45,000 to Invest

Exodi

newlandlord555 said:

I am looking for secure investment with high returns ...but safe too.

If I had a penny...

I don't know why many seem to hold the view that becoming a BTL landlord is some sort of cheat code or shortcut to immeasurable financial wealth. Especially in the current situation of ever-increasing 'anti-landlord' legislation and a cost of living crisis.

My parents are the same - they live in the Midlands but they want to eventually buy a property to move into in the South East (near me). Their master plan is to save a reasonable deposit (maybe £20k-£30k) and have a tenant pay off their mortgage over 25 years before they move into their 'free house'. They've no idea of the difference between a repayment or interest only mortgage, would have no reserve funds for repairs and not a scooby about landlord legislation: safety certificates, deposit protection schemes, etc but still are convinced being a landlord is akin to having a money printer.

I'd encourage the OP to read some of the threads on this forum before deciding to jump into this with both feet.

Exodi

newlandlord555 said:

No. I would not be borrowing. I have 45000 cash here.

Oh sorry, I just read this - the total buying price of the flat is £45k so no mortgage involved?

Would be lucky to buy the rights to live in a wheelie bin in the South East for that.

Personally, I'd just invest it in a S&S ISA rather than deal with the agro of being a landlord.

eskbanker

Just to reiterate, contrary to the impression created by OP's username, they have been a landlord for several years according to the thread linked earlier, so shouldn't be in need of advice about what it entails!

boingy

eskbanker said:

Just to reiterate, contrary to the impression created by OP's username, they have been a landlord for several years according to the thread linked earlier, so shouldn't be in need of advice about what it entails!

Thanks for that. A fantasist then. So sad.

Albermarle

The main point here is what @boingy said.

Secure and safe with high returns does not exist. Higher risk = higher rewards.

This applies to property and stocks and shares. So for higher returns you have to put the £45K at some level of risk, where it is not secure and safe.

waveyjane

Interesting thread!

My own opinion is that if you see BTL as more of a sort of amusing hobby (joshing with the tenants, fun with tradesmen and DIY, crafting cool spreadsheets to help tax returns, etc. etc.), then go for it! And the lower the value of the BTL the more fun it will be perhaps too with (quite literally) low-rent tenants . Let's face it, the stock market is as dull as ditch water in comparison.

Miser1964

BTL as a decent investment is a thing of the past. 

Albermarle

waveyjane said:

Interesting thread!

My own opinion is that if you see BTL as more of a sort of amusing hobby (joshing with the tenants, fun with tradesmen and DIY, crafting cool spreadsheets to help tax returns, etc. etc.), then go for it! And the lower the value of the BTL the more fun it will be perhaps too with (quite literally) low-rent tenants . Let's face it, the stock market is as dull as ditch water in comparison.

However if you  shy away from potential confrontation( with tenants, agents, tradespeople) and are useless at DIY, then sitting at your lonely laptop watching paint dry in the financial markets is much better !

Richard1212

As  landlord of quite a few properties which I own, yes they produce  great income. I have a management company which looks after all the details for me, so I have no problems and none of my time is taken up----other than issuing managers with instructions from time to time ( for example, during the current crisis for renters, I instructed all rent increases to be capped at 3% for the whole of 2023 : my income from the properties is falling somewhat but I will always make a profit ). As for a single BTL , I would not consider it---it would be too much trouble and the mortgage to buy one would be best invested elsewhere IMHO.

jimjames

Exodi said:

newlandlord555 said:

I am looking for secure investment with high returns ...but safe too.

If I had a penny...

I don't know why many seem to hold the view that becoming a BTL landlord is some sort of cheat code or shortcut to immeasurable financial wealth. Especially in the current situation of ever-increasing 'anti-landlord' legislation and a cost of living crisis.

Maybe something to do with the dozens of companies marketing "property education" as a route to get rich quick. It's scary how much they charge giving people misleading and unachievable dreams.