Mr osborne

ognum

Now let put some reality into the anti BTL posts

BTL is fine as part of a spread of assets, I would not suggest you have one egg in one basket.

I have several BTLs, I have never had a house trashed, never had a late rent payment, always had good tenants, always maintained my properties. I am aware it can happen I have financial contingencies if it does.

I also have a good (tax deductable) independent letting agent to manage the properties on a day to day basis. I do not scurry round to mend things, I have a great accountant and keep careful records of the outgoings on each property.

The properties produce a good income and have all increased in capital value since they were bought.

Yes if/when I come to sell there will be a CGT payment.


BTL has it's place within a financial portfolio for retirement.

dunstonh

I have several BTLs, I have never had a house trashed, never had a late rent payment, always had good tenants, always maintained my properties. I am aware it can happen I have financial contingencies if it does.

In the credit boom days, anyone could make money out of buy to let. Now it takes more care, experience and knowledge. You sound as if you are prepared. However, a good many out there still see it as the easy money option

I also have a good (tax deductable) independent letting agent to manage the properties on a day to day basis. I do not scurry round to mend things, I have a great accountant and keep careful records of the outgoings on each property.

letting agent, reducing your return. Accountant reducing your return. Tax reducing your return. All of a sudden, it starts sounding more like conventional investments.

BTL has it's place within a financial portfolio for retirement.

It certainly does and with the right properties, the right mindset and knowledge and an understanding of the risks involved, it is viable. It just isnt as easy as it used to be.

The OP thinks he can get a net rental yield better than a pension income. So, he is looking at about 6% after tax, charges, letting agent etc etc. A net 6% yield is not easy to find.

kidmugsy

DonM wrote: »

... according to a recent survey, 1 in 8 people eligible intend to withdraw their full pension next year. 16% of whom plan to purchase property.

That sounds like a property market top coming up.

pops66

A pension pot invested in the stock market is an investment. A property is a business.

If the pension pot is well spread, or say in an index tracker, you haven't got all your eggs in one basket. Buying a property implies work. Fine if you want to do it. Fine if you know what you're doing. If.

ognum

pops66 wrote: »

A pension pot invested in the stock market is an investment. A property is a business.

If the pension pot is well spread, or say in an index tracker, you haven't got all your eggs in one basket. Buying a property implies work. Fine if you want to do it. Fine if you know what you're doing. If.

It agree, what I was suggesting was that one property BTL is having all your eggs in one basket. So in my opinion is having all you money in the stock market

kidmugsy

ognum wrote: »

It agree, what I was suggesting was that one property BTL is having all your eggs in one basket. So in my opinion is having all you money in the stock market

Having all your money in the stock market is like having all your money in a diversified portfolio of BTLs. Having one BTL is like having all your money in the shares of one company. And a company with all its customers in Britain.

ognum

kidmugsy wrote: »

Having all your money in the stock market is like having all your money in a diversified portfolio of BTLs. Having one BTL is like having all your money in the shares of one company. And a company with all its customers in Britain.

I think in essence we agree, we need to be diversified.

dunstonh

ognum wrote: »

It agree, what I was suggesting was that one property BTL is having all your eggs in one basket. So in my opinion is having all you money in the stock market

The average UK consumer would not have all their money in the stockmarket unless they were very silly. For some reason, some people associate their pension only with the stockmarket. That is wrong.