Is a Buy to Let worth it in the current political/economic climate?

melissarfield

I have £250k from savings/inheritance that I'm looking to invest. Is investing in a BTL property wise at this stage?

I'm a FTB and am living with family, so I wouldn't be buying it to live in. It would be purely for investment but as more rules are coming in effect for landlords, I'm wondering if a BTL property is worth it (financially and also worth the headache)? Is there something better I could be doing with that money instead?

Section62

Regardless of the political/economic climate, there are various financial benefits of being a FTB which you stand to miss out on if the first property you buy isn't one you are going to live in.

Everything considered, I'd say it was a bad idea.

Ask here for alternative ideas on what to do with your money -

https://forums.moneysavingexpert.com/categories/savings-investments

Sarah1Mitty2

melissarfield said:

I have £250k from savings/inheritance that I'm looking to invest. Is investing in a BTL property wise at this stage?

I'm a FTB and am living with family, so I wouldn't be buying it to live in. It would be purely for investment but as more rules are coming in effect for landlords, I'm wondering if a BTL property is worth it (financially and also worth the headache)? Is there something better I could be doing with that money instead?

Start with a money market fund and take it from there....

https://www.vanguardinvestor.co.uk/what-we-offer/all-products

Pop 50k into premium bonds, DON`T buy a BTL (or any property until interest rates stop going up and we see the effect on prices)

Section62

Sarah1Mitty2 said:

melissarfield said:

I have £250k from savings/inheritance that I'm looking to invest. Is investing in a BTL property wise at this stage?

I'm a FTB and am living with family, so I wouldn't be buying it to live in. It would be purely for investment but as more rules are coming in effect for landlords, I'm wondering if a BTL property is worth it (financially and also worth the headache)? Is there something better I could be doing with that money instead?

Start with a money market fund and take it from there....

https://www.vanguardinvestor.co.uk/what-we-offer/all-products

Pop 50k into premium bonds, DON`T buy a BTL (or any property until interest rates stop going up and we see the effect on prices)

OP, ask the question on the Savings and investments board for a more rounded range of views, rather than taking advice from one person who doesn't know your full circumstances.

(e.g. putting 50k into Premium Bonds is not likely to be recommended unless you are a higher-rate taxpayer and fancy a gamble - other savings products may give you better returns with no greater risk exposure)

theartfullodger

After 13 years of Tory misrule, increased taxation and changes in legislation unhelpful to landlords  it's becoming less and less attractive.  (Like so many other things..)

I wouldn't recommend it to a new landlord today.

Artful: Landlord since 2000

Sarah1Mitty2

Section62 said:

Sarah1Mitty2 said:

melissarfield said:

I have £250k from savings/inheritance that I'm looking to invest. Is investing in a BTL property wise at this stage?

I'm a FTB and am living with family, so I wouldn't be buying it to live in. It would be purely for investment but as more rules are coming in effect for landlords, I'm wondering if a BTL property is worth it (financially and also worth the headache)? Is there something better I could be doing with that money instead?

Start with a money market fund and take it from there....

https://www.vanguardinvestor.co.uk/what-we-offer/all-products

Pop 50k into premium bonds, DON`T buy a BTL (or any property until interest rates stop going up and we see the effect on prices)

OP, ask the question on the Savings and investments board for a more rounded range of views, rather than taking advice from one person who doesn't know your full circumstances.

(e.g. putting 50k into Premium Bonds is not likely to be recommended unless you are a higher-rate taxpayer and fancy a gamble - other savings products may give you better returns with no greater risk exposure)

The point was that PB`s are a better gamble than BTL at the present time, and I would be surprised (but interested to see) if another board throws up better advice than "widely diversified global portfolio".

CSI_Yorkshire

20% premium bonds doesn't sound like a widely diversified global portfolio

Sarah1Mitty2

CSI_Yorkshire said:

20% premium bonds doesn't sound like a widely diversified global portfolio

It would be more diversified than 100% BTL.

Sarah1Mitty2

Seems landlords are still "thinking" about getting out, personally I think the window for anything  but a fire sale exit is now closed.

https://propertyindustryeye.com/very-real-risk-landlords-could-flee-buy-to-let-sector-as-profits-nosedive/

Martico

These pieces of advice can both be true:

BTL may not be the wisest investment decision 

Dumping a substantial proportion of your savings into Premium Bonds may not be not the wisest investment decision.

Get over to the Savings & Investments subforum, and ask there. You'll get a range of advice, mostly good. Take in that advice, and work out what's best for you

Sarah1Mitty2

Martico said:

These pieces of advice can both be true:

BTL may not be the wisest investment decision 

Dumping a substantial proportion of your savings into Premium Bonds may not be not the wisest investment decision.

Get over to the Savings & Investments subforum, and ask there. You'll get a range of advice, mostly good. Take in that advice, and work out what's best for you

They were about to dump 250k into BTL? You can only put 50k into PB`s, I think that is a prudent "gamble" when you still have 200k to invest into stocks, ISA`s, cash savings accounts etc. The main thing is to stay away from property.