• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Buy to Let - Humour Me

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Buy to Let - Humour Me

    I've had an end of year review of our finances, and looking to the future am considering possibly getting into BTL. This is very much hypothetical at the moment, and not something I would be doing in the immediate future. I know the question of BTL has been asked multiple times, and I'm on dodgy ground asking this in the General forum, but here goes....

    I already invest via pension / S&S ISA, but looking at other ways to generate passive income for the future. I am aware that BTL market currently is not very appealing for many investors right now, but if there was a notable property market crash and you had spare funds you were willing to "gamble" over a longer term, BTL seems as sensible a gamble as any....

    I have tried the Search function and have seen many threads around this, with the general consensus being don't do it/the interest free company to company loan is a bad idea, but I'm struggling to find posts around the why.

    Would anyone care to enlighten me?

    "You're an idiot" / "ask your f***ing accountant" / "stick to IT you melt" replies gratefully received.

    #2
    Originally posted by fiisch View Post
    I've had an end of year review of our finances, and looking to the future am considering possibly getting into BTL. This is very much hypothetical at the moment, and not something I would be doing in the immediate future. I know the question of BTL has been asked multiple times, and I'm on dodgy ground asking this in the General forum, but here goes....

    I already invest via pension / S&S ISA, but looking at other ways to generate passive income for the future. I am aware that BTL market currently is not very appealing for many investors right now, but if there was a notable property market crash and you had spare funds you were willing to "gamble" over a longer term, BTL seems as sensible a gamble as any....

    I have tried the Search function and have seen many threads around this, with the general consensus being don't do it/the interest free company to company loan is a bad idea, but I'm struggling to find posts around the why.

    Would anyone care to enlighten me?

    "You're an idiot" / "ask your f***ing accountant" / "stick to IT you melt" replies gratefully received.
    You're an idiot.

    Comment


      #3
      Stick to IT you melt.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Do you like movies about Gladiators?

        Comment


          #5
          Ask your f***ing accountant.

          Comment


            #6
            Originally posted by AtW View Post
            Do you like movies about Gladiators?
            Never seen it....

            Comment


              #7
              How are you at bleeding radiators?

              Comment


                #8
                Originally posted by BR14 View Post
                How are you at bleeding radiators?
                I'm absolutely hopeless, but that's what a managing agent is for...

                Comment


                  #9
                  Consider the expected yield. 5%?

                  Interest rates are going to be beyond that number a in year or so anyway. You may as well leave your money in the bank. When interest rates move back up the BTL market will slump.
                  "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

                  Comment


                    #10
                    The benefits of BTL have eroded but if not needing a mortgage it may still make financial sense.

                    The government has targeted amateur BTLs forcing many to exit the market, especially if over-leveraged. Read up on 'section 24' for the full details. Some have moved their properties into a Ltd but that has CGT and other implications.

                    New buy-to-let tax: how it works and how to beat it

                    Restricting finance cost relief for individual landlords - GOV.UK

                    I'd keep an eye on the state of BTL into next year and see what else the government proposes that may affect such an investment. There's already the additional stamp duty land tax on additional property purchases beyond your main residence.

                    Also need to work out yields and assess whether property investment will give significantly better returns than say a stock market tracker, when both property and stock markets look to be in 'correction' territory.
                    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

                    Comment

                    Working...
                    X