Is buying a second property better than a pension?

justme111

What do you mean :"sitting in S&S ISA "?
The money is not sitting there, it is making you money. Have you checked how much it has increased in the last few years for example? It may be as high as 20% per year. With no tax. Why would you want to exchange it for btl with 4 or 5% yield , work and hassle and taxed instead is difficult to understand.

ThinkingOutLoud_2

http://www.which.co.uk/news/2016/09/property-vs-pension-which-is-the-best-investment-451862/

Another view.

dunroving

Unless you are very handy at fixing things yourself, have experience as a landlord and like having things to do at a drop of a hat, I'd steer clear of BTL. It's also illiquid - all or none. If you need money from an ISA, you can withdraw £5k, £10k, £50k. With a house you have to sell the whole thing (if you can), or muck about with loans against the property.

In retirement, I'd want flexibility, choice and peace of mind - and a BTL property isn't that. IMO.

marlot

You don't mention how long you plan to keep this investment.

Property is very illiquid - it can take weeks/months to sell. If you need to get your hands on the money quickly, you cannot.

SpeedSouth

kidmugsy wrote: »

Hm. Which?

Round the midlands area where I live, you can buy properties for £150k and expect to achieve £600p/m. So 4.8% yield on the value, before any gearing ups the yields.

Obviously then it's the extra yields offset against the increase mortgage...
I guess why I'm sticking with one at present, which has the benefit in our case of being all tax free income.

kidmugsy

http://www.dailymail.co.uk/news/article-4442518/Landlord-left-5-000-bill-home-left-filth.html

woolly_wombat

kidmugsy wrote: »

http://www.dailymail.co.uk/news/article-4442518/Landlord-left-5-000-bill-home-left-filth.html

That article reminds me of what happened to another relative's first house quite a few years ago, which he rented out when his work took him overseas.

His tenants changed the locks and abandoned the property owing several month's rent. They left it in a filthy state, particularly the kitchen which was covered in grease and had a ceiling hanging down.

It transpired that they had been preparing bushmeat for sale.

AndyAdams

Thanks for the responses, interesting range of views. I thought the which link and the apparant stance of the BoE economist was enlightening.

My gut feel is property is more lucrative if I can take some hassle, but then maybe I won't get any hassle, I guess there is only one way to find out

justme111

May be silly suggestion- why you don't check the numbers (how much your ISA grown versus usual rental yield) as opposed to "gut feeling"?

hoc

I haven't read all the messages, in fact I stopped after the first 3.

Your 300k isn't "sitting" in an S&S ISA, if it is that is your fault. There's a reason it is S&S and not cash...

"Runaway house prices over the last 20 years..." yes, because markets haven't got anyone rich have they?

Breaking tax free wrapper to buy a second house. Sometimes I think this site is just trolling.