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Saving for Buy to Let Investment - 3-5 years
Comments
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OP i hope you know what your getting yourself into in BTL.
Please do a cost analysis and factor in no rent and eviction costs for one tenant. The costs are significant. I am sure you've read on the legal and tax implications and of course you are aware of the section 21 being under consultation with a view for abolition
I've done my own and feel S+S in a tax wrapper is far less stressful and more cost effective for me
I've made more money on my investments in less than 1 year easily beating the quoted ideal yields of btl of 5%. Their reaching 10% not including individual stocks.
Guess what, no CGT/SDLT to worry about and tenants looking to move or stuff to repair or unpaid rent. Time is money which I don't have alot to entertain tenants
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP1 -
Alexland said:csgohan4 said:Guess what, no CGT/SDLT to worry about and tenants looking to move or stuff to repair or unpaid rent. Time is money which I don't have alot to entertain tenants"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
csgohan4 said:OP i hope you know what your getting yourself into in BTL.
Please do a cost analysis and factor in no rent and eviction costs for one tenant. The costs are significant. I am sure you've read on the legal and tax implications and of course you are aware of the section 21 being under consultation with a view for abolition
I've done my own and feel S+S in a tax wrapper is far less stressful and more cost effective for me
I've made more money on my investments in less than 1 year easily beating the quoted ideal yields of btl of 5%. Their reaching 10% not including individual stocks.
Guess what, no CGT/SDLT to worry about and tenants looking to move or stuff to repair or unpaid rent. Time is money which I don't have alot to entertain tenants0 -
Marcusian said:csgohan4 said:OP i hope you know what your getting yourself into in BTL.
Please do a cost analysis and factor in no rent and eviction costs for one tenant. The costs are significant. I am sure you've read on the legal and tax implications and of course you are aware of the section 21 being under consultation with a view for abolition
I've done my own and feel S+S in a tax wrapper is far less stressful and more cost effective for me
I've made more money on my investments in less than 1 year easily beating the quoted ideal yields of btl of 5%. Their reaching 10% not including individual stocks.
Guess what, no CGT/SDLT to worry about and tenants looking to move or stuff to repair or unpaid rent. Time is money which I don't have alot to entertain tenants
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
For a BTL purchase save the cash. Returns may not be great however you'll avoid the inherent risk that comes with investing.1
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Thrugelmir said:For a BTL purchase save the cash. Returns may not be great however you'll avoid the inherent risk that comes with investing.
Now, again I am just working through all this, this is a post from Nutmeg (he would say that), but still - is losing inflation for 5 years (guaranteed) more worthwhile than a 1 in 10 chance I would have to sit it out until investments recovered.
As you can appreciate - I am canvassing opinion and from lay person, there is conflicting advice here.
5k a year losing 2% inflation each year vs losing that amount in investment in my vanguard fund in 5 years time?
This is fab though, thanks guys, this is exactly why I put the original post up.
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Marcusian said:You know i live in Torfaen in South Wales right? I myself was a tenant in the very same type of property I am looking at until late last year.In places like Cwmbran/Pontypool you are still looking at the ‘budget’ end of the properties - ie smaller/less popular properties in less popular areas. In 5 years will likely get you much less).It is easy to think “I rented this place, I paid loads of rent I want a piece of that action”. But you need t look at whether it is best use of funds.Also just because you would always pay rent do you think every potential tenant of that property would? (Having been in similar situation, not too far away, I wouldn’t touch where I rented with a barge pole as an investment!)How long could you cope without rent being paid? Do you want the responsibilities of being a landlord (stickies on the housing and renting board which detail the numerous regs you will have to comply with).I agree with the above posters that as you are earning 60k+ there are far more tax efficient ways to invest.1
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grumiofoundation said:Marcusian said:You know i live in Torfaen in South Wales right? I myself was a tenant in the very same type of property I am looking at until late last year.In places like Cwmbran/Pontypool you are still looking at the ‘budget’ end of the properties - ie smaller/less popular properties in less popular areas. In 5 years will likely get you much less).It is easy to think “I rented this place, I paid loads of rent I want a piece of that action”. But you need t look at whether it is best use of funds.Also just because you would always pay rent do you think every potential tenant of that property would? (Having been in similar situation, not too far away, I wouldn’t touch where I rented with a barge pole as an investment!)How long could you cope without rent being paid? Do you want the responsibilities of being a landlord (stickies on the housing and renting board which detail the numerous regs you will have to comply with).I agree with the above posters that as you are earning 60k+ there are far more tax efficient ways to invest.0
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Marcusian said:Thrugelmir said:For a BTL purchase save the cash. Returns may not be great however you'll avoid the inherent risk that comes with investing.
Now, again I am just working through all this, this is a post from Nutmeg (he would say that), but still - is losing inflation for 5 years (guaranteed) more worthwhile than a 1 in 10 chance I would have to sit it out until investments recovered.
As you can appreciate - I am canvassing opinion and from lay person, there is conflicting advice here.
5k a year losing 2% inflation each year vs losing that amount in investment in my vanguard fund in 5 years time?
This is fab though, thanks guys, this is exactly why I put the original post up.
That's the game that's being played in the US at the moment. Something which could spill out globally if the genie does manage to escape the bottle.1
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