retirement income with still view BTL more positively than other investments. The value of the asset might fall, but the rental income never seems to change.

Crashy_Time

MFW_ASAP wrote: »

Probably a lot more people today than yesterday given the instability of the stock market. Even with the withdrawal of a tax incentive, a lot of people investing for retirement income with still view BTL more positively than other investments. The value of the asset might fall, but the rental income never seems to change.

Well my rent hasn`t moved in 16 years, so I would have to agree with you there.

MFW_ASAP

Crashy_Time wrote: »

Well my rent hasn`t moved in 16 years, so I would have to agree with you there.

The security of a long-term tenant regularly paying rent for 16 years is a difficult return to meet with other investments, it's even better than an annuity. You can therefore see why BTL is a popular choice as a retirement vehicle. With an increasing number of retirees having money purchase rather than final salary pensions, and with the new pension rules where you can withdraw all your pension pot, you can see BTL becoming increasingly popular.

ukcarper

Crashy_Time wrote: »

Well my rent hasn`t moved in 16 years, so I would have to agree with you there.

Iif rents haven't increased in the last 16years I can't understand what all the fuss is about.

Crashy_Time

MFW_ASAP wrote: »

The security of a long-term tenant regularly paying rent for 16 years is a difficult return to meet with other investments, it's even better than an annuity. You can therefore see why BTL is a popular choice as a retirement vehicle. With an increasing number of retirees having money purchase rather than final salary pensions, and with the new pension rules where you can withdraw all your pension pot, you can see BTL becoming increasingly popular.

Didn`t say I was in the same place for 16 years, must have had about ten landlords in that time, and the rent is so low that someone would really have had to buy their BTL some time ago to make any money. To my mind, if you had 150k to spend on BTL ( most don`t, they are trying to borrow the money) you might as well split it between premium bonds, a cash ISA and a FTSE tracker, much less hassle than tenants, broken boilers, toilets, showers etc. etc.

Crashy_Time

ukcarper wrote: »

Iif rents haven't increased in the last 16years I can't understand what all the fuss is about.

What fuss?

ukcarper

Crashy_Time wrote: »

What fuss?

The fuss that rents are to high and nobody can afford them and there is a fortune being spent on housing benefit.

Crashy_Time

ukcarper wrote: »

The fuss that rents are to high and nobody can afford them and there is a fortune being spent on housing benefit.

That is a media based fuss, mainly (or exclusively) dealing with London, and like house price indexes doesn`t really reflect the reality on the ground. As I say, if anything my rent is too low :rotfl:

ukcarper

Crashy_Time wrote: »

That is a media based fuss, mainly (or exclusively) dealing with London, and like house price indexes doesn`t really reflect the reality on the ground. As I say, if anything my rent is too low :rotfl:

It's not just London I know someone with a rental property in Hampshire and the rent on that has increased from £800 a month to £970 in 3 years.

MFW_ASAP

Crashy_Time wrote: »

Didn`t say I was in the same place for 16 years, must have had about ten landlords in that time, and the rent is so low that someone would really have had to buy their BTL some time ago to make any money. To my mind, if you had 150k to spend on BTL ( most don`t, they are trying to borrow the money) you might as well split it between premium bonds, a cash ISA and a FTSE tracker, much less hassle than tenants, broken boilers, toilets, showers etc. etc.

So in each of your 10 rentals, the landlords have charged exactly the same rental as each other? That's on odd coincidence. Are you sure that they were all of comparable quality over the years, or have they gone downhill as time has gone by and as the rental amount stayed the same?

You'd be struggling to get the sort of return from premium bonds, cash ISA and a tracker that would pay a retirement income. Have you looked at the returns from these investments? Those are probably the three worse vehicles for retirement income by the way, was that a deliberate choice to make a point? Are you a BTL investor really and just having a bit of fun?