Should I invest in index funds or stick to my BTL plan?
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I will almost certainly move back to the UK and am aware that anything down south is off limits. But because I will eventually need somewhere to live, and even if I let it out it will be my only property, I’m still not put off by all the negativity about BTL. Perhaps I’m just stubborn. I suppose I could invest in shares and then cash out in the future when I’m back and ready to buy, but there are no guarantees the stock market won’t crash at the wrong time for me.The fact that you may want to move back to the UK puts a different spin on this for me.
I'd be inclined you look at buying a dwelling for this purpose alone. You will have hassles and costs and all that, but also the certainty that it gives you a basis should you come back. Take a look at political thoughts about guaranteeing tenants the right to stay for ages, as you want to sell when you return.
You could then invest profit from rental income into a fund.
Not saying you should do this, but it's something to think about.
Of course, as a previous poster said, if you want to live in Oxford, it may not help you that much to have bought a house in Newcastle.
As for buying in the north and wanting to move south, there must be some people from up north who moved to London and the south east back in the 80s and 90s, had a career there and now want to move back to where they grew up. They would be absolutely quids in.0 -
bluefukurou wrote: »Do you have any links or evidence for the perceived move towards larger portfolio companies? What do you think are the reasons for the government to squeeze out the little man in favour of big fish?
Perception most likely arises from the fact that the boom in leveraged BTL is over. Property has historically been the preserve of those with capital. Without rapidly increasing property prices building a portfolio of substance is extremely difficult. Taxation changes were neccessary to level the playing field. Between owners and investors. Likewise poor quality housing is in abundance. Given the demands of a fast increasing population in some areas. Division of even average sized properties into bedsits being common place.0 -
Does that mean converting 3 bed houses into HMOs housing six tenants is the way to make money in the current climate?Thrugelmir wrote: »Given the demands of a fast increasing population in some areas. Division of even average sized properties into bedsits being common place.0 -
On re-reading your op I missed the 'up north' part. My assessment is local, in the home counties, where yields are very low and prices now fairly static. The sums are probably different further north but from past experience of BTL I wouldn't consider a non-local property, even fully managed (evaluating the area and changes, getting replacements/work done that's not within the remit of simple recourse to agent, travelling time etc). More doable in practical terms if it's somewhere you're familiar with, and have people there you can trust for ongoing opinion and upkeep work.bluefukurou wrote: »I know one thing, I’m glad I don’t have to find a place anywhere near London or surrounding areas. I’m very lucky in that I have quite a large disposable income, but when I look at the price of property in the south, I doubt I could ever afford to live there. How the young will ever have a chance of buying a place to live unless they are extremely well paid I have no idea.0 -
On buying Vanguard if you are overseas - you can simply buy the shares on the London Stock Exchange through your platform. Vanguard All World ETF for example (which invests in all major stock markets in proportion to their sizes and holds over 3000 different stocks) is available on the LSE as VWRL.L. I have purchased this through my Internaxx platform a few times now.0
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bluefukurou wrote: »Does that mean converting 3 bed houses into HMOs housing six tenants is the way to make money in the current climate?
Seems to be way for some enterprising people. Economic migrants often arrive with very little. An offer of a "job" and reasonably priced accomodation must seem very attractive.0 -
My thoughts exactly. I would only buy in an area I am familiar with and also have family. Even as an expat, I visit home regularly (2/3 times a year), but traveling halfway across the country to deal with things on a holiday doesn't appeal. I know colleagues from the south east who have bought cheap BTL property in the north west, but have no ties to the area at all. I imagine some people can make it work, but with all the anti-BTL regulations coming in, it just seems like an extra potential pitfall.The sums are probably different further north but from past experience of BTL I wouldn't consider a non-local property, even fully managed (evaluating the area and changes, getting replacements/work done that's not within the remit of simple recourse to agent, travelling time etc). More doable in practical terms if it's somewhere you're familiar with, and have people there you can trust for ongoing opinion and upkeep work.0 -
Do you happen to know what minimum investments for popular ETFs are likely to be? I read in a review online that there is a minimum transaction volume of €2,000 per fund, but I can’t find that information on the Internaxx website.On buying Vanguard if you are overseas - you can simply buy the shares on the London Stock Exchange through your platform. Vanguard All World ETF for example (which invests in all major stock markets in proportion to their sizes and holds over 3000 different stocks) is available on the LSE as VWRL.L. I have purchased this through my Internaxx platform a few times now.0 -
Your comment reminded me of this article and Mr.Haliburton.Thrugelmir wrote: »Seems to be way for some enterprising people. Economic migrants often arrive with very little. An offer of a "job" and reasonably priced accomodation must seem very attractive.
https://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10972746/Buy-to-let-millionaires-the-recipes-for-success.html0
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