Crazy time for new BTL or put in own home?

marysmarket

Hello
I'm at a bit of a crossroads and looking for some advice.

I have the opportunity to potentially invest in a BTL or move house and invest it all in a larger family home. Is this a crazy time for a new BTL? Taking everything towards a larger home would mean little left over for investment. But with landlord taxes (60% trap), CGT changes and all the other bother I hardly think it would be worthwhile. 

Moving home and much needed upsizing could be done comfortably with 50% deposit but means a house sale. 

A good problem to have I get it but I am clueless. 

Ideas and advice would be great.

Stubod

I would strongly advise against getting a BTL, (do you really want to be a landlord??). 

Better / easier and stress free ways to make money (IMHO...)....

njkmr

Put your money into a bigger house for yourself.
Enjoy it and hopefully see a decent return in years to come without the BTL hassles.

ReadySteadyPop

njkmr said:

Put your money into a bigger house for yourself.
Enjoy it and hopefully see a decent return in years to come without the BTL hassles.

I don"t think there will be much return from property now unless you get a good price discount, but the BTL sounds like a very bad idea, avoid.

Albermarle

How about investing some of it away from property. In a pension for example. It is always good to have some diversity in your personal finances.

marysmarket

Thanks for the responses. I've previously had one BTL a decade ago, no big problems but it was too much stress as I was building my career so cashed it in. I know it's a very different ball game. I guess I'm a few years too late now and the BTL bubble has burst.

Anyone still optimistic about BTL? It seems every other landlord is selling up. 

The idea of locking away money onto a pension is tempting but feels a very limiting in terms of retirement age. Foolhardy I know!

marysmarket

Albermarle said:

How about investing some of it away from property. In a pension for example. It is always good to have some diversity in your personal finances.

Any ideas other than pensions? 

marysmarket

Stubod said:

I would strongly advise against getting a BTL, (do you really want to be a landlord??). 

Better / easier and stress free ways to make money (IMHO...)....

What are the better ways please?!

ReadySteadyPop

marysmarket said:

Albermarle said:

How about investing some of it away from property. In a pension for example. It is always good to have some diversity in your personal finances.

Any ideas other than pensions? 

Money market fund, that is more popular than BTL now.

Grumpy_chap

marysmarket said:

Anyone still optimistic about BTL? It seems every other landlord is selling up. 

I am a LL and not selling up.
I'd also, based on current rules, be happy enough to add another BTL property.

But, for your position:

marysmarket said:

I have the opportunity to potentially invest in a BTL or move house and invest it all in a larger family home. Is this a crazy time for a new BTL? 

Well, I would probably hold fire for a few weeks as there are so many speculative comments around changes to taxation - no-one can actually do anything between now and the budget (certainly not in terms of property) - so wait until after the budget and there will be far more certainty.  Not everything will be defined at the budget but it should signpost the general direction of travel that we are likely to face in terms of overall taxation policy and some of those will be more relevant to BTL LLs so worth investigating deeper.

There are also the changes to Tenant's rights.  Again, lots of detail still to be shared but nothing thus far that unduly concerns me as a LL.

[Deleted User]

It's hard to see how a simple BTL can be profitable in view of second home stamp duty, mortgage interest rates having increased, and likely changes to capital gains tax. If anyone is in a position to mitigate those factors, then perhaps.

Gone are the days when about anyone without much thought could do alright with BTL. I did better than most with a careful plan: right area, hmo, self managed etc. The eventual outcome, great rents, capital increase, selling before CGT rates increase. A combination of judgment and good luck.

I believe that the same opportunity does not exist today as it did 10 or 20 years ago. If someone can find a niche and make a profit in the current environment, fair play to them.

I sold up this summer, money is going into ISAs. Decent fixed income. Minimal effort.