Do landlords not get to keep their properties after the mortgage is paid off by tenants?

Grumpy_chap

Martico said:

theoldmiser said:

I OWN the property outright, and have done for about ten years...

This little nugget shifts the dial a bit, doesn't it?

The OP also seems to have a time machine, which I assume would be more lucrative than the property rental, given that at the outset of this thread, only a little over 3 years back, the OP said:

theoldmiser said:

I've started a new thread as I don't want to derail my previous one - many of the replies I received seemed to be from people who think that landlords are somehow not receiving money every month in the form of rent, large sums of money compared to the amount of work required, and use this to pay off the mortgage (if they have one), and hence after twenty five years they own an entire house which other people have paid for. The yearly yield is of little consequence compared to that, is it not?

If I were to buy a Buy to Let property today for £200,000 and rent it out for slightly more than the cost of the mortgage each month, am I not, after twenty five years, regardelss of the yield each year, going to own a £200,000 property that other people have paid for, without having to do £200,000 worth of labour myself? Or am I missing something?

(7th December 2020)


I also note that the property has converted from not existing to actually existing - another capability that I assume would be more lucrative than property rental:

theoldmiser said:

"Exit can be a costly and time consuming process."

So in 25 years' time, when my hypothetical Buy To Let is worth £300,000 (rather than the £200,000 I bought it for), selling it for £300,000 is somehow going to be "costly" to me. How will I cope with the £300,000 minus estate agents' fees, etc.? I'll probably have £290,000 left. Oh the humanity!

(4th March 2022)

RAS

theoldmiser doesn't seem to know about CGT on disposal? The allowances have reduced and will disappear. This is on top of the Income Tax charged annually.

AlexMac

This thread completely ignores the emotional and familial potential of BTL…

Theoretical scenario… (a Time Machine helps..)

imagine you were jobless after redundancy in the late 20th Century… and were smitten by a dark haired beauty ( a bit like Van Morrison’s “Raglan Road”.. “I saw her first and knew, that that dark hair would weave a snare, that I would one day rue…)

You blow your savings and redundancy payoff on a £34k ex-council flat so the dark haired beauty (DHB)‘s single parent daughter (Spd) and baby can escape their crummy damp and mouldy rental…

The DHB’s SPD & Baby make good and move on and out…
So
You let the ex-CF to a fascinating (profitable and reliable) succession of tenants over the next 20 years;
-  the Chinese Engineer and his lawyer wife who gifts you “1,000 year old eggs” (don’t ask);
- another SP who is really grateful when you comply with her request to evict and set the bailiffs on her as the only way she’ll get a Council House;
- the Romanian energy consultant who cannily negotiates a winter discount of £50pm as Crittal metal windows (since replaced for a very reasonable cost by the efficient Council Freeholder) are energy inefficient and who then returns to Canada because “your country is going to the dogs- letting in all these bad Romanians immigrants”;
- the Austrian who gifts you his rather nice Mountain Bike because he fails to sell it before taking off,
- the Bulgarian couple who have to disconnect the smoke an heat detectors when her mum visits as she cooks pancakes so aggressively (only obvious cos they replace them the wrong way round) but who leave the gift of a fridge full of Bulgarian wine on check-out…

Then it gets interesting. The DHB’s SPD’s Baby (by now a 20-something woman) comes to you with a spreadsheet to prove that, if she takes a lodger, she can afford to pay the rent on the flat you only bought because of her in the first place. 

And she does; gaining independence and self respect. And later, a live in BF ( much more fun than a lodger?)

Meanwhile, things go well with the DHB… so well, she’s now my DHBW (wife)

Not to mention £250k plus of CG and a very healthy ROI…

But the emotional side has been much more fun then the ROI…    

So power up that Time Machine?