Buy to Let without mortgage Scotland

outlaw777

dimbo61 said:

I read today  an article by Spareroom that Scotland was the only part of the UK to see a drop in Rental prices per room.
The Scottish government are doing a great job of destroying the private rental sector in Scotland with Eviction bans. RENT FREEZE and new rules and regs.
Could you invest  any spare money into ISA,s or pensions.
You can sleep better without the stress 

Would not be rented per room however.

_Penny_Dreadful

dimbo61 said:

I read today  an article by Spareroom that Scotland was the only part of the UK to see a drop in Rental prices per room.
The Scottish government are doing a great job of destroying the private rental sector in Scotland with Eviction bans. RENT FREEZE and new rules and regs.
Could you invest  any spare money into ISA,s or pensions.
You can sleep better without the stress 

Yet every other article about rents in Scotland says that they are increasing at their fastest ever rates.  Hardly surprising when a large number of landlords in Scotland are choosing to exit the market and therefore decreasing supply.  Good news for those of us who are sticking it out until this SNP/Green coalition comes to an end and Patrick Harvie is no longer calling the shots when it comes to housing in Scotland. 

Being a landlord in Scotland is not for the faint-hearted or inexperienced at the moment.  Your tenant selection needs to be impeccable and you need a good nose for sniffing out wrong 'uns.

SiliconChip

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

outlaw777

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

Someone told me money lying in the bank is wasted when it can be invested, what do you suggest that is reasonable?

Keep_pedalling

outlaw777 said:

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

Someone told me money lying in the bank is wasted when it can be invested, what do you suggest that is reasonable?

Well yes it would be better invested but that does not mean a BTL is the best option for you. Perhaps you should look at the current state of your pension provision first.

_Penny_Dreadful

outlaw777 said:

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

SiliconChip said:

outlaw777 said:

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.

@Keep_pedalling asked you two questions, you've answered the second (by itself that response is rather concerning) but haven't addressed the first, so here's another opportunity for you to do so.

"Why do you think sinking your savings into a rental property is the best option?"

Someone told me money lying in the bank is wasted when it can be invested, what do you suggest that is reasonable?

Oh well if someone told you that

You want your money to at least be keeping up with inflation.  £100 in 2000 went a lot further than £100 in 2022 so if that £100 had been sat in an account not earning any interest for 22 years it would be worse off.  No one here knows your appetite for risk, sticking your money away in a fixed rate bond might be the right option for you or maybe your risk profile is more suited to index tracker funds...who knows? 

BTL is just one type of investment, there are many others, but if BTL is something you are serious about then you really need to do your research because there is a lot of legislation landlords in Scotland have to comply with and since 1st October 2022 all the ground for eviction that can be used with Private Rental Tenancies have been permanently made discretionary.  On top of that the Cost of Living (Tenant Protection) (Scotland) Bill 2022 introduced a temporary moratorium on rent increases and evictions, save for a few specific cases, until 31st March 2023 which the Minister for Zero Carbon Buildings, Active Travel and Tenants' Rights, aka Patrick Harvie MSP, wants to extend that to 30th September 2023.  Let's not forget to throw the 6% ADS you'll pay when purchasing the rental property. Tell me, does BTL still seem appealing to you?

outlaw777

Can you save money by buying a BTL with a Ltd company?

ProDave

I echo the above comments.  Scotland is a poor choice to be a private landlord now.  Evictions banned until September.  Rent rises capped at 3% for private landlords though social housing can increase rents by 6%.  If that is not blatant discrimination against private landlords then I don't know what is.

If you are close to the border and really want to be a landlord, I would be considering buying a property in England.

And if you do go ahead, don't even consider a property with an EPC worse than C, those will be outlawed from renting soon so buying a poorer house will land YOU with the bill of upgrading it.

Yes no surprise private landlords have had enough of being over regulated.

What other business is now so regulated you cannot easily just close your business and sell your assets?

Eldi_Dos

Resurrecting a old thread I know, but

I would be interested to hear of landlords of Scottish properties experience's over the last year. Two people I know have recently sold off properties they had bought with their lump sums and I am wondering if now is the time for good buys to be picked up.

ProDave

I have recently exited the BTL market, sold the last property (to the tenant)

It was mainly a time of life thing called retirement, where I wanted a lump sum of cash available to do things in retirement, rather than no spare cash but regular income.  And I didn't want to be responsible for maintaining a property any more and jumping through all the ever increasing hoops the Scottish Government require landlords to do.

If you are looking for an Ex BTL bargain in Scotland, make sure it really is a bargain, in particular I would not touch anything worse than EPC C unless it was very cheap.