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justthisbloke

How Much Will I Lose Becoming A Btl Landlord?

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I've found the place I want to downsize to. Trouble is sprogs are still hanging around so we won't be moving for a good few years. I've watched these places for years - there's only two of them - and this really is a once a decade chance. No borrowing will be involved in the making of this loss but I'm still torn between heart (buy the bloody place) and head (keep your wonga).

Is landlording the PIA that I suspect?

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I've found the place I want to downsize to. Trouble is sprogs are still hanging around so we won't be moving for a good few years. I've watched these places for years - there's only two of them - and this really is a once a decade chance. No borrowing will be involved in the making of this loss but I'm still torn between heart (buy the bloody place) and head (keep your wonga).

Is landlording the PIA that I suspect?

If you want derision, ask here.

If you want to buy it ask on Singing Pig! ;)

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Go for it, everyone knows letting property is a licence to print money.

Not only that, property only ever goes up in value.

Don't worry about the rumours regarding rises in CGT, it's a con to let clever landlords pick up the bargains as the feeble minded try to unload their pensions. ;)

(Just for the record, this is not advice) :lol:

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Is landlording the PIA that I suspect?

You'd probably lose your dignity and any HPC cred, but as far as the mechanics of it, I expect it depends on how involved you want to be.

In my experience land lords seem to fall into two camps.. those who penny pinch and do everything themselves (usually on the cheap with some bits they got off their mate Dave, who incidentally is the same guy they send round when the tenant stops paying the rent).

The second type do it through an agency and you never hear from them. Agency does pretty much everything.. and then sends Mr landlord the bill.

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You'd probably lose your dignity and any HPC cred, but as far as the mechanics of it, I expect it depends on how involved you want to be.

In my experience land lords seem to fall into two camps.. those who penny pinch and do everything themselves (usually on the cheap with some bits they got off their mate Dave, who incidentally is the same guy they send round when the tenant stops paying the rent).

The second type do it through an agency and you never hear from them. Agency does pretty much everything.. and then sends Mr landlord the bill.

Third type: someone with every trade connection you could ever want (due to his main business) plus a very competent handyman whenever we need him. I still despise him for pricing us out, but at least he looks after our home very well.

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Third type: someone with every trade connection you could ever want (due to his main business) plus a very competent handyman whenever we need him. I still despise him for pricing us out, but at least he looks after our home very well.

the 3rd type is the least likely to have bought at peak prices in my experience

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you can easily lose all your equity, if you borrow 75%

If you are eager to do that, it could be a wonderful "learning experience" for you, and SP will help you to feel good as you navigate thru it all, on you way to getting your equity wiped.

Hopefully this won't happen - I should be able to buy without borrowing.

My instinct is that we can probably expect 15 - 20% falls over the next few years but if there's no gearing then that's all I lose. Although hopefully I should get a bit of rental income even after costs. If it was a geared investment, you're right, I should be planning on losing the lot.

My calculations give a net (of costs - not of tax) yield of 2.01%. That's assuming 15% to agent, 3 weeks per year void, 5% general contingency and maintenance and insurance costs.

CGT shouldn't be an issue as we will live there before it's ever sold.

My real worry is the hassle. Maintaining houses is boring - even if it's the one you live in.

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My real worry is the hassle. Maintaining houses is boring - even if it's the one you live in.

You're assuming 15% to agent and you expect to maintain it yourself? :huh: What does that say about your prospective agent?

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Of all the reasons I can think of for becoming a BTL landlord, yours seems about the most reasonable. In your position I'd probably do the same.

You seem to be more interested in securing your retirement home, rather than worried about any potential capital loss.

You're right to be concerned about the hassle, though. Tenants are complete tw*ts!

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I see reality in your posting. But why buy at all?

he said at the beginning: this is the house he wants to live in when his kids have moved out and he doesn't think another one will come on the market for a decade. In this situation, as you have the money, go for it. Tenants wil give you a reasonable monthly income and you just have to forget about the big wad of cash that's disappeared from your bank balance.

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Is landlording the PIA that I suspect?

I rented my place out for a few years and it was more or less no hassle at all. You employ an agent and he does all the work. You just need to find a decent agent.

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Its a moral question. Given the shortage of affordable properties in this country the right decision is to not add to that social ill by buying investment property. At the moment, BTL investors are a hated minority and that fact may cause social and psychological pressures that you may not want to cope with.

I would make a moral stand and refuse to add to the greed that has led this nation to the brink of financial ruin and social disintegration. Property investment has a lot to answer for.

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Is landlording the PIA that I suspect?

A relative had four BTLs over the last 10 years.

1 - little maintenance, tenants good

2 - lots of maintenance, last tenant was a serial non-payer, damaged property, forcibly removed.

3 - little maintenance, tenants good

4 - little maintenance, last tenant was a long-term non-player for 7-8 months, not passing on housing benefit then left as court action was due to start.

There was lots of capital appreciation during the early boom years to more than cover the hassle but in the last 4 years, they made a net loss.

If I was a landlord, I would want a parental guarantor, even if the tenant was retired!! Without a guarantor, the risks are too high for the landlord. Choose your tenants carefully, it is quite likely they could be made redundant and you will be paying their housing costs.

I would pass on the opportunity.

VMR.

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I've found the place I want to downsize to. Trouble is sprogs are still hanging around so we won't be moving for a good few years. I've watched these places for years - there's only two of them - and this really is a once a decade chance. No borrowing will be involved in the making of this loss but I'm still torn between heart (buy the bloody place) and head (keep your wonga).

Is landlording the PIA that I suspect?

Dont even consider it unless you want your life fecked up by the likes of some of the twats on this site. And if you actually make any money another lot will demand you pay it all in tax. Let them buy their own house, or become social tenants, and keep your life. Let the taxpayer and the state worry about it now.

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Well, you haven't been forceful enough to put me off. Survey happening on Tuesday.

Of course, the real wealth risk comes not from buying this place but from not selling the current oversized pad.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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