What would encourage you to divest property?

cells

Graham_Devon wrote: »

Think you are doing BTL'ers a bit of a disservice there old chap!

Not just BTL I'm talking of the general public.

Do you seriously believe the general public feels comfortable investing in and understating shares? If you put the annual accounts of a ftse100 company in front of them how many could make heads or tails of it?

But with property they understand it. They buy a home for cash (or keep their old starter homes) and rent it out in return for a monthly sum

Graham_Devon

cells wrote: »

Not just BTL I'm talking of the general public.

Do you seriously believe the general public feels comfortable investing in and understating shares? If you put the annual accounts of a ftse100 company in front of them how many could make heads or tails of it?

But with property they understand it. They buy a home for cash (or keep their old starter homes) and rent it out in return for a monthly sum

No, but that's why people use Financial Advisors.

Anyone with 100k to invest infront of them who doesn't take financial advice to at least look at their options is a bit of a fool.

If it's the case that you believe they all simply end up with BTL as a default "go to" without even looking at anything else, then that explains the huge amount of problems in the BTL scene.

GwylimT

The house we rent out is mortgage free and looking at properties in the area could sell for around £380k, the home we live in will be mortgage free in six months and if sold looking at current selling figures could achieve about £240k.

Hopefully we will be moving to Sweden soon in which case one property will be sold, we will however keep one as our son is severely disabled so in the future hopefully it can be sold to pay for some of his care when we aren't around anymore.

wotsthat

I'll be divesting my second home at some point simply because I'll likely need the capital to buy a bigger place (I'll probably be retiring early and upsizing).

I find owning two places a bit of a hassle and paying two lots of council tax, utilities, TV license etc gets old really quickly. Although it's been one of the best purchases of my life and, as a family, we've had nothing but good times there I look forward to walking away and starting a new phase in life.

Crashy_Time

cells wrote: »

Not just BTL I'm talking of the general public.

Do you seriously believe the general public feels comfortable investing in and understating shares? If you put the annual accounts of a ftse100 company in front of them how many could make heads or tails of it?

But with property they understand it. They buy a home for cash (or keep their old starter homes) and rent it out in return for a monthly sum

Do you know how many people bought a home for cash during the last 10 or 15 years?

cells

Graham_Devon wrote: »

No, but that's why people use Financial Advisors.

Anyone with 100k to invest infront of them who doesn't take financial advice to at least look at their options is a bit of a fool.

If it's the case that you believe they all simply end up with BTL as a default "go to" without even looking at anything else, then that explains the huge amount of problems in the BTL scene.

Lots of people invest having never consulted a financial advisor. I've never consulted a financial advisor and I've owned shares and BTL

BTL is not the go to savings for the public. Its firstly savings accounts at banks. Only those who have enough say (£20-200k depending on location) then have the choice to go for BTL and a lot look at £1000 annual interest on £150,000 and think I'd rather get £8000 a year rent for the same £150k invested


Whereas paying a thousand pounds to a Financial Advisor doesn't appeal to many people nor does the shares market

cells

Crashy_Time wrote: »

Do you know how many people bought a home for cash during the last 10 or 15 years?

As an investment I think the majority have been cash purchases. The biggest landlord I know purchased over 40 properties cash after selling his business for a few million

The most recent stats show the rental market expanded by over 440,000 units last year while the number of BTL mortgages for purchase was closer to 100,000 which suggests that the majority of BTL is cash purchase or equity purchase rather than debt purchase

cells

If I'm not mistaken its roughly 1/3rd of the rental stock has a BTL mortgage the rest don't.

The story of BTL growth over the last 10 years had been one mostly of equity purchase not debt purchase.

The tax changes to come make debt purchase less attractive and the crash wishers are cheering that its going to be the end of BTL well NO not when it looks like more than two thirds of the BTL sectors growth was without mortgages.

I haveba feelings the next 5 years instead of the death if BTL is going to see some 1.5 million more units added to the pile.

mwpt

cells wrote: »

As an investment I think the majority have been cash purchases. The biggest landlord I know purchased over 40 properties cash after selling his business for a few million

The most recent stats show the rental market expanded by over 440,000 units last year while the number of BTL mortgages for purchase was closer to 100,000 which suggests that the majority of BTL is cash purchase or equity purchase rather than debt purchase

Or does it suggest that people were not selling their previous homes but rather letting them out when they buy something else? I think the 3% surcharge will help with this particular issue.

HornetSaver

cells wrote: »

I haveba feelings the next 5 years instead of the death if BTL is going to see some 1.5 million more units added to the pile.

Which, combined with an EU out vote, would be the leading edge of a prolonged period of real-terms falls in Southern England minus London. I'm not saying that as a crash wisher (though I don't deny for a second that I am one) but as someone who can do basic arithmetic.

If population growth is 1.25 million lower than when in the EU, number of units nationwide 1.5 million higher, there is (according to landlords) no problem at all with the current system, and (by your figures, which I believe to be not comparing like with like) at least a third of rental properties are less profitable to let out, then outside the area of eternal demand (London), there will be quite a jolt. A very long sentence there I admit, but I'm sure our readers can cope.