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Laura

"we Are Going To Buy Two Houses To Rent Out"

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The BTL desire is still around. The above was revealed to us over lunch. Hefty redundancy package on its way & the couple are adamant that renting out houses is the only way to go for income.

The daft part is the tenants of their existing UK home quit two months ago, mildly trashed the place, & they have only had one potential tenant looking since.

We mentioned the aftermath of loon-lending, state of the nation/global economy, the example of Japan etc, the usual HPC material. It meant nothing to them.

"Nothing else brings that kind of income" they said.

This is the fourth couple we have have met/already know in the last four weeks who think this way & we are never the ones to bring the subject up. I think the trigger is when they are discover we don't have a UK property as a 'back-up', & shockingly are not one of the 'pent-up'. I guess they have a 'how does anyone cope without the security of one?' mindset. Plus any (threatening) deviation away from this must be wrong.

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nothing wrong with BTL, as long as you use your own money for the most part.

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nothing wrong with BTL, as long as you use your own money for the most part.

:o

Mods! - This essex person is flaming me again!

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Its. Much better if I use your money

not if im charging you interest and have your main home as a charge.

the shame of failure would be yours.

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On a purely mathematical basis, ignoring the massive immorality of it, if you have a wedge of cash, buying some rental properties outright isn't an appalling investment.

The most you can lose is your money you spend, and you'll always have a house and some land at the end of it. You'll always have an asset of some kind and some income, albeit it might be greatly reduced.

The problem is when people borrow to buy rental properties... it easy o lose everything PLUS lots of other peoples money too.

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Sadly I sort of agree with them.

If I save into a pension fund then I am eventually forced to buy an annuity which dies with me.

Or

I buy a small number of houses and the rent provides the income and I get to pass the asset on.

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Sadly I sort of agree with them.

If I save into a pension fund then I am eventually forced to buy an annuity which dies with me.

No longer true.

I buy a small number of houses and the rent provides the income and I get to pass the asset on.

It's a broken tax-and-benefits system that made that look a better option than investing in the productive economy. Fortunately that's improving.

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Guy in my work is planning to buy a few BTLs.

He's about 50 and thinking towards retirement.

He's on a very good wage (complaining that the 50% tax band could be dropped to 100k and he'd be suffering)

Anyway - he's fanatical about BTL.

for many reasons:

Prices roughly double every 8 years

It's a tangible asset

Rents will always cover the mortgage

It's about picking up and coming areas (he has two in Leeds city centre)

The list goes on and on and on...

As he sees it - for minimal money (back in the good old days of 90% LTV for BTL) you could get a stonking return after costs + the increase in the value of the properties. It's an easy way to make money and has always done so in the past.

Anyway - he only started buying in 2007 ( :huh: ) and reckons he's onto a winner as he is a member of a secretive property club, where he has an industry contact who knows where to get some flats on the cheap. All he has to do is pay a small fee (£1000-£2000) per property and he has instant equity!

I asked him a few weeks back, if he has instant equity - why doesn't he remortgage to buy more and more flats - (I'm thinking of a golden goose farm) - he replied that the banks aren't lending enough :o

Anyway - if he had a windfall - it would go straight into bricks and mortar.

P.S. He's also holding some of the shiny yellow metal as well.

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One well-earning couple on holiday (we didn't know them beforehand) had been buying property for around ten years using their own money.

He revealed to my OH that he had serious issues with the morality of it, but didn't know of any other way he trusted to protect his wealth.

Odd isn't it. Your fellow Brits in a UK restaurant hardly speak, yet abroad some tell almost all in minutes.

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Sadly I sort of agree with them.

If I save into a pension fund then I am eventually forced to buy an annuity which dies with me.

Or

I buy a small number of houses and the rent provides the income and I get to pass the asset on.

Funny you should say that...was told a single retired financial director with no other dependents on a good pension marry a long term good friend so that part of the said pension could be passed on once they had died.....better to make the most of it ;)

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On a purely mathematical basis, ignoring the massive immorality of it, if you have a wedge of cash, buying some rental properties outright isn't an appalling investment.

The most you can lose is your money you spend, and you'll always have a house and some land at the end of it. You'll always have an asset of some kind and some income, albeit it might be greatly reduced.

The problem is when people borrow to buy rental properties... it easy o lose everything PLUS lots of other peoples money too.

Not really a great idea to buy outright when you have to pay income tax on the rental income. Probably better to get a 60% mortgage at a decent low rate, and offset the interest payments against income tax. You can then invest the money left over in some kind of hedge.

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Guy in my work is planning to buy a few BTLs.

He's about 50 and thinking towards retirement.

He's on a very good wage (complaining that the 50% tax band could be dropped to 100k and he'd be suffering)

Suffering?

These people need a reality check.

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Why would you need that,my word is my bond

My word is "poontang"

Is your "Aruldite"?

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Guy in my work is planning to buy a few BTLs.

He's about 50 and thinking towards retirement.

He's on a very good wage (complaining that the 50% tax band could be dropped to 100k and he'd be suffering)

Anyway - he's fanatical about BTL.

for many reasons:

Prices roughly double every 8 years

It's a tangible asset

Rents will always cover the mortgage

It's about picking up and coming areas (he has two in Leeds city centre)

The list goes on and on and on...

As he sees it - for minimal money (back in the good old days of 90% LTV for BTL) you could get a stonking return after costs + the increase in the value of the properties. It's an easy way to make money and has always done so in the past.

Anyway - he only started buying in 2007 ( :huh: ) and reckons he's onto a winner as he is a member of a secretive property club, where he has an industry contact who knows where to get some flats on the cheap. All he has to do is pay a small fee (£1000-£2000) per property and he has instant equity!

I asked him a few weeks back, if he has instant equity - why doesn't he remortgage to buy more and more flats - (I'm thinking of a golden goose farm) - he replied that the banks aren't lending enough :o

Anyway - if he had a windfall - it would go straight into bricks and mortar.

P.S. He's also holding some of the shiny yellow metal as well.

The Wilson daily Wind UP.

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nothing wrong with BTL, as long as you use your own money for the most part.

I agree. It is the highly leveraged 'use other people's money' concept, voiced by the Wilsons, for example, that I would take issue with.

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I'm sure any intelligent property investors stopped buying long ago. Or have even been taking profits. The only ones buying now are the 'homes under the hammer' wannabe property tycoons who will be wiped out in the next few years.

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To be honest...right or wrong, a matter of taste, I couldn't be arsed to use good money to buy a pile of bricks to rent out to some stranger, who may use and abuse, have to pay agents, deal with complaints and repairs not withstanding voids and CGT....there are far better ways to use and spend good money....anything for a profitable quiet life...BTL is not part of it. ;)

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Guy in my work is planning to buy a few BTLs.

He's about 50 and thinking towards retirement.

He's on a very good wage (complaining that the 50% tax band could be dropped to 100k and he'd be suffering)

Anyway - he's fanatical about BTL.

for many reasons:

Prices roughly double every 8 years

It's a tangible asset

Rents will always cover the mortgage

It's about picking up and coming areas (he has two in Leeds city centre)

The list goes on and on and on...

As he sees it - for minimal money (back in the good old days of 90% LTV for BTL) you could get a stonking return after costs + the increase in the value of the properties. It's an easy way to make money and has always done so in the past.

Anyway - he only started buying in 2007 ( :huh: ) and reckons he's onto a winner as he is a member of a secretive property club, where he has an industry contact who knows where to get some flats on the cheap. All he has to do is pay a small fee (£1000-£2000) per property and he has instant equity!

I asked him a few weeks back, if he has instant equity - why doesn't he remortgage to buy more and more flats - (I'm thinking of a golden goose farm) - he replied that the banks aren't lending enough :o

Anyway - if he had a windfall - it would go straight into bricks and mortar.

P.S. He's also holding some of the shiny yellow metal as well.

'Anyway - he only started buying in 2007'

He has a good sense of timing then? :D

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I'm sure any intelligent property investors stopped buying long ago. Or have even been taking profits. The only ones buying now are the 'homes under the hammer' wannabe property tycoons who will be wiped out in the next few years.

I doubt most pensioners who have watched Brown & co attack their savings & bought because they didn't know what else to do think of themselves as property tycoons.

Except for the couple we had lunch with today, the others felt uncomfortable being landlords.

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I doubt most pensioners who have watched Brown & co attack their savings & bought because they didn't know what else to do think of themselves as property tycoons.

Except for the couple we had lunch with today, the others felt uncomfortable being landlords.

You need 10 BTLS at least to even earn an average wage.

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Guy in my work is planning to buy a few BTLs.

...

It's about picking up and coming areas (he has two in Leeds city centre)

Too late to get aboard in Nottingham then?

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  • 140 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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