We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is it worth being a landlord in the UK?
Options
Comments
-
jumperabv3 said:Crashy_Time said:Thrugelmir said:Fortune favours the brave. Though as with any business idea. There's always the potential for things to go disasterously wrong.
As long as interest rates remain low I don't see this trend changing, it could take even another decade or more to see a change in the real estate market - as a 2012 buyer I am not looking to sell now.
https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-north-america-ucits-etf-usd-distributing?intcmpgn=equityusa_ftsenorthamericaucitsetf_fund_link
0 -
The advantages of BTL are:
- Capital values are more stable than stock markets over the short term.
- Easy to leverage by using debt (though this of course dramatically increases the risk).
The advantages of share investments are:
- Tax free returns (through an ISA or pension).
- 20% or 40% uplift from the government on the initial investment (if a basic / higher rate taxpayer investing in a pension).
- Long term historic average returns of about 7-8% (this is what the major stock markets have historically generated over the long term).
- Liquid and easy to sell quickly.
- Diversified (assuming you are investing in lots of companies through diversified investment funds, not just 1 property which could have bad tenants).
- No issues around higher rate stamp duty on properties. Possible to mitigate or eliminate capital gains tax (if exceeding ISA allowance) by selling and re-purchasing shares to use annual CGT.
S&S and pensions are clearly the better option for higher rate tax payers, it could be more balanced for others.
It is also worth noting that the total return (before tax) on UK property has declined dramatically since 2016 (https://www.propertypartner.co/blog/uk-residential-property-market-index-february-2019/), though that could go up again in future.2 -
Shop around for some funds that you like and that have a risk profile you are comfortable with, and diversify across sectors/countries/investment type, got to be better than having it all in one illiquid asset where the tenant could be soiling your carpets or doing God knows to the house, or maybe deciding not to pay rent for a year?
https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-north-america-ucits-etf-usd-distributing?intcmpgn=equityusa_ftsenorthamericaucitsetf_fund_link
What I've seen on TV what tenants can do is indeed a nightmare - personally, the way the UK system works - if I will reach a point where there is unpaid rent, I'd ask the letting agency to negotiate on my behalf, tell the tenant I'll forgive all the rent arrears if he/she just leaves the property right away without any delay .... the reason is because the legal system is so slow which could cost me more months of unpaid rent and potentially make the tenant angry so he would destroy the property.... but again, not wishing anyone to reach that position.
I wonder what's your take about having scenarios where your tenant doesn't pay? Will you do the same as I suggest here?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards