Property buying strategy. What would you do?

Idpullthecurtain

babyblade41 said:

My advice... stay away from investing in rental property. now , far better investments out there .

Ex landlord of a large portfolio and still have one but tenant is a long term tenant and it is their home where they look after, update and actually improve the property and could never evict them from their home unless rent is not payed, but after quite a number of years have never been even one day late .

I even look after their cats when they go on holiday !!!

Appreciate your thoughts.  Im sure their cats appreciate you too   What would you consider as a far better investment?

Albermarle

Idpullthecurtain said:

babyblade41 said:

My advice... stay away from investing in rental property. now , far better investments out there .

Ex landlord of a large portfolio and still have one but tenant is a long term tenant and it is their home where they look after, update and actually improve the property and could never evict them from their home unless rent is not payed, but after quite a number of years have never been even one day late .

I even look after their cats when they go on holiday !!!

Appreciate your thoughts.  Im sure their cats appreciate you too   What would you consider as a far better investment?

Investing in a low cost diversified global equity index fund, has typically long term produced about 7% pa, with of course some ups and downs on the way. If you prefer more medium risk than maybe 5%, but as you want to invest in property then it sounds like you are a high risk type of person.
Also the beauty of stock market investing in these passive funds, is that you could easily spend less than one hour a year doing it.
If you could do it via a pension, the Govt will kindly add tax relief as a nice free boost.

Idpullthecurtain

Albermarle said:

Idpullthecurtain said:

babyblade41 said:

My advice... stay away from investing in rental property. now , far better investments out there .

Ex landlord of a large portfolio and still have one but tenant is a long term tenant and it is their home where they look after, update and actually improve the property and could never evict them from their home unless rent is not payed, but after quite a number of years have never been even one day late .

I even look after their cats when they go on holiday !!!

Appreciate your thoughts.  Im sure their cats appreciate you too   What would you consider as a far better investment?

Investing in a low cost diversified global equity index fund, has typically long term produced about 7% pa, with of course some ups and downs on the way. If you prefer more medium risk than maybe 5%, but as you want to invest in property then it sounds like you are a high risk type of person.
Also the beauty of stock market investing in these passive funds, is that you could easily spend less than one hour a year doing it.
If you could do it via a pension, the Govt will kindly add tax relief as a nice free boost.

Thanks for this input.  5% is realistic just through savings accounts anyway.
Sorry, what do you mean by "do it via a pension"?

Albermarle

Idpullthecurtain said:

Albermarle said:

Idpullthecurtain said:

babyblade41 said:

My advice... stay away from investing in rental property. now , far better investments out there .

Ex landlord of a large portfolio and still have one but tenant is a long term tenant and it is their home where they look after, update and actually improve the property and could never evict them from their home unless rent is not payed, but after quite a number of years have never been even one day late .

I even look after their cats when they go on holiday !!!

Appreciate your thoughts.  Im sure their cats appreciate you too   What would you consider as a far better investment?

Investing in a low cost diversified global equity index fund, has typically long term produced about 7% pa, with of course some ups and downs on the way. If you prefer more medium risk than maybe 5%, but as you want to invest in property then it sounds like you are a high risk type of person.
Also the beauty of stock market investing in these passive funds, is that you could easily spend less than one hour a year doing it.
If you could do it via a pension, the Govt will kindly add tax relief as a nice free boost.

Thanks for this input.  5% is realistic just through savings accounts anyway.
Sorry, what do you mean by "do it via a pension"?

Currently in the short term savings account interest is higher than inflation, but in the long term usually not.
Probably 5% interest will slowly reduce over the next couple of year.
 Investing is a long term game so current conditions are not that relevant.

If you have a personal pension, or you work in the private sector and have a workplace pension, then contributions to the pension attract tax relief.
Within the pension you have a choice as to where to invest your money with no tax on them.
So a pension is another way of investing. It has tax benefits but your money is tied up until your late Fifties. 

Hoenir

Idpullthecurtain said:

MEM62 said:

Idpullthecurtain said:

Elliott.T123 said:

Have you looked into other investments? For the majority of people a combination of return and reduced stress and time other investments more often than not are better options that property.

Yeah Ive been considering for a long time.  Property seems to be the most appealing to me, for returns.  No other investments come close: Potential returns v risks?

It is high risk. Void periods, repairs, bad tenants and onerous legislation being just some of the risks.  In addition, you, as the landlord, cannot end a tenancy. That can only be done by your tenant or a court. (Time consuming and expensive)  And all of that comes before you take into consideration that, as an investment, it is not the least bit tax efficient. 

It is far from be the best balance of risk / return.      

Good to hear your thoughts.  Thanks.  These are considerations that I have been juggling.

Alternatives like moderate risk stocks and shares seem to be less rewarding?  What would you do in that position?

How comfortable are you with the thought of losing money? All forms of investment come with risk warnings. For all those that make money. Someone has to lose money.  

PropertyGuru_Wannabe

Property has its pros and cons. At the current climate, the cons are more than the pros.

What Albermarle has suggested is a good investment over the long term as long as you can stick around and enjoy the fruits of it as a pensioner.

MEM62

Idpullthecurtain said:

MEM62 said:

Idpullthecurtain said:

Elliott.T123 said:

Have you looked into other investments? For the majority of people a combination of return and reduced stress and time other investments more often than not are better options that property.

Yeah Ive been considering for a long time.  Property seems to be the most appealing to me, for returns.  No other investments come close: Potential returns v risks?

It is high risk. Void periods, repairs, bad tenants and onerous legislation being just some of the risks.  In addition, you, as the landlord, cannot end a tenancy. That can only be done by your tenant or a court. (Time consuming and expensive)  And all of that comes before you take into consideration that, as an investment, it is not the least bit tax efficient. 

It is far from be the best balance of risk / return.      

Good to hear your thoughts.  Thanks.  These are considerations that I have been juggling.

Alternatives like moderate risk stocks and shares seem to be less rewarding?  What would you do in that position?

I took the money from my property and stuck as much as I could in my pension.  An immediate boost on the way in and it grows free of tax.  The remainder will be ploughed into my share ISA although I can only get £20K in each year.  Mine is in a Vanguard fund - the VLS100.  Personally, I am not particularly adverse to some risk as far as the markets are concerned.