Buy to let no longer worth it?

summerholiday

I suggest you view 'property118' site run by Mark Alexander to gain the insight of many buy-to-let landlords and the implications of George Osborne's budget changes commencing 2016.

Lots to read, very informative and helpful.

deaston

booksurr wrote: »

so as others said earlier in this thread, entering the BTL market now is best done with low leverage if yield is important to you

Ok thanks - interesting info. I'll look into the idea of simply going for fewer cash purchases rather than a larger portfolio of mortgaged properties.

chappers

I would say that with regards to BTL we have uncertain times ahead, I can only see more regulation and taxation whether directly or with further reductions in reliefs. Mainly driven by an attempt to curb runaway prices, in areas of high capital growth.
Where I live there has been consistent steady growth with spurts of rapid growth thrown into the mix and at one point BTL was very attractive with low interest rates, high LTVs, decent yields and decent interest reliefs.
However with regulation and very rapid capital growth, decent yields are virtually non-existent and regulation makes highly leveraged investment much less attractive.
But has been pointed out those buying with decent levels of capital investment ,may well find better returns for less effort elsewhere and if the regulation has the desired effect on prices then capital growth is also going to be affected, combine that with potential rises in interest rates and BTL no longer becomes the attractive proposition it was.

Daniel54

deaston wrote: »

. And I understand that, by living in the property for a period, it becomes your primary residence, so no capital gains?

That is a common fallacy and is incorrect.

If the property has at any time been your PPR then there is CGT relief for the months of occupancy plus the final 18 months.A couple of links

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

http://www.directlineforbusiness.co.uk/knowledge-centre/landlord-knowledge-centre/how-to-prove-and-calculate-private-residence-relief

Cash-Cows

I still find the thought of paying thousands each year for a stranger to be living in MY asset very uncomfortable. Even though I have a portfolio of investments owning a property isn't one of them. I also like the idea that I could sell the lot and get the cash in a day or so. With property it could be months or years and that assumes you get the tenant out quickly.

bigfreddiel

deaston wrote: »

I guess because your money is "always safe in property" and it's what all my friends and colleagues seem to do. Can you suggest alternatives...?

Is it always safe? Are your friends experts, or just the bloke in the pub.

Try reading Smarter Investing by Tim Hale

Cheers fj

bigfreddiel

deaston wrote: »

Wow, your cage is easily rattled! You need to learn to relax and not let random people on the internet bother you so much.

This has to be one of the funniest threads I've read in a long time, thanks Easton you cheered me up immensely fj

deaston

bigfreddiel wrote: »

This has to be one of the funniest threads I've read in a long time, thanks Easton you cheered me up immensely fj

I know, right?! Always amazes me how personal people get on internet forums. I have no idea who they are, they don't know who I am nor if anything I'm saying is true or accurate... yet they still get all shirty about things! Thankfully, I couldn't care less what people say to me!!

bigfreddiel

deaston wrote: »

I know, right?! Always amazes me how personal people get on internet forums. I have no idea who they are, they don't know who I am nor if anything I'm saying is true or accurate... yet they still get all shirty about things! Thankfully, I couldn't care less what people say to me!!

This just gets funnier by the moment! Cheers mate!
:rotfl::T:rotfl::T

Mrs_pbradley936

deaston wrote: »

My circumstances, attitude to risk or the amount I have to invest have nothing to do with my original question of whether or not current landlords see the reforms in tax as an issue. I wasn't actually asking for advice on where I make my investment.

Much will depend upon the individual circumstances of the landlord. Those with large mortgages will feel it, those with no mortgages or very small ones will not feel it as badly.

I think it will make younger people that need large mortgages look elsewhere for investing.