Why would anyone... (question re REITS / Property)

subjecttocontract

BTLs are certainly far less attractive now than they were even fairly recently. Apart from higher mortgage rates & the cost of living crisis affecting affordability we have recent adverse legislation :-
* Changes to how much mortgage interest can be offset as an expense.
* Capital Gain allowances have been halved and are due to fall to £3000.
* Deposit restrictions.
* Deposit disputes favouring tenants.
* Etc, etc.
I wouldn't consider becoming a landlord if I was starting now. I'm left thinking I probably got out at just the right time.

The Gov' sold off council houses so there is a shortage. That's been filled to some extent by the private sector and successive Gov's have enjoyed bashing landlords ever since. The result, as expected is a shortage of rental property !

sixpence.

Thanks so much for the responses.

What I've from this discussion is:

1) BTL is basically a no go now
2) Funds are better but REITS can be high risk; so look into them carefully with a clear investment strategy based on the outcome you want
3) There's an argument that many companies have enough investments in properties which makes REITS defunct 
4) If you already own a property or parking space it can be a good idea to rent it out and perhaps self manage 

JohnWinder

I applaud your approach: summarise the issues and turn it into a plan. Don’t feel you need to explain yourself to me, but I find

can be high risk; so look into them carefully with a clear investment strategy based on the outcome you want

to be too vague and not ‘actionable’. You’re not writing a book for the public, so it can be as vague as you want as long as it still makes sense to you in 5 years; but if you’re proposing a way of implementing your understanding of REITs it’s best if the approach is able to be actioned unambiguously. Something like (this is not yours): ‘REITs are sufficiently different from other stocks, offering particular diversification (different from gold or commodity futures), so use global REITs as part of equities and overweight them modestly’.

Bigwheels1111

No pension as self employed.
Got my first house in December 2000, new 3 bed detached for £59.995. £5 under stamp duty.
Lived in it for 9 years, then rented it for almost 10 years. The rent paid for the house, bills and repairs at the end.
After CGT I made almost 4 times what I paid for the house.
Could not wait to get out of renting in the end.
All the new rules and regulations coming giving the tenants more rights than me.
I get enough interest from the money to live comfortably, pay no tax and not even think of going to work.
I’m not rich, but very happy.