Post by bg on Sept 6, 2018 18:33:48 GMT
I've got around 10 residential BTL's. I'm not considering buying anymore...not so much because of the current tax regime (that Mail story is about legislation brought in by George Osbourne many years ago now) - although the 3% extra stamp duty does hurt. It's more the possibility of a far left government who I think would look to absolutely hammer anyone with more than one property (and hammer anyone with more than modest assets). In those circumstances its far better to be more liquid so I can shift things offshore if I need to.
I'm actually quite happy with the properties I currently hold. I don't really care about house prices (although they are all probably up 20-40% in value) as I'm not looking to sell and getting regular predictable cheques is very nice. The rental market is very strong and I really can't see that changing whatever happens. The properties I have in London yield 4-4.5%% on what I paid. It's not brilliant but its solid and not something I have to worry about. Tenants in London tend to stay for years and are well behaved. The northern flats I bought yield 6-8%. Better yes but people tend to sign 6 month contracts and leave...that really hits the yield as I have to pay to find someone new, inventories, small void period etc etc. The major downside is the property value is a lot lower. Getting rent for £500 a month (less after fees, service + management charge, ground rent etc) is ok but it's a hassle (as opposed to getting £2k a property)...with hindsight I would go for higher valued properties yielding less to reduce hassle factor. By that I mean a tenant moves out so the agent is calling you, you have to read credit reports, sign contracts, agree datyes, the rent rate etc etc. It's a bit of a hassle if you're only getting £3-400 a month after fees. I don't mind if the rent is £2k though.
I'm actually quite happy with the properties I currently hold. I don't really care about house prices (although they are all probably up 20-40% in value) as I'm not looking to sell and getting regular predictable cheques is very nice. The rental market is very strong and I really can't see that changing whatever happens. The properties I have in London yield 4-4.5%% on what I paid. It's not brilliant but its solid and not something I have to worry about. Tenants in London tend to stay for years and are well behaved. The northern flats I bought yield 6-8%. Better yes but people tend to sign 6 month contracts and leave...that really hits the yield as I have to pay to find someone new, inventories, small void period etc etc. The major downside is the property value is a lot lower. Getting rent for £500 a month (less after fees, service + management charge, ground rent etc) is ok but it's a hassle (as opposed to getting £2k a property)...with hindsight I would go for higher valued properties yielding less to reduce hassle factor. By that I mean a tenant moves out so the agent is calling you, you have to read credit reports, sign contracts, agree datyes, the rent rate etc etc. It's a bit of a hassle if you're only getting £3-400 a month after fees. I don't mind if the rent is £2k though.
