Is there a red flag I am missing as to why I wouldn't become a land lord?

Crashy_Time

https://audioboom.com/posts/5793636-sell-up-hold-or-expand

Crashy_Time

MoneySavingMission wrote: »

its not that simple. increasing regulations (operational, regulatory and taxation) are putting people off.
it really depends what your strategy is.
be prepared to take the rough with the smooth - i've been a landlord for many years and seen both extreemes in tenancies. YOu need to do your research fully.

Do you think there will be less demand for rental after Brexit?

ThinkingOutLoud_2

Crashy_Time wrote: »

Do you think there will be less demand for rental after Brexit?

I guess one influencing factor is whether the population will continue to grow notably as it has been OR if it will shrink, as a consequence. No-one know the answer to that

Thrugelmir

ThinkingOutLoud wrote: »

I guess one influencing factor is whether the population will continue to grow notably as it has been OR if it will shrink, as a consequence. No-one know the answer to that

Population is ageing. Post war baby boom generation are heading for retirement years.

Crashy_Time

http://www.express.co.uk/news/world/798907/marine-le-pen-emmanuel-macron-destroy-european-union-french-election-brexit


This would be a very large red flag, and the way the new guy on the block is talking it is like he is on the ropes already? Credit Crunch MK2 if it happens IMO, and things are already getting crunchy in the Canadian banking/mortgage system. Keep your money away from BTL is my advice.

ThinkingOutLoud_2

Thrugelmir wrote: »

Population is ageing. Post war baby boom generation are heading for retirement years.

True.
But that doesn't answer if the net migration will be positive or negative post-brexit.

Crashy_Time

ThinkingOutLoud wrote: »

True.
But that doesn't answer if the net migration will be positive or negative post-brexit.

Big political risk now in not getting the numbers down?

Crashy_Time

Thrugelmir wrote: »

Population is ageing. Post war baby boom generation are heading for retirement years.

It is the transient, mainly EE working young that use BTL though, and IMO they are likely to be thinner on the ground after Brexit.

ThinkingOutLoud_2

Crashy_Time wrote: »

Big political risk now in not getting the numbers down?

Yes, balanced by the risk of poor Brexit deal if we can't balance that with EU demands.

So many less in or even some out = reduced pressure driving house price growth = less good news on returns for a new landlord buying their first letting now?

justme111

amyk01 wrote: »

Yes i have considered this purely from the less hassle perspective, but I'm not sure if I'm missing something? Assuming i have £200k cash, if i received a 5% return annually for 20 years that would be £200k giving me £400k in total.

If i purchase a BTL for £200k, in 20 years time I will have a property worth hopefully at minimum £200k and potentially significantly more. If we say for the sake of the scenario the tenants have paid me £200k over 20 years, I could also have invested this as the years have gone on also giving me an additional return. So would this not be a much better option but with more work required?

As another Joe said you missing compounding on the investment return , ie it would be not 400 k but 530 k. Another thing you missing is tax on your btl income - so you would have not 400 k but 320 k off it ( -80 k tax).
My (by no means expert ) opinion is that btl could be good for those that have 20k deposit, diy skills and low income. Or those who already have invested maximum they are comfortable with and looking for further diversification.