Anyone thinking of selling their BTL?

Casa1862

I think further government legislations is the main threat rather than the general market conditions

TheeMaskedTurnip

Why would I kill my goose that lays the golden eggs?

Casa1862

Wonder where all this 500,000 BTL properties coming too the market, not heard anyone going to sell yet.

chucknorris

I will probably be selling up (at least partially) soon (2 to 5 years), but the recent tax changes are only a small part of the decision, selling up after 30 years (by the time that I do sell) was always my long term plan.

wotsthat

Generali wrote: »

I wouldn't count those chickens just yet.

Inflation in services (little impacted by the oil price) is about 2.5% and rising. Employment is at the sort of level where pay rises are probably about to take off.

I agree that the economy is broadly positive for house prices; I've not done the sums but I bet there is a strong correlation between growth and house prices. Assuming that interest rates will remain low to finance that is a mugs game.

As westernpromise states, the problem then is what to do with it. Shares are probably a pretty decent bet, especially after recent falls.

I suspect most BTL owners see themselves as risk-averse and equate the risks, and compare returns, to cash. The news, this month, is rates are going to be low for longer than forward guidance indicated. BTL yields might go down but where are you going to put the cash?

I can't see many BTL owners selling up to bung it in the stock market - it's a different mindset.

Anyway, stock markets are down 20% - who thinks buying shares at 20% off is a good thing :money:

chucknorris

wotsthat wrote: »

I suspect most BTL owners see themselves as risk-averse and equate the risks, and compare returns, to cash. The news, this month, is rates are going to be low for longer than forward guidance indicated. BTL yields might go down but where are you going to put the cash?

I can't see many BTL owners selling up to bung it in the stock market - it's a different mindset.

Anyway, stock markets are down 20% - who thinks buying shares at 20% off is a good thing :money:

If I could sell today and invest in shares at their price right now, I would think seriously about selling 2 properties. I do realise that shares might fall further. But with at least a 15 year horizon, I would be willing to take the gamble that today's price would look cheap at some point in that time frame.

But I wouldn't be willing to instigate selling, which would take about 3 to 6 months (including giving notice, doing work to the properties and time to find a buyer) and hope that the market is still at what I consider a value price.

andybenw

Glover1862 wrote: »

With all the gloom around is anyone temped to lock in returns? With all the new changes around and stock markets plunging which could be seen as a good indicator of times ahead.

I was thinking quite negatively this morning until I heard PM's questions and he continued to reel of all the government incentives, all these HTB ISA savers will need to spend that money somewhere in three or four years time. With Interest rates not going anywhere soon and even now a chance of a cut made me put in an offer with a view of fixing the mortgage for 5 years and worrying about it then. With buying made so cheap my only concern is rent rises may be subdued.

No.

The return for me is a likely income stream for the next 20 years, not capital gain.

cells

chucknorris wrote: »

If I could sell today and invest in shares at their price right now, I would think seriously about selling 2 properties. I do realise that shares might fall further. But with at least a 15 year horizon, I would be willing to take the gamble that today's price would look cheap at some point in that time frame.

But I wouldn't be willing to instigate selling, which would take about 3 to 6 months (including giving notice, doing work to the properties and time to find a buyer) and hope that the market is still at what I consider a value price.

not that I am suggesting you do the following, just posting so you know its a potential option.


withdraw equity with a remortgage. This can be as quick as two weeks if a Further Advance from the same lender.

Buy shares

Sell property in two years time (or when ever it was you were going to do that)

You said you were very low LTV so with a 2 year fix at 60% LTV you can borrow at rates close to 2% (and less than 2% if you go for a tracker)

chucknorris

cells wrote: »

not that I am suggesting you do the following, just posting so you know its a potential option.


withdraw equity with a remortgage. This can be as quick as two weeks if a Further Advance from the same lender.

Buy shares

Sell property in two years time (or when ever it was you were going to do that)

You said you were very low LTV so with a 2 year fix at 60% LTV you can borrow at rates close to 2% (and less than 2% if you go for a tracker)

It wouldn't be 'cost free' though, I would have to pay the mortgage, pay for valuations, mortgage arrangements fees etc. of course I would also receive dividend income too, but I am not exactly frothing at the mouth to do it, but if I could sell and invest today, I would.

cells

cells wrote: »

not that I am suggesting you do the following, just posting so you know its a potential option.


withdraw equity with a remortgage. This can be as quick as two weeks if a Further Advance from the same lender.

Buy shares

Sell property in two years time (or when ever it was you were going to do that)

You said you were very low LTV so with a 2 year fix at 60% LTV you can borrow at rates close to 2% (and less than 2% if you go for a tracker)

to add to this, if you get an offer for a further advance or a remortgage they usually give you 3 months to actually say ok and go through with it

so you could put it into place and have it there as a sort of almost instant bank account (sign the letter send it off get the funds. typically 3 days)

If you find that you think shares are a good price any time over the next 3 months you could do that. If you find its not or change your mind just let the FA offer expire (also usually you can ask for a 3 month extension so you effectively have 6 months to make use of the money or not)

Of course there will be the fees for a valuation but again a lot of lenders offer a discount valuation for a Further Advance so instead of maybe £600 typical it might be closer to £300

anyway that is what I would probably do in your shoes. cost a few hundred pounds but access to a few hundred thousand pounds within just a few days. worse case is you wasted the cost of a valuation.