Why BTL vs shares ?

Physics

One reason only : leverage.

OldMusicGuy

demonloop wrote: »

The money I used to buy the BTLs was in a S&S ISA, and was making a greater return than the BTLs are now, but I feel better with the money in BTL. It's maybe a personal thing.

I should add, I also have a fair few quid tied up in Bitcoin, so not averse to tech investments.

Clearly a personal thing. You swapped money from a better performing, tax sheltered investment to BTL due to a fear of "bankers", yet you are prepared to gamble money on Bitcoin, a highly volatile "investment" opportunity.

So I think you've supported the position that investing is probably better than BTL but at the end of the day, the best investment strategy is the one that lets you sleep soundly at night and if BTL does that for you, then it's working.

FWIW I used to be like you, negative about investing in pensions and the whole financial industry. This meant I under-contributed in the years that could have made a big difference, and also had the wrong investment strategy. If I'd known 15 years ago what I know now, I would be in a much better position financially.

Anonymous101

OldMusicGuy wrote: »

Clearly a personal thing. You swapped money from a better performing, tax sheltered investment to BTL due to a fear of "bankers", yet you are prepared to gamble money on Bitcoin, a highly volatile "investment" opportunity.

So I think you've supported the position that investing is probably better than BTL but at the end of the day, the best investment strategy is the one that lets you sleep soundly at night and if BTL does that for you, then it's working.

FWIW I used to be like you, negative about investing in pensions and the whole financial industry. This meant I under-contributed in the years that could have made a big difference, and also had the wrong investment strategy. If I'd known 15 years ago what I know now, I would be in a much better position financially.

Just out of interest what would your advice to your younger self be?

atush

I don't take any money from the Co

You should set up a pension with the ltd company paying in for you. Will reduce the CT.

Thrugelmir

demonloop wrote: »

I must be the only one here who likes BTL

When did you first buy?

OldMusicGuy

Anonymous101 wrote: »

Just out of interest what would your advice to your younger self be?

Don't go for the lowest risk fund choices when you still have a long way to go to retirement. Be more aggressive in your choices and be prepared to ride out any storms (like 2008). Also, pay more attention to investment choices. Don't go "I don't understand them, it's too complicated, I don't have time to read up on the subject because I am so busy at work so let's just go low risk".

Fortunately I was able to make big contributions in later years and take advantage of tax relief to really bulk up my DC pot. But if my core holdings had been better invested even 10 years ago, I would be in a much better financial position than I am now.

MK62

But if my core holdings had been better invested even 10 years ago, I would be in a much better financial position than I am now

Most people could say that though - I'd wager relatively few went gung-ho into higher risk assets with their entire portfolio 10 years ago - with hindsight now, it may have been a good move, but at the time it probably felt more like a reckless gamble, but that's the way with investing, we are all wise after the event, so to speak.

Everyone can pick the winner after the race has been run....:)

kinger101

pjcox2005 wrote: »

You simply won't get someone to lend you £80k at mortgage interest rate levels to invest in stocks over a 25 year period. Leveraging is in point so shouldn't be including a hypothetical £80k in S&S ISA when comparing like for like.


Agree on the capital gains point and other potential costs though.

There are leveraged ETFs available.

OldMusicGuy

MK62 wrote: »

Most people could say that though - I'd wager relatively few went gung-ho into higher risk assets with their entire portfolio 10 years ago - with hindsight now, it may have been a good move, but at the time it probably felt more like a reckless gamble, but that's the way with investing, we are all wise after the event, so to speak.

Everyone can pick the winner after the race has been run....:)

Anyone could have beaten me. By low risk, I mean really low risk, like money market/fixed interest funds. I had a US 401K pension returning less than 1% for many years because I didn't want to risk capital loss. Which is fine coming up to retirement, but not 10 years ago....

Vanguard Lifestrategy 20 (hardly a high risk fund) would have beaten several of my fund choices.

MK62

OldMusicGuy wrote: »

By low risk, I mean really low risk, like money market/fixed interest funds.

Oh, that low risk....;):)