Telegraph, LLs losing money each month in ten out of 11 British regions

somethingcorporate

I've been a LL in the past and escaped last year. I wouldn't go back in with all the negative changes that have been made - far better places to put money than tying it up in a proprty.

chucknorris

somethingcorporate wrote: »

I've been a LL in the past and escaped last year. I wouldn't go back in with all the negative changes that have been made - far better places to put money than tying it up in a proprty.

When the base rate gets to about 2.5%, it will be profit neutral for me between property and shares (ignoring any capital growth of either asset), and that is distorted by the fact that the equity that would be invested in shares would be reduced by a significant CGT bill. If I didn't have low margin trackers, I would probably be very close to that profit neutrality right now, as my tracker mortgages are only averaging 0.5% over the base rate.

Generali

cells wrote: »

depends on the market invested in

stoke-on-trent is cheaper now in real terms than it was 20 years ago even 25 years ago.

whereas on the other extreme inner London has done very well over the last 20 years

True although it is also fair to say that inner London has yields waaay lower than Northern Hell Holes.

If you can invest over the past 20 years then good on you. Most of us try to invest for the next 20 which is harder to do.

chucknorris

Generali wrote: »

True although it is also fair to say that inner London has yields waaay lower than Northern Hell Holes.

If you can invest over the past 20 years then good on you. Most of us try to invest for the next 20 which is harder to do.

Ahha! So that's why Doctor Who doesn't need to work!

Generali

chucknorris wrote: »

Ahha! So that's why Doctor Who doesn't need to work!

Yup.

He helped the Duke of Westminster buy up west London in c.1067 and pops back now and again to collect the rent.

kabayiri

Generali wrote: »

True although it is also fair to say that inner London has yields waaay lower than Northern Hell Holes.
..

There is probably still money in niche landlord segments.

A lot of old seaside B&B type properties in Blackpool have been snapped up in recent years for relatively little money.

They become HMOs housing social tennants. There is no real appetite to gentrify like we see in London.

There is a risk of the neighbourhood devaluing I guess, but oddly a friend who lives there tells me about a campaign to get government grants to revive the place!

State subsidy, kerrching !

purch

Generali wrote: »

I really don't see it as an investment. A business yes, an investment no.

It's just an income for me.

There is no way I could have the income I have today, from the amount of my initial capital from any other sourcen with such little risk.

On the other hand, I still struggle to get my head around how anyone could consider borrowing for a BTL to be anything other than high risk.

Garethgrew

purch wrote: »

On the other hand, I still struggle to get my head around how anyone could consider borrowing for a BTL to be anything other than high risk.

Tell that to all those new highly leveraged btlers who think property only ever goes up...

cells

purch wrote: »

It's just an income for me.

There is no way I could have the income I have today, from the amount of my initial capital from any other sourcen with such little risk.

On the other hand, I still struggle to get my head around how anyone could consider borrowing for a BTL to be anything other than high risk.

the thing is the local market will determine how successful a historic investor has been.

lots of (virtually all) landlords just invest in their local area. I kind of did the same but lucky for me my back yard was hackney, right next to the city of london near to westminster and docklands too. Were it stoke on trent.....I would not have had such luck

generali point was i think, that overall property probably is not a good long term bet. some might say the same for shales, but of course individual shares can massively outperform the market (think apple). London is the apple of the property world yet a lot of people seem to think the whole country or property as an asset class has all performed like london

Thrugelmir

cells wrote: »

individual shares can massively outperform the market (think apple).

Took more than bite to be successful.